The certainty brought by the UK general elections has also impacted the Euro. Namely, the EUR/USD currency exchange rate also surged on the Tory victory on Thursday.
On Friday, the rate was consolidating in the aftermath of the sharp surge. Tories win UK elections
On Thursday, December 12, the EUR/USD appreciated 89 pips or 0.80% against the US Dollar.
The advance was driven by the UK Parliamentary Elections. The Prime Minister Boris Johnson's Conservative Party won 364 seats. This is the biggest victory of the Conservatives since Margaret Thatcher.
The Prime Minister promised that the UK government would get Brexit done on time on January 31. However, analysts think that the government would try to keep a no-deal Brexit option for as long as possible to reach the trade agreement with the EU.
Economic Calendar Analysis
The week is set to end with the US Retail Sales data sets on Friday at 13:30 GMT. A move from 5.3 to 22.2 pips can be expected.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
EUR/USD hourly chart's review
On the hourly chart, the Brexit certainty surge was stopped by the 1.1200 level, where a 38.20% Fibonacci retracement level is located at. In the aftermath of the surge, the rate began to consolidate.In general, the pair was expected to continue to trade sideways until the hourly simple moving averages approach it and remove the overbought pressure.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 200-day simple moving average, which was keeping the rate down during Thursday's trading. The surge was consistent with the channel up pattern, which has guided the rate since September.
In regards to the longer term future, the rate should pass the 1.1200 level and surge up to the 1.1300 mark by the end of January.
Daily chart
Since the middle of Thursday's trading hours, on the Swiss Foreign Exchange 74% of open position volume was in short positions. The traders had suffered losses on the Brexit surge.
Meanwhile, pending trade orders were mostly bearish, as 86% of orders in the 100-pip range were to sell and 14% were to buy.
The orders were 83% to sell on Thursday.