18.10.2019: Traders selling US dollar ahead of weekend (EUR, USD, GBP)

The sentiment prevailing throughout the entire week preserves. The US dollar continues to decline against the European currencies. Today, traders’ sentiment has been affected by the news on the escalation in the trade dispute between the United States and the European Union. Washington has announced the introduction of tariffs on a number of European goods. However, as many analysts have already noticed, the trade war deals the heaviest blow to the very American economy. Today’s data from China has showed a recovery in its manufacturing sector, while the American macroeconomic indicators are forcing the monetary authorities to lower the interest rate further. Amid expectations of the Fed rate cut and the resolution of the Brexit issue, the European currency managed to recover its losses recorded
several months ago. The euro/dollar pair has gained ground in the area above the psychological level of 1.1100. Today, it has almost reached its 2-month high, approaching the level of 1.1150. Yesterday, European Commission President Jean-Claude Juncker and British Prime Minister Boris Johnson finally came up with a compromise on a Brexit deal. Nevertheless, traders remain uncertain as to whether the agreement will be approved by Britain’s Parliament. Today, Mr. Johnson is due to meet with the MPs, and after that the final scenario of the Brexit divorce deal will become clear. Ahead of this meeting, the markets are nervous. It can be seen from the dynamics of the pound/dollar pair. The pound ended its upward movement near 1.2900 and started trading in a sideways trend awaiting the vote in the Palace of Westminster. We keep close tabs on the market development. Subscribe to our channel and stay tuned. See you soon!

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