Market News and Charts for October 18, 2019
Hey traders! Below are the latest forex chart updates for Friday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
GBP/CAD
The pair is expected to continue its rally after it broke out from major resistance lines. Only four (4) days remain before Canadians will cast their votes to elect the country’s next prime minister. Among the leading candidates are Justin Trudeau, leader of the Liberal Party, and Andrew Scheer leader of the Conservative Party. The election is expected to be tight following the recent scandal where the incumbent prime minister was involved. Trudeau was accused of pressuring then Justice Minister to drop cases against SNC-Lavalin. On the other hand, Scheer refused to explain how he was able to travel in the U.S. without a valid American passport. It was illegal for U.S citizens – including dual nationals – to enter or leave the country unless they have American passports. Britain, on the other hand, got its divorce deal approved by British PM Boris Johnson and European Commission President Junker.
USD/DKK
The company broke down from a major support line, sending the pair lower towards a key support line. Denmark holds the key towards the strength and weakness of the United States in Europe. Denmark was the only country delaying the installation of Nord Stream 2 pipeline in Europe. Nord Stream was owned by Russia and Germany heavily relies on the company for the supply of liquified natural gas. Denmark requested help from U.S. energy companies to take cover of Germany’s natural gas supply gap. Aside from this, Denmark owned Greenland through the Kingdom of Denmark. Greenland is a strategic location for the U.S. The country became a military base for America during the cold war between the United States and the Soviet Union. It is also a claimant in the Arctic ocean. Finally, Denmark’s Margrethe Vestager gained the name “tax lady” from President Trump after it hit U.S. companies with digital taxes.
GBP/NZD
The pair will experience short-term weakness in the following days, sending the pair lower towards a major support line. New Zealand is expected to benefit from the looming withdrawal of the United Kingdom from the European Union. It was the first country to express interest in signing post-Brexit trade agreement with Britain. At the same time, the country is on a trade agreement with the EU. Aside from this, the comments made by the New Zealand National Party and Opposition leader is expected to benefit the country. Simon Bridges said New Zealand wasn’t doing enough to secure free movement deal with the post-Brexit United Kingdom. Following the deal agreed by PM Johnson and President Junker, New Zealand expects soft trade restriction among parties involved. The withdrawal of the UK from the EU is also seen as a possibility of integration among CANZUK (Canada-Australia-New Zealand-United Kingdom).
USD/CNH
The pair is expected to bounce back from a major support line, sending the pair higher toward its previous high. The United States is winning the trade war against China. Recent data showed China’s economy experiencing the slowest growth since 1992 with only 6% GDP growth. The report came only a week after the U.S. and China agreed on a phase one trade deal. The partial deal includes the U.S. delaying tariffs scheduled this October. On the other hand, China will buy $50 billion worth of agricultural products. However, China said a trade deal will only be reached once the U.S. pulled out all pending tariffs. This includes the 20%-30% tariffs scheduled to be imposed against $300 billion worth of Chinese goods. Despite this, the two (2) countries haven’t talked about the uprising of Democratic protesters in China’s administrative region. The House of Representative recently passed a bill supporting Hong Kong protesters.
