Market News and Charts for November 13, 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!
USD/ZAR
The pair will continue moving higher in the following days to retest a key resistance line. South Africa’s economy is under pressure following the tirades from the United States. In a statement, the United States Trade Representative (USTR) said it is reviewing its current dealings with Africa’s largest economy. This includes a duty-free entry of 3,500 products to the United States by the designated beneficiary of the GSP (Generalized System of Preferences). The total exports of the South Africa to the U.S. in 2018 amounted to $2.34 billion. The move by the United States was seen as a response to South Africa’s increasing ties to China. The African region relies on Chinese investments, either through government grants or soft loans. However, economists are worried that these might lead to a debt-trap. In other news, South Africa’s state-run energy utility Eskom was forced to implement several power cuts to cut cost.
USD/RUB
The pair is expected to reverse back and move towards a major support line. Russia is reaping the benefit of the U.S. withdrawal in Syria. The country recently hosted the first ever Russia-Africa Summit, which was attended by 51 African nations. Aside from this, Russian President Vladimir Putin is brokering a deal between Middle East archrivals, Saudi Arabia and Iran. On the other hand, the United States is divided with Russia. Russia was accused of meddling in the 2016 U.S. Presidential Election, which elected U.S. President Donald Trump. Now, he is seeking reelection bid for the 2020 U.S. Presidential Election and he’s been on the move to secure his win. He called Ukraine President Volodymyr Zelensky and asked to investigate Joe Biden, a potential rival. Hilary Clinton, a former presidential candidate hits backed by asking British PM Boris Johnson to release reports linking Russia of meddling in the 2016 British referendum.
USD/ILS
The pair is expected to breakout from a downtrend channel resistance line, sending the pair higher. Israel lost a jailed Russian hacker after he was extradited in the United States. Aleksey Burkov’s petition to not be extradited was rejected by Israel’s High Court of Justice. This was seen as a blow to Israel President Reuven Rivlin, who is seeking greater ties with Russia. Burkov was supposed to be a bargaining chip with an Israel-American woman jailed in Russia. The U.S.-Israel relationship grew since the election of U.S. President Donald Trump. His son-in-law, Jared Kushner, is a Jew and has brokered the deal that resulted to a closer ties between the two (2) countries. President Donald Trump slammed Israel politics for failing to elect Benjamin Netanyahu as Israel Prime Minister. Netanyahu failed to form a government, triggering another election that will allow different parties to unite and support a newly formed government.
USD/CZK
The pair is expected to continue its rally toward its previous high. The Czech army announced that its plans to spend $630 million on U.S.-made helicopters in a bid to replace an obsolete Russian-made aircraft. The transaction will be done in U.S. dollars and the purchase is expected to increase the demand for the greenback. The Velvet Revolution ended the 41-year run of communism in Czech Republic. A decade later, it was admitted to the U.S.-led NATO (North Atlantic Treaty Organization) Alliance. This paved the way for its accession in the European Union in 2004. However, with the threat of the rise of Russian economic, political, and military power, Czechia is going back to the U.S. for support. In the past few years, America increased its military personnel in the eastern bloc and deployed missile defense system. Now, it is planning to sell F-35 fighter jets to the eastern bloc following the fallout of U.S.-Turkey relations.
