London and Brussels have almost come to an agreement. This news has significantly boosted the currency market. The pound sterling is rapidly gaining in value. According to the officials, the parties have reached a compromise on one of the key issues that is the level playing field rules. The main aim of the issue is to ensure that businesses on one side do not gain an unfair advantage over those on the other side. Although the problems of state regulation and subsidies to the economy remain unresolved, the parties have made significant progress. In fact, it is the most important breakthrough in the UK-EU relations during the last several years. That is why London and Brussels have announced that they will continue the negotiations even untill December 31, if it is necessary. Thus, there are real reasons for traders’ optimism. In case of failure, the UK is likely to suffer more than the European Union. At the same time, the euro is quite stable, showing a moderate activity. Even the eurozone industrial production figures did not make the euro rise. According to the report, the indicator dropped by 3.8% compared to a slump of 6.3% in the previous period. The data was well above the forecast.
The further market movement will depend only on the Brexit negotiations and details about the settled issues. Judging by the sentiment of representatives of the UK and the EU, the pound sterling may go on rising. Moreover, the euro may also advance. On the trading chart, we can see that the euro began the trading week with a rise. It managed to recoup almost all Friday losses. If the price consolidates above 1.2180, it may reach the level of 1.2250. According to the alternative scenario, the pair may slow down between the levels of 1.2160/1.2170. However, later, the price may decline to 1.2100 as it occurred earlier.
FX Analytics - https://www.instaforex.com/forex_analytics
Forex Calendar - https://www.instaforex.com/forex_calendar
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv
Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_live_account
Forex Trading Contests - https://www.instaforex.com/forex_contests
List of official InstaForex blogs:
#forex_news #european_session #instaforex_tv