In spite of a strong UK GDP reading, the GBP/USD currency pair was unable to pierce the immediate resistance cluster, resulting in a small bearish correction, with a slip below 1.26 again. The same cluster keeps providing strong resistance today around 1.2670, implying that the Pound is to weaken against the US Dollar for the second day. The nearest demand area rests around 1.2515, which could limit possible losses, while another strong group supports is located at 1.2430, namely the monthly PP and the 55-day SMA. However, technical indicators in the daily timeframe suggest the Cable is to inch higher; nevertheless, the immediate resistance is expected to remain intact.
Russian Railways suggests reviewing the use of Swiss francs as a settlement currency for the transit traffic, president of the company Oleg Belozerov said, as Tass agency reported.
"We calculate transit in Swiss francs. The Swiss franc has been historically used for international settlements. I asked colleagues to consider and give an assessment whether the franc is the proper currency now to make settlements," he said.
British Prime Minister Theresa May is expected to say on Tuesday that she favours a clean break from the European Union, dismissing a "half-in, half-out" Brexit deal with Brussels.
In a highly anticipated speech, May is likely to give further signals that Britain is heading to what analysts call a "hard" Brexit.
It is thought the Prime Minister is ready to take Britain out of the European single market and customs union, though it remained unclear whether she will give a definitive answer on the question.
The euro may not exist in ten years’ time if Paris and Berlin fail to bolster the single currency union. The warning has come from the French presidential candidate Emmanuel Macron in a speech at Humboldt University in Berlin on Tuesday, as cited by Reuters.
Macron was economy minister under Socialist President François Hollande until he resigned this year to create his own political movement and stand as an independent candidate in this year’s presidential election.
The truth is that we must collectively recognize that the euro is incomplete and cannot last without major reforms,” Macron added.
The USD/JPY currency pair remained relatively unchanged on Tuesday, managing to retain its position above the 115.00 mark. From the technical point of view, the Buck is likely to strengthen against the Japanese Yen today, rebounding from the four-week up-trend and putting the immediate resistance area circa 116.30 to the test. On the other hand, with fundamental events being the main drivers today, the outcome can be less pleasant for the American Dollar. There are risks involved, which can cause the given pair drop even below 113.00, completely ignoring the two closest demand areas.
Brazil’s antitrust body has slapped five banks with fines worth a combined 183.5 million reais (US$ 54 million) for creating a cartel to manipulate exchange rates, official sources announced. CADE, an office in charge of preventing economic abuse, announced that it had hit Barclays, Citicorp, Deutsche Bank, HSBC and JPMorgan Chase with the fines for participating in anti-competitive activities.
The ruling is linked to an investigation begun in Switzerland, Britain and the United States in which 15 companies have been accused of manipulating exchange rates. The fines so far handed down in this case have reached almost 6 billion U.S. dollars.
British consumer prices dropped unexpectedly last month, despite the steep fall in the value of the British Pound after the Brexit vote, official data showed on Tuesday. According to the Office for National Statistics, the Consumer Price Index advanced 0.9% year-over-year in October, compared to the preceding month’s 1.0% rise. That was below the 1.1% market forecast, who suggested that the weak Sterling would lift inflation last month. Nevertheless, the ONS said factory gate prices increased 2.1%, faster than expected and the largest increase since April 2012.
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