FXEM - EMPIRE MARKETS - Company New Article

The British pound fell to 1.2918 against the US dollar, influenced by UK monetary policy expectations and the strong performance of the US dollar.

• Important pivot area: 1.2880-1.2850, which may provide a stabilization point for the price action.
• Key upside barrier: 1.2950-1.2980, a level the pair needs to break to gain new upward momentum.

Reasons for the movement and upcoming expectations

• Weak UK economic data: Continued concerns about the performance of the UK economy and a decline in manufacturing are supporting downside pressure on the pound.
• Strong US dollar: With US employment data due this week, the dollar remains strong, increasing pressure on the pound.
• Monetary policy outlook: If the Bank of England signals a potential easing of monetary policy, the pound could continue to decline.

Outlook: Continued volatility, with a potential test of lower levels if selling pressure persists.

The euro is trading at 1.0811, amid mixed expectations regarding eurozone monetary policy and a decline in risk appetite in the markets.

• A potential equilibrium area: 1.0780 - 1.0760, may provide temporary support in the event of a price decline.
• A significant resistance area: 1.0840 - 1.0870, represents a barrier to any upward attempts.

Influencing Factors and Future Outlook

• Eurozone Inflation: Any signs of slowing inflation may increase expectations of interest rate cuts, putting pressure on the euro.
• US Monetary Policy: The Fed's continued tightening approach may support the dollar, weakening the euro.
• European Bond Movements: Lower bond yields may limit the euro's advance against the dollar.

Outlook: Trading continues in a narrow range, with the possibility of further declines if negative factors persist.