Market News and Charts for November 19, 2019
Hey traders! Below are the latest forex chart updates for Tuesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
GBP/CHF
The pair failed to breakout from a major resistance line, sending the pair lower towards a major support line. Switzerland’s trade balance report reached its year-to-date (YTD) high for the month of October. Data shows the difference between its imports and exports reaching $4.02 billion compared to the $2.47 billion forecasted. This is also 133.72% higher from the $1.72 billion for the month of September. The fall in the pair was also supported by the disappointing UK Inflation report. British inflation fell to its lowest in three (3) years this October, which increases the possibility of an interest rate cut. The Bank of England (BoE) currently have 0.75% benchmark interest rate. Meanwhile, Switzerland has the lowest interest rate in the world with negative 0.75%. The Swiss Central Bank Governor Thomas Jordan said that a negative interest rate is essential to the Swiss economy.
CAD/JPY
The pair will bounce back from an uptrend support line and retest its previous high. Japan published a disappointing Import, Export, and Trade Balance reports. For its imports, -1.5% result was better than the previous record of -11.9%, but still in the negative territory. This is also a smaller-than-expected decrease from the -2.8% that analysts were expecting. Its exports, on the other hand, was also a better figure compared to the previous month’s result. The report showed a growth of -5.2% compared to the -8.2% from September. Still, this is wider-than-expected loss from the -4.0% that analysts were expecting. Finally, its Trade Balance, which is the difference between imports and exports, shows a negative $123.0 billion compared to the positive $54.0 billion that analysts were expecting. Japan is also currently engaged in a trade war with South Korea. These reports are expected to drag the Japanese Yen.
GBP/JPY
The GBPJPY pair remains stagnant following mixed results from the United Kingdom and Japan’s reports. The UK economy dodge recession but tallied its slowest annual growth since 2010. At the same time, retails sales rose at their lowest record in a year and a half as businesses prepare for the looming general election and a Brexit deadline. Meanwhile, Japan’s import, export, and trade balance report shows a disappointing figure amid the uncertainty and slowdown in the global economy. Japan is also currently engaged in a trade war with South Korea over a historical conflict. This is expected to drag the already sluggish Japanese economy. The two (2) economies were also particularly hit by the ongoing trade war between the two (2) largest economies in the world, the United States and China. Japan is currently the third largest economy, while the United Kingdom placed sixth, below Germany in fourth place.
AUD/NZD
The pair is expected to continue moving lower in the following days towards a major support line. The two (2) neighboring countries’ central banks are on the verge of cutting their interest rate, but only the RBNZ seems ready. The Royal Bank of New Zealand Deputy Governor Geoff Bascand said that the NZ economy is near the tipping point. This means that the central bank is near cutting its interest rate. The comments came after the RBNZ held onto its current interest rate. Despite this, New Zealand still ranks first among 190 economies in terms of the ease of doing business. The Australian economy, on the other hand, was urged to unleash economic stimulus and packages to stir the economy. Then recent interest rate decisions by the Reserve Bank of Australia was not enough to prevent the economy from flirting with recession. Australia’s interest rate currently sits at 0.25%, its all-time low.
