The first week of the year ended with the euro practically the same, at 1.1440. It is worth mentioning that in these first days of 2019, differences of up to 200 pips have been seen between the highest point and the lowest point of the week.
The euro surpassed 1.1540 on New Year’s Day, celebrating a renewed optimism for China-US trade relations. On Wednesday, the tonic was very different and the euro began a fall that extended to touch 1.1309 against the strength of the dollar that appreciated against the major currencies. From this minimum, the euro began to recover to 1.1440 at the end of the week thanks to a fall in the manufacturing PMI of the ISM and the increase in petitions for unemployment subsidies in the US.
This week we will have the FOMC minutes tomorrow and after the ECB monetary policy meeting, on Thursday also in the US. the sales data of new homes. On Friday, the underlying monthly CPI for December, also in the US. Thus, we establish a support zone at 1.1310 and resistance at 1.1580.
EUR / GBP
The EUR / GBP pair accumulates another week ending practically the same, hovering around 0.90.
We highlight the afternoon of Monday when the pair fell to 0.8930 which recovered in a few minutes and Wednesday night when the pair shot above 0.91, but then corrected up to the previously mentioned 0.90. The new polls that give a majority to a second vote on the Brexit referendum together with the refusal of Brussels to renegotiate Brexit conditions generated these movements.
Tomorrow we will have Carney’s statements and on Friday, the manufacturing production data for November, the monthly GDP for December and the evolution of this in the last 3 months. We mark a support at 0.8880 and a resistance at 0.9120.
Source: Exact Change