The Pound and Euro Reach New Yearly Highs
Despite global economic instability and Donald Trump’s tariff policy, the EUR/USD and GBP/USD currency pairs are demonstrating upward momentum, reaching new yearly highs.
Today, market participants are focused on the European Central Bank meeting, where significant statements regarding monetary policy are expected. Yesterday, Federal Reserve Chair Jerome Powell highlighted the impact of the tariff policy on the US economy, which added volatility to the currency markets. These events could significantly influence the further movement of major currency pairs, setting a new trajectory for their quotes.
EUR/USD
Following sharp growth last week, EUR/USD has entered a sideways phase between 1.1480–1.1260. If the 1.1260–1.1240 levels continue to act as support, the pair may accumulate potential to resume its upward movement towards the 1.1700–1.1600 range. If 1.1240 is broken to the downside, the downward correction may intensify towards 1.1100–1.1000.
Over the coming hours, the following events may prove decisive for EUR/USD:
- Today at 15:15 (GMT+2): ECB deposit rate
- Today at 15:15 (GMT+2): ECB marginal lending rate
- Today at 15:15 (GMT+2): ECB interest rate decision
- Today at 15:30 (GMT+2): Philadelphia Fed manufacturing index
- Today at 15:45 (GMT+2): ECB press conference
GBP/USD
Yesterday, GBP/USD buyers managed to update this year’s high at 1.3210. The price nearly tested the psychological resistance level at 1.3300 but immediately pulled back. Technical analysis of GBP/USD suggests the possibility of a downward correction towards recent lows at 1.3170–1.3100. A rebound from these levels may support another approach towards 1.3300.
In the upcoming trading sessions, the following events may be important for GBP/USD:
- Today at 11:30 (GMT+2): Bank of England credit conditions survey
- Today at 15:30 (GMT+2): US new housing starts
- Today at 15:30 (GMT+2): US initial jobless claims
- Today at 18:45 (GMT+2): Speech by Federal Reserve Vice Chair for Supervision Michael S. Barr
