Market News and Charts for November 06, 2019
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
GBP/AUD
The pair is expected to continue moving lower in the following days. Australian banks are cutting their exposure to the British Pound by $16.2 billion amid Brexit uncertainty. From March to June this year, local banks had already limited their exposure to the UK economy by 20%. This is expected to continue as the withdrawal date looms. Australia is already feeling the pain from the Brexit extension and uncertainty in the UK economy. The country’s cheese exports to the European Union was targeted by the members of the European parliament. Recently, the largest trading bloc banned cheese from Australia using the names associated with any European names or locations. In other news, the United Kingdom warned Australia of Chinese meddling in colleges and universities. In can be remembered that only Australia banned the Chinese telecom giant Huawei among the members of the Five Eyes Intelligence Alliance aside from America.
The pair failed to breakout from the “Rising Widening Wedge” pattern resistance line. Canada is expected to benefit from delaying its signing of free trade agreement (FTA) either with the United Kingdom or the European Union. The Brexit extension puts pressure from post-Brexit signatories who ditched the ratification of their bilateral trade agreement with the EU. Canada, on the other hand, was waiting for the temporary tariff rates to be published by the United Kingdom. This was despite the country receiving a green light from the European Parliament to conduct trading deal with the bloc. Canada is also seen benefiting from its membership on the pacific rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership). The reelection of Canadian Prime Minister Justine Trudeau is also seen as a continuation of the current economic and political strategy of the country.
USD/DKK
The pair is expected to experience some weakness after the recent rally. The decision by Denmark to allow Nord Stream 2 pipeline will further put the country at odds with America. Russia owned Nord Stream 2 pipeline and the largest EU economy heavily relies on Russia’s liquified natural gas (LNG). The decision by the Danish government is aimed at keeping the German economy afloat. This was after the country entered recession amid slowdown on its car manufacturing industry. The U.S.-Denmark relationship began to narrow after Danish Prime Minister Mette Frederiksen refused to talk with U.S. President Donald Trump. Trump is planning to buy Greenland, which is part of the Danish Realm, from Denmark. However, PM Frederiksen reiterated that Greenland is not for sale. Greenland is an important geopolitical location. It is one of the five claimants in the Arctic Ocean and can be used to deter Russian military.
GBP/NZD
The pair failed to breakout from an uptrend resistance line, sending the pair lower towards a major support line. Southeast Asian economies are on the rise amid a slowdown in the Western world. The ASEAN Summit recently held their meeting with primary focus on finalizing the RCEP (Regional Comprehensive Economic Partnership). The RCEP will include the 10 ASEAN countries and the Plus Six (Japan, South Korea, China, Australia, New Zealand, and India). The Russian-led bloc, the Eurasian Economic Union (EAEU), and the United Kingdom is seeking greater ties with the region. Amid the withdrawal of the United Kingdom from the largest trading bloc in the world, the country is seeking to join several trading pacts and groups. Just this year, the UK said it wants to join the pacific rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership).
