In principle, yesterday's movements in the foreign exchange market were absolutely logical in terms of relative informational silence on political issues. Thus, the single European currency was able to strengthen due to the accelerated growth rate of the construction industry in Europe, from 2.2% to 4.6%. While in the US, the NAHB house price index has declined from 68 to 60. Of course, this indicator is not the end but amid growing construction in Europe, that was enough. Yet, the pound could not take advantage of weak American data given that the growth rate of housing prices by 0.9% was replaced by a decline of 0.2%, according to Rightmove. So there was no reason for optimism in the pound.
Today, Mark Carney will speak but one should not expect any serious statements from him. Against the background of an obvious political crisis that erupted in the UK because of the "divorce" agreement with the European Union, the head of the Bank of England will obviously try to sit below the grass, quieter than water. Most likely, he will once again declare that the regulator is ready to continue tightening the monetary policy but only if the economic situation allows which frankly is pretty sad. It is also worth maintaining caution with the single European currency since tomorrow the European Commission will hold a meeting on the Italian budget deficit. The outcome of this meeting will most likely be a new round of panic over the public debts of the euro area countries, which by the way, will make it clear once again the probability of extending the ECB's quantitative easing program is extremely high. Perhaps higher than its recoil. In turn, it is predicted that the number of building permits issued will increase from 1,241 thousand to 1,267 thousand and construction projects commenced from 1,201 thousand to 1,225 thousand.
The euro/dollar currency pair shows an active upward interest, reaching the level of 1.1440, where it formed a slowdown from Doji type candles. We can assume a gradual fixation below the level, followed by a rollback towards 1.1420.
The pound/dollar currency pair, forming a correction from the level of 1.2770, reached the value of 1.2880, where it formed a slowdown. We can assume a temporary fluctuation within 1.2825/1.2880, primarily heading towards the lower boundary.
