Market News and Charts for February 05, 2020
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will breakout from key resistance lines, sending the pair higher towards its previous high. O January 31, America officially restrict Chinese citizens coming from all parts of mainland China from entering the country. This was amid the continuous spread of the deadly coronavirus abroad. The decision came a month after the US and China signed the phase one trade deal. Analysts estimated that the travel restrictions will cost the US economy of about $10 billion. In line with this, analysts’ projection for the US gross domestic product (GDP) slip to 1.7%, below the 2% target. On the other hand, Chinese Easter Airline has become the first major Chinese carrier to suspend flights to and from the United States. These actions have made the US and Chinese stock market to plummet and their currencies to enter a wild ride. Before these actions, US indices (S&P 500, Dow Jones Industrial Average, and NASDAQ 100) are hitting their all-time highs.
The pair will continue to move higher in the following days to retest its 9-month high. The escalating tension between Russia and Turkey is an opportunity for the United States to improve ties with Turkey. In recent months, the US-Turkey relations fell. This was after Ankara purchased Russia’s S-400 missile defense system. Turkey is a member of the US-led NATO (North Atlantic Treaty Organization). As part of the group, the country was able to purchase US’ most advanced fighter jet, the F-35. America argued that F-35 is not compatible with S-400. On Monday, February 03, Russia-backed Syrian government forces killed five (5) Turkish soldiers. This has put the future relations between the two (2) countries in question. Turkish President Recep Tayyip Erdogan said that the Assad government will face consequences for killing its soldiers. Furthermore, US killing Iranian General Qassem Soleimani is beneficial to Turkey.
The pair will continue to move lower in the following days after it failed to break out from key resistance line. The EU and its member states are set to report Services Purchasing Managers Index (PMI) and Composite Purchasing Managers Index (PMI) today, February 05. On their previous reports, Germany and Italy had positive results for both reports. However, France was not able to keep up with other EU member states. Meanwhile, the Eurowide report for Services and Composite PMI were sluggish. The withdrawal of the United Kingdom, the EU’s second largest economy, will further put pressure on France to cover the UK’s role in the EU economy. On the other hand, New Zealand is among the countries to benefit from Britain’s divorce with Brussels. Ministers from the UK and NZ agreed to further increase ties between the two (2) nations. New Zealand has also good relations with the EU despite the Brexit.
The pair will fail to breakout from a key resistance line, sending the pair lower towards its August 2019 low. The United Kingdom officially leaves the European Union on January 31. This was after two (2) deadline delays since the March 29 original deadline. Australia, Canada, and New Zealand will benefit from the divorce. These countries were former colonies of the United Kingdom and some politicians even call for their integration. New Zealand was the first country to sign a Brexit deal with Britain. Its ministers also highlight the country’s intention to build a long-term relationship with their former colonial master. On the other hand, Australian Prime Minister Scott Morrison was not a fan of a closer Australia-UK relations. He argued that approving a deal with the UK with regards to immigration will violate its own policies on the maximum number of immigrants. Hence, analysts see New Zealand taking more advantage than Australia.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!