Market News and Charts for January 15, 2020
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
USD/HKD
The pair bounced back from its 34-month low, sending the pair higher towards a major resistance line. The United States and China is due to sign the phase one trade deal today, January 15, ending their year-long trade war. Easing tension between the two (2) largest economies in the world is expected to increase optimism among investors and traders. Hong Kong has become a pawn for the United States and China during their trade war. China is using the special administrative region (SAR) to defy US sanctions. America is treating Hong Kong as a separate trading entity from China when it comes to trade. Meanwhile, the US is using the SAR to lay threats against China. On several occasions, American flags are being spotted on the protests, leading China to accuse America of orchestrating the protests. With the re-election of Taiwanese President Tsai Ing-Wen, support for Hong Kong independence is further increasing
EUR/DKK
The pair failed to break out from a major resistance line, sending the pair lower towards a key support line. The ailing German economy has been affecting the overall economic health of the European Union. On its recent report, the bloc showed an improvement on its Consumer Price Index (CPI) in monthly and yearly basis. However, the results failed to beat analysts’ estimates, which is expected to drag the single currency in today’s session. Aside from this, Nordic countries are at odds with Brussels over its plan to introduce a minimum wage among EU-member states. Nordic countries have the highest minimum wage among other members of the European Union. In other news, India is teaming up with Norway to make the country and its economy green. The partnership was one of the most pivotal trading relations that Denmark had outside the European Union. This can open Denmark more opportunities aside from EU-member states.
EUR/TRY
The pair will continue to fall lower in the following days towards a major support line. Turkey is hoping for any progress this 2020 on its accession bid to the European Union. This was after the diminishing relationship between Ankara and Brussels. The 28-member state bloc accused Turkey of human violations and abuse of power. In addition to this, the European Union and other western power condemned Turkey’s participation in Middle East wars. Despite this, Turkey holds the card against the European Union. Immigrants affected and displaced by war are seeking entry to the European Union and Turkey is the bridge. Turkey is located between Europe and Asia, often dubbed as the gateway to Asia/Europe. This gave Turkey a strong position on negotiations when it comes to refugee aid from the EU to prevent a surge of immigrants inside the bloc. Turkey is also forging alliance with Russia and Iran, angering the western countries.
GBP/AUD
The pair is expected to continue moving lower in the following days towards the “Rising Widening Wedge” pattern support line. UK report for Consumer Price Index (CPI) is a disaster. For its monthly CPI, figures showed a flat improvement from prior result. This is also lower from analysts’ expectations. The same thing is true for Britain’s yearly CPI report. The results of 1.3% is a slowdown from the 1.5% in the previous year, also lower from the 1.5% growth expectations. Following the recent win of Prime Minister Boris Johnson on the UK election last December 12, Britain is now a step closer towards Brexit. Johnson promised to drag the UK out of the EU once he gained the majority seats in the parliament. UK’s win is also a win for Australia after it received a visa-free agreement with Britain on the post-Brexit trade. This could also open the possibility of free movement among CANZUK (Canada-Australia-New Zealand-United Kingdom) countries.
