Market News and Charts for November 14, 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!
EUR/CHF
The pair is expected to breakdown from an uptrend channel support line. The Organization for Economic Co-operation and Development (EOCD) cuts Switzerland’s growth forecast to 0.8% in 2019. This is below the country’s long-term average next year. The OECD cites the increasing risk from low interest rates and international trade tensions as the reason for Switzerland’s economic slowdown. This was despite efforts by Switzerland to diversify its investment to the United Kingdom and China. However, the European economy disappointed investors the most. The OECD said it is slashing the largest trading bloc’s largest group to 2.8% amid the global slowdown. Germany, the largest economy in the bloc, is also on the brink of recession. Today, November 14, the German and French economy will report their third-quarter GDP growth. This will confirm the worries whether Germany might start to enter recession.
USD/CHF
The pair will continue moving lower after it failed to breakout from an uptrend resistance line. The U.S. Congress began its public impeachment hearings against President Donald Trump yesterday, November 14. The impeachment inquiry started following the release of call transcripts from President Trump and President Volodymyr Zelensky. Written on the transcript was Trump asking favor from Zelensky to investigate Joe Biden, a potential candidate of the Democrats. This is expected to affect the American economy and might affect its unemployment rate, which enters its lowest record in September. For these reasons, Trump might pressure Fed Chair Powell to once again cut the country’s benchmark interest rate. Switzerland was one (1) of the only four (4) countries with a negative interest rate. However, economists warned that a U.S. negative rate might have caused the country to enter the economic cycle of depression.
EUR/GBP
The pair is seen to continue moving lower in the following days after it failed to breakout from its resistance line. European Council President Donald Tusk slashed out the United Kingdom and labeled the country as “second-rate player”. This was amid the looming withdrawal of Britain on January 31. Tusk warned that this particular Brexit extension could be the last time that the UK can ask for another extension. The United Kingdom is originally set to leave the bloc on March 29. However, as the EU-UK and their parliament’s relationship narrows, the Brexit deal will not be approved anytime soon. On October 17, the British Prime Minister Boris Johnson and European Commission President Jean-Claude Junker agreed on a trade deal. However, the UK Parliament disapproves with the deal and forces PM Johnson to ask for a Brexit extension. The UK is set to have an election in December, which could further complicate the Brexit process.
EUR/JPY
The pair will continue moving lower in the following days to retest a key support line. The ratification of the EU-Japan free trade deal earlier this year resulted in the creation of the largest trading zone in the world. The trading deal includes the third (Japan), fourth (Germany), fifth (United Kingdom), and sixth (France) largest economies in the world. However, this is also drawing some irked from U.S. President Donald Trump. The first (United States) and second (China) is currently engaged in a tit-for-tat trade war. President Trump is also planning to wage a trade war against Japan and the European Union (Germany-United Kingdom-France). However, Japan and the U.S. had recently signed a bilateral trade agreement, which gave investors some relief. For the E.U., Donald Trump is expected to delay imposing tariffs to the bloc. Today, November 14, Germany, France, and the European Union is set to release their Q3 GDP results.
