State of the market: the market expects Brexit extension
After the UK Parliament voted against leaving the EU without a deal, the British pound accelerated its growth, which has been traced from the start of the day on such expectations. Now the UK government will vote to extend the terms of Brexit, the approval of which will also support the British pound. Due to the fact that all market attention continues to be riveted on the UK, trading in other currencies remains multidirectional, as indicated by today’s correction against yesterday’s movement in most major currencies.
Very weak data for China were an additional factor to reduce optimism in the market and the correction. Statistics for China showed a slowdown in industrial production and a significant increase in unemployment. As a result, it put pressure on the stock indices of the Asia-Pacific region and can be transferred to stock indices in Europe.
The dollar index has been trading with a strengthening on correction after a significant decline from the start of the day. The weakening of the American dollar was mainly caused by the growth of the British pound on the voting results. On Thursday, the American dollar rebounded from the support zone 96.50-40, but continues to remain under the pressure, despite attempts oft correction.
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Hanzenko Anton
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