Market News and Charts for November 25, 2019
Hey traders! Below are the latest forex chart updates for Monday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The pair is expected to continue moving higher in the following days. New Zealand is due to publish its Retail Sales report for the quarter and for the year today, November 25. The report reflects the consumer spending habit and activity of Kiwi people. This in turn, will impact the consumption-driven economy and its currency, the New Zealand dollar. The previous result of these reports experienced a slowdown. However, the recent ranking showing New Zealand making it to the seventh spot in 2019 global prosperity ranking is expected to boost hope and NZD investors. On the other hand, the Swiss Federal Council approved a four (4) tax treaties with New Zealand, the Netherlands, Norway, and Sweden. The Swiss-NZ tax treaty protocol adds an arbitration clause. Analysts see this as further integration of these economies. New Zealand is a post-Brexit signatory and a bilateral trading partner of the European Union.
The pair will continue moving lower after it failed to sustain its rally. The Singapore economy has been recovering from the slowdown brought by the U.S.-China trade war. During the third quarter, the city-state recorded a growth of 0.5%, which is higher than the 0.2% forecasted. In line with this, the Singaporean government narrowed its annual growth forecast to 0.5% to 1%, which was a revision from the previous forecast of 0% to 1%. Along with this was the comment by Singapore’s Deputy Prime Minister Heng Swee Keat. He said that the country should build bridges, not walls. This was a direct hit from the U.S. protectionist economic policy. The statement can further be extended to the country preferring to negotiate with China. The RCEP (Regional Comprehensive Economic Partnership) is expected to bind Asia-Pacific economies. The regional pact is composed of the ASEAN 10 Plus Six.
The pair will bounce back from a “Rising Widening Wedge” pattern support line. Hong Kong entered a recession for the first time in a decade. This was amid the month-long protest on the special administrative region that send businesses to close their operation. This was also one (1) of the main blockade towards the phase one trade deal between the United States and China. For years, Hong Kong became a battleground for the communist China and the democratic America. On November 21, Thursday, the U.S. House of Representative passed a bill supporting Hong Kong protestors. This was amid the looming deadline of the U.S.-China trade deal, which was aimed at ending the trade war. However, political economists are expecting U.S. President Donald Trump to veto the bill. On the other hand, the Chinese government warned that it will retaliate if the bill will pass. This is expected to further drag the global economy into uncertainty.
The pair is expected to continue its steep decline, sending the pair lower toward its November low. The single currency is under pressure following several reports from Germany. The largest economy in the European Union just dodged a technical recession. However, worries are still mounting that soon Germany might finally enter a recession. Germany Business Expectations and Germany Ifo Business Climate Index is showing slowdown from their recent reports. And today, investors are waiting if the slowdown will continue. Denmark, on the other hand, is moving away from the United States and closer towards the Germano-Franco alliance. Recently, the Danish government finally approved Russia’s Gazprom Nord Stream 2 pipeline. This pipeline has been a controversy for EU member states. Germany is heavily reliant on Russia’s liquified natural gas (LNG) and the remaining EU countries are worried about it.