FX.co ★ Trading recommendations for the EUR/USD and GBP/USD pairs on December 11

EUR / USD during yesterday's trading session:

Demand for the euro increased yesterday, as a result of which the quotes returned to the area of the conditional high.

What was published on the economic calendar?

The European Central Bank (ECB) held a meeting, during which the base interest rate on loans was left at zero. At the same time, the regulator took a big step towards injecting even more money into the economy, and they did this by expanding the bond purchase program by another € 500 billion euros. Now, the volume of the program amounts to € 1.85 trillion.

On the one hand, it may seem that this step will stimulate the economy, but on the other hand, it is a quantitative easing program that negatively affects the value of the national currency in the medium term.

What happened on the trading chart?

From the start of the European session, the market was dominated by upward interest, where, to everyone's surprise, the ECB meeting played in favor of the euro's strengthening, which is not entirely logical in terms of the regulator's decision and market reaction.

Many assume that it was the high degree of speculative activity that led to the irrational price change in the market.

GBP / USD during yesterday's trading session:

The pound continued its decline, but it did not manage to overcome the local low.

What was published on the economic calendar?

Data on UK's industrial production was published, where, instead of the expected slowdown, there was an acceleration of 1.7%. This suggests that the rate of decline is slowed from -6.3% to -5.5%, against the forecast of -6.5%.

The indicators are good, but they were of little interest to the market, especially since speculators are working on fears of a Brexit without a deal.

To add to that, in the afternoon, weekly data on US jobless claims was released, and its figures came out worse than expected.

The Economists expected the volume of reapplications to decrease by 185,000, but instead, there was an increase of 230,000.

Initial applications, meanwhile, were supposed to increase by 13,000, but instead, the increase to 137,000, which is quite a lot.

This divergence in expectations played negatively on the dollar's positions, thereby stopping the depreciation of the pound against the dollar.

What happened on the trading chart?

Initially, the pound felt a lot of pressure from sellers, as a result of which the rate fell to 1.3245. After that, there was a stop with a slight pullback towards the previously passed level of 1.3300.

The negative statistics from the United States only locally supported the British pound, and is considered a temporary phenomenon in the market.

Trading recommendation for the EUR / USD pair

Today, data on US PPI will be published, and many expect it to show an increase from 0.5% to 0.8%, which will positively affect the US dollar.

In terms of technical analysis, it is clear that the area of 1.2160 / 1.2177 negatively affects the volume of positions on the euro, especially since the currency is highly overbought at the moment. Thus, it can be assumed that the quote will try to correct in the direction of 1.2100-1.2080.

Trade recommendation for the GBP / USD pair

There is only statistical data from the United States today, but news on Brexit, as before, will persist in the market and may negatively affect the exchange rate of the British pound.

In terms of technical analysis, price jumped down sharply during the European session. If it remains below 1.3300, the pound will collapse even further to 1.3223.