Market News and Charts for January 07, 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 was expected to go lower in the following days after it failed to break out of the resistance line. As the world was seen to shift from Democracy to Populism, and from the American supremacy to Chinese and Russian uprising, Canada was being left behind. The new world order started with the election of Donald Trump, wherein the United States pulled out of the global accords to shift towards Trump’s “America First” policy. The trade war between the United States and China weakened most of the emerging economies but also gave birth to the newly industrialized economies. After Trump pulled out of the TPP (Trans-Pacific Partnership), Japan and Australia took the initiative to ratify it last December 30, 2018. Canada is also a member of the ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership). Japan also ratified its trading relationship with the European Union. CPTPP and the Japan-EU Free Trade Agreement was expected to cover 2/3 of the global GDP.
The pair was seen to go lower and revisit its previous low. As the United Kingdom was about to withdraw from the European Union on March 29, UK Prime Minister Theresa May was struggling to pass the deal she negotiated to the UK Parliament after the Members of the Parliament accused the deal of not bringing what the Britons had voted for. The deal states that the United Kingdom will stay from the EU’s Single Currency Market and Customs Union, which makes it harder for the UK to make trading relations with countries outside the bloc as it still needs to follow the EU’s policies with regards to their trading agreement. Despite the Brexit, impending European Union election, and rising populism in the bloc, the European Union still comprises 1/3 of the Global GDP. But the recent ratification of the Japan-EU trade agreement will benefit Japan and the European Union. Japan was a member of two (2) out of three (3) trading blocs that comprise the global GDP.
The pair was expected to continue the downtrend with its recent reversal. The trade war between the United States and China had distracted the two countries from addressing the slowing growth of their economy, and the global growth in general. This prompted Australia and Japan to regain their dominance in the Indo-Pacific region after China extend its arm to influence Pacific Island nations and strengthen their claim on the South China Sea. Australia and New Zealand were both ratifiers of the CPTP (Comprehensive and Progressive Trans-Pacific Partnership), which was expected to account for 1/3 of the global GDP. They are also part of the military integration together with Japan, Canada, the United Kingdom, and the United States. They were also the first ones to express their willingness to make trading relations with the United Kingdom after it will officially withdraw from the European Union on March 29, 2019. However, the impending Australian Federal Election might change Australia’s stance on global issues. Scott Morrison was widely seen to lose during the election.
The pair was expected to break out of the resistance line in the following days after it completed the “Head and Shoulder” formation. The trade war between the United States and China was symbolic for Australia and Canada. Australia is an American ally, but it considers China as its major trading partner. Canada, on the other hand, is another American ally and considers the United States as its major trading partner, but the election of Donald Trump had made the country to consider shifting to its no.2 major trading partner, China. However, between Australia and Canada, Australia was able to maintain a good relationship between the country after it ratified CPTPP (Comprehensive and Progressive Trans-Pacific Partnership) that aims to counter Trump’s protectionism. Canada is also a member of the CPTPP. Australia also banned Chinese technology company Huawei over security concerns, together with the other Five Eyes Intelligence Alliance members, except Canada, which received retaliation from China after it arrested Huawei’s No.2 after being pressured by the United States.
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