Market News and Charts for January 16, 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!

GBP/CAD

The pair will continue to move lower in the following towards the uptrend channel support line. UK car registration for 2019 were up by 3.4% compared to a slump in the data by 1.3% in 2018. However, in a monthly basis, the figures for December were down by 4.9% compared to 9.3% in November. The volatility in the data suggest that the European economies might still be haunted by the slowing German economy. Germany is EU’s economic powerhouse. A slump in German manufacturing data is expected to hurt the UK economy as well. The wound will further bleed as the UK is set to leave the bloc this year, adding uncertainty to Britain’s economy. Canada, on the other hand, is expected to reclaim its throne as the 8^th largest economy in the world, fueled by the influx of immigrants that are pushing the country’s productivity. In addition to this, the country’s central bank hasn’t made a cut yet despite emerging economies racing towards the bottom.

USD/DKK

The pair is expected to breakout from a downtrend resistance line, sending the pair higher towards a key resistance line. Denmark approved a US consulate in Greenland. This was weeks after the country declined US President Donald Trump’s offer to buy Greenland, which resulted in Trump’s cancellation on meeting with his Danish counterpart Mette Frederiksen. Analysts see the change in the mind of the Danes with the increasing alliance between Russia, Turkey and Iran. Most of the EU-member states rely on US-led NATO (North Atlantic Treaty Organization) alliance for protection. However, French President Emmanuel Macron recently introduced plans to militarize the EU. This was followed by the election of Germany’s defense minister Ursula von der Leyen as the new EU Commission president. Norway’s Svalbard has also been held by China and Russia, making Greenland a better option for US to project military might in the Arctic.

GBP/NZD

The pair is expected to fall lower in the following days to eventually break down from a major support line. A recent report stated that a spy claims that New Zealand could be kicked out from the Five Eyes Intelligence Alliance. The Five Eyes is comprised of the United States, the United Kingdom, Australia, New Zealand, and Canada. However, with the rise of China’s 5G technology through the telecom giant Huawei, the alliance could be in danger. The spy said that the rising influence of China in the country could compromise the whole group. In 2019, New Zealand was the first country to pullout on its statement banning Huawei. NZ Prime Minister Jacinda Ardern reiterate that the country will not bow down to US pressure. This move was followed by the UK. Now, Britain was on the spotlight after it announced its plan to use 5G equipment from the Chinese telecom giants. In other news, New Zealand is expected to benefit from the looming Brexit.

USD/CNH

The pair is expected to bounce back from a downtrend channel support line, sending the pair higher toward the channel’s resistance line. Figures from Chinese gross domestic product (GDP) for the year was stagnant with 6.0%. This was the primary reason for skepticism in the Chinese economy as slowdown cripples on the second largest economy in the world. The signing of the US-China phase one trade deal was a win for the United States. President Donald Trump was able to bend the Chinese government to make a deal with America after he accused China of unfair trade practices. Loans are also increasing at $1.14 trillion, with the highest loan being recorded at $3.23 trillion. Meanwhile, the US also published its Core Retail Sales report for December showing progress at 0.7% from 0.1% in November and above expectations of 0.5%. The boost came from the holiday seasons and shopping events like Black Friday and Cyber Monday.