UK POUND RISES ON OPTIMISM SURROUNDING BREXIT TALKS

The EUR/USD price is consolidating during this first trading session of the week as statistics from the Eurozone have been mixed today. The number of unemployed in Spain, increased by 7300 in November against 54300 forecasted, while the producer price index in the Eurozone grew by 0.4% in October which is 0.1% less than in September. Some pressure on the pair came from the news on the decline of the Sentix investor confidence index that fell to 31.1 in December against 32.3 forecasted and 34.0 in November. Tomorrow the course of trading may be influenced by the macro statistics on retail sales and GDP growth in the Eurozone.

The greenback remains under pressure from political instability that is linked to the investigation concerning Donald Trump’s connections with Russia. At the same time investors are waiting for the outcome of the hearings on tax cuts in the US, the expectations for which have been the key driver for the US dollar’s growth during 2017.

The sterling has been driven upwards amidst optimism concerning the Brexit talks. The British Prime Minister Theresa May is in Brussels where she is going to meet key EU officials in order to strengthen the progress in the negotiations on the Brexit terms. At the same time, the bulls have pushed the price up after positive news concerning progress on the talks between the UK and the European Union concerning Ireland.  

The USD/JPY price is consolidating today. The Japanese yen got a boost from the increase in the consumer confidence index to 44.9 in November which is 0.1 above the forecast and 0.4 more than in October. Some pressure on the pair may come from the rise in demand for defensive assets like the yen in case of stock markets falling.

EUR/USD

The common currency currently is near the inclined support line and in case of further falls and the price breaking through 1.1825, the next targets may be at 1.1730 and 1.1620. On the other hand, there is a gap on the 15-minute chart and it may be filled in the nearest term. As a result, the price may return to 1.1950 and even grow to 1.2000.

GBP/USD

The GBP/USD has risen sharply today after a gradual decline within the limits of the rising trend. The immediate targets in case of maintaining the current rising impulse will be at 1.3600 and 1.3660. The RSI on the 15-minute chart is in the overbought zone which points to the possible price correction in the nearest term. The fall potential is likely to be limited by the 1.3400 mark.

USD/JPY

The USD/JPY price keeps moving along the inclined resistance line and the positive trend was able to reach the important 113.00 mark. Overcoming 113.00 may lead to growth acceleration with potential goals at 114.00 and 114.70. The fall potential is limited by the SAM100 on the 15-minute chart and after its overcoming the decline may continue to the 111.70-112.00 range.