The US congress approves the inflation-focused plan of the Federal Reserve. It even listed several key goals for the US economy, one of which is a return to full employment, while another is to maintain price stability. In addition, the Congress also retained the ability of the Fed to act independently and choose the necessary ways to achieve its goals.

At the same time, a rather decent report was released for the US labor market yesterday, the contents of which revealed a sharp reduction in repeated applications for unemployment benefits. According to the data released by the US Department of Labor, continuing claims of unemployment premiums declined to 12.6 million, while initial claims rose slightly to 870,000 over the past week. However, such data suggests that recovery in the labor market is slowing, and it could return to pressure if another pandemic wave spikes.

Quite good growth in the US primary housing market was also reported by the US Department of Commerce yesterday. The latest data showed that new home purchases increased in August this year, so as a result, sales in the primary housing market grew by about 4.8% and to about 1.01 million homes per year, which is so much higher than the forecast of economists ... As for the same period last year, sales in August increased by 43.2%. The median price for new homes was $ 312,800 in August.

Another good report was the stable recovery of manufacturing activity in the area of Kansas City Fed, which, according to the latest data, came out 11 points in September, up from the expected 8.5 points.

However, despite that, the EUR / USD pair still traded in a flat market, but the advantage is on the side of purchases. This suggests that an upward correction could occur, especially since the bulls are now focused on the resistance level of 1.1690. Nonetheless, a breakout from the level will lead to renewed highs in the areas of 1.1735 and 1.1780, while a breakout and consolidation below will bring the quote to 1.1580 and 1.1540.

GBP / USD

Like the euro, the British pound is currently trading in a sideways channel, largely because few people are willing to sell the currency at the current lows. Nevertheless, this does not mean that the bearish trend in the GBP / USD pair is over, as most likely, after a short pause and correction, pressure on the pound will return, which will resume the decline in the market.

The slight rise in the pound was only because of improving consumer confidence in the United Kingdom, which will continue to recover further, especially after the announcement of new program to support employment.

However, the outlook of the GBP / USD pair will remain in the hands of the resistance level of 1.2775, as the further direction of the pair will depend on who turns out to be stronger at this level. Indeed, an upward correction is likely to happen in the GBP / USD pair, but it will most likely be shallow since the UK is still under the pressure of Brexit and rising coronavirus incidence. In addition, a breakout from the support level of 1.2700 will lead to a new and larger wave of sales, which will bring the quote to a price level of 1.2640 or 1.2580.