EUR/USD, EUR/GBP and GBP/USD muted ahead of US inflation data release
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of Wednesday’s FOMC minutes and March inflation data releases.
EUR/USD’s rise is losing upside momentum ahead of key US data
EUR/USD's advance from Monday’s $1.0832 low is losing upside momentum ahead of the US March Consumer Price Inflation (CPI) release and Federal Open Market Committee (FOMC) minutes of last month’s meeting on Wednesday afternoon.
The area around the March high at $1.0929 caps for now, a rise above which would allow for last week’s high at $1.0973 to be revisited, however. Further up beckons the $1.1033 February peak.
Support below the minor $1.09 region can be spotted along the March-to-April uptrend line at $1.0868. Further support lies between the 27 March high at $1.0801 and last week’s low at $1.0789. While the latter holds, the medium-term uptrend remains valid.
EUR/GBP’s gradual recovery is ongoing
EUR/GBP's recovery from Tuesday’s £0.8764 low, as the International Monetary Fund (IMF) slightly revised up its estimate of UK growth this year from its -0.60% forecast three months ago to now still expect the UK economy to contract by 0.30%, has led to a retest of the minor £0.88 region.
Above it the 55-day simple moving average (SMA) and late March high can be found at £0.8827 to £0.8828.
While Tuesday’s low at £0.8764 holds on a daily chart closing basis, the gradual advance from its £0.873 early April low is likely to continue.
GBP/USD remains below resistance at $1.2446 to $1.2448 ahead of key US data
GBP/USD’s recovery rally from Monday’s $1.2345 low stalled around the December and January highs at $1.2448 to $1.2446 ahead of Wednesday’s FOMC minutes and March inflation data release.
Immediate support below the March-to-April support line at $1.2395 comes in at Tuesday’s $1.2386 low ahead of Monday’s $1.2345 low. Support below this level lies at the mid-February high and early April low at $1.2275 to $1.227.
Above $1.2448 the current April high can be spotted at $1.2525, an advance above which would engage the May 2022 peak at $1.2667.
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