After a week full of events and important economic data, today comes without many significant occurrences in store, with only the EU summit in focus, where the leaders of the European Union are due to meet. The state of uncertainty is still dominant and influential on the British economy, and makes investors eager for more details about the transitional period and the trade agreement after Brexit.
EU leaders are expected to give the green light to Chief Negotiator Barnier to start talks with Britain on the transition period and future trade relations. Investors had some optimism that the negotiations were moving to the second phase. Junker described the next stage as harder than the first stage, and that it will be in the hands of Parliament and the British people.
The Sterling is still moving in a strong bullish direction against the USD in the long run within a bullish channel that is approaching its lower line again in light of its short term downtrend.
On the other hand, the US dollar fell to its lowest level in 10 days, as the dollar index fell significantly to the levels of 93, and we mentioned that it is currently in the process of forming the right shoulder of the head and shoulders pattern on the daily chart and will be completed with breaking the level of support at 92.58.
The decline comes as a result of some debate over changes to the tax bill by two members of Congress yesterday. The law needs a simple majority to be passed by the Senate, where Republicans hold 52 out of 100 seats.
