12.12.201809:59 Forex Analysis & Reviews: Brexit: To approve an agreement on Brexit, Theresa May only need to solve the issue with the border of Ireland

The euro and the pound fell again in tandem with the US dollar. All attempts at recovery, which could be observed in the morning, were then replaced by large sales.

Information that Theresa May went to a meeting with European leaders to try to convince them of the need to revise their decision on the border in Ireland led only to the sale of risky assets, since traders do not believe in this possibility.

This week, there will be a summit, where May will once again try to convince the EU representatives that there is no hard border between Northern Ireland and the Republic of Ireland, which can be formed if the UK leaves the EU. But even if May gains the support of EU leaders on this issue, official London will require more firm commitments from the European Union. To do this, the prime minister needs to achieve legally binding guarantees in one form or another, which would really confirm these intentions. If this can be done, there will be a real chance to hold an agreement on Brexit through parliament and take a confident step on the path to resolving this conflict. All this is necessary until March 29, 2019.

Meanwhile, the US dollar continues to strengthen its position. Yesterday's US producer price data in November of this year led to an increase in short positions in the EUR / USD currency pair.

According to a report by the US Department of Labor, the price index for goods and services of companies in November of this year rose 0.1%, after rising 0.6% in October. Despite the slowdown compared with the previous month, the data turned out to be better than forecasts of economists, who even expected the index to decline by 0.1%.

As for the basic producer price index, which does not take into account the volatile categories of food and energy, prices rose by 0.3% in November compared with the previous month. Economists had forecast an increase in the index excluding food and energy by 0.1%.

Data from The Retail Economist and Goldman Sachs on retail sales slightly affected the US dollar. According to the report, the retail sales index in the US rose by 2.1% from 2 to 8 December over the week. Compared to the same period of 2017, retail sales increased by 2.2%.

According to the Redbook, retail sales in the US for the week from December 2 to 8 rose immediately by 6.6% compared with 2017. For the first week of December, sales fell by 0.5%.

As for the technical picture of the EUR / USD currency pair, it is likely that the pressure on the euro will continue. The breakthrough of intermediate support in the area of 1.1320 will lead to a new wave of short positions with access to the lows of last month in the area of 1.1290 and 1.1265. An upward correction will be limited to the levels of 1.1350 and 1.1370.

In the meantime, the good news that Beijing is seeking to ease trade tensions with Washington continues to delight investors.

Yesterday, a high-ranking representative of China told his US partners that Beijing would reduce duties on American cars from 40% to 15%. I recall that between the parties on December 1, a truce was concluded for 90 days, during which the countries must make a number of concessions, which will be offered and agreed by each of the parties.