Indicators show the clear overbuying of dollar, so market players rectified the situation on the eve of the release of the US Department of Labor report. Demand noticeably weakened after job vacancies increased by only 177,000.
As the overheated market issue can be considered resolved for the most part, there may not be much reaction to today’s jobless claims data in the US, especially since the changes will likely be very little.
The important thing to note now could be the preliminary assessment of inflation in the eurozone, because the rate of consumer price growth may slow from 5.3% to 5.0%. Further deceleration will surely prompt the ECB to be more restrained in terms of interest rate increases, which will not be in favor of euro and lead to a rise in dollar.
EUR/USD jumped by over 150 pips in the short-term, partially offsetting the recent decline. Staying above the level of 1.0900 will likely increase the volume of long positions, while a drop below the level will result in the surge of short positions.
GBP/USD, on the other hand, rose above 1.2700, indicating a possible price reversal. Staying above this level will surely fuel long positions, while a decline will lead to a return towards the range of 1.2650/1.2700.
The material has been provided by InstaForex Company – www.instaforex.com
Indicators show the clear overbuying of dollar, so market players rectified the situation on the eve of the release of the US Department of Labor report. Demand noticeably weakened after job vacancies increased by only 177,000.
As the overheated market issue can be considered resolved for the most part, there may not be much reaction to today’s jobless claims data in the US, especially since the changes will likely be very little.
The important thing to note now could be the preliminary assessment of inflation in the eurozone, because the rate of consumer price growth may slow from 5.3% to 5.0%. Further deceleration will surely prompt the ECB to be more restrained in terms of interest rate increases, which will not be in favor of euro and lead to a rise in dollar.
EUR/USD jumped by over 150 pips in the short-term, partially offsetting the recent decline. Staying above the level of 1.0900 will likely increase the volume of long positions, while a drop below the level will result in the surge of short positions.
GBP/USD, on the other hand, rose above 1.2700, indicating a possible price reversal. Staying above this level will surely fuel long positions, while a decline will lead to a return towards the range of 1.2650/1.2700.
The material has been provided by InstaForex Company – www.instaforex.com
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