At the conference held by the European Central Bank, Fed Chairman Jerome Powell once again mentioned potential rate hikes in the US, which would depend on macroeconomic dynamics in the region. Surprisingly, market players reacted positively to this news, causing dollar to rapidly increase in value. Perhaps, many forgot his similar statements two weeks ago, as well as his words during the Congress hearings last week.
As nothing really new happened, dollar’s rise will likely be followed by a market correction. Today’s data on US jobless claims could be a trigger for it since forecasts say initial claims will increase by 2,000, while continued claims will rise by another 1,000.
EUR/USD fell below 1.0900, indicating a continued correction from 1.1000. There may be volatile fluctuations, but a stable price around this level will lead to a further decline.
GBP/USD, breaking through the lower limit of 1.2700/1.2750, prompted a surge in the volume of short positions, which resulted in a downward movement. However, technical signals point to pound being oversold, so a rebound or stagnation will likely occur in the pair. Only a continued bearish sentiment will trigger a move towards 1.2550.
The material has been provided by InstaForex Company – www.instaforex.com
At the conference held by the European Central Bank, Fed Chairman Jerome Powell once again mentioned potential rate hikes in the US, which would depend on macroeconomic dynamics in the region. Surprisingly, market players reacted positively to this news, causing dollar to rapidly increase in value. Perhaps, many forgot his similar statements two weeks ago, as well as his words during the Congress hearings last week.
As nothing really new happened, dollar’s rise will likely be followed by a market correction. Today’s data on US jobless claims could be a trigger for it since forecasts say initial claims will increase by 2,000, while continued claims will rise by another 1,000.
EUR/USD fell below 1.0900, indicating a continued correction from 1.1000. There may be volatile fluctuations, but a stable price around this level will lead to a further decline.
GBP/USD, breaking through the lower limit of 1.2700/1.2750, prompted a surge in the volume of short positions, which resulted in a downward movement. However, technical signals point to pound being oversold, so a rebound or stagnation will likely occur in the pair. Only a continued bearish sentiment will trigger a move towards 1.2550.
The material has been provided by InstaForex Company – www.instaforex.com
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