Market News and Charts for October 15, 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!
CAD/CHF
The pair failed to breakout from a major resistance line, sending the pair lower towards a major support line. Canada fell two (2) spots to 14th place on global competitiveness ranking. Switzerland, on the other hand, also slips one (1) spot to 5th place. This was amid the global economic uncertainty and a trade war between the two (2) largest economies in the world. The competitiveness in based on “the set of institutions, policies, and factors that determine the level of productivity of a country”. Canada’s economy was hit by external shocks relating to the trade war and its narrowing relationship with China and Saudi Arabia. Switzerland, on the other hand, was able to weight down the slowdown in the European region. The region’s largest economy fell four (4) spots following a looming recession. Aside from this, the bloc was also threatened from the comments made by President Trump that he will impose tariffs against the bloc.
NZD/JPY
The pair failed to sustain its strength, sending the pair lower back to its previous low. Asian economies are in the rise amid a slowdown in economic growth among western countries. Prime Minister Narendra Mondi said he will take up the country’s unresolved issues in the proposed Regional Comprehensive Economic Partnership. The RCEP include members of the ASEAN Plus 6 countries. The proposed partnership will link together Asian emerging economies to further make the region prosper. Japan and New Zealand will benefit from the initiative as they already have trade agreements in Americas and Europe. The two (2) economies are members of the pacific rim trade pact, the CPTPP (Comprehensive and Progressive Trans-Pacific Partnership). They have also trading deals with the United Kingdom and the European Union. Japan has also recently agreed on a trading deal with the United States.
NZD/USD
The pair was not able to sustain its strength and failed to breakout from a major downtrend resistance line. New Zealand was caught on fire between the United and China. This was following the comments made by U.S. Ambassador to New Zealand against China. He said that China was attacking the freedom of speech and is taking away people’s ability to think. The comments came after Houston Rocket tweeted in support of Hong Kong protesters critical of China’s influence in the city. Chinese televisions were now dropping coverage of NBA games as retaliation. Recently, New Zealand Prime Minister Jacinda Ardern met with U.S. counterpart, President Donald Trump. The U.S. president described the meeting “wonderful”. This was amid pressure from Trump to follow Ardern’s move in tightening gun ownership law. Despite this, relationship between the two (2) countries were still uncertain.
USD/ILS
The pair is expected to fail to breakout from a downtrend channel resistance line, sending the pair lower back to a major support line. The United States is under pressure after it abandoned Kurdish fighters in Syria. Saudi Arabia, Israel, and the U.S. supports Kurdish fighters, while Iran, Turkey, and Russia back the Syrian government. The war is a result of a proxy war between Middle East powers, Saudi Arabia and Iran. Israel on the other hand, was in war against Muslim countries. The withdrawal of the U.S. became an opportunity for Russia to increase its influence and presence in the region. Reuven Rivlin will meet his counterpart, Vladimir Putin, to plea for pardon on an Israeli woman sentenced in Russia. This is expected to affect the country’s relationship with the United States. Aside from this, Putin is playing in the Middle East after it expressed its support to Muslim majority countries, including the Kingdom of Saudi Arabia.
