Eur/Jpy

[yawarhussain]

The first set of data to be watched this week are the inflation figures on Wednesday. The UK’s headline CPI rate was unchanged at 2.4% year-on-year in October. It is forecast to moderate to 2.3% in November, which, if confirmed, would make it the lowest since March 2017 and ease the need for the Bank of England to raise interest rates in the coming months. The core rate is also expected to head lower in November, to 1.8%.

[yawarhussain]

Moving to the retail sales numbers, they are forecast to have risen by 0.3% month-on-month in November, following a 0.5% dip in the prior month. However, on an annual basis, retail sales are expected to have slowed from 2.2% to 1.9%. A stronger figure would suggest consumer spending is holding up well in the current quarter and that fears of a marked deterioration in growth may have been overdone. Similarly, a disappointing performance by retailers would worsen the gloom for the economy.

[yawarhussain]

A breach of this region would bring prices within scope of last week’s 20-month low of $1.2475. Deeper losses could risk a test of the $1.24 handle, which is just above the 161.8% Fibonacci extension of the October-November upleg from $1.2694 to $1.3174.

[yawarhussain]

A more cautious statement, along with a broadly unimpressive data, could push sterling towards the recently congested area around $1.2540.

[yawarhussain]

Alternatively, a surprisingly strong set of numbers and/or a not-so-pessimistic Bank of England could help the pound take further advantage of the current bout of dollar weakness. Sterling could break above immediate resistance around the $1.27 mark, with sharper gains bringing into focus the next psychological level at $1.28, which is just above the 78.6% Fibonacci retracement level. Higher up, further advances could stall at the 61.8% Fibonacci level of $1.2877.

[yawarhussain]

It’s worth pointing out though that even as the UK government steps up preparations of a no-deal Brexit, many investors are with the view that lawmakers are likely to block such a move by the May government. Hence, this explains why the pound’s latest sell-off hasn’t been more dramatic.

[yawarhussain]

LONDON, Dec 24 (Reuters) - The euro and the Japanese yen gained in thin trading on Monday as concerns about a partial U.S. government shutdown weighed on investor sentiment and the dollar, although Chinese plans to cut tariffs on a range of goods helped to lift the mood.

[yawarhussain]

Finally, on Thursday, the Bank of England is widely anticipated to hold its key rate unchanged at 0.75%. There is no press conference or quarterly inflation report at the December meeting, so the event may fail to see much market reaction. However, with the fate of Theresa May’s hard-negotiated Brexit deal looking uncertain and with the possibility of British businesses being stuck in limbo for longer, the Bank may raise concerns about the outlook in its statement.

[Intelligent]

EUR/JPY currency pair.
forecast Date - Mon Dec 24 2018
Today forex signal - Buy.
Support 3 - Support 2 - Support 1.
125.89 - 126.02 - 126.16
Resistance 1 - Resistance 2 - Resistance 3.
126.43 - 126.56 - 126.70
Time frame that is considered while making support and resistance levels - Daily and weekly Time frame
Consider the daily economic news before taking the trade.

[302]

Recently cost has been in the positive region, yet close to the end of american market costs turned down solid and up to now need to proceed with their slide. Cost is relied upon to keep on falling until ceased at the purpose of help 2 every day (100.03).