empty
 
 
30.08.2018 12:16 PM
The pound rose on Brexit news, euro buyers still have a chance

The European currency managed to restore its position against the US dollar even after the release of a good report on the growth of the US economy in the second quarter of this year.

The British pound also rose more than 1.0% compared to yesterday's opening level for after good news related to Brexit.

The speech of US President Donald Trump in the second half of the North American session was ignored by the market. The good news is that the prospects for US-Canadian trade relations have unexpectedly improved.

The US president said that Canada wants to conclude a trade agreement. And the talks continue, as the negotiators from Canada are in the White House. Trump also said that Canada wants to be part of the new trade agreement without mentioning whether the Canadian authorities are ready to join the trade agreement that was recently concluded with Mexico, or not. It is expected that by the end of this week there will be final results, and work on the revision of the North American Free Trade Agreement will be completed.

During his speech, Trump also mentioned North Korea, saying that the US administration in this direction is all right, but further negotiations are complicated due to disagreements with China.

Data from the National Association of Realtors, released yesterday afternoon, did not affect the rate of the US dollar, even though the number of houses for sale in the US in July were contracted, fell.

According to the report, the index of signed contracts for the sale of housing fell by 0.7% compared to the previous month, to 106.2 points, while economists predicted that sales will remain unchanged. Compared to July 2017, the index fell 2.3%.

This image is no longer relevant

As for the technical picture of the EUR / USD currency pair, to maintain the upside potential in risky assets, a breakthrough of a large resistance of 1.1710 is required, which will lead to a new wave of growth with a test of highs of 1.1760 and 1.1800.

The British pound rose more than 1.0% yesterday after the EU's chief negotiator for Brexit, Michel Barnier, said the bloc is ready to offer Britain a profitable partnership. As Barnier noted, the conditions proposed by the UK will be individual, which will provide special advantages.

Such a statement could not be ignored by the market, since the main pressure on the pound that we observed recently was due precisely to the problems of concluding a Brexit trade agreement between the UK and the EU. The new agreement allows you to count on a scenario of a softer Brexit.

As for the technical picture of the GBP / USD currency pair, the breakthrough of the large resistance 1.3040, near which the upward trend was suspended yesterday, will lead to a new wave of pound growth with the yield already at the new monthly highs of 1.3080 and 1.3120.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback