Market News and Charts for January 09, 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!
EUR/GBP
The pair failed to breakout from a downtrend channel resistance line, sending the pair lower toward its previous low. The European Union and the United Kingdom prepares for their future relationship amid the looming Brexit. Britain is set to leave the largest trading bloc in the world on January 31, 2020. Analysts expect British Prime Minister Boris Johnson to drag the UK out of the EU after he was able to secure the majority seats in the UK Parliament. On the other hand, European Commission President Ursula von der Leyen said the bloc’s relationship with the United Kingdom will never be the same once the UK was officially out of the EU. Despite this, she said her commission is willing to negotiate a zero-tariff trade deal with Britain. However, analysts said the move by Von der Leyen was a desperate one as the EU’s economic powerhouse, Germany, is flirting with the possibility of a recession.
EUR/JPY
The pair bounced back from an uptrend support line, sending the pair higher towards a major resistance line. The EU-Japan free trade agreement (FTA), the world’s largest trading zone, took effect last January 01. The event is expected to boost the Japanese yen and the single currency in coming sessions. Moreover, the two (2) parties signed a new trade deal that reduces tariff on US beef. The phase on trade deal between the United States and China is also a positive event for Japan and the European Union. Despite the success on international trades, the EU and Japan face challenges in their local economy. Germany, the bloc’s largest economy, is flirting with negative growth that could possibly lead into recession. Meanwhile, Japan recently introduced $121 billion stimulus package as the risk of recession rises. Quantitative Easing (QE) is adding new money into the economy. As the number of money supply in circulation increases, its value depreciates.
USD/CAD
The pair is seen to reverse back after a formation of a weak candle. The US dollar was dragged by the prospect that the House of Representative’s version of the ratified NAFTA (North American Free Trade Agreement) was not in line with the original deal introduced by US President Donald Trump. The NAFTA, also known as the USMCA (United States-Mexico-Canada), is a key policy for the reelection of US President Donald Trump on the 2020 Presidential Election. Analysts see this as the same reason for the passing of the phase one US-China trade deal. The passing of these deals was vital as President Trump faces impeachment proceedings. Meanwhile, Canada has been exploring other trading deals outside the US-Canada relations. In a report, China is close to becoming Canada’s largest exporter for live lobsters. In other news, analysts were still looking for any additional information on the crashing of a Ukrainian jet that killed 63 Canadians.
NZD/USD
The pair is expected to continue to slip pass an uptrend channel support line. New Zealand is considering to withdraw 45 New Zealand Defense Force in Iraq as tension between the United States and Iran continue to escalate. New Zealand is not a member of NATO (North Atlantic Treaty Organization) Alliance but is a member of the intelligence-sharing group Five Eyes Intelligence Alliance. New Zealand participating in a war is not good for its new strategic foreign policy of neutrality. New Zealand abstained from pressures to take sides between the Maduro government and opposition leader Juan Guiado. At the same time, the country withdraws from its earlier statement banning Chinese telecom giant Huawei. Switzerland is considered as the most neutral country in the world, having not participated as a member of the United Nations until 2002. Despite being at the heart of Europe, the country hasn’t been a member of the European Union.
