Euro and pound continued to rise as Friday's statements by Fed officials made a strong impression. They surprisingly made clear statements about a sharp slowdown in interest rates, which markets are already prepared for, anticipating a 50 bp rate increase at the next monetary policy meeting. However, what was described was only a 25 bp rate hike, which surprised many.
This was also the reason why the latest unemployment rate data in the eurozone became of little interest, especially when its figure remained unchanged.
Unemployment rate (Europe):
Over the past two days, dollar has fallen in price and is locally oversold. But at the end of yesterday's trades, there was some rebound, which is likely to continue as the scale of the decline was pretty impressive. Macroeconomic statistics will not influence the situation in any way.
Euro surging by more than 250 pips for the past two days could lead to overbought conditions. Even so, it could still rise to higher price levels if the previous day's highs are broken. This means that EUR/USD may become overheated sooner or later, which will lead to a technical pullback.
Pound has almost the same situation as it jumped from 1.1800 to above 1.2200 in just a few days. It could become overbought, but much will depend on the speculative mood of market players since a technical rollback is already brewing.