Market News and Charts for January 10, 2020
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The pair bounced back from a major support line, sending the pair higher and back to the uptrend channel. Japan published its Leading Index MoM report today, January 10. Figures showed that the third largest economy in the world will continue to suffer from the global economic slowdown and other external events. The index went down by 0.7%, which were lower from the -0.3 reading for the month of December. Despite this, Japan has continued to assume leadership on the international stage for trading agreements. Japan and Australia are planning to conclude the proposed regional trading pact before 2020 ends. The RCEP (Regional Comprehensive Economic Partnership) will be the largest trading pact in the world, surpassing the European Union and the NAFTA (North American Free Trade Agreement) once approved by members to take effect. India was the only country that didn’t agree on the terms of the agreement during the summit.
The pair will continue its week-long decline, which will send the pair lower towards a downtrend support line. The Australian tourism industry is expected to be hit by at least $1.3 billion following the recent announcement by the United States. The US warned its citizens from travelling to Australia as wildfires continues. In line with this, the Sonoma County Fire District posted an image on Facebook last Tuesday, demonstrating the map of Australia to show how massive the fires had escalated. The juxtaposition shows that if the same fires happened in America, most of the US states would be burning. The warning was at the same level as for US citizens travelling to Hong Kong. In other news, the United States is due to publish its Non-Farm Payrolls (NFP) report today. Analysts were expecting a positive result for last month following the surprised 226,000 jobs creation during the December NFP report.
The pair is expected to breakdown from a major support line, sending the pair lower toward its June 2010 low. Australia and Canada have been teaming up to tackle the recent issues affecting these countries. Canada deployed the fifth wave of firefighters to Australia as wildfires in the country continues to affect its citizens. It was estimated that 60,000 square kilometers have been affected by the wildfire, killing 24 people and destroying more than 2,000 homes. In exchange, Australia has supported Canada into pressing Iran to take the blame for the mid-air explosion of a Ukrainian commercial plane. The two (2) countries agreed that Iran might unintentionally shot the plane down. The plane crash happened at the same time Iran fired missiles to Iraqi bases hosting US military personnel. In other news, Canada overtook Brazil and Italy to become the 8th largest economy in the world. Analysts expect the economy to continue to thrive this 2020.
The pair is expected to break down from a major support line, sending the pair lower towards a “Rising Widening Wedge” pattern support line. The possibility of the United Kingdom withdrawing from the European Union by January 31 was at its highest. This was after UK Prime Minister Boris Johnson secured the majority of seats in the parliament with the recent UK election. The Conservative Party won 365 seats out of 650 seats, making this election the largest majority win for the party since 1987. Analysts expected the Brexit to do better for Britain than it is to harm the economy. The Brexit will connect the United Kingdom globally rather than just the EU. Japan, on the other hand, has been leading the international trading pacts after the US pulled out from the rest of the world. However, the third largest economy in the world has been struggling domestically. In December, Japan introduced the biggest stimulus package at $121 billion.
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