Market News and Charts for February 13, 2020
Hey traders! Below are the latest forex chart updates for Thursday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will continue to move lower in the following days toward its January 2018 low. Palestinian leader Mahmoud Abbas cut all its ties with the United States and Israel. This was after he rejected the peace plan presented by the two (2) countries. The conflict between the Arab and Jewish country started 53 years ago. This was after Israeli’s occupation of the West Bank, Gaza Strip, and the Golan Heights. On the peace plan was the agreement of Palestinian demilitarization. The continuous support of America to Israel, politically and economically, is an advantage for the Jews and the Israeli Shekel. In other news, the US is set to report its Consumer Price Index (CPI) report today, February 13. On the recent report, US CPI month-over-month (MoM) advanced 0.1%, below the forecast and previous record of 0.2%. The Consumer Price Index will determine the figures for inflation, which is important for monetary policies created by the Fed.
The pair failed to breakout from a key resistance line, sending the pair lower towards a major support line. Analysts are worried from their forecasted figures for the Consumer Price Index (CPI) report year-over-year (YoY). This was amid three (3) consecutive figures of 2.3% on the report. The US inflation target were between 1.7% and 2.0%. A figure higher or lower than the range will cause a spike or a significant drop in the value of basic goods. The last time the US have reached the target was on December 2017. Meanwhile, Czech Statistics Office for foreign workers, which made up 13% of the labor force, doubled in ten (10) years. The increased productivity and record-level unemployment figures is good for the Czech Koruna. Majority of the foreign workers in Prague were from Ukraine, Slovakia, and Vietnam. The increased US military activity on the eastern bloc will boost employment in eastern European country.
The pair broke out from a major support line, sending the pair lower towards its July 2015 low. Switzerland is having its own Brexit moment. The country will hold a referendum vote for free movement on May 17. Switzerland is a member of the Schengen, which is comprised of EU and non-EU European countries. The Schengen allow its member states to access other member’s border without the need of a visa. For Switzerland, the referendum means losing access to the EU’s Single Market. Immigration in Switzerland reached record of 55,000 in 2019, adding to the 2.1 million of foreigners living in the country. This figure represents overall Swiss population of 8.5 million. A positive result on the referendum will hurt the EU the most than Switzerland. This was due to the recent withdrawal of the United Kingdom from the bloc. Moreover, other EU-member states are also rebelling against the Germano-Franco alliance, hinting the next member to exit.
The pair will continue to move lower after it failed to break out from a major resistance line. The European Union is having a hard time making the United Kingdom submissive to its proposal after the Brexit. After 47 years since its accession to the EU, the UK is once again independent on economic and political matters. Analysts foresee Brussels to suffer the most on Brexit despite anticipating Britain to have some tough times. The two (2) largest economies in the European Union will published their report for Unemployment and Consumer Price Index (CPI). France’s unemployment is at its record low. However, the French government’s policies are increasingly becoming unpopular to labor unions. Meanwhile, Germany’s CPI month-over-month (MoM) will have a high probability of staying in the negative territory. The European Union’s inflation target for all its member states were at +-4.
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