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 pair broke down from an uptrend support line, sending the pair lower towards its March 10 low. Czechia’s membership with the European Union and exposure with the newly formed largest trading bloc, the RCEP, will help boost its exports business. The EU Commission granted $8.92 million in Czech Republic’s Temporary Framework scheme. The scheme supports non-residential city-owned premises by offering rent discounts and deferral on rent payments and extension of due dates for agricultural lands that are being leased. This grant will help the local economy of Czechia to gradually recover from the pandemic. Meanwhile, investors are optimistic with the post-coronavirus economy as the ASEAN and its five (5) FTA partners – which includes China, South Korea, Japan, Australia, and New Zealand – signed an agreement that could open new opportunities for Czech enterprises. Czechia has a free trade agreement with Malaysia and SoKor.
The pair will continue to move lower in the following days after the “Double Top” formation is completed. The rising cases of COVID-19 in Europe and the Americas and the stagnant and mixed results from the EU and the US, respectively, will send the euro and the greenback lower. The US still leads the countries with the highest number of infections at 11.4 million, representing more than 20% of the world’s cases. The mixed results from its most recent reports could also spell trouble for the world’s largest economy in the coming weeks. While industrial and manufacturing production figures of 1.1% and 1.0%, respectively, in October showed improvements from their recent report, retail sales were falling. MoM was up by 0.3% but lower compared to the 1.6% growth in September while YoY figure increased by 5.68% against the prior month’s 5.93%. Investors are now looking forward to initial jobless claims on Thursday, November 19.
The pair will bounce back from a downtrend channel support line, sending the pair higher towards its June 30 high. Mexico’s COVID-19 cases continue to soar. While recording its lowest daily infections of 1,757 on Tuesday, November 17, the figure still sent the country’s total infections above million. Currently, the country ranked 11th on the list of countries with the most number of COVID-19 infections worldwide. The United States was still at the top at 11.4 million. However, what investors are more concerned at was the effect of Joe Biden’s win against the incumbent president Donald on the recently held election. Andrés Manuel López Obrador, Mexico’s president, refused to congratulate Biden on his win until the allegations of erroneous vote counting was cleared. Since the election of AMLO in Mexico, the country’s relationship become better. The new administration is expected to disrupt the US-Mexico relationship.
The pair will continue to move lower in the following days towards its October 2018 low. Norway has the highest Q2 to Q3 ratio among countries in Europe. The country managed to expand by 4.6% in the third quarter, almost completely recouping the 4.7% contraction in the second quarter. In addition to this, the country had a trade surplus of $2.7 billion in October compared to the -$8.0 billion deficit back in September. Investors’ confidence in Norway is also expected to boost the krone. The optimism was due to the record-breaking increase of the country’s sovereign wealth fund at $1.2 trillion. The increase in SWF was due to the recent tech rally in the US on which the oil fund has a substantial interest. Globally, the country owns 1.3% of global stocks. Also, the increase in the pension fund translates to higher liquidity, which could keep the economy and its currency afloat. In fact, the withdrawal made in May on the fund was exceeded by its capital gains.
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