The most anticipated weekend event was quite successful, however, this did not affect the quotes of the British pound, which continued to trade in the side channel in tandem with the US dollar. This is due to the fact that, despite the signing and approval of the political declaration, there are quite a lot of "buts" with which the British Prime Minister Theresa May will not be so easy to handle.
As it became known, yesterday in Brussels, the European Union and the United Kingdom made a deal on Brexit. The terms of the agreement were approved with lightning speed in just a few minutes. According to the data, the parties approved not only the agreement but also the political declaration, which was presented by Donald Tusk last week and which was agreed by British Prime Minister Theresa May and European Commission President Jean-Claude Juncker.
However, a real breakthrough on the way to the approval of the agreement did not happen. First of all, these two documents will only be sent to the British Parliament. Also this Thursday, the Bank of England will present a detailed economic analysis of the agreement concluded by the UK and the European Commission. Then, only on December 11, the next vote on the deal with the EU in the House of Commons will be held.
Let me remind you that, according to the terms of the agreement, the UK will pay 39 billion pounds to the EU treasury against previously accepted commitments to the European budget.
As for the technical picture of the GBP / USD pair, then the pound buyers need to return to the weekly resistance level of 1.2880 and break through it. Only after that, it will be possible to count on the continuation of the upward correction in the area of highs 1.2970 and 1.3040. In the event of a break of support at 1.2785, the pressure on the pound will increase, which will lead to a larger sale with an update of the lows of 1.2720 and 1.2660.
The Canadian dollar was marked by a strong surge in volatility on Friday amid good data on retail sales and inflation, but this did not lead to a change in the technical pattern in the USD / CAD pair.
As indicated in the report, retail sales in Canada increased in September of this year. The increase was due to higher demand for food. According to the National Bureau of Statistics of Canada, retail sales in Canada increased by 0.2% compared with August and amounted to 50.93 billion Canadian dollars. Economists had expected the data to remain unchanged.
As I noted above, the main growth was due to an increase in sales of food and beverages by 0.9%. Compared to the same period of the previous year, retail sales in Canada increased by 3.8%.
Inflation in Canada has accelerated. According to a report by the National Bureau of Statistics of Canada, in October of this year, consumer price growth was 2.4%, after 2.2% in September. Economists had expected consumer prices to rise by 2.2% over the reporting period compared with the same period of the previous year.
Compared with the previous month, consumer prices rose by 0.3%.
The material has been provided by InstaForex Company - www.instaforex.com