Market News and Charts for January 30, 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!
The pair will bounce back from a major support line, sending the pair higher to retest its previous high. The United Kingdom is due to leave tomorrow, January 31, from the European Union. Despite uncertainties arising from the withdrawal, analysts are optimistic on the post-Brexit UK. This was amid the slowing economic growth in the EU, coupled with the German economy nearing to fall into recession. The EU is also struggling to prop up its economy despite introducing quantitative easing measures and below zero interest rate. Meanwhile, the UK Nationwide Housing Price Index (HPI) is stable at 0.5%, beating the 0.3% forecast and 0.1% record from the previous month. On the other hand, Japanese bonds are surging while its stock market plummets. This movement is an indication that investors are worried about the short-term performance of the third largest economy in the world.
The pair will spike in today’s trading session and retest a major resistance line. The three (3) Japanese evacuees from Wuhan, China tested positive for coronavirus stirring fears among citizens. As of today, January 30, there are 170 people who died from the virus while cases continue to rise to 7,700. China has the highest recorded traveler to Japan compared to other countries and is the highest spender. With the outbreak of the deadly virus, tourism industry will suffer the most. Federal Reserve Chairman Jerome Powell further noted that the virus poses risk to the global economy. Foreign investments in Japanese stocks entered to its lowest since September 2019, while bond rates are flying. In other news, US President Donald Trump signed the ratified USMCA (United States-Mexico-Canada) to replace NAFTA (North American Free Trade Agreement). The expanded deal will benefit the members of the multilateral trade deal.
The pair will continue to move higher in the following days after it prevented touching a key support line. The pound, franc, and the euro will dominate tomorrow’s trading session for currencies. January 31 is the date set for the United Kingdom to leave the European Union. This will be the first time that an EU-member state will withdraw from the bloc, making these event historical. In 2016, the British pound hit its 31-year low as uncertainty creeps among investors. However, with PM Johnson making the British Parliament bend to his will and sign the Brexit deal, the opposite will happen to the British pound. Confidence in the currency will return with a deal on the future relations between the UK and the EU sealed. As a safe currency, however, the Swiss Franc will lose its momentum and will be dragged by the stronger pound. Economic expectations for the Swiss economy in the next six months are also plunging.
The pair will continue to surge in the following days towards a major resistance line. The European Union is due to publish major reports in today’s trading session. Included in the report were the months that the European Union experienced the height of economic slowdown. Its largest economy, Germany, still flirts with recession. Despite the slump on the EU member states’ economic performance, however, the euro will outperform the Australian dollar. Australia is facing economic crisis for several reason inside and outside the country. Wildfires continue to claim lives of local animals and negatively impact its tourism industry. The country is also in fight with the European Union when it comes to trade agreements. And lastly, the country’s tourism will continue to be dragged by coronavirus outbreak. As the UK and the EU signed a trading deal, the economic impact of Brexit tomorrow will have lesser impact on both parties.
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