EUR/USD is subdued in the Tuesday session. Currently, the pair is trading at 1.1320, down 0.07% on the day. On the release front, the U.S. releases CB Consumer Confidence, which is forecast to dip to 136.2 points. On Wednesday, the U.S. publishes Preliminary GDP for the third quarter, with a forecast of 3.6%.
Brexit was on the minds of the markets on the weekend, as the 27 EU leaders approved the withdrawal agreement as well as the political declaration on economic relations between Britain and the EU after Brexit. The European leaders were in a surly mood, taking pains to warn Britain not to try to squeeze more concessions out of the EU. Dutch Prime Minister Mark Rutte summed up the European position, declaring “there is no Plan B”. The EU has signaled that the deal signed on Sunday is “take it or leave it” – if the U.K. doesn’t sign on, the result will be a no-deal “brutal Brexit”, which could be catastrophic for the British economy.
Prime Minister May joined the EU summit on Sunday and again urged British lawmakers to approve the deal, saying it met most of Britain’s demands. Still, May will have an uphill battle pushing the deal through parliament, with the Labor party set to torpedo the agreement, and many Conservative MPs unhappy about the U.K. remaining in a customs union with the continent. As well, the DUP is concerned that the agreement, which keeps Northern Ireland in a customs union with Ireland, weakens the link between Northern Ireland and the rest of the United Kingdom. The stakes are high for Theresa May – if she can’t shepherd the deal through parliament, there will be calls for her resignation, which could lead to early elections in the U.K.
Tuesday (November 27)
- 8:30 US FOMC Member Clarida Speaks
- 9:00 US HPI. Estimate 0.4%
- 9:00 US S&P/CS Composite-20 HPI. Estimate 5.3%
- 10:00 US CB Consumer Confidence. Estimate 136.2
- 14:30 US FOMC Member Bostic Speaks
Wednesday (November 28)
- 7:00 German GfK Consumer Climate. Estimate 10.5
- 8:30 US Preliminary GDP. Estimate 3.6%
- 10:00 US New Home Sales. Estimate 583K
- 12:00 US Fed Chair Powell Speaks
*All release times are EST
*Key events are in bold
EUR/USD for Tuesday, November 27, 2018
EUR/USD for November 27 at 5:55 EST
Open: 1.1328 High: 1.1344 Low: 1.1305 Close: 1.1313
EUR/USD was flat in the Asian session and has ticked lower in European trade
- 1.1300 is a weak support line
- 1.1434 is the next resistance line
- Current range: 1.1300 to 1.1434
Further levels in both directions:
- Below: 1.1300, 1.1212, 1.1120 and 1.0992
- Above: 1.1434, 1.1553 and 1.1685
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