The absence of important fundamental statistics on Monday forced traders to take a wait-and-see position in the EUR / USD pair, but demand remained in GBP / USD amid news from the Conservative Party of Great Britain.
USA
Statements by US President Donald Trump that negotiations with China are going very well and that an agreement may be reached in the near future did not greatly affect the US dollar rate.
More investors' attention was attracted by the decision of the US President to reject the proposal of one of his closest allies in the Senate to temporarily resume the work of the government. Yesterday, Senator Lindsey Graham suggested that Trump resume the government's work for the next three weeks, but Trump did not agree with this, as the decision to finance the immigration bill, the main problem of which is to build a wall on the border with Mexico, has not yet been worked out. Trump also noted that the resumption of the work of the government as a whole depends on the Democratic Party.
The speech of the next representative of the Federal Reserve System was also ignored by the market since only the "lazy" one did not speak about interest rates and the prospects for their increase.
Fed Vice Chairman Richard Clarida said that the Fed will do everything in its power in the absence of official data, and the decision on rates will be taken from meeting to meeting, taking into full account the economic situation, including world data.
The representative of the Fed also noted that the implications of a slowdown in global economic growth for the United States do not seem to be serious yet, and the latest data does indicate a certain acceleration in the growth of companies' investments in the 4th quarter of last year.
Clarida is confident that if a policy adjustment is required, and this can happen only if a recession occurs, the Fed will not hesitate with a decision.
As for the technical picture of the currency pair EUR / USD, it remained unchanged compared with yesterday's forecast. Buyers of risky assets need to go back to the resistance level of 1.1490 since the future direction will depend on it. If this fails to be done, then it is likely that the bears will continue to push the euro down to the support levels of 1.1425 and 1.1370.
Great Britain
The British pound rose slightly against the US dollar, having updated its maximum after the news appeared on the market that a number of members of the British Conservative Party are ready to support the Brexit deal agreed upon by Prime Minister Theresa May on today's vote. We are talking about the ERG group, which at the end of last year criticized the prime minister, which led to the organization of a vote, at which her leadership was challenged.
In more detail about the prospects for the movement of the British pound, I spoke yesterday.
If today the deal with the EU in the framework of voting does not receive the support of parliamentarians, then the British pound may remain in the side channel until a final decision is made, since there are a lot of future development scenarios. Starting from the postponement of the exit of the UK from the EU, ending with indiscriminate exit without the adoption and approval of the basic laws.
The prospect of complete abolition of Brexit also has a place to be that will support the British pound when information appears about the next referendum on this matter.
The material has been provided by InstaForex Company - www.instaforex.com