Market News and Charts for January 24, 2020
Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair will continue to move lower in the following days towards a major support line. The UK reports for today’s trading session will reflect the uncertainty following the win of PM Boris Johnson’s Conservative Party. His win meant that the United Kingdom would leave the European Union on January 31. However, worries remain as analysts expected Johnson to drag the UK out of the EU even without a deal. In a recent news, PM Johnson was able to secure the approval of the British Parliament for his Brexit deal. Analysts anticipate a contraction in today’s report. On the other hand, the US is still weighing down global economic uncertainties. This was amid its above 50-points figures for Manufacturing, Markit Composite, and Services Purchasing Managers Index (PMI) reports. However, weaker data is in hindsight following the below 150,000 jobs creation report for the month of December.
The pair is heading towards a major support line after it broke out from an uptrend channel support line. The EU’s largest economies – Germany and France – will be reporting their Manufacturing, Markit Composite, and Services Purchasing Managers Index (PMI) today. The reports will be weaker following UK Prime Minister Boris Johnson’s Conservative Party won on the December 12 election. His majority win means the UK Parliament can no longer ask him for a Brexit extension. This, in turn, grows to pessimism among euro traders. A weaker report will further drag the German economy into recession. On December, Germany was able to dodge a technical recession. However, worries remain that the economy might soon be heading into recession. The US economy, on the other hand, has been reaching records for its indices. This was despite the on-going impeachment trial for President Donald Trump.
The pair will continue its upward movement in the following days and reach its 9-month high. Japan’s export dropped for the 13th consecutive month. This was despite the economy signing major deals and agreements. In 2019, the country led the ratification of the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership), together with Australia. This was after the United States left its Asian economic policy, a major shift towards “America First” policy. Japan also ratified the EU-Japan Free Trade Agreement (FTA), which became the largest trading zone in the world. In addition to this, the Japanese government cut its business investment outlook, a blow to Japanese yen investors. On the positive side, Consumer Inflation report for the month of December surged to 0.7%. However, this figure was still far from the Bank of Japan’s (BOJ) inflation target of 2%. In line with this, the central bank feels the pressure to further cut rates.
The pair will break out from a major support line, sending the pair lower towards a downtrend support line. Israel will continue its economic boom this 2020 after it signed the EastMed Pipeline Deal with Cyprus and Greece. Once implemented, the 1,200-mile-long Eastern Mediterranean pipeline will be the longest underwater pipeline in the world. This will run from the Israel’s Levantine Basil offshore gas reserves to Cyprus, through the island of Crete, and then to Greek mainland. This will bypass Turkey who is the sole supporter of the Turkish Republic of Northern Cyprus. 2019 has been a record-breaking year for Israel following the surge in technology, tourism, exports, and other industries. Meanwhile, its relationship with the United States continues to falter. This was after Prime Minister Benjamin Netanyahu failed to secure a coalition government. Meanwhile, President Reuven Rivlin is increasing the country’s ties with Russia.
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