The state of the European market

Major currency pairs are trading at the opening of the day, restraining the onslaught of the US currency. The euro and the British pound are exception, which markedly corrected against the American since the beginning of the day. It is mainly due to the correction of positions against Friday.

The market is focused on the British pound, which on steady trading on Monday demonstrates strong growth. The reason for strengthening  of the British pound is the high probability of an increase in rates by the Bank of England at the upcoming meeting. Thus, this probability is estimated at 88%. But the market also expects data on inflation, which will come before the CBR’s protocol on Thursday. Therefore, the main movement for the pound can be called corrective before important statistics on the UK.

Since the statistics on the UK recently remains very unpredictable. The dynamics of the British as a whole, despite attempts at growth, will be limited by lateral trend.

Recommended for reading: https://esterholdings.com/en/2017/10/30/overview-of-the-basic-drivers-19/ and https://esterholdings.com/en/category/tehnicheskij -analiz /

Hanzenko Anton