Positivity in the market was caused by news out of China. US Economic Advisor Larry Kudlow said the US and China are close to a trade agreement. He called the ongoing negotiations “very constructive”.
US Secretary of Commerce Wilbur Ross said progress is being made in concluding the details of a future trade agreement. Both parties are keen on concluding an agreement at the end of the first phase of negotiations.
Day’s news (GMT 3):
14:00 Germany: German Buba Monthly Report.
18:00 USA: NAHB Housing Market Index (Nov).
21:00 USA: 3- and 6-Month Bill Auction.
On the 8H chart, after the breakdown of the trend line from 1.1175, the euro exchange rate has grown by 60 points, to 1.1064. The news regarding the productive negotiations between the US and China which broke over the weekend was clearly the catalyst.
Today is Monday - correction day. There is hardly any fresh news to report. At Asian auctions, the pound and the euro are trading up, while other currencies are down. To understand the general mood of market players, we will need to wait until the start of trading in Europe.
The increase was 38% of the fall from 1.1175 to 1.0989. The maximum of 1.1043 (11.11.19) was passed. Now kickbacks will be perceived for purchases. Support is based at the 1.1025 mark.