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The US dollar appears to be determined to erase all its major losses against the Mexican peso. The pair is expected to hold onto its bullish momentum, which most likely allows it to reach its resistance by the middle of the month. Bears, however, are bracing themselves and are raising their efforts to prevent the pair from recovering. Unfortunately for bears, the stagnant results from Mexico’s gross domestic product report immediately countered the hopes from the positive December trade balance results. Just recently, the Mexican National Institute of Statistics and Geography reported that the quarterly and yearly GDP growth of the country showing stagnant figures from the previous quarter. It’s hard to pinpoint where the Mexican peso got its strength from considering that the country’s economy is not doing that well. Perhaps bears are enjoying pushing the risk appetite causing it to strengthen in sessions.
The drop in Israel’s quarterly unemployment rate and the surge in its annualized gross domestic product for the third quarter of 2019 is allowing the Israeli shekel to gradually drag the US dollar in the foreign exchange market. The USDILS pair is widely expected to reach its lowest levels in two years by the middle of February. Bears are trading steadily and are still cautiously moving. The Israeli Central Bureau of Statistics recently reported a slight improvement in the country’s quarterly unemployment rate which dipped from 3.70% to 3.60% in the fourth quarter. Meanwhile, the steep drop in the United States Chicago PMI is straining away the strength of the US dollar, making it even harder for it to rally against the Israeli shekel. Very recently, the US Chicago Purchasing Managers’ Index reported collapsed from 48.2% to 42.9% in January, surprising and disappointing traders who expected an improvement of 48.8%.
The Norwegian krone is expected to face broad weakness these coming sessions as investors react to the global trade developments. It’s worth mentioning that the Norwegian krone is very much susceptible to commodities especially oil prices, which have been falling and greatly affecting the currency. Investors are worried as the good unemployment change results from Norway have very little effect and support to the Norwegian krone. Just recently, the Norway Labour and Welfare reported an unexpected drop in the country’s unemployment change from 76.68K to 75.67K, surprising experts who projected a slight increase to 76.70K. Meanwhile, the notable improvements from Spain’s economy overshadowed by the gloom brought by the weaker results from other economies from the bloc. German, French, Italian, and the Eurozone’s economic activities recorded sluggish growth or very little improvements, slightly weakening the euro.
There have been very little economic activities reported from Denmark and the remaining recent ones show mixed results on the status of the Danish economy. In fact, the EURDKK pair has been stuck in a narrow sideways trend, recording only very minimal movements since the beginning of the year. The pair is widely believed to reach its support by the middle half of the month. Still, investors are looking to propel the EURDKK once it reaches its support levels. Looking at it, the mixed results from the bloc’s economy is not helping bulls to rally in sessions. Just recently, the Eurostat reported that the bloc’s consumer price index (CPI) grew from 1.3% to 1.4% on a year-over-year basis, however, that didn’t come as to a surprise as traders were already expecting the outcome prior. Later today, the President of the European Central Bank, Christine Lagarde, is scheduled to give a speech and traders are waiting for further signals on the direction of the pair.