The EUR/USD and GBP/USD currency pairs are showing moderate gains amid a consolidation of market expectations ahead of the release of crucial macroeconomic indicators. Tomorrow, investor focus will shift to data on inflation, consumer spending trends, and manufacturing sector activity—figures that could significantly reshape expectations for monetary policy in the world's leading economies. Heightened speculative activity ahead of these releases is contributing to increased market volatility and may trigger a retest of local highs and lows in major currency pairs.

GBP/USD

At the start of the trading week, GBP/USD buyers managed to test the 2024 highs near 1.3440. A pullback from last year’s peak has resulted in the formation of a bearish “Harami” candlestick pattern on the daily chart. If the pair fails to hold above the 1.3370–1.3340 range, a downward correction may unfold towards the 1.3200–1.3100 zone. Conversely, a break above 1.3440 could reignite bullish momentum.

The following events may influence the price dynamics of GBP/USD:

• Today at 12:00 (GMT+2): 3-year Gilt auction, United Kingdom
• Today at 15:15 (GMT+2): ADP Non-Farm Employment Change, United States
• Today at 15:30 (GMT+2): US GDP data
• Today at 17:00 (GMT+2): US Core Personal Consumption Expenditures (PCE) Price Index
  
  

EUR/USD

Following a sharp rally in early April, EUR/USD has entered a sideways range between 1.1500 and 1.1300. Technical analysis suggests a possible move towards the lower boundary of this range. A break below 1.1300 could trigger a deeper bearish correction toward the 1.1109–1.1120 area. On the other hand, a bounce from current levels may encourage a renewed test of the 1.1500–1.1580 zone.

Key economic data that could affect EUR/USD in upcoming sessions include:

• Today at 12:00 (GMT+2): Eurozone GDP
• Today at 13:00 (GMT+2): Italy Producer Price Index (PPI)
• Today at 14:00 (GMT+2): Spain Business Confidence Index
• Today at 15:00 (GMT+2): Germany Consumer Price Index (CPI)

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.