Speculative activity has become quite high in the financial markets. Investors are pricing in the news about the ballooning banking crisis in the United States. Under the current conditions, the US regulator will hardly continue the monetary policy tightening. In this light, the US dollar showed a drop.Although the UK unemployment rate remained unchanged, the pound sterling is still losing value, thus affecting the euro. This could be defined as a bounce after quite a long-lasting rise. What is more, the euro and the pound sterling are likely to jump just after the publication of the US inflation figures. According to the forecast, inflation may slacken to 6.1% from 6.4%. In the event of this, the likelihood of the 50-basis-point rise in the key rate will be almost zero. In addition, the Federal Reserve will get reasons to loosen its monetary policy. At the weekend, analysts assumed that the regulator would have to start printing money to settle the banking crisis. Such measures will boost inflation which is still very high. Thus, the inflation slowdown will confirm the launch of the QE program. In this case, the greenback will continue falling. Ahead of the publication of the US inflation report, we see that the euro has been trading above 1.0700 for the second day in a row. This points to a rise in the volume of long positions, which is a positive technical signal. Traders suppose that the euro may show a gradual recovery after losses it suffered in February. To do so, the quote should exceed the resistance level of 1.0800. If the price returns to the support level of 1.0650, traders will consider a downward scenario. Meanwhile, the pound/dollar pair jumped above the resistance level of 1.2150 for the first time since the middle of February. This proves that traders’ sentiment is mainly bullish and the volume of long positions continues to increase. If the price consolidates above 1.2150, the pound sterling will gain in value gradually after a slump in February. If the price slides below 1.2100, traders may consider an alternative scenario.

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00:00 INTRO
00:22 UK UNEMPLOYMENT RATE
00:36 QUOTES
01:03 USA
01:25 EUR | USD
02:04 GBP | USD