GERMANY: Autos Associaton-'Transatlantic Partnership Must Be Expanded'
Reuters reporting comments from Chancellor Olaf Scholz following the inauguration of US President Donald Trump. Scholz to Trump: 'Together we can provide decisive impetus for freedom, peace and security as well as prosperity and economic development on both sides of the Atlantic.' Scholz's comments come alongside those from the German Association of the Automotive Industry (VDA), the interest group representing Germany's economically and politically powerful automotive sector, focusing on the new Trump administration in the US and what it means for the German car sector.
- VDA on US-EU relations: 'The transatlantic partnership must be expanded, we must make offers, be courageous...We would only lose from a US-EU trade war...We must also become more independent from China but not 'decouple'...Trump constitutes a demand for Europe to act more independently.'
- On tariffs: 'We have had discussions in the US on possible tariffs...Exact steps remain to be seen, best thing we can do is strengthen our economic position...Tariffs would make production more expensive everywhere [and] drive up inflation...We hope for further discussions.'
- VDA on EU policy: 'We must review EU carbon emissions targets and prevent further fines...We need a European capital market union...We need a clear European approach, from defence to energy'.
The autos sector remains politically important in Germany. The financial struggles of the industry amid the transition to EVs and increasing emissions targets threaten tens of thousands of jobs, and with a federal election in a month, politicians of all parties are seeking to avoid US tariffs that could further threaten German employment and exports.
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TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU SAYS `WE HAVE A LOT OF WORK TO DO'
- TRUDEAU WANTS GOVT TO PREPARE FOR NEW US ADMINISTRATION
- TRUDEAU DOESN'T ADDRESS QUESTIONS ABOUT HIS LEADERSHIP
USDCAD TECHS: A Pullback Would Be Considered Corrective
- RES 4: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 3: 1.4537 2.0% 10-dma envelope
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4356 @ 16:56 GMT Dec 20
- SUP 1: 1.4301 Low Dec 18
- SUP 2: 1.4174/4014 20- and 50-day EMA values
- SUP 3: 1.3928 Low Nov 25 and a key support
- SUP 4: 1.3822 Low Nov 6
USDCAD bulls remain in the driver’s seat. While price faded into the Thursday close, the recent breach of 1.4178, the Nov 26 high, confirmed a resumption of the uptrend and this maintains the price sequence of higher highs and higher lows. The latest rally opens 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4174, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Bearish Trend Structure
- RES 4: 0.6550 High Nov 25
- RES 3: 0.6501 50-day EMA
- RES 2: 0.6429 High Dec 12
- RES 1: 0.6337/6396 Low Dec 11 / 20-day EMA
- PRICE: 0.6263 @ 16:55 GMT Dec 20
- SUP 1: 0.6199 Low Dec 19
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
The trend needle in AUDUSD continues to point south and this week’s fresh cycle lows and Wednesday’s sell-off, reinforce a bear theme. The move down maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. The break lower opens 0.6158 next, a Fibonacci projection. Initial firm resistance to watch is 0.6396, the 20-day EMA.
