The euro showed a rapid rise just after the publication of the interview with Frank Elderson, a member of the ECB’s Executive Board. Notably, the currency was gaining in value until the end of the day.
Elderson has become one more official of the European Central Bank who announced the necessity to raise the key interest rate higher, ignoring all the negative consequences for the economy. He supposes that high inflation may damage the local economy even more.
However, since the beginning of the trading day, the US dollar has been growing, though very slowly. Traders were waiting for the preliminary data on the eurozone inflation, which should have slackened to 7.4% from 8.5%. In fact, the consumer price growth slowed down to 6.9%.
It means that the period of the key rate hike in the eurozone will hardly be as long as expected. What is more, the regulator may start to prepare the market for the monetary policy loosening in the near future. In other words, the US dollar will have a chance to return to the levels recorded before the interview with Frank Elderson.
On the trading chart, we see that the euro left the range, exceeding the level of 1.0850 and approaching the previous week’s high of 1.0900. This is how the euro recouped all the losses.
If the euro/dollar pair consolidates above 1.0930, it is highly likely to climb to the psychological level of 1.1000. Otherwise, it may rebound to the range between 1.0850 and 1.0800.
Meanwhile, the pound sterling reached a local high of the mid-term uptrend against the US dollar located at 1.2400. During the period from March 9 to March 31, the pound sterling has added about 5%, which is more than 600 pips.
Since the British pound is overbought, the volume of long positions may drop. The likelihood of such an outcome will become higher if the area near the local high of 1.2400 acts as strong resistance. In the event of this, the price may rebound. However, if traders ignore technical signals of overbought conditions and the quote consolidates above 1.2450 on the daily chart, we may see an inertial movement.
That’s all for now. We keep monitoring the financial market situation. Subscribe to our channel. See you in several hours. We will take a close look at the US trading session.

00:00 Introductory remarks
00:18 ECB interest rate
00:40 Annual euro zone inflation rate
01:04 What to expect from the ECB
01:28 EUR/USD
02:01 GBP/USD
02:52 Conclusion

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