The dollar managed to stop its decline and even tried to consolidate. Although, initially it shrugged off very weak data on house prices in the UK. For the British economy, the housing market is one of the main criteria for investment appeal, and a slowdown in the price growth rate from 2.9% to 2.1% does not promise the pound anything good. Nevertheless, after the release of the data, the dollar's price continued to fall. However, it was so oversold that the market clearly needed to be adjusted. It was due to data on housing prices in the US itself, as the growth rate of which had remained unchanged. Moreover, the development of events inspires optimism, since there is a possibility of a subsequent rise in inflation. At the same time, the growth of the dollar affected seven-year bonds, the yield of which decreased from 2.126% to 1.941%. Although, this implies that investors do not expect another hike in the Fed's interest rate this year. Therefore, the dollar has a weak growth potential.
Currently, there are data on the credit market in the UK. Accordingly, the volume of issued consumer loans should be 1.5 billion pounds, which is only slightly higher than the previous month. In addition to that, the number of approved applications for mortgages can increase from 64,684 to 65,500. The growth is not so significant, but it will help the pound to strengthen to some extent.
In the US, the same report on employment should increase by 185,000 against 178,000 in the previous month. But most importantly, the second estimate of the GDP for the second quarter will be released. It is predicted that the recent data will be better than the first assessment, which means an even stronger acceleration of economic growth. Therefore, the dollar can continue to strengthen.
The euro/dollar pair could drop to 1.1895.
The pound/dollar pair will initially increase slightly, and after that it will move towards the direction of 1.2865.