23.01.201910:09 Forex Analysis & Reviews: Overview of the currency market on 01/23/2019

While the British parliamentarians once again re-read Theresa May's backup plan for secession from united Europe, the market was able to breathe easy without worrying about the next loud statements. So investors calmly contemplated data on the UK labor market, which presented an unexpected surprise. It was expected that all the parameters of the labor market would remain unchanged, but in fact, the unemployment rate dropped from 4.1% to 4.0%, while the average wage growth rate, taking into account the premiums, accelerated from 3.3% to 3.4%. The data was so positive that no one even paid attention to government borrowing, which increased by 2.1 billion pounds instead of the expected 1.1 billion pounds. At the same time, American statistics also contributed to the weakening of the dollar, as housing sales in the secondary market declined by 6.4%, while a decline of 1.0% was predicted.

In terms of macroeconomic statistics, today is a fairly calm day, which is not bad, as market participants should calm down and prepare for tomorrow's meeting of the European Central Bank. Of course, there is always the possibility that someone from parliamentarians will finally finish reading the text of Theresa May's plan for secession from the European Union and decide to immediately share her impressions with others. Especially with the media agitation and misinformation. Nevertheless, it is most likely that today the market will consolidate on the eve of tomorrow's meeting, at the end of which many want to hear specifics about the timing of the increase in the refinancing rate.

Thus, the single European currency will trade in the region of 1.1350 - 1.1375.

The pound, by analogy with the single European currency, will be relatively stable, unless the politicians once again decide to say something stupid. So the pound will be trading at 1.2925 - 1.2950.