CME Group published a survey result in which a whopping 70% expressed confidence that the Federal Reserve would cut the refinancing rate as early as March. This set the market in motion, with dollar actively losing its position until the closing of the US trading session.
At first glance, dollar's decline should continue since the overall number of jobless claims may increase by 9,000. However, having such an extremely insignificant change, a rebound may be seen instead, rather than a further decline.
EUR/USD accelerated its rise after stabilizing above the psychological level of 1.1000. This resulted in a gain of nearly 100 pips, which indicates a prevailing bullish sentiment among market players.
In the case of further growth, the pair will move towards the local high of the medium-term trend. However, a vertical price movement will lead to an overbought status, which could provoke a technical pullback.
GBP/USD followed euro's lead, extending the upward trend. In the case of price stabilization above 1.2800 during the day, the pair will reach the medium-term high. Otherwise, pound will return to the level of 1.2700.
