Trading plan for 12/04/2018

Yesterday, the single European currency managed to improve its position against the dollar, in contrast to the pound. Although in the middle of the day, both currencies were rapidly losing their positions due to the growing optimism of investors in connection with the interim agreement between the United States of America and the People's Republic of China. The world's largest economies have agreed not to increase customs duties on a number of goods since next year. This news significantly reduces the tension and risks of the growth of trade protectionism, which is very much concerned about large investors and international corporations. So it is not surprising that against this background, the dollar began to strengthen, as the US is the largest importer and one of the largest exporters, and trade wars, according to many, can cause serious damage to the American economy. But then the dollar was under pressure due to negative statistics. In particular, the index of business activity in the US manufacturing sector fell from 55.7 to 55.3, while preliminary data showed its decline to 55.4. In turn, the index of business activity in the manufacturing sector in Europe also fell from 52.0 to 51.8, although it was projected to decline to 51.5. That is, in the US, data were worse than forecasts, and was better in Europe. But the pound, despite the growth of the index of business activity in the manufacturing sector from 51.1 to 53.1, although it was able to recoup some of the losses caused by the agreements between China and the United States, at the end of the day was still in the red. The situation with the pound due to the banal fear of the upcoming consideration in the British Parliament of an agreement with the European Union. There is every reason to believe that everything will result in the resignation of Theresa May and early elections.


Most likely, today will be quite calm. In the United States, no data are available, and the growth rate of producer prices in Europe should remain unchanged. And only in the UK is the projected decline in the business activity index in the construction sector from 53.2 to 52.5. But the pound is under pressure because of the situation with Brexit.

The euro/dollar currency pair, practicing the level of 1.1300, once again jumped to the periodic value of 1.1400, leaving behind the impulse candles. It is likely to assume a slowdown within the value of 1,1400, where it is possible to make a stretch of orders.


The GBP/USD currency pair, showing a downward temporary active interest, went to the band level of 1,2720/1,2770. Likely assume that the oscillation is within the boundaries of the level tracking accurate fixing.


The material has been provided by InstaForex Company -