The euro is trying to get back into the game and is gradually regaining its positions lost against the US dollar yesterday, amid weak statistics indicating a likely slowdown in the German economy at the end of last year.
Meanwhile, negotiations between the US and China continue. As it became known, the negotiators have reduced differences over trade, and, according to rumors, progress was made yesterday on the purchase of American products and services by the PRC. Donald Trump said in his Twitter that the discussions are going very well, but the United States and China are not yet ready to enter into a trade agreement. High-level talks are expected later in January.
In the meantime, it became known that trade negotiations between the US and China will continue on Wednesday, although initially it was planned for two days. This inspires optimism and confidence that negotiators will be able to achieve good results. According to news agencies, US President Donald Trump is determined to enter into an agreement to support the weakened stock market.
Yesterday, data came out that indicated that consumer lending in the United States grew more than expected in November, which will definitely have a positive effect on the state of the economy in the future.
According to the report of the Federal Reserve System, unsecured consumer lending in the United States in November increased by 22.15 billion US dollars compared with October, and the annual growth of lending amounted to 6.7%. Economists had expected a $ 19.0 billion increase in lending in November. The volume of revolving loans increased in November by 5.5% compared to the same period of 2016, while non-revolving loans showed an annual growth of 7.1%.
As for the technical picture of the EUR / USD currency pair, it remained unchanged.
Bears intend to re-form a false breakdown of resistance in the area of 1.1470, which will lead to the formation of a bearish direction. In this case, a further downward correction will be contained by large support levels around 1.1400 and 1.1350. In the case of growth above 1.1470, sellers will declare themselves in the region of the maximum of December last year.
The British pound fell only slightly after reports appeared that British authorities were considering the possibility of postponing their exit from the EU, which is scheduled for March 29. Apparently, traders and investors do not take this scenario seriously and expect to conclude an agreement. A number of experts note that the probability of a delay is already taken into account in the current quotes of the pound.
Yesterday, the London First UK business group, which represents the largest London companies, called for a second referendum on UK membership in the EU. But there is a slight amendment to the condition under which the British Parliament will vote against the Brexit plan proposed by Prime Minister Theresa May.
As for the technical picture of the GBP / USD currency pair, trading continues in a narrow price range after the bears did not let the pair above the resistance of 1.2800. A break of 1.2700 support may increase the pressure on the pound, which will return the trading instrument to the minimum areas of 1.2650 and 1.2610.
Despite the fact that Canada's foreign trade deficit increased in November, the Canadian dollar continues to recover against the US dollar after a prolonged decline due to a drop in oil prices. A negative contribution to the shortage of foreign trade made oil exports.
According to the National Bureau of Statistics of Canada, foreign trade deficit in November amounted to 2.060 billion Canadian dollars, while economists had expected a deficit of 2.15 billion Canadian dollars.
The material has been provided by InstaForex Company - www.instaforex.com