Market News and Charts for October 17, 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!

USD/HKD

The pair is expected to continue moving higher in the following days. This was after the House of Representative approved Hong Kong bill, which further boost Hong Kong protesters’ leverage against China. The bill still needs backing from the House of Senate before the final verdict of U.S. President Donald Trump. The approval came two (2) days after the United States and China reached a trade deal. The deal includes America delaying tariffs to Chinese goods and for China to buy agricultural products. The U.S. was supposed to impose 25 to 30 percent tariff last October 15. Meanwhile, China makes concession as it agreed to buy $40 to $50 billion of U.S. agricultural products. According to Trump, China also commits to opening its market to foreign investors, specifically to U.S. financial services. Three (3) key areas of the negotiations include intellectual property, forced technology transfer, and currency manipulation.

EUR/DKK

The pair is in a pullback following the recent surge in the single currency. The election of Ursula von der Leyen as European Commission president gave the EU-member states a renewed energy. This was amid increasing division with the bloc, particularly concerning the V4 nations. Under the new head of the European Commission, members of the eastern bloc were uplifted. In addition to the recent changes made under Von der Leyen’s leadership was the reappointment of Margrethe Vestager. Vestager led the digital tax on large U.S. corporations operating within the bloc. She even gets the name “tax lady” from U.S. President Donald Trump. However, Denmark was taking one more step. The country calls for a eurowide ban on all diesel and petrol cars by 2040. These efforts reflect the rise of green activist politicians. Switzerland’s Greta Thunberg triggered the moving of EU politician to a green Europe.

EUR/TRY

The pair will fail to sustain its strength, which will send the pair lower towards a key support line. The EU Summit will be bombed by questions beyond Brexit. One issue that EU leaders will tackle during today and tomorrow’s meeting was about Turkey’s advancement in Syria. This was after the United States withdraw from its position, leaving the Kurdish fighters in a vulnerable position. The Kurdish fighters opposed the Assad regime in Syria. They are back by the United States, Israel, and Saudi Arabia. The Assad government, on the other hand, was backed by Russia, Turkey and Iran. The U.S. withdrawal increased the possibility of ISIS fighters gaining their footing in the country. This in turn, threatened a mass migration from the Middle East and African countries to Europe. Immigration is one of the sensitive issues within the EU politics. Angela Merkel’s decision to open the EU borders cost her chancellorship.

GBP/AUD

The pair is expected to continue its rally in the following days. British Prime Minister Boris Johnson agreed to a trade deal with the European Commission President Jean-Claude Junker. This gave investors relief and hope that the UK will not crash from the EU without a deal. The agreed trading deal will still need approval from the European Parliament and from the British Parliament. The deal is seen as the last option for the UK to prevent a no-deal Brexit. This will put pressure on MPs to pass the deal. The deal will calm markets, specifically negotiations between countries with EU deal seeking post-Brexit trade agreement. Australia has been hit by the EU tirades after it signed a post-Brexit trade agreement with the United Kingdom. This resulted to the bloc banning Australian exports with names originating from any location within the EU member states.