Today, the trading day can be boldly divided into two parts.
Until noon, the data on industrial production in the UK should slow from 0.2% to 0.1% will be released. Given the serious oversold status of the pound, the market will have enough even if such data strengthens the pound.
After lunch, there will be data on producer prices in the US which precedes tomorrow's publication of the inflation report. It is expected that the growth rate in producer prices will accelerate from 2.0% to 2.2%. This seriously increases the likelihood of rising inflation so that the dollar will once again strengthen. However, the dollar is seriously overbought both in relation to the euro and the pound. Therefore, the potential for growth is limited.
The EUR/USD currency pair, which is forming a corrective movement, smoothly approached the level of fibo where there was a slowdown. It is possible to assume that the pair will try to correct. However, at the level of 1.1650, we are waiting for a stop. There is also a hang in the form of a short-term flat in the level of 1.680/1.720.
The GBP/USD currency pair continues to swing near the psychological level of 1.3000. It is possible to assume further swings with a price shift below the level. Thus, the set framework is at 1.2960/1.3010.
