08.06.202109:52 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on June 8, 2021

It is clear that the reaction of the market to the content of the Ministry of Labor report was quite lacking, and everything pointed to the need to correct the resulting imbalances. That's exactly how the pound behaved at least at first. Nevertheless, the words of the Fed's former head, and now the US Treasury Secretary, led to a new wave of US dollar weakening. Ms. Janet Yellen is probably the only one who believes that raising interest rates will be good for the US economy, while everyone else is sure otherwise. In the current situation, an increase in the refinancing rate will almost certainly have a negative impact on the pace of economic recovery although the risks that the Federal Reserve will still raise the refinancing rate are quite high since inflation continues to steadily grow, and is already well above the target level. According to forecasts, it will continue to grow. However, the Fed assures everyone that there is no need to worry as the situation will soon stabilize by itself. Thus, there is no need to talk about any increase in interest rates.

However, Janet Yellen's statements are perceived more as preparing the public for the tightening of monetary policy, which undermined the dollar's position. Nevertheless, the national currency will still have the opportunity to slightly improve its position today. The number of data on open vacancies may rise from 8,123 thousand to 8,200 thousand, which can support the US dollar. This means that employment will continue to grow, and with it, the unemployment rate will fall.

The number of job openings (United States):

The data on the EU GDP can also be highlighted. Here, the rate of economic decline is expected to slow down from -4.9% to -1.8%, and formally, this is a serious reason for the Euro currency to continue to strengthen. However, we are talking about the third assessment, which should coincide with the two previous ones. Thus, this data is not expected to bring anything new, which means that it will not have any impact on the market.

GDP change (Europe):

The EUR/USD pair switched to a pullback mode after another upward impulse, where coordinates 1.2200 serve as a variable resistance level. If the price is held below the level of 1.2175, the subsequent development of the pullback towards 1.2155 is not excluded. In turn, traders will consider an upward cycle if the price is held above the level of 1.2210.

The GBP/USD pair is still moving in the sideways channel 1.4100/1.4245, consistently working out the set borders. The mean value of the coordinate 1.4172 serves as the variable level. In this case, traders are actively using the method of working on a rebound from control levels.