The favorable news on the U.S. China trade deal boosted market sentiment on Monday, pushing the U.S. dollar to a one-week high versus the safe-haven yen,
British prime minister Boris Johnson on Sunday pledged that he would take Britain out of European Union by January 31 and presented his Conservative Party’s general election manifesto.
With Britain heading to the polls on December 12, the PM Johnson’s Conservative Party rolled out election manifesto, which promised more public sector spending and no extensions to the extended departure of the U.K. from E.U. Today, the U.S. Consumer Confidence remains in the highlights.
Economic Calendar – C.B. Consumer Confidence In Highlights!
BTC/USD – Daily Analysis
The Bitcoin traders have had their hopes of a return to bitcoin’s all-time-high in 2019, all but destroyed following the latest immediate selloff.
The bitcoin price slipped to a six month low to trade at $6,515, and that’s almost a 6% drop over the previous 24-hour trading period, wiping billions of dollars from the value of the world’s biggest cryptocurrency.
During the last week, the BTC/USD closed the week at $6,900, having lost nearly $1,400 or 18.72%. Monday went off to a calamitous start for the buys, with a selloff in the Asian trading session, dropping further 5.5%, gaining lows of $6,500 where the bulls returned with a 13% swing back above $7,300.
BTC/USD – Daily Technical Levels
Pivot Point 7,243.91
BTC/USD – Daily Forecast
Recalling the previous forecast, the BTC/USD gained support above the 6500 levels, which let its prices towards 7230 resistance level and even higher to 7370 levels.
Today, the BTC/USD is likely to find a hard time breaking above 7400 levels as it’s extended by the 50 periods EMA and a bearish trendline on the hourly timeframe. Below this, the BTC/USD may find support around 7150 and 6770.
EUR/USD – Eyes on C.B. Consumer Confidence
The EUR/USD closed at 1.10182 after placing a high of 1.10875 and a low of 1.10144. Overall the trend for EUR/USD remained Bearish that day.
At 12:00 GMT, the German Final GDP for quarter remain flat at 0.1%. At 13:15 GMT, the French Flash Services PMI remained flat for November at 52.9 but came in less than expectations of 53.0. However, the French Flash Manufacturing PMI came in as 51.6, which was higher than the expectations of 50.9.
At 13:30 GMT, the German Flash Manufacturing PMI also came in favor of Euro as 43.8 against the expectations of 42.9. But the German Flash Services PMI did not support Euro because it decreased to 51.3 in November against the expectations of 52.0 from the October’s 51.6.
The Manufacturing PMI for the whole Eurozone increased to 46.6 in November from October’s 45.9 and the expectations of 46.4 and supported the single currency Euro on Friday. However, the Services PMI for zone decreased to 51.5 from the October’s 52.2 and expectations of 52.4 and came in against Euro.
Euro on Friday raised in the beginning session with the robust PMI data from France, but after the release of mixed data from Germany and the Eurozone, Euro traders got confused with setting the trend for EUR/USD.
The weaker than expected and drop in the services sector from Eurozone was alarming. However, the Manufacturing sector’s performance was satisfactory.
EUR/USD – Daily Technical Levels
Pivot Point 1.1076
EUR/USD – Daily Forecast
The EUR/USD is still trading sideways, following mostly the same technical levels as suggested before due to a lack of fundamentals. Even today, the market isn’t expected to offer anything that can directly influence the Euro pairs. The pair may find next support around 1.0990 level along with resistance at 1.1040
The movement in the EUR/USD mostly depends upon the C.B. Consumer Confidence, which is due to come out during the European session today.
GBP/USD – Brexit Updates Dominates
The GBP/USD closed at 1.28981 after placing a high of 1.29117 and a low of 1.28404. Overall the movement of GBP/USD remained Bullish that day. At 16:00 GMT, the Confederation of British Industry (CBI) Realized Sales came in as -3 against the expectations of -10 and supported the single currency – Pound.
On the news front, British prime minister Boris Johnson on Sunday pledged that he would take Britain out of European Union by January 31 and presented his Conservative Party’s general election manifesto. With Britain heading to the polls on December 12, the PM Johnson’s Conservative Party rolled out election manifesto, which promised more public sector spending and no extensions to the extended departure of the U.K. from E.U.
Johnson’s Party also pledged no new taxes, this decision contrasted with the opposition Labour Party’s manifesto, which has promised to raise taxes on the rich and business to fund a significant expansion of the state.
In response to the release of the Conservative Party’s manifesto, Britain’s former E.U. ambassador, Sir Ivan Rogers, said that Johnson was repeating Theresa May’s Strategy errors and would soon find himself unwisely boxed in by his campaign promises.
He further added that Johnson was sowing the seeds of the “Biggest crisis of Brexit to the data.” He said that the pressure to get Brexit done would mean that if Johnson returned as Prime Minister, he would make a lot of concessions to secure his deal.
Rogers accused the European Union of failing to think through the strategic consequences of its relationship with the U.K. He added that E.U. politicians have long insisted that the U.K. must make up its mind. That what kind of post-Brexit relationship it wants when E.U. should also have thought about collective preference about the relationship which Hugely matters to them.
He concluded that it was the time for E.U. to think more clearly and strategically about the future relationship with the U.K. because they could grow a lot worse than this yet. The GBP/USD rose to 1.29117 on Monday after the release of Johnson’s Conservative Party’s manifesto on Sunday.
GBP/USD – Daily Technical Levels
Pivot Point 1.2862
GBP/USD – Daily Forecast
The GBP/USD extends to trade above the pivot point level of 1.2860 level. The 50 periods EMA is now resisting the pair around 1.2890, and besides that, the three black crows candlestick on the 4-hour chart is suggesting chances of a further selling in the cable.
The GBP/USD can continue to trade with a bearish bias below 1.2860, with the next resistance around 1.2900 and 1.2970. Conversely, the bearish breakout below 1.2850 can lead to GBP/USD towards 1.2790.
All the best for today.