News
- Financial markets look positive on Tuesday as soon as US Congress negotiators are close to reaching a deal that includes a $1.375bn in funding for the wall on the US-Mexico border. The agreement was reached to avoid a new government shutdown. If the talks fail during the 11th hour or President Trump torpedoes funding bill with $5.7bn for the border wall, negative sentiment could return.
In the spotlight
- Today, British PM Theresa May is expected to ask parliament to give her more time to renegotiate the Brexit divorce deal when making a statement in the House of Commons.
- Senior U.S. officials including Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer are to meet Chinese Vice Premier Liu He in Beijing on Thursday to reach an official deal and put an end to the ongoing trade war.
Expected events. All times GMT.
- 15:00 U.S. will release December data on JOLTS.
Technical Analysis
- EUR USD The 1.1302 support level was broken at around 14:00 GMT on Monday, which pushed the pair to 1.1268 on early Tuesday. As soon as the momentum is weak on both one-minute and one-hour timeframes, expect the pair to reach even lower levels during today’s session.
- GBP USD The pound has broken the psychological support level at 1.2900 and stayed close to the session’s lows on Monday, when the RSI momentum entered the oversold zone again. On Tuesday, the counter-trend reaction has not reached the RSI 50%, and the RSI is pointing downwards again, which could signal of strong negative sentiment.