During the European session, market sentiment was rather uncertain. Today, the euro is falling against the US dollar, while the pound sterling is recouping its losses recorded yesterday. Data on the UK labor market turned out to be unexpectedly positive. In particular, the unemployment rate declined to 4.3% from 4.5%, whereas economists had expected a rise to 4.6%. Notably, the forecast was revis ed to the reading logged in the previous period. Although some analysts had foreseen a drop to 4.4%, the result surprised everybody. There is no wonder that the pound sterling showed an immediate increase. At the same time, the euro is almost stagnant. After the recent drop, the currency may rebound. Notably, market participants have been waiting for the rebound for several days already, but the euro continues falling. The eurozone GDP report will hardly change the situation. It is just the second estimate that is likely to meet the first one. Thus, investors are unlikely to receive new information. Meanwhile, the US statistical data is expected to boost the greenback. Against this background, both the euro and the pound sterling may lose value. The US dollar is likely to return to the levels logged before the publication of the labor market report. The growth should be boosted by the retail sales figures. The indicator’s rise may slow down to 12.0% from 13.9%. In fact, the US dollar should drop amid such news. However, the data reflects the still existing low base effect. That is why traders should take into account monthly figures instead of yearly ones. Thus, on a monthly basis, retail sales may advance by 1.2%, showing a significant jump. Notably, consumer activity is the main driver of the US economy. Let us take a look at the trading charts. After a short-lived stagnation, the euro continued falling against the US dollar. As a result, the pair broke the support level of 1.1400 and slid to 1.1356. Since the euro is extremely oversold, it may rebound and stagnate near the level of 1.1400. At the same time, speculators are actively supporting the downward movement. If the price fixes below 1.1350, the volume of short positions may rise. Meanwhile, the pound/dollar pair was hovering within the range of 1.3400-1.3450. As a result, the pair broke the upper limit of the range and resumed the upward correction. The area of 1.3485-1.3530 is acting as resistance. However, reaching this level, the price may reverse.

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00:00 Intro
00:17 UK UNEMPLOYMENT RATE
00:54 QUOTES
01:28 USA
02:28 EUR | USD
03:08 GBP | USD