The British pound is descending from its monthly highs, which were reached last Friday after the appearance of talk about a possible postponement of the UK exit from March 29 to a later date.
Problems in a number of laws that have not been adopted, along with the parliamentary vote on the Brexit agreement, which is scheduled for Tuesday, will most likely force you to really consider the option of postponing the UK exit date. Tomorrow, lawmakers are not expected to support the Brexit agreement when voting, which could seriously affect the political situation in the country and the position of British Prime Minister Theresa May.
The data that came out on the UK economy on Friday, not very pleased investors.
According to the report, industrial production in the UK continued to decline in November 2018. The decline marked the fifth consecutive month. According to the National Bureau of Statistics, in November 2018, compared with October, industrial production decreased by 0.4%.
The report on the same bureau on UK GDP reassured traders a little. According to the data, in the period from September to November 2018, compared with previous months, the UK GDP grew by 0.3%, year-on-year by 1%.
However, despite the growth, it is clear that the UK economy is losing momentum against the background of problems associated with Brexit.
The US dollar regained a number of positions against the euro, despite the fact that US consumer price data coincided with economists' forecast, thereby further reducing the likelihood of further increases in US interest rates in the first half of this year.
According to a report by the US Department of Labor, CPI in December 2018 fell by 0.1% compared with the previous month. Core inflation, not taking into account volatile categories, showed an increase of 0.2% compared with the previous month. The data fully coincided with the expectations of economists. The annual growth of the CPI index was 1.9%, while the base CPI index rose by 2.2% compared with the same period of the previous year.
As for the technical picture of the EUR / USD currency pair, today buyers of risky assets need to go back to the resistance level of 1.1490, since the future direction of movement 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 support of 1.1425 and 1.1370.
Data on China's exports, which came out today during the Asian session, pointed to the impact of barrage tariffs from the United States. According to the report of the General Administration of Customs of China, China's exports in December decreased by 4.4% compared with the same period of the previous year, after rising 5.4% in November. Economists had expected a 2.5% rise in exports. Imports fell by 7.6% after rising by 3.0% in November, and the trade surplus in December was $ 57.06 billion.
The material has been provided by InstaForex Company - www.instaforex.com