Past review of GBP/USD pair
The pound showed high activity yesterday. As a result, market participants could observe both upward and downward surges. The overall scale of price fluctuations was more than 120 points.
What was published on the economic calendar?
Significant statistics from the UK were not published. The market was still focused on Brexit's information flow, where they paid special attention to the meeting of Britain's Prime Minister Boris Johnson and European Commission's head, Ursula von der Leyen.
What happened on the trading chart?
The pound showed active upward interest before the start of the US session, which resulted in the quote's surge to the level of 1.3476. In fact, traders were working on expectations of the upcoming meeting of the two leaders, but optimism is not a stable thing when dealing with speculators. As a result, the pound's growth was replaced by a decline, returning to where the trading day began, which is to the area of 1.3360.
Past review of EUR/USD pair
The Euro showed downward activity yesterday, which is confirmed by the high value of the euro.
What was published on the economic calendar?
No significant statistics were published in Europe.
US data on open vacancies was the only data that was published. The value of which increased from 6,494 thousand to 6,652 thousand, with a forecasted decline of 6,300 thousand. The factor is positive, but the market may have missed the statistical flow due to the broad information flow of Brexit (trade negotiations between England and Brussels).
What happened on the trading chart?
There was a downward movement in the beginning of the European session, which finally led the quote to update the weekly high 1.2078 ---> 1.2059. In turn, this step increases the sellers' chances for a more impressive correctional movement in the market.
It should be recalled that the euro remains overbought in the market, which leads to a reduction in the volume of buy positions.
Trading recommendation for GBP/USD on December 10
Considering the economic calendar, UK statistics are already published today. The industrial production showed growth of 1.7% in October, instead of the expected slowdown. In annual terms, the rate of decline slowed from -6.3% to -5.5%, with a forecast of -6.5%. The indicators are not bad, but the market is still working on speculative expectations related to Brexit.
On the other hand, US weekly data on unemployment claims will be published in the afternoon, where its values are expected to decline.
The volume of repeated applications for benefits can immediately decline by 185 thousand – from 5 520 thousand to 5 335 thousand, while the number of initial applications may remain unchanged or increase by 13 thousand.
At the same time, the final data on the US will also be released, where a slowdown to 1.1% is expected.
USA 13:30 Universal time - Claims for unemployment benefitsUSA 13:30 Universal time - Inflation dataIn terms of technical analysis, price consolidation below 1.3300 could bring the quote to the current week's low of 1.3223. Moreover, the pound is expected to weaken greatly, if the price settles below the level of 1.3220. However, if the price failed to do so, it will result in a subsequent amplitude, returning us to the limits of 1.3300/1.3400.
Trading recommendation for EUR/USD on December 10
Today's main event in terms of the economic calendar is the meeting of the European Central Bank (ECB), where the regulator may decide on the further expansion of the economic stimulus program in connection with the growing consequences of the coronavirus pandemic. The stimulus program is almost the same as the quantitative easing program, which is a negative factor for the national currency.
EU 12:45 Universal time - ECB meetingEU 13:30 Universal time - Press conference and ECB commentary on monetary policyAs for the technical analysis, it can be seen that the quote is within the level of 1.2100, that is, it slightly pulled back from the daily low of 1.2059. It can be assumed that the rate will further weaken to the level of 1.2000, in connection with the overbought factor of the euro and ECB's possible actions.
An alternative scenario for market development will be considered if the quote is kept at the previous levels, which may lead to the formation of a side channel of 1.2070/1.2170.