Yesterday, the dollar continued to lose its position against the pound but the single European currency has, in fact, stood still. The growth of the pound is purely speculative in anticipation of today's vote in the British Parliament on the issue of the "divorce" agreement with the European Union. The result is practically impossible to predict since the parliamentarians are not satisfied with the absence of the economic part in the current version of the agreement and for this reason, at the end of last year it was decided to postpone the vote. Yet to this day, there is no progress on this issue. On Monday, Jean-Claude Juncker assured Theresa May that he will make every effort to speed up the negotiation of trade issues with all countries of the European Union. It turns out that the British Parliament is invited to vote for the cat in the bag, what happened last year and almost provoked the Prime Minister's resignation. However, the promise of the head of the European Commission inspired market participants and they continued to buy the pound with optimism.
The single European currency failed to support its neighboring island, not only because the inclusion of trade aspects in the "divorce" agreement is not very suitable for a number of European countries, but also due to poor industrial production data. After all, the rate of growth in November was 1.2% and then replaced by a recession. By the end of 2018, the European industry fell by as much as 3.3%, which in itself drives us down.
Today, all attention is only to the vote in the British Parliament. Fortunately, no other news is expected anymore, and macroeconomic data are not coming out. But given the complete unpredictability of the results, it is better to remain cautious and act on the fact.
The euro/dollar currency pair, after a recovery decline, came close to the level of 1.1440, after which it went into the stage of recoil/stagnation. Against the background of informational hype, one can expect primary stagnation but then jumps depending on the decision of the parliament.
The pound/dollar is surprisingly growing, reaching a value of 1.2929. It is likely to assume that this bay carries with it some kind of emotional character, where we can fall back and forth at the same speed. Due to the upcoming parliamentary vote, trading positions are considered extremely risky, and the big players consider only one position that is to move out of the market until the circumstances are clarified.
