There is a high probability that the Federal Reserve will not begin to raise interest rates in the coming months, and positive fundamentals from the US contribute to the rise of the American currency to higher levels. Thus, the USD/JPY pair is testing 148.00, sellers of the EUR/USD pair have strengthened the price below 1.09000, and the GBP/USD pair is trading near the strategic support at 1.2600.

USD/JPY

A series of positive macroeconomic data from across the ocean has led to the USD/JPY pair strengthening by more than 500 pips in just two weeks. Divergent vectors of the credit and monetary policies of the Bank of Japan and the Federal Reserve have led to a renewed weakening of the Japanese currency. If the current market situation does not change in the next trading sessions, the price may test the November 2023 extremes at 150.00-151.90 next week.

Today at 20:05 GMT+3, it is worth paying attention to the speech of the Fed Chairman Raphael Bostic. Tomorrow at 07:30 GMT+3, the business activity index in the services sector of Japan for November will be published.

EUR/USD

Weak data from the Eurozone and an escalation of geopolitical tensions worldwide are pushing the EUR/USD pair to new lows. During the recent trading sessions, sellers not only broke down the support at 1.0900 but are also very close to testing 1.0800. The development of the current situation may contribute to the development of a full-fledged downtrend, causing the price to decrease towards the lower fractal on the daily timeframe.

Fundamentally, tomorrow at 12:00 GMT+3, the Producer Price Index in Germany for December will be published. A little later, ECB President Christine Lagarde is scheduled to speak. Market participants are eagerly awaiting comments from the head of the European regulator regarding plans for the current year. If it turns out that the ECB will soon start lowering the basic interest rate, volatility in the euro pairs may sharply increase.

GBP/USD

On the GBP/USD daily chart, the pair is stuck between the alligator lines. The development of a downward impulse is hindered by the range of 1.2610-1.2580, where the price repeatedly finds support.

In case of breaking through these levels, a price decline to 1.2500-1.2400 is possible. The downtrend scenario may be cancelled after a confident consolidation above 1.2800.

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