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Italy on verge of government deal

italy paliament | EconAlerts


Media suggests that the 5SM and the League are on the verge of forming a government in Italy. The main positions of the parties seem to concentrate on tax cuts and social welfare spending, while there seems to be a dispute about who the actual PM candidate will be. The two parties seem to be on a collision route with Brussels and could provide uncertainty in the Eurozone if they come to power. Should there be further headlines about the programs of the two parties colliding with Brussels, we could see the EUR weakening.

EUR/USD dropped yesterday breaking the 1.1806 (S1) support line, however, made up for most of the losses later on and continued to trade above it during today’s Asian morning. We see the case for the pair to continue to trade in a sideways manner with some bullish tendencies. Should the pair come under selling interest we could see it breaking the 1.1806 (S1) support line once again and aim for the 1.1715 (S2) support barrier. Should it find fresh buying orders we could see the pair reaching or even breaking the 1.1882 (R1) resistance level.

EUR/USD

EUR/USD 17/05/2018 | EconAlerts

  • Support: 1.1806(R1), 1.1715 (R2), 1.1640 (R3)
  • Resistance: 1.1882 (R1), 1.1978 (R2), 1.2135 (R3)


The UK will not ask for longer Brexit period

Cabinet Office minister Lidington stated yesterday that Britain will not ask for an extension of the Brexit transition period when it will publish its detailed plans about the future relationship with the EU next month. On the other hand, UK PM May could face some pressure, when she meets her EU peers before the EU summit next month. Overall, EU diplomats are alarmed at the minimal progress made, after the March breakthrough according to media. Should there be further negative headlines for the issue we could see the pound weakening.

Cable dropped and broke the 1.3500 (S1) support line yesterday, however, regained any losses made later on and continued trading on higher grounds. We see the case for the pair to trade in a sideways movement today between the 1.3500 (S1) support line and the 1.3600 (R1) resistance line. Should the bulls take over, we could see the pair breaking the 1.3600 (R1) resistance line and aim for the 1.3665 (R2) resistance hurdle. On the other hand, should the bears be in the driver’s seat we could see the pair breaking the 1.3500 (S1) support line and aim for the 1.3425 (S2) support zone.

GBP/USD

Cable 17/05/2018 | EconAlerts

  • Support: 1.3500 (S1), 1.3425 (S2), 1.3330 (S3)
  • Resistance: 1.3600 (R1), 1.3665 (R2), 1.3750 (R3)

 

In today’s other economic highlights:

In the European session, we get Eurozone’s Trade Balance figure for March while in the American session we get the number of initial jobless claims and the Philly Fed Business Index. As for speakers, ECB’s Vitor Constancio, Minneapolis Fed president Neel Kashkari, BoE MPC member Andy Haldane and Dallas Fed president Robert Kaplan speak.

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: FXGiants

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