Market News and Charts for November 7, 2018
Hey traders! Below are the latest forex chart updates for Wednesday’s sessions. Learn from the provided analysis and apply the recommended positions to your next move. Good day and Good Luck!
The relationship between the US and its ally Saudi Arabia had come to a test after the killing of a Saudi Arabian citizen and US resident Jamal Khashoggi. US President Donald Trump was pressured by the international community to put sanctions to Saudi Arabia as investigations led that the Kingdom was behind the murder of the Washington Post journalist. We are expecting the dollar to be firmer against the Saudi Riyal as the Democrats are seen to be winning the House of Representative while Republican is seen to rule the House of Senate.
A Democrat in the House of Representative will prompt an investigation with Trump’s asset, including the Russian meddling of the 2016 US Presidential Election. Democrats will likely to win the House of Representative which will give them the power to investigate the Trump Administration, a move that didn’t happen after the Republican win both the Senate and the House. This will further the gap between the relationship of the US and Russia. Expect a stronger dollar against the Russian Ruble.
Unlike the strengthening of the US Dollar against other currencies, the US Dollar is expected to weaken against major currencies as uncertainty in politics with the US will undermine the policies that had been implemented by Donald Trump, particularly the trade war. Although it is clear that China is suffering from the sanctions imposed by the United States, the US is also likely to be affected by the war it created as major companies in the US rely on cheaper labor and materials coming from the Developing and Emerging Markets.
The direction of the pair was uncertain. The recent election in the US makes the US Dollar to weaken against major currencies as the US Government was divided with the Senate under the Republican and the House of Representative under the Democrat. However, there would a chance that the Euro will further weaken as the survey shows that Greece has an unfavorable view of the European Union, giving it a 2/1 odds that they would exit out of the EU, higher than Italy with 5/2 odds.
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