Today the most important news will be the report on inflation in the United States, which may turn out to be better than economists' forecasts. As a result, the euro and the British pound are likely to rise. If the data shows the first deflationary signs, the demand for the US dollar will probably only increase.
Signals for the EUR/USD pair:
The euro can increase to 1.0873 and 1.0923, if there is a breakthrough at 1.0819.
A breakthrough at 1.0771 can lead to a sell-off of the euro to 1.0728 and 1.0636.
Signals for theGBP/USD pair:
If the pair breaks through at 1.2358, the British pound can rise to 1.2425 and 1.2463.
A breakthrough at 1.2290 can lead to a sell-off of the British pound to 1.2250 and 1.2211.
Fundamental data:
- US Consumer Price Index
- The Federal Reserve officials are to deliver their speech.
