Yesterday, the pound rushed up immediately after the Bank of England meeting on monetary policy. The regulator left everything unchanged, despite inflation rising to 2.9%, coinciding with the forecasts. However, the Bank of England said that the stimulus measures have almost exhausted themselves and will soon have to begin to tighten monetary policy by gradually increasing the refinancing rate. Thus, it was made clear to the market that the Bank of England could raise the rate by the end of the year, which was the reason for the pound's growth. Even the data on inflation in the USA did not change the situation, where it accelerated from 1.7% to 1.9%. Although these data did not impress the market at all, as even the euro did not react to them. Apparently, everyone has already given up on the possibility of raising the Fed's refinancing rate this year.
Today, we are only interested in data on retail sales and industrial production in the United States. The growth rate of retail sales may slow from 4.2% to 3.1%, which is substantial and not offset by rising inflation. However, industrial production should accelerate its growth from 2.2% to 2.3%, which, is insignificant. In any case, a strong slowdown in retail sales will have a negative impact on the dollar.
The EUR/USD pair may grow up to 1.2000.
The GBP/USD pair is heavily overbought, so a slight correction is possible, up to 1.3375. However, the pair will then consolidate at 1.3425.