Due to today celebrated feast of Martin Luther King (also called Jr. Day), which commemorates the death of the leader of the movement fighting for the rights of African Americans (born 1929 years Nobel Peace Prize laureate was assassinated in April 1968 years) we saw today a very quiet session devoid of most important macroeconomic publications.


EURUSD

As a result of today’s declines market defeated local support, which now is re-testing from the bottom (as resistance). The rejection of this level would be a signal to continue declines even in the vicinity of the level of 1.0485.

EURUSD H4

GBPUSD

The market opened today with almost 180 pips bearish gap caused by collapse of the exchange rate of the British Pound. This was related to weekend press reports concerning the upcoming conference of British Prime Minister, Theresa May, who tomorrow is to comment on the exit of UK from the European Union. The British press reported yesterday that Theresa May is willing to Hard Brexit which would mean the loss of access to the single market in the European Union. About what it means for both economies read here.

Treasury Secretary Theresa May’s office – Phillip Hammond told the German “Welt am Sonntag” :

“If we do not have access to the European market, at least in the short term, we can suffer economically. We will then have to change our economic model in order to regain competitiveness. And certainly we will do it. The British are not the ones to give up and complain. We will change our model and we will be even more competitive “

If to the end of the day gap is not completely closed ,by all appearances, it will be the worst result since 1985.

It seems that the safest is to refrain from investing in currency pairs with GBP and instruments correlated until tomorrows speech of Prime Minister of Great Britain.

GBPUSD Daily
GBPUSD Daily

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