Market News and Charts for November 07, 2019
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!
USD/CNH
The pair is expected to continue moving lower in the following days after it broke out from its support line. The United States and China finally found themselves on a common ground following the announcement of their phase one trade deal. This is expected to end the month-long trade war between the two (2) largest economies in the world. The two (2) countries said they are looking forward to finalizing the deal until November 16. However, as the date looms, analysts expect the deal to be delayed until December. The second wave of tariffs by the U.S. to China is also scheduled by December. In other news, fewer Chinese are now visiting the United States. Aside from that, Chinese shoppers said they will move away from buying U.S. brands ahead of Alibaba’s Singles Day Event. Furthermore, the bill passed by the U.S. Congress in support to Hong Kong protesters could further complicate the negotiations.
USD/TRY
The pair failed to breakout from its resistance line, sending the pair lower towards a major support line. The U.S. withdrawal in Syria is a shame to the largest military power in the world. In October 17, America and Turkey agreed on a ceasefire in northeastern Syria, just a week after President Trump withdraw U.S. troops. This paved the way for Turkey to engaged in a military operation to the Kurdish-led area. The U.S. back the Kurdish fighters during the Syrian civil war but left them to Turkey. The actions by Turkish President Recep Tayyip Erdogan triggered President Trump to impose tariffs against the country. However, Turkey isn’t backing down. President Erdogan is expected to visit the White House on November 13. This was seen by political analysts as a win for Turkey who lost the European Union with its actions. These events showed a declining U.S. military power and influence.
EUR/BRL
The pair is expected to continue its rally after bouncing back from the channel’s support line. Amazon indigenous leaders seek support from the European Union to scrap its planned trade deal with the Mercosur bloc. This was amid the Brazilian government’s reluctance to recognize the importance of the Amazon rainforest. In June, German Chancellor Angela Merkel and French President Emmanuel Macron slammed Brazilian President Jair Bolsonaro during the G20 Leaders Summit in Osaka. These were also the same time wherein the EU and Mercosur signed a draft trade deal. This will open the largest trading bloc in South America and largest trading bloc in the world. The negotiations took over 20 years to present a draft deal. However, the issue on Amazon rainforest could put the negotiations back at the start. This is expected to hurt Brazil’s economy as it will miss the opportunity to expand its trading deal in Europe.
USD/BRL
The pair will continue moving higher in the following days after it broke out of the channel’s support line. Brazil is expected to vote for the first time on U.S. resolution condemning the United States’ sanctions and embargo against the communist-led Cuba. The country’s decision to support the United States will further move Brazil closer to the United States. Earlier this year, U.S. President Donald Trump and Brazilian President Jair Bolsonaro used their sons to further improve their relations. Their sons will represent each other’s countries to the United States and Brazil. Meanwhile, Brazil cancels a presidential decree than bans sugarcane cultivation in the Amazon rainforest. The move was criticized by environmentalists and by the indigenous people in the Amazon. The leaders are now calling for the EU to cancel future talks regarding the EU-Mercosur deal. This issue is expected to tarnish a draft deal that took 20 years to negotiate.
