The first day of new week was chaotic. Market players are nervous, what influences movements in the exchange market. Stock markets are feverish, energy prices continue to fall. There is also weak correlation of currencies. Now it is difficult to say something definite about prospects of short-term tendencies.
Speaking of today’s events, the data on British industrial production are most notable. The influence on the exchange market is limited – almost only on British pound. Forecasts aren’t very positive, what limits bulls’ opportunities to change the situation in GBPUSD pair. For last year the indicator has shown unstable results, so everything can be in the reality. Accordingly, short-term reaction of pound will reflect actual data. Long-term trend remains descending and there are no signals of reversal. Still, good data can contribute to the formation of such signals. For the rest, the market is focused on external factors now – the situation in China, stock markets, geopolitical risks.
Yesterday we opened long position in EURUSD pair from 1.0882, stop at 1.0790. American stock indices stabilized by the closure of yesterday’s session, what cooled euro bulls and the pair failed to return above 1.0900. At this moment we have no confidence in renewed growth of the pair. If the pair can rise above 1.0900, then we are going to rearrange stop at the entry point. To cautious traders we recommend to stay out of the market until the situation stabilizes.
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