Market News and Charts for February 07, 2020
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!
EUR/HUF
The pair will reverse back in the following days towards a key support line. The UK, 5th largest economy in the world and 2nd in Europe, officially withdraw from the EU on January 31. Brexit Party leader Nigel Farage predict the collapse of the European Union in ten (10) years. The comment came on his last day in the EU Parliament, just two (2) days before the UK leaves. The comment is timely as the eastern bloc rallies against the Germano-Franco leadership in the bloc. It also came during the time when Germany and France’s economy is experiencing a slowdown. The two (2) countries will report their export and import figures for the month of January today, February 07. December’s results were disappointing, showing figures for the trade balance declining. This means that imports are higher than exports, a negative sign for the euro. Hungary and its fellow V4 members were the countries with the highest economic growth in the EU.
EUR/RUB
The pair will continue to fall lower in the following days after it failed to breakout from a downtrend channel resistance line. Geopolitics have changed following the election of US President Donald Trump. He became the face of populist leaders rising across the world. This became problematic with traditional allies, specifically with the European Union. Germany has since then increased its ties with China while France move closer with Russia. President Emmanuel Macron went on saying distancing to Russia was a major error for the EU. 2019 has been a challenging year for the EU’s foreign policy. This was after Russia increased its holding of Crimea, a Ukrainian territory. Ukraine is an official candidate of EU enlargement policy. Meanwhile, Belarus and Serbia are moving closer to Russia. These countries were in talks with the EU to become future candidates for accession on the largest trading bloc in the world.
EUR/PLN
The pair will retest a key support line before heading towards its previous low. A Polish government official said that “Polexit” will be a last resort if the EU continues to undermine Poland’s sovereignty. The comments came after the European Union calls for other EU-member states to pressure Poland over its rule of law violations. The Law and Justice Party (PiS) introduced a law lowering the retirement age of judges for both genders. The law will remove half of the sitting judges and will be an opportunity for the PiS to put a judge loyal to the party. Poland is also among the country mentioned by Brexit Party leader Nigel Farage to be the next member to exit the EU. On the other hand, President Emmanuel Macron said he is looking for Poland to join the Germano-Franco alliance in leading the EU. The move will hopefully ease the tension between the Western and Eastern Europe. Poland will have the next presidential election this year in May.
EUR/SEK
The pair failed to breakout from a major resistance line, sending the pair lower towards its previous low. The Swedish Krona will be stronger in coming sessions after it ended its five (5) year negative rates experiment. Sweden was then among the only four (4) countries with a negative interest rate. The other countries included were Denmark, Japan, and Switzerland. Sweden will be one (1) of the countries that will prevent a federated Europe. One reason for the United Kingdom’s withdrawal from the European Union was that the EU was taking sovereignty from its members. The commission of Ursula von der Leyen recently introduced a bill seeking to establish a common minimum wage among its members. Sweden is the first to counter this idea as it will hit rich EU countries with high minimum wage and has an agreement with labor unions in the country. For these reasons, the Swedish Krona will outperform the single currency.
