Euro rises even after weak economic data from Germany
Crude price eased today even after Washington threatened more sanctions on Venezuela. This news came a few days after the country’s opposition leader declared himself the interim president as protests against Nicholas Maduro increased. The residents are protesting against the difficult quality of life as inflation in the country soars. Investors are probably concerned that the US sanctions will make it impossible for the country to import crude oil. The price also dropped a day after data showed a sharp increase in US crude stocks.
Sterling eased slightly but remained closer to yesterday’s high as investor’s confidence over Brexit grew. As a result, the sterling has had the best week in more than a year. However, the currency appears priced for perfection, which could expose it for a hard landing in case no progress is made on Brexit. All this is happening almost seven weeks before the March 29 deadline. In the UK, data showed that the gross mortgage approvals declined to 38.8K from the previous month high of 39.4K. The sterling also received backing from the queen, who released a statement saying:
As we look for new answers in the modern age, I for one prefer the tried and tested recipes, like speaking well of each other and respecting different points of view; coming together to seek out the common ground; and never losing sight of the bigger picture
The euro rose despite negative data from the region. In Germany, the ifo business climate index was 99.1. This was lower than the expected 100.7. It was also lower than the previously-released 101. The reading was also near the lowest level in three years. In addition, the business expectations index for the month was 94.2, which was lower than the expected 97. On a positive note, the current assessment rose to 104.3, which was higher than the previous 104.2.
The EURUSD pair rose today from yesterday’s lows of 1.2888 to a high of 1.1350. On the hourly chart, the price is along the upper band of the Bollinger Bands while the Average Directional Index has fallen to 18. The Parabolic SAR is below the current price, an indication that the upward trend could continue. However, based on the ADX, there is also a possibility that the pair’s rally could fade.
The GBPUSD pair remained closer to yesterday’s high as traders hoped that a no-deal Brexit will be avoided. The pair is nearing the previous multi-month high of 1.3175. In the four-hour chart, the pair is forming a cup pattern. Therefore, if the price reaches the previous high, there is a possibility that a pullback could happen. On the four-hour chart below, the price is below the upper line of the Bollinger Bands while the RSI has remained below the 70 level.
The price of Brent crude oil declined today as traders started to worry about a glut in supply. The price reached an intraday low of $60.85. On the hourly chart below, the price is below the Envelopes indicator and below the Variable Index Dynamic Average. The signal line of the stochastics oscillator has also started moving from the oversold level of 20. The Relative Strength Index has remained below the 50 level. There is a possibility that the pair will recover and retest the previous highs of above $62.