Market News and Charts for November 8, 2018
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/JPY
The US Dollar is pushing countries beyond its limits as Trump imposed sanctions for countries it think was having an unfair trade practice. Trump already pulled out of TPP (Trans-Pacific Partnership), Paris Climate Pact, Iran Nuclear Pact; ratified USMCA (United States, Mexico, Canada); threatening to pull out of UN (United Nations), WTO (World Trade Organization), ICC (International Criminal Court), INF (Intermediate-Range Nuclear Forces), and NATO (North Atlantic Treaty Organization). Japan was now forming a trade relationship with China as the two were hit by Trump’s trade war.
USD/CAD
The long-term pattern of the pair was seen to be in an indecision, while the short term was showing a weakening dollar. This was due to stability within the relationship of the two countries after USMCA (United States, Mexico, Canada) was ratified from NAFTA (North American Free Trade Agreement). Aside from the Congress was divided by a Republican Senate and a Democratic House of Representative, which will make it harder for Trump to further implement sanctions as the Congress was bipartisan, meaning that for a law to be passed, both the House of Senate and House of Representatives must approve the bill.
AUD/USD
The Australian is expected to become stronger as the country, along with Japan will lead the ratified CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership). 6 out of 10 member countries already signed the ratification agreement stating the terms and conditions for the trade agreement. The US, former member of TPP (Trans-Pacific Partnership), will lose from the ratification as it will miss the opportunity to save from free trade agreement, especially that Southeast Asia was a rising superpower with a third of the global export as coming from Southeast Asia.
EUR/GBP
Although there is a potential that the United Kingdom’s economy might suffer after it goes out of the European Union, especially in a No Deal Brexit, the current turmoil with the European Union itself was enough to weaken the Euro against the Great Britain Pound. The European Union outlook was in a dim considering that Angela Merkel, key EU political figure that holds the entire EU during the time of crisis, decided to no longer run for her party’s leadership and she announced that this will be her final term for her Chancellorship. Also, the leadership for the European Commission was due to change on the election day on May 2019. Aside from that, the European Central Bank was already in search for the current Central Bank Governor Mario Draghi’s replacement.
