Market News and Charts for January 21, 2020
Hey traders! Below are the latest market news and forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
EUR/RUB
The pair is expected to breakdown from a major support line, sending the pair lower toward its 28-month low. President Vladimir Putin is consolidating his power with the recent reshuffling of the Russian government. On January 15, then Prime Minister Dmitry Medvedev announced his entire government’s resignation on national television following recommendations from Putin. This was amid the warming Russia-EU ties and Russia’s meddling on the on Libyan civil war. In line with this, Brussels is planning to start an arms embargo targeting Libya to prevent further escalation. This move by the Russian president was in addition to its recent selling of S-400 missile defense system to Turkey, a member of the US-led NATO (North Atlantic Treaty Organization) alliance, the meeting between archrivals Iran and Saudi Arabia, and the first-ever Russia-Africa Summit attended by 52 African countries.
EUR/PLN
The pair will continue to move lower in the following days toward its previous low. As the United Kingdom is about to depart from the European Union on January 31, a possibility of a new country leaving the bloc is increasing. A resolution calling for Poland to respect the rule of law was passed with 446 votes to 178 and 41 abstentions, warning the former communist party of triggering Article 7 (1) of the EU Constitution. The Polish government on the other hand, warned that increasing pressure from the EU and its meddling in the country’s affairs might result to Poland eventually leaving the bloc. Despite this, Brussels is trying to hold everyone after it backs Poland against Russian accusation that the country started the World War II. This was amid the warming relationship between Russia and the European Union, specifically with the EU de facto leaders French President Emmanuel Macron and German Chancellor Angela Merkel.
EUR/SEK
The pair is seen to reverse back following a series of weak candles. Sweden celebrated its 25th year of accession to the European Union this month, together with Finland and Austria. They became the 13th, 14th, and 15th Member States of the EU. However, the celebration was market with a rift between the Nordic countries and Brussels. The European Union wants to implement a Eurowide minimum wage, which will hurt rich countries in the Nordic with high minimum wage. The plan of the European Commission was its first step towards creating a framework for minimum wage to be adopted by all EU Member States. However, this will destroy the century-old models of collective bargaining between the Nordic countries and the labor unions. This will eventually result to a disruption among member countries with a lower or higher minimum wage requirements. The bold policy was introduced by European Commission President Ursula von der Leyen.
EUR/CZK
The pair will continue to fall lower in the following days toward its 87-month low. With the rising influence of the CEE (Central and Eastern Europe), particularly the Visegrad Group, inside the European Union, leaders of each country are now disrupting the status quo in Brussels and are going head-to-head with the EU de facto leaders. With the election of Ursula von der Leyen as the new European Commission president, she gave Hungary a Vice Presidential role for Values and Transparency. Vera Jourova recently served as the Commissioner for Justice, Consumers, and Gender Equality. Meanwhile, Hungary got the Expansion portfolio and Poland for Agriculture portfolio. Czech Republic is now supporting the candidacy of Bosnia-Herzegovina both for its accession in the European Union and the US-led NATO (North Atlantic Treaty Organization) alliance. This will further put the country at odds with Germany and France, the EU leaders.
