Focus on GBP, EUR: the European session today

30.08.2018 / 09:58

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Asian stock indices erased the greater portion of their gains, despite the S&P500 and NASDAQ reaching record levels yesterday. This points to a continuation of the divergence in performance between and other large markets. Statistically, the strong trend of the American markets in the last 12 months points to stronger performance in the future as well.

A performance above average in one year is usually followed by a strong performance in the next one.

GBP/USD jumped to 1,302 after Michel Barnier remarks that the EU is willing to make concession with Great Britain on Brexit. The 1,302 level is a key resistance. A break out above this level and a daily close there would indicate a potential reversal in the downwards trend of GBP/USD.

EUR/USD remained contained below 1,17 today after a failed break out attempt. Considering that the DeMarker remains in overbought territory, as well as the weakening of the upwards trend, the probability of a correction is high.

IG expects European markets to open largely unchanged.

Today we expect consumer confidence data for the European Union at 12:00 Sofia time, as well as preliminary inflation for Germany at 15:00. We will track these data for a trigger for EUR/USD correction.

Source: Bloomberg Finance L.P.

Chart: Used with permission of Bloomberg Finance L.P.

Image: pixabay.com

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Focus on GBP, EUR: the European session today

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