Market News and Charts for February 18, 2020
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will move higher in the following days after two (2) months of consolidation. The United Kingdom’s economy is expanding while the Japanese economy is contracting. Today’s employment report, February 18, marks the first for the United Kingdom following the Brexit last January 31. British citizens are going back to their home country as free movement ended along with the Brexit. This will fill the job vacancies in Britain as European citizens also move away from the UK. Despite this, the attractiveness of London as Europe’s financial hub will force major companies to retain their operation in the country. As a result, the United Kingdom’s unemployment rate makes analysts to bet for a stronger British pound. On the other hand, Japan’s imports, exports, and trade balance report will continue to disappoint investors and traders. On the last reports, Japan’s exports and imports plunged by -6.3% and -4.9% respectively.
The pair will break down from a major support line, sending the pair lower towards its October 2019 low. The Canadian dollar will experience some short-term weakness in the following days. This was after 32 Canadians tested positive for the COVID-19 on board of the quarantined ship. In total, there are 454 confirmed cases of coronavirus during their stay at the Diamond Princess ship. The cruise ship is currently under quarantine in Yokohama port in Japan. Japan, on the other hand, has 250 confirmed cases. The Canadian government recently ordered a chartered planned to carry its citizens back to the country to receive treatment. The fear over coronavirus outweigh the poor performance of the Japanese economy. Last month, Japanese trade balance went down to negative 152.5 billion. Both the country’s imports and exports also published disappointing results. Today, February 18, the country is set to publish the updated report for imports and exports.
The pair bounced back from a major support line, sending the pair higher towards a major resistance line. Switzerland is under a diplomatic crisis following its refusal to sign the framework agreement with the European Union. Switzerland is not an EU member state but is able to access the Single Market through a series of bilateral agreements. The framework deal is supposed to incorporate all the existing bilateral trade agreements between the two (2) parties. In addition to this, the country will have its own Brexit moment on May 17. Switzerland introduced a referendum to end its free movement with the European Union. This will result to Switzerland losing its access to the Schengen area. The United Kingdom, on the other hand, proved that there is life outside of the EU. The Brexit made Britain to lose its access to the single market and free movement between members of the largest trading bloc in the world.
The pair will continue to move higher in the following days after it bounced back from an uptrend support line. The recovery of Germany’s car manufacturing industry is helping to boost the single currency. The new three (3) largest economies in the European Union – Germany, France, and Italy – reported positive numbers for car registration. Germany had 19.5%, France at 27.7%, and Italy with 12.5% growth in December, respectively. Australia, on the other hand, was struggling with a slower wage price increase. The higher increase in wages, the higher the inflation. Inflation is one of they key problems or developed economy as lower inflation represents stagnation in the GDP growth. In other news, Australia and the EU are still at odds over Australian export names. Brussels hit Australia with tariffs after its signed post-Brexit trade agreement with the United Kingdom. It also banned several Australian exports bearing any EU locations and terms.
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