Market News and Charts for January 06, 2020
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
GBP/CAD
The pair will continue to fall lower after it broke down from an uptrend channel middle support line. The British pound continues to falter amid the looming withdrawal of the United Kingdom from the European Union on January 31. Today, Britain is set to release major reports that could spell out the worries that investors and traders had with the Brexit. Both the UK Composite and Services Purchasing Managers Index (PMI) are expected to remain below the 50 points. Figures above the 50 points benchmark suggest that the country is in an expansionary phase. Meanwhile, the opposite is true for below 50 points, which suggest that the country is in contraction. In other news, Canada’s economy continues to blossom as report suggest that the country might overtake Brazil as the eight (8) largest economy in the world. The report also added that immigration greatly affect the country’s productivity, thus translating to a better economy.
USD/DKK
The pair is expected to break down from a major support line, sending the pair lower towards an uptrend support line. Demand for the US dollar is expected to weaken in the following days with the rising tension between Washington and Tehran. A war is expected to break out from the killing of Iran’s top general, which could start the beginning of World War III. Since the election of US President Donald Trump, America had made unprecedented moves that shocked to world. Trump withdrawn the US from major pacts and treaties, including the Trans-Pacific Partnership and the Paris Accord. America also withdraw from the INF (Intermediate-range Nuclear Forces) with Russia and Nuclear Deal with Iran. In a recent news, Iran is expected to retaliate against the US after two (2) of its top militaries were killed. Denmark’s relationship with the US continue to decline following Trump’s shocking announcement of its intention to buy Greenland.
GBP/NZD
The pair will break down from a key support line, sending the pair lower toward its 6-month low. New Zealand is expected to reap the benefits from its decision to be the first country to reopen a US consulate in the country. New Zealand was also the first country to agree on a post-Brexit trade agreement with the United Kingdom. Meanwhile, a top UK diplomat in New Zealand said the country will be Britain’s priority once it officially leaves the largest trading bloc on January 31. After three (3) delayed Brexit deadlines, analysts were expecting the country to finally withdraw from the European Union. This was after the majority win of Conservative during the recent UK election, which cements British PM Boris Johnson’s leadership. Aside from the UK, New Zealand has also a trading agreement with the United Kingdom and is a member of the pacific-rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership).
USD/CNH
The pair will continue to move lower towards the downtrend channel support line. The United States and China recently signed the phase one trade deal, which analysts hope could end the trade war between the two (2) largest economies in the world. The deal covered imports and exports from the two (2) countries. However, analysts are worried that the two (2) most advanced countries in the world might need to sign a phase two trade deal with the advances of the fifth generation (5G) network. China currently leads the trend and has been a major pain to US as its allies entered partnership with China’s telecom giant Huawei. US President Donald Trump accused Huawei of cyber espionage for the Communist Party. However, his efforts to pressure US allies, specifically the Five Eyes Intelligence Alliance failed. Moreover, Europe is choosing Huawei as its first choice in building its 5G networks.
