Good start of 2018 shows that we worked hard and tried to repeat great results from last year. So, there is no omission, we are going to new victories!
Here you can see results for January month by package:
- Standard package made 452 pips net profit
- Professional package made 1084 pips net profit
- Ultimate package made 2921 pips net profit
- Pearl package made 12816 pips net profit
During the European morning we get France’s preliminary CPI rate for January, Germany’s unemployment rate for January, Eurozone’s preliminary inflation rate for January as well as Eurozone’s unemployment rate for December. We see the case for the negative effect of the inflation slowdown, of both France and the Eurozone to overshadow any positive impact of the German and Eurozone unemployment rates release. Later on we get Canada’s GDP data for November and the US ADP National Employment indicators which could support the greenback. Also, we get the US Crude Oil inventories figure which is expected to carry a positive sign for the first time in a long period. Last but not least as mentioned in the analysis before, we get the FOMC’s interest rate decision. As for speakers, Riksbank Governor Ingves speaks.
A report prepared by the UK government showing that the UK economy will be hit in any Brexit scenario leaked yesterday. Government ministers tried to play down the importance of the report, however media persisted on the issue. The issue seems to be confirmed as U.K. banks may have limited access to the EU single market after Brexit as reported by various media sources, hence confirming EU’s chief Brexit negotiator Barnier’s recent statement. On the inner political front, Theresa May, may be facing a small rebellion within the Tory party. 48 votes are required to trigger a leadership contest within the Tory party. These should not be good news about the GBP as political instability may increase and should the negative headlines continue, the GBP could be weaken.
In contrast to yesterday’s forecast for a bearish market, cable posted some gains, testing the 1.4175 resistance line. We see the case for cable to trade in a sideways manner. Despite yesterday’s rise, we see the case for the pair to enter a slightly bearish market as the greenback side of the pair may strengthen by today’s fundamentals and financial data. Should the bulls take the reins of the pair’s direction we could see it breaking the 1.4175 resistance level and test the 1.4325 resistance barrier. Should the bears have the upper hand, we could see the pair breaking the 1.4040 support line and hover slightly below it.