Burning forecast 01/17/2019

On Wednesday, news from Europe was positive: there has been a reversal in the crisis of Britain. Despite the crushing failure of the Parliament agreement with the EU. Signed earlier by Prime Minister May, - on Wednesday, the Parliament expressed confidence in Prime Minister Theresa May - albeit with a very small majority (326 to 306). Thus, there will be no change of the head of the Cabinet - there will be no new elections (yet).

On the other hand, something urgent needs to be done regarding the agreement with the EU - according to the plan, the actual exit of Britain from the EU is scheduled for the end of March 2019 - with or without an agreement. The dynamics of the pound, however, shows that the British markets are not afraid of an exit without an agreement (they are not yet afraid).

And what about the second side of the EURUSD pair - the dollar? The Federal Reserve's Beige Book report came out - standard two weeks before the Fed meeting - clearly indicated a slowdown in US growth. And the data shows a slowdown. Plus, the acute issue of the "shutdown" - - the conflict of Trump - the Congress on the budget (from behind the wall with Mexico) - has not been resolved.

Conclusion - the Fed will not raise the rate. And this is the potential for EURUSD growth.

As a result: the euro is more likely to rise.

We are ready to buy euros from 1.1490.

Alternative: Sell from 1.1300.


The material has been provided by InstaForex Company - www.instaforex.com