The overbought condition of dollar prevented it from demonstrating any growth despite data coming from Europe and the UK. Reportedly, industrial production in the former declined from -1.1% to -2.2%, while in the latter, it slowed from 0.7% to 0.4%. Inflation in the US also accelerated from 3.2% to 3.7%, surpassing even the boldest forecasts.
It seems that the results of today's ECB meeting will be the trigger for a correction, as interest rates may be raised from 4.25% to 4.50%. After that, the market will prepare for the upcoming meeting of the Federal Reserve next week.
EUR/USD retraced from the support level of 1.0680. However, the limited recovery indicates a subsequent consolidation in the range of 1.0700/1.0770, which could build up trading momentum, eventually leading to speculative price spikes.
Although GBP/USD hit a local low, consolidation in the pair continues. The fact that fluctuations around the level of 1.2500 persist means that trading momentum accumulates, so there may be impulsive price jumps in the future. That will signal the end of consolidation. The level of 1.2 could be a potential signal points.
