Weak market volatility associated with the celebration of Catholic Easter and a strong foundation from the United States contributed to a sharp strengthening of the dollar against commodity and European currencies. Thus, the pound/US dollar currency pair is trading below the key support at 1.2600, euro sellers are preparing to test 1.0700, and the US dollar/yen pair is as close as possible to recent extremes at 152.00.

GBP/USD

The data on the US manufacturing business activity index for March published yesterday was at the level of 50.3 points, which significantly exceeded the analysts' forecast of 48.3 points. The released data reduces the likelihood of a reduction in the base interest rate at the next Fed meeting and naturally leads to strengthening of the American currency in almost all directions.

The GBP/USD pair traded between 1.2700 and 1.2600 for about a week. Yesterday, sellers of the pound were stronger than buyers and the pair lost about 100 pp in just a couple of hours. If the current mood in the market continues, the price on the GBP/USD chart may test the low of February of this year at 1.2518. We can consider canceling the downward scenario if we confidently consolidate above 1.2700.

Today at 11:30 GMT+3, we are waiting for data on the volume of consumer lending from the Bank of England for February. Also at the same time, the manufacturing business activity index (PMI) for March will be published.

EUR/USD

The single European currency is also preparing to test February lows. Technical analysis of EUR/USD shows that the pair continues its downward trend. If it goes below 1.0700, the price may test the important range of 1.0500-1.0400.

The coming trading sessions are very important for the further price formation of the pair. Today at 11:00 GMT+3, we are waiting for the eurozone manufacturing business activity index (PMI) for March. A little later, data on the consumer price index (CPI) in Germany for the same period will be released. Tomorrow at 12:00 GMT+3, we are waiting for inflation indicators for the eurozone as a whole.

USD/JPY

Positive fundamental data from the US contributed to the growth of the USD/JPY pair to 151.80. However, buyers of the pair will soon have to face an important resistance level at 152.00, which has been holding back the long-term uptrend for two years now.

Today at 17:00 GMT+3, we are waiting for data on the number of open vacancies in the US labour market (JOLTS) for February.

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