Daily Analysis | 30 January 2018
There was some disappointment at the NAFTA negotiations table yesterday as US rejected Canadian ideas to unblock deadlock US Trade representative Lighthizer rejected the Canadian ideas to lift the deadlock on the “North American car” issue. He also stated that Trump’s views on NAFTA are unchanged and that despite the slow progress they have entered core issues. Mexico and Canada expressed optimism as there seems to be some common ground on a number of issues. Next round to be held in Mexico city, starting from February 26th to March 6th.
- Support: 1.2250(S1), 1.2100(S2), 1.1930(S3)
- Resistance: 1.2350(R1), 1.2450(R2), 1.2585(R3)
Theresa May under fire over Brexit
As media reports suggest, House of Lords members commented that there are “fundamental flaws” in the Brexit law. The criticism concentrated on the fact that ministers may do whatever they think as “appropriate” to correct EU law that turns into the UK and this could be “unconstitutional”. On other news, EU negotiator Barnier stated that the UK risks losing benefits of about 750 international agreements. Also, EU officials seem rather frustrated as May’s government seems undecided as to what kind of Brexit it actually wants. In the short term, any further headlines showing the difficulties of Brexit and the inner UK politics stage could weaken the GBP.
- Support: 1.4040(S1), 1.3875(S2), 1.3785(S3)
- Resistance: 1.4175(R1), 1.4325(R2), 1.4460(R3)
Today’s other economic highlights:
Eurozone: Preliminary GDP for Q4, Survey:+0.6% QoQ Prior:+0.6% QoQ 10:00(GMT),neutral to positive for EUR
Germany: Preliminary HICP for January, Survey: +1.6% YoY Prior:+1.6% YoY 13:00(GMT), neutral to positive for EUR
US: Consumer Confidence for January, Survey: 123.0 Prior:122.1 15:00 (GMT), USD may strengthen
Speakers: ECB policymaker Villeroy de Galhau, BoE Governor Mark Carney, and ECB board member Yves Mersch. Also, it should be mentioned that tomorrow at 02:00(GMT) President Trump will deliver the “State of the union” speech.
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