Euro continued to rise, while pound demonstrated significant agility, catching up on the previous lag. This occurred not only due to the ongoing rebound, but also because of the revised inflation forecasts in the US.
If on Friday forecasts assumed consumer prices to accelerate from 3.7% to 3.8%, over the weekend, it changed to a slowdown to 3.3%. If this really happens, the Fed will no longer consider raising interest rates, and instead begin talking about its imminent reduction. This will change market dynamics, contributing to the weakening of dollar.
EUR/USD traded within a sideways range for several consecutive days, with 1.0650 and 1.0750 serving as signal levels. Staying beyond one of these prices will lead to a subsequent price movement, which may become speculative jumps.
In GBP/USD, a rebound from 1.2200 occurred, which led to an increase in the volume of long positions. Based on this, the quote returned to 1.2270, and may continue to climb upward if the price stabilizes above 1.2300. Otherwise, a reversal will occur, where 1.2270 will act as resistance.
