What will help the euro break the mark of $ 1.15?

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By consolidating in a 200-point-wide channel for most of the past two months, the main currency pair is preparing to break the mark of 1.15. Traders were delighted with the sharp recovery of retail in Germany and the Euroblock, but the production sector is still not in the best condition. In November, orders for manufactured goods dropped immediately by 1%, while the forecast suggested a decline of only 0.1%.

It is worth paying attention to new unrest in France and Hungary, which cause not only political and social problems. Under the blow, the growth of the economy of France and the eurozone as a whole.

Today's reports on industrial production and trust in the eurozone can be harmful, but the main factor is risk appetite. If the stock market continues to recover, the EURUSD pair will most likely not pay attention to macrostatistics and may pass through the mark of 1.15.

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As for the pound, its weakness is a normal condition. The next two weeks will be crucial for the British economy and currency. On Thursday, parliamentarians begin debates on the draft Brexit deal from Prime Minister Theresa May, the vote will be held next week. If the parliament does not support T. May, the country faces a tough exit from the European Union on March 29. Such a scenario, according to the head of the Bank of England Mark Carney, will cause a 25% collapse in the pound. M. Carney is expected to share concerns about this in his speech on Wednesday. This week there will be several UK economic releases, but the Brexit theme will eclipse them.

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Meanwhile, the publication of The Telegraph, citing three different sources in the EU, reported that the British side is seeking to postpone the deadline for leaving the group from March 29 to a later date. Officially, this is not the question.

Market participants do not yet know how to react to the proposed Brexit delay. On the one hand, there will be a period of uncertainty. On the other hand, such steps will increase the chances that British politicians will begin to probe the ground for a second referendum, the possibility of which was rejected by T. May. If for the British Prime Minister the postponement of Brexit is negative, then on the whole this event seems to be the lesser of two evils.

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