Consumer price growth in the Euro area accelerated from 6.9% to 7.0%. However, markets already expected this dynamic, so there was not much change in EUR/USD. In fact, its decline even continued, albeit modestly. Now, there are signs of recovery and attempts to return to the price level it was trading at earlier.
In terms of GBP/USD, it has a similar trajectory, but the difference is that it already recovered from yesterday's losses. There is even a chance that it will grow further, thanks to upcoming data on US jobless claims. However, that will only happen if the data on both initial and repeat claims increase by about 6,000.
Euro is approaching 1.0800. It is clear that the correction is yet to end, but for this movement to continue, the quote has to stay below 1.0800. Until that happens, traders will consider a scenario of gradual growth.
Pound has also undergone a correction. However, it already ended and a rebound is now occurring. To increase the volume of short positions, traders have to keep the quote below 1.2440. This could lead to further correction. Volatility is likely to surge at this time.
