Breit talks are expected to finally come to an end on Monday. GBP and EUR capture the limelight! Let’s see what charts say.
Brexit Talks to End
UK Prime Minister T. May and the European Commissioner President J.C. Juncker are to meet for an official lunch today to discuss the thorny issue of the UK-EU divorce bill, the Irish border and citizens’ rights.
EC President D. Tusk expressed his concern regarding any last-minute postponement of the lunch or any potential disagreement between the two leaders, which he said would dramatically impact the developments of Brexit negotiations and the market. A joint publication on the progress of their talks would signal a positive movement forward with the Brexit, Tusk highlighted.
After dipping to below-50 areas in September, the UK’s construction PMI figures are expected to reflect a slight growth in October, rising to 51.0, meeting TDS analysts’ forecasts.
Spotlight on GBP and EUR
In anticipation of the two titans meeting today, the GBP seems likely to reach a temporary top against its greenback counterpart. However, some resistance in GBPUSD trading today is to be expected around 1.3489 (R1) and 1.35 levels, which may not be easy to break. Following an open at 1.34896, the cable is now trading around 1.34534 and slightly above.
The week only just beginning promises to be an eventful one for the EUR as well, with the EU finance ministers next to meet for the election of the new president of the Eurogroup. The current president Jeroen Dijsselboem ends his tenure in January and EU legislators need to find a replacement soon. This is the first in a series of high-profile EU institutional run-ups. Four candidates from four EU member states enjoy the spotlight, Portugal, Luxembourg, Slovakia, and Latvia. So far, Carteno from Portugal and Kazimir from Slovakia seem to be the strongest candidates, with the latter entering the race in the very last minute to shake things up and likely to tip the scales in his favour.
Sensitive to the events ahead, EURGBP started with an open of 0.87880, somewhat on the backfoot. Moving between highs and lows, the pair seems now to go slightly up in the area of 0.8829 -0.8825.