But there are many more questions about how the Pound will behave against the Euro. EURGBP in a sharp move yesterday came out of the area below 0.9000 and climbed to 0.9130, the area of the extremes of the last four years. The pair is being pushed up by Britain’s problems with an orderly exit from the EU, but a chaotic Brexit hurts Europe as well, so at some point, the prospect of a no-deal exit will apply pressure to the Euro as well.

It will be interesting to see how it all plays out. The Euro has managed to enter a new, higher trading range against the dollar. This raises the chances that the single currency will tend to move higher against the Pound as well, turning the current resistance above 0.9100 into future support, targeting the area of the historical highs at 0.9500.

https://fxpro.news/daily-forex-outlook/gbp-crushed-by-eur-usd-on-growing-chances-of-a-no-deal-brexit-20201211/

#WaveAnalysis
#DAX falling inside impulse wave 3

• Likely to reach 12900.00

https://fxpro.news/market-snapshots/dax-wave-analysis-11-december-2020-20201211/

#WaveAnalysis
#AUDCAD broke resistance level 0.9615

• Likely to rise to 0.9665

https://fxpro.news/market-snapshots/audcad-wave-analysis-11-december-2020-20201211/

Markets renew growth on Brexit & US stimulus hopes
As is almost always the case, Brexit negotiators are at their best when more time is needed to reach an agreement. This time, the president of the European Commission and the British prime minister have decided to extend discussions on free trade.

The postponement of the deadline is now seen as a ray of hope for an agreement rather than a harbinger of impending deadlock. Expectations of softer mutual trade terms between Britain and the EU gave a positive start to markets on Monday morning. GBPUSD was up 1.25% to 1.3400 by the start of the European session, more than two figures above Friday’s lows of 1.3130.

The positive dynamics of the pound and, indirectly the eur, sent global stock markets to test new highs. However, the FTSE100 and DAX30 are sluggish today.

https://fxpro.news/daily-forex-outlook/markets-renew-growth-on-brexit-us-stimulus-hopes-20201214/

#WaveAnalysis

#AUDNZD broke resistance level 1.0625

• Likely to rise to 1.0765

https://fxpro.news/market-snapshots/audnzd-wave-analysis-14-december-2020-20201214/

#WaveAnalysis

#Natural gas rising inside impulse wave (3)

• Likely to reach resistance level 2.800

https://fxpro.news/market-snapshots/natural-gas-wave-analysis-14-december-2020-20201214/

Sell high pattern for stocks is a worrying sign

By the end of Monday, US equity indices lost their growth momentum.

It is worth noting that the dynamics of the US indices since the end of last month are mainly characterised by selling the high pattern: each intraday strong growth impulse ends with increased selling.

These declines are quickly bought out, due to heightened liquidity thanks to the central banks and the promise of new support packages, therefore forming a very narrow trading range for the main indices. Practice shows that the longer the ranges are abnormally narrow, the stronger the move after a breakout can be, although it says little about its direction.

Very soon, probably as early as early next year, this market situation could turn into a sharp increase in market volatility once investors move into truly promising investment ideas.

https://fxpro.news/daily-forex-outlook/sell-high-pattern-for-stocks-is-a-worrying-sign-20201215/

The November lockdown dealt a new blow to employment in the UK, causing a jump in Claimant Count by 64.3K, more than reversing the decline from a month earlier (-64.1K). In terms of employment numbers in the UK, it is too early to declare the start of a labour market recovery, as the total Claimant Count is hovering near peaks. Separate flash estimates from the ONS show a fall in employment by 28K in November.

In the three months to October, total payrolls rose 2.7% compared to the same period a year earlier, markedly better than the 1.4% in the previous month and forecasts of 2.2%. Wage growth is a good signal in times near full employment; when jobs are in decline it is a sign that companies are "optimising their workforce" by cutting the lower-paid employees.

In addition to the coronavirus, a long drawn out Brexit is weighing on Britain, undermining prospects for recovery. In this environment, it would not be surprising if GBP will underperform compared to its counterparts in the near term.

#WaveAnalysis

#Dax reversed from support level 13000.00

• Likely to rise to 13500.00

https://fxpro.news/market-snapshots/dax-wave-analysis-15-december-2020-20201215/

#WaveAnalysis

#Platinum reversed from round support level 1000.00

• Likely to rise to 1080.00

https://fxpro.news/market-snapshots/platinum-wave-analysis-15-december-2020-20201215/

Will the Fed restore faith in the dollar, and will it hurt shares?

The dollar index is hovering near 2.5-year lows ahead of this year’s final Fed meeting.

The easy part of the job for the Fed is that suppressed inflation and labour market allows and for a soft approach to monetary policy. But this will erode faith in the USD and debt sustainability

In such circumstances, the Fed may help the Treasury by providing demand for government bonds

https://fxpro.news/daily-forex-outlook/will-the-fed-restore-faith-in-the-dollar-and-will-it-hurt-shares-20201216/

German PMIs revive euro’s growth momentum
Germany is entering its toughest lockdown regime today, but European markets are enjoying a wave of optimism with EURUSD breaking 1.22 and the DAX jumping more than 1%. In both cases, this is a step beyond the established trading ranges for previous weeks.

The rise was driven by significantly stronger PMI estimates for Germany and, later, for the whole euro area. The recovery in the industrial sector is gaining momentum, as reflected by a rise in the relevant PMI to 58.6, the highest level since February 2018, vs 57.8 a month earlier and an expected decline to 56.4.

The services sector contracted but it was unable to drag down the German composite index to deeper levels. The eurozone composite index climbed to 49.8 in December, much better than 45.3 a month earlier.

Thus, business sentiment in the Euro-region was very optimistic at the start of the winter lockdown, which helped the single currency and the European indices to gain momentum.

#WaveAnalysis
#CADJPY reversed from key resistance level 82.00

• Likely to fall to 80.40

https://fxpro.news/market-snapshots/cadjpy-wave-analysis-16-december-2020-20201216/

#WaveAnalysis

#EURJPY reversed from support level 125.800

• Likely to rise to 126.80

https://fxpro.news/market-snapshots/eurjpy-wave-analysis-16-december-2020-20201216/

Dollar’s fall accelerates

In the final meeting of 2020, the FOMC promised to continue asset purchases on the balance sheet by 120B monthly, until inflation confidently recovers to 2%. These comments allowed the markets to maintain their rising trend as the dollar continues to decline.

On Thursday morning the dollar index dipped below the round level of 90, renewing its more than two-year lows. The euro and pound are showing impressive momentum, rising above 1.2240 and 1.3580 earlier today.

https://fxpro.news/daily-forex-outlook/dollars-fall-accelerates-20201217/

#WaveAnalysis
#NZDUSD broke key resistance level 0.7115

Likely to rise to 0.7200

https://fxpro.news/market-snapshots/nzdusd-wave-analysis-17-december-2020-20201217/

#WaveAnalysis
NASDAQ100 broke resistance level 12660.00

• Likely to rise to 13000.00

https://fxpro.news/market-snapshots/nasdaq-100-wave-analysis-17-december-2020-20201217/

#WaveAnalysis

#Silver reversed from resistance level 25.90

• Likely to fall to 25.00

https://fxpro.news/market-snapshots/silver-wave-analysis-18-december-2020-20201218/

#WaveAnalysis

#EURJPY reversed from key resistance level 127.00

• Likely to fall to 125.800

https://fxpro.news/market-snapshots/eurjpy-wave-analysis-18-december-2020-20201218/