The euro and the pound sterling continue gaining in value against the US dollar despite doubts about the European economic condition. On the other hand, in January, the UK employment declined by 73 thousand. What is more, the indicator has been sliding for eleven consecutive months. The situation is really odd as both the unemployment rate and number of employed people are decreasing. Notably, the unemployment report is for February, whereas the employment data reflects the labor market situation in January. Nevertheless, in January, the UK unemployment rate also fell, contradicting the employment dynamic. As a result, this mismatch prevents the pound sterling from a further rise. Thus, the British currency remains slightly below 1.4000. At the same time, it seems that the euro has also stagnated. The jump of both currencies was so impressive that now only strong reasons may push them higher. Moreover, the advance took place amid a completely empty macroeconomic calendar. That is why the euro and the pound sterling may return to their previous levels amid a lack of positive news. The euro/dollar pair was hovering between the levels of 1.1950 and 1.2000 for more than 72 hours. Later, it managed to rise and broke the upper limit of the range. After that, the pair began moving towards the level of 1.2050. Analyzing the current trading chart, we can see that the price has already passed the level of 1.2050. This could be a signal of a mid-term trend recovery. The pair may advance to 1.2130-1.2150, if it does not slow down and drop below 1.2050. Yesterday, the pound/dollar pair showed even higher activity than the euro/dollar pair. Buyers not only broke the local high of 1.3917 logged on April 6, they also managed to reach the psychological level of 1.4000. On the chart, we can see that the volume of long positions declined after the price touched the level of 1.4000. As a result, the pair slowed down. The pound/dollar pair may continue gaining in value if it consolidates above 1.4050. At the moment, it is likely to fluctuate between the levels of 1.3950, 1.4000, and 1.4050. This, in turn, may lead to a change in the market sentiment.
FX.co ★ 20.04.2021: EUR and GBP may change their trends. Outlook for EUR/USD and GBP/USD.
20.04.2021: EUR and GBP may change their trends. Outlook for EUR/USD and GBP/USD.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade