quora Market News and Charts for January 20, 2020 | FinanceBrokerage
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Market News and Charts for January 20, 2020

Hey traders! Below are the latest market news and  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!

USD/BRL

The pair failed to breakout from a major resistance line, sending the pair higher towards a major support line. The populist president of Brazil, Jair Bolsonaro, has been leading South America since his election in January 2019. Known as the “Trump of South America”, he was able to gain full support for his plan to revive the largest trading bloc in the continent, the Mercosur, and banned Venezuela from the group. A recent report accuses Bolsonaro of orchestrating attacks to overthrow Nicholas Maduro. This comes at a time where the US has been very critical of the country, backing the opposition leader Juan Guaido to become Venezuela’s interim president. Moreover, Jair Bolsonaro praised the US for backing Brazil to become the newest member of the OECD (Organisation for Economic Cooperation and Development). Washington previously backed Argentina, Brazil’s main economic rival, to become the next member of the group.

FinanceBrokerage - Market News USDBRL ChartUSD/RON

The pair is expected to continue its upwards movement after it bounced back from an uptrend support line. Romania has been the next target of US militarization. The shift in the US defense strategy comes amid the widening gap in the relationship between Washington and Ankara. The United States was already able to establish a strong relation with the V4 Nations (Hungary, Poland, Czeckia, and Slovakia). However, among the eastern bloc, Romania was the most vulnerable. The country was also sitting is a major geopolitical location as it borders Ukraine. In 2014, Russia annexed Crimean, a Ukrainian territory. Ukraine is a candidate for accession in the European Union and the US-led NATO (North Atlantic Treaty Organization) alliance. The US has recently appointed a Resident Legal Advisor to Romania to help the country combat corruption, money laundering, organized crime, and possibly to shrug off any Chinese influence.

FinanceBrokerage - Market News USDRON Chart

EUR/NOK

The pair will continue to move lower in the following days as support for the single currency fades. The European Union is under pressure following the looming withdrawal of the United Kingdom from the bloc. Days before the January 31 deadline, analysts are expecting the UK and the EU to announce whether the two (2) parties were able to come up with a Brexit deal. With the recent win of UK Prime Minister Boris Johnson’s Conservative Party in the general election, analysts predict that the UK will present a tougher deal to the EU in the coming days. This will pressure Brussels whether to give Britain a deal that is better than the trading agreements it has with non-EU members. Norway is one of the EU’s largest trading partners in Europe that is not a member of the 28-member state bloc. Giving the UK a better deal might destroy its relationship with Norway and might result to Norway limiting its liquified natural gas (LNG) export to the European Union.

FinanceBrokerage - Market News EURNOK Chart

 

EUR/HUF

The pair is expected to reverse back in the following days after its rally were exhausted. Germany, the EU’s economic powerhouse, is set to report its Producer Price Index (PPI) in today’s trading session. The report is pivotal as the country is experiencing an economic slowdown and had almost fall into the brink of recession last month. Aside from its domestic issues, Germany as a de facto leader of the European Union, were having hard a time taming EU-member states. The European Parliament recently calls for other EU members to act on Hungary and Poland’s law and judicial independence. The EU had repeatedly lambasted the V4 Nations (Hungary, Poland, Czechia, and Slovakia) over their policies that contradicts EU’s rule of law. In connection with this, Hungarian President Viktor Orban’s Fidesz Party is considering leaving the European People’s Party, the majority party in the European Union, to establish its own party for the whole EU.

FinanceBrokerage - EURHUF Chart

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