British pound holds steady after Brexit deal
The British pound rose in early trading as the market reflected on the final Brexit deal that was reached last week. After months of intense negotiations, the EU and the UK finally made concessions that will ensure a close relationship after December 31st. A no-deal Brexit would have led to major difficulties for the UK economy. Experts were predicting that the economy would have lost more than 300k jobs as firms moved to other EU countries.
The price of most cryptocurrencies rallied during the weekend. The price of Bitcoin rose to above $27,000. Other major currencies like Litecoin and Bitcoin Cash also rallied. XRP, on the other hand, continued its decline a few days after the SEC launched a lawsuit against Ripple. Cryptocurrencies have rallied partly because of the large demand from institutional investors.
US futures rallied at the start of the week after Donald Trump signed into law the recently-passed $900 billion stimulus package; averting a government shutdown. The new stimulus will provide $600 to individuals and billions of dollars to small and medium enterprises. It will also provide support to airlines and other vulnerable industries. Economists believe that the Joe Biden administration will provide more stimulus in January, especially if Democrats win the two seats in the Georgia by-election.
The GBP/USD pair is trading at 1.3552, which is slightly higher than last week’s low of 1.3530. The pair has moved slightly above the 25-day and 15-day exponential moving averages. The Relative Strength Index (RSI) is at the neutral level of 50 while the momentum indicator is also moving sideways. The pair has also formed a triangle pattern. Therefore, while the volume will remain low today, the pair may break-out higher this week.
The EUR/USD pair is rising after the Brexit agreement. It is trading at 1.2210, which is higher than last week’s low of 1.2930. It is also slightly above the ascending yellow trendline. It is also higher than the 25-period and 15-period exponential moving averages while the signal and main lines of the MACD are below the neutral level. The Average True Range (ATR), which is a good measure of volatility, has also continued to drop. Therefore, the pair will possibly continue rising as bulls aim for the next resistance at 1.2250.
The XBR/USD pair is little changed today in a low-volume day. It is trading at 51.00, which is in the same range it has been for the past few days. It is also at the same stage as the 25-period and 15-period exponential moving averages while the accumulation and distribution indicators have continued to rise. Also, the awesome oscillator has moved above the neutral level. For today, the pair will possibly remain in the current range.