With euro and pound having a long and impressive growth, a pullback should have occurred in the market, but both continued to rise, with euro even climbing above parity. Clearly, market players are waiting for the European Central Bank to increase the interest rate by 75 points and continue this pace in the next meeting. But in the United States, there are more and more signs that the Federal Reserve is about to start cutting rates.
Interest rate (Europe):
EUR/USD rose above parity. Now, it is highly overbought, which may lead to a pullback. But if speculative excitement continues in the market, quotes will climb higher.
GBP/USD rose above the resistance area of 1.1410/1.1525, which indicates the desire of buyers to change the mood in the market. Although the trend remains bullish, the overheating of long positions may prompt a rollback in quotes.
The material has been provided by InstaForex Company – www.instaforex.com