The US Currency Corrects After Recent Growth

The incoming fundamental data of the past five-day period contributed to the strengthening of the American currency in almost all major pairs. Thus, the pound/US dollar currency pair lost more than 200 pp over several trading sessions, the euro/US dollar pair retested 1.0800, and buyers of the USD/JPY pair managed to keep the price above 151.00.

GBP/USD

The decision of British officials to leave the base interest rate at the same level did not contribute to the strengthening of the pound/US dollar pair. And the hint from the head of the Bank of England about a possible rate cut at the next meeting led to sharp losses in the pair and a test at the price of the important support level of 1.2600. At the moment, the pair is consolidating just above the mentioned mark. In the case of a positive fundamental background from the UK, the price may correct to 1.2800-1.2740. If the downtrend resumes, the price on the gbp/usd chart may retest 1.2570.

Tomorrow at 13:30 GMT+3, we are waiting for the publication of the minutes of the meeting of the Bank of England Financial Policy Committee. A little later, the CBI retail sales index will be published.

EUR/USD

Buyers of the single European currency failed to strengthen above the significant resistance level of 1.0900. After the Fed meeting last week, the pair lost more than 150 pp and settled below the alligator lines on the daily timeframe. Technical analysis of EUR/USD shows that if the range 1.0900-1.0870 finally becomes resistance, another price approach to 1.0800 is possible.

Today at 10:00 GMT+3, we are waiting for the publication of data on the German consumer climate index for April. Also at 22:00 GMT+3, ECB representative Philip Lane is scheduled to speak.

USD/JPY

The Japanese yen continues to lose ground despite the Bank of Japan ending its negative interest rate policy. The very large gap in bond yields between Japan and the US continues to weigh on the Japanese currency. If the situation does not change in the coming trading weeks, buyers of the pair may make another attempt to move above 152.00.

Today at 17:00 GMT+3, we are waiting for data on the energy consumer confidence index for March. Tomorrow early in the morning it is worth paying attention to the speech of Tamura Naoki, a member of the board of directors of the Bank of Japan.