Market News and Charts for December 20, 2019

Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!

USD/HUF

The pair is expected to reverse back towards a major support line. US reports for today, December 20, were mixed. Data showed personal income of Americans for the month increased by 0.5% from 0.1% in October and higher from the 0.3% that analysts were expecting. Despite this, figures showed Americans show a little progress from 0.3% from the previous month to 0.4%. The country’s GDP also remained flat from its previous report and lower from analysts’ expectations. These figures confirm a looming recession on the biggest economy in the world. Meanwhile, the US is still building its influence in Europe with the Visegrad Group – Hungary, Poland, Czechia, and Slovakia. Following the rise of the eastern Europe, the V4 nations were able to secure major positions on the new European Commission, Hungary was tasked for the EU Enlargement portfolio. The last country to ascend in the European Union was Croatia in 2013.

USD/MXN

The pair will continue its steep decline in the following days to reach its 9-month low. The House of Representative finally passed US President Donald Trump’s ratified NAFTA (North American Free Trade Agreement), also known as the USMCA (United States-Mexico-Canada) deal. This was a day after the same house voted to impeach President Trump. Meanwhile, the House of Senate will finalize the deal in 2020 before President Trump can sign the ratified deal into a law. However, analysts were worried that there might be a lot of changes to the original deal as NAFTA gets politicized. The deal was one of Trump’s promises during the 2016 US Presidential election and is seen as a major key toward his reelection for the 2020 election. The deal is expected to benefit the agricultural sector, which has been hit by the US-China trade deal. The signing of the phase one trade deal is also expected to benefit the US economy in the long-term.

USD/NOK

The pair is expected to continue its downward movement towards an uptrend channel support line. The United States is losing western Europe to China. This was amid Norway choosing China’s telecom giant Huawei for its 5G network to be rolled out by 2020. The United Kingdom has also withdrawn its previous statement banning Huawei as US President Donald Trump pressures the Five Eyes Intelligence Alliance. Germany will also proceed with the installation of Nord Stream 2 which is owned by Gazprom, a Russian energy company. Norway’s Svalbard, the northernmost inhabited area is also dominated by China and Russia. Norway was among the five (5) countries competing in the territories in the Arctic region. Analysts predicted the ice in the region to melt at a faster pace as global warming continues to affect the climate. The announcement by Trump to buy Greenland from Denmark has also affected its relationship with other European countries.

USD/PLN

The pair will continue to fall lower in the following days towards an uptrend support line. Pressure is increasing for the United States to guard the Baltic countries against the rising Russian military. This 2019, the United States and Russia withdraw from the 1987 nuclear pact treaty, the INF (Intermediate-range Nuclear Forces). This was after US President Donald Trump accused Russia of violating the agreement that prevents the two (2) nuclear-armed countries from developing next generation of nuclear warheads. In line with this, the United States has increased its military personnel in the country and has made Poland the new recipient of F-35 fighter jets and THAAD (Terminal High Altitude Area Defense). This was after the fallout of the US-Turkey relations following Ankara’s decision to purchase Russian-made missile defense system. Turkey is a member of the NATO (North Atlantic Treaty Organization) Alliance.