22.02.2019: Pound lacks momentum against US dollar (EUR/USD, GBP/USD)

22.02.2019: Pound lacks momentum against US dollar (EUR/USD, GBP/USD)


A possibility of the US and China striking
a trade deal shapes the investor sentiment.
The euro-dollar, the most popular currency
pair, is hovering at highs.
The euro-dollar pair is trading sideways in
the range between 1.1330 and 1.1340.
At the same time, the euro faces the risk
of a selloff on the back of weak macroeconomic
statistics.
The EU inflation rate decelerated to 1.4%
from 1.5% in annual terms.
Undoubtedly, the European economy is not ready
to withstand monetary policy changes.
Furthermore, the German IFO Business Climate
Index also showed deterioration.
The index fell to 98.5 points from 99.3 points
which was the lowest reading in the past four
years.
The business sentiment worsened amid trade
conflicts of the United States with some other
countries.
Trump threatens to impose tax duties not only
on China but also on European countries.
Additionally, unsettles Brexit issues also
pose risks to stability.
The British pound has come under bearish pressure.
There is no good news about the divorce procedure.
The latest meeting between Theresa May and
Jean Claude Juncker has brought no results.
The sides failed to reach a compromise.
Consequently, the GBP/USD pair was left without
support near the level of 1.30.
The United Kingdom will not release any significant
reports today, so the cable is likely to decline
lower by the end of the European trading session.

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