Recently, the sterling suffered a sharp loss in the wake of the fact that the UK-EU trade talks are teetering on the brink of collapse. It comes because the UK is preparing to legislate to deal freely with Northern Ireland's freight under the expectation that a trade deal with the EU is beyond reach. Once it succeeds, products from Northern Ireland will have unfettered access to the UK's market without any customs declarations as the UK has the power to decide which goods are subject to EU tariffs, but the EU's subsidies involving Northern Irish firms may not be active.To get more news about WikiFX, you can visit wikifx official website.
However, the above term is a breach of last year's Brexit deal, in which it was agreed that Northern Ireland would remain aligned to EU customs rules to avoid a hard border on Ireland. This was an important concession of the UK at that time, and the largest difference between the two parties was thus resolved. But now, the EU is likely to take legal actions over the UK's breakdown of the deal since an angry backlash has been provoked by Johnson, the British Prime Minister, who simply overrode the achieved deal after anticipating a failed negotiation.
Over the past few months, the sterling has been gaining although
there was no progress made in trade negotiations. The stalemate over the
talks surprisingly sparked a rise in the sterling both because of the
weak greenback and the expectation of financial markets on further
negotiation. This time, however, the U.S. dollar has reclaimed its
strength and the talks shall most probably break down.
Currently,
financial markets are worried about not only the Brexit with no trade
deal, but last year's Brexit deal would all be overridden. That is, not
just a trade deal is beyond reach, but a clean break from Europe is even
possible, which will lead to a sustained sell-off of the sterling.
Although there is a chance for US stocks to bounce back and again hamper
the DXY, traders seem extremely worried that the UK would eventually
adopt such hard Brexit. Thus at this stage, the sterling is not only out
of momentum in the rebound, but may even struggle in panic selling.
Unless a UK-EU agreement is achieved dramatically, the sterling is
almost certain to be thrust into a vulnerable position.
The green buck seems to recover against the Canadian dollar as it
makes the slow climb after sell rout and which may be just a correction
move as the down rally cools off albeit temporarily. Also, this week the
dollar was given a jack in the arm after the federal reserve upbeat
economic outlook that they stated this mid-week, which was way different
from the projections they had stated prior during the month of June
meeting.To get more news about WikiFX, you can visit wikifx official website.
Also, though not implicit but according to my readings between the
lines, it seems Chair Powell or the board members at large, are or may
be confident that, the American economy will recover faster than
expected even against global coronavirus pandemic.
Starting the
trading month of September, market structure has been making an
ascending channel making higher highs and higher lows and you can see
buyers are rejecting any down moves or price bid to the down side as
seen by those green piercing candle that were two of them that formed
during yesterday trading day session.
More than the key levels as clearly enumerated on the charts, market
participants are awaiting todays retail sales data from Canada and if
falls short of market forecast, then we expect supporting limit or stop
orders to the upside especially after break and retest of yesterday
trading session high.
Jasper Njuguna is a self-taught discretionary
financial markets trader. With cumulative 5 years experience trading the
markets and out of which, one and a half years of that as a prop
trader, trading large and mid-cap American equities at one of the DAY
TRADE THE WORLD offices.
Prior to switching career interest to trading, I have 9 years of
experience in senior management roles driving small to large business
development and B2B relations in creating and implementing; learning
& development solutions, programs, organizational strategies &
frameworks, and blended learning approaches for companies and
institutions in Africa
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Volunteers pose for a group photo in front of decorations during the third China International Import Expo (CIIE) in Shanghai, east China, Nov. 10, 2020. To get more news about CIIE 2020, you can visit shine news official website.
SHANGHAI, Nov. 10 (Xinhua) -- The third China International Import Expo (CIIE) concluded in Shanghai Tuesday. Staff members, exhibitors and visitors take photos to keep precious moments of the event.
Visitors pose for a photo at the booth of casual clothing brand
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Volunteers from Shanghai International Studies University (SISU) pose for a group photo with gestures of "CIIE" during the third China International Import Expo (CIIE) in Shanghai, east China, Nov. 10, 2020. (Xinhua/Zhang Haofu)
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pose for a group photo at the Medical Equipment and Healthcare Products
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People pose for a group
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China's Shanghai, Nov. 10, 2020.
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Few exhibitors came from abroad for the third China International Import Expo. Most were represented by Chinese employees or managers who work in China. Beijing has eased curbs that barred foreign visitors to China, but new arrivals are required to undergo a 14-day quarantine.
China, where the pandemic began in December, became the first major economy to begin the struggle to restore normal activity after the ruling Communist Party declared victory over the virus in March. Economic growth turned positive in the three months ending in June. Retail spending has edged back above pre-virus levels.By hosting the expo in these difficult times, China is demonstrating its resolve to keep the global economy on track,” the official China Daily newspaper said Wednesday.
The expo does nothing to address complaints about China’s trade record that helped to spark its tariff war with Washington and fuel tension with Europe, Japan and other trading partners.
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The approximately 2,600 companies at the six-day expo that opened Thursday in a cavernous, 1.5 million square meter (16 million square foot) convention center include many that already operate in or sell to China.
Tyson Foods Inc. is at the expo for the first time to showcase its pork, beef and pet food, said Zhou Qian, the company’s public relations manager for Greater China. Tyson has been selling chicken in China for two decades and has six factories in this country.2020 is a very special year. The epidemic is both a challenge and an opportunity for our meat company,” said Zhou.
China has relaxed most anti-disease controls but travelers and visitors to public buildings still are checked for fever and must show a smartphone app that records whether they have been to areas with recent infections.
At the import expo, exhibitors and visitors were required to show proof they had a negative virus test within the past week. Crowds are limited to 30% of the normal capacity of the National Exhibition and Convention Center.
China held this year’s first in-person trade fair in September in Beijing. Exhibitors from abroad at the China International Fair for Trade in Services took part via the internet.
The same month, authorities opened the Beijing auto show, the first major trade show for any industry since the pandemic began. A handful of foreign visitors arrived early to wait out a quarantine, but most brands were represented by Chinese employees or executives who work in China.
Since start of the trading session month of September, market
participants have been toying, testing the low level of the previous
monthly trading session which is the month of August. And even at one
point nearly breached to pass past that low level but seems buyers held
fort and rallied the price up with a huge momentum to this month trading
session open price level.To get more news about WikiFX, you can visit wikifx official website.
It seems the general sentiments of the market indicates this pair is
quite overbought as you keenly look at larger context of structure with
lower highs as seen on hour 4 chart but not a text book perfect
formation
As of the start of this week trading session there has
been a strong red momentum candle break and therefore what we had
anticipated as the low price level for the trading month of august
providing and proving a strong support level as it actually having been
tested three times has now been breached past and we are looking to ride
the sell rally.
Jasper Njuguna is a self-taught discretionary financial markets trader.
With cumulative 5 years experience trading the markets and out of
which, one and a half years of that as a prop trader, trading large and
mid-cap American equities at one of the DAY TRADE THE WORLD offices.
Prior to switching career interest to trading, I have 9 years of
experience in senior management roles driving small to large business
development and B2B relations in creating and implementing; learning
& development solutions, programs, organizational strategies &
frameworks, and blended learning approaches for companies and
institutions in Africa
The Aussie underperformed against the majority of the leading
currencies during Monday's trading session. The AUD/USD dropped lower
from 0.7235 to 0.7205, down by 0.4%, after the Reserve Bank of
Australia's (RBA) deputy governor Guy Debelle commented that a weaker
Aussie might be good for the Australian economy.To get more news about WikiFX, you can visit wikifx official website.
Debelle mentioned that the board is currently watching the
developments in the forex market. Although an intervention might not be
effective, a lower AUD exchange rate might be beneficial to the
Australian economy, he added. The crash in the AUD/USD pair in recent
weeks comes after the pair had rallied by over 1,700 pips over the past
six months.
The Aussie might continue to underperform against the
Greenback after the US Dollar went higher across board on Monday as the
number of Coronavirus cases increase in Europe and Australia. If the
risk-aversion continues, then the AUD/USD pair will likely drop lower
during the day.
At the moment, AUD/USD is trading below the 20-day moving average and
could close the day below the 20-day moving average of 0.7196. A
breakdown of this critical technical barrier will increase the
possibility of changing the medium-term trend of the pair from bullish
to bearish.
Analysts and market participants will be eagerly awaiting the
commentary from Fed Chair Powell due later this week as it might slow
down the Greenback with talks of more monetary intervention from the
Fed. If that happens, then the Aussie might get a breather, and the
AUD/USD pair might perform better. However, if the upcoming release of
global PMI data disappoints, then traders would reignite risk-aversion,
and that could see the AUD/USD plunge lower.
The AUD recorded
losses against other leading currencies. The AUD/JPY pair plummeted from
75.73 to 75.45, following the negative comments from Debelle amid
Tuesday's Asian session. The pair suffered its most significant loss in
two weeks on Monday as the global markets praised the risk-aversion
wave. AUD/JPY sharply fell from 76.221 to 75.609 on Monday, and at the
current rate, it could likely drop further over the coming hours.
Traders are rushing to the Yen at the moment due to the increasing
talks regarding the national lockdowns in the UK and Europe backed by
the recent rise in Covid-19 cases in the region. Furthermore, the
US-China tension is another catalyst that could be negatively affecting
the Aussie as China is the largest customer of Australia. The US
Secretary of State, Mike Pompeo, recently thanked France, Germany, and
the UK for their joint effort in rejecting China's claims in the South
China Sea at the United Nations (UN). While the event intensifies the
rivalry between the US and China, China losing the claims indirectly
affects Australia and the Aussie.
The AUD/JPY pair is in a bearish trend as it is currently trading below
the 100-day moving average. Further risk aversion in the market could
see the pair drop lower and likely approach the 200-day moving average
of 72.9. Following the recent market performance, the pair's 50-day SMA
is at its lowest since August 03, while bearish MACD signals for AUD/JPY
indicate further downside. The Aussie could really do with any good
news at the moment to help it shake off the bearish trends.
[About The Author]
Hassan is an expert writer and analyst on the financial markets, with
expertise in cryptocurrencies, forex, stocks, and CFDs. With more than
four years of experience, Hassan is a popular writer in fundamental
analysis, trading guides, and news contents.
He has worked for various forex, stock, and cryptocurrency blogs
including; blokt.com, coinjounal.net, stockdork.com,
forexschoolonline.com, forexsignal.com, and more. Hassan currently works
as a financial markets and cryptocurrency writer.