Markets in Details: 08 February 2019

8 February, 2019

News

  • The BOE left interest rates unchanged at 0.75% and warned that various factors will contribute to the downward bias for the UK economy, adding that growth is evidently weakening in early 2019. It now expects the UK to grow by 1.2 percent this year.
  • Slow growth appears to remain stable as Germany and Spain registered lower industrial output than expected. The German number can be explained by a 4.1 percent drop in construction, while in Spain, all sectors saw production drop. The EC responded to the latest production data by slashing this year’s growth forecast from 1.2 percent to 0.2 percent.

The focus of attention

  • U.S. President Donald Trump admitted that the official meeting with Chinese President Xi Jinping would not take place before March 1, as planned earlier. Although the 90-day U.S.-China tariff truce can be extended, financial markets are unlikely to react well to rising uncertainty.

Expected events. All times GMT.

  • 07:00 German will release its December’s Trade Balance.
  • 07:45 France will release its Q4 Nonfarm Payrolls.

Technical Analysis

  • GBP/USD On Thursday afternoon, the pound reversed and managed to trade above the 1.2974 level. Friday’s session will be important to assess the quality of this price reversal.
  • On Thursday, the EUR/USD pair got support at 1.1330, but a sharp bounce was not able to push it past the nearest resistance at 1.1365. Note whether the pair will be able to break out of the flat over the coming sessions, as soon as the RSI reading of above 50% could signal a beginning of an uptrend.


Source  
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