The dollar is once again under strong pressure, while the euro, pound, and other risk assets, including the Japanese yen, have seen notable increases.

Yesterday, President Donald Trump stated that his nominee to head the Federal Reserve, Kevin Warsh, could achieve economic growth of more than 15% per year. We all understand that such a result is unattainable without a sharp decrease in interest rates. This statement by Trump, made against the backdrop of growing tensions in the global economy, underlines his commitment to the ideas he has defended throughout his political career. Warsh, a well-known economist with extensive experience on Wall Street and at the Federal Reserve Bank of New York, has long argued that economic reforms are needed. In his opinion, the current Fed policy is too conservative, which hinders recovery. Traders reacted to Trump's statements with active sales of the dollar, which is not surprising.

Today, there are no Eurozone data, so the upward potential for EUR/USD may slow. In recent days, the pair has shown confident growth, supported by soft signals from Fed representatives. However, the absence of key data from Europe—whether PMI indices or inflation reports—creates a vacuum today, in which speculators begin to lock in profits. The currency market is always sensitive to a lack of information, so one should not expect active movements in the pair.

As for the pound, the situation is similar: there are no fundamental data scheduled for the first half of the day, so the British pound may also slow its growth against the dollar. However, the currency market often reacts to the absence of significant news with inertia from previous trends, and the current dynamics of GBP/USD look quite convincing. In recent sessions, the pound has strengthened amid a weak dollar, driven by mixed signals from the Fed. Investors, tired of uncertainty regarding rate policies, prefer more stable assets, and the British economy, despite its challenges, is showing signs of recovery.

Momentum Strategy (Breakout):

For the EUR/USD Pair

• Buying on a breakout above 1.1925 may lead to the euro rising to around 1.1957 and 1.1995.
• Selling on a breakout below 1.1890 may lead to a decline in the euro to around 1.1858 and 1.1832.

For the GBP/USD Pair

• Buying on a breakout above 1.3698 may lead to an increase in the pound to around 1.3729 and 1.3757.
• Selling on a breakout below 1.3662 may lead to a decline in the pound to around 1.3624 and 1.3587.

For the USD/JPY Pair

• Buying on a breakout above 155.35 may lead to the dollar rising to around 155.67 and 156.07.
• Selling on a breakout below 155.10 may lead to a decline in the dollar to around 154.80 and 154.65.

Mean Reversion Strategy (Return):

For the EUR/USD Pair

• I will look for shorts after a failed breakout above 1.1923, upon a return below this level.
• I will look for longs after a failed breakout below 1.1892 upon returning to this level.

For the GBP/USD Pair

• I will look for shorts after a failed breakout above 1.3702, upon a return below this level.
• I will look for longs after a failed breakout below 1.3667 upon returning to this level.

For the AUD/USD Pair

• I will look for shorts after a failed breakout above 0.7096, upon a return below this level.
• I will look for longs after a failed breakout below 0.7068 upon returning to this level.

For the USD/CAD Pair

• I will look for shorts after a failed breakout above 1.3557, upon a return below this level.
• I will look for longs after a failed breakout below 1.3538 upon returning to this level.