Trading plan for EUR/USD and GBP/USD on January 9

Euro remained stable despite the released macroeconomic data and statements from Fed representatives. Reportedly, the pace of decline in retail sales in the eurozone accelerated from -0.8% to -1.1%, which should have led to a fall in euro, but the price continued to grow instead. Afterwards, Dallas Fed President Lorie Logan mentioned a potential rate hike due to the persistent risk of inflation growth, leading to a slight decrease in euro prices.

The market moved in a different direction after the release of retail sales data most probably due to the sharp increase in European bonds, the yields of which have significantly decreased. For example, the yield on ten-year bonds plummeted from 3.182% to 2.850% amid a sudden surge in demand. The market calmed down after the statements of Fed representatives.

As for pound, it also grew throughout the day, and then stopped after the statements of Lorie Logan.

Euro may decline today after the release of the unemployment rate in the eurozone, which may rise from 6.5% to 6.6%. However, the market could also ignore the report, as inflation data in the US will come out on Thursday, and investors will not take risks on the eve of such significant data.

EUR/USD did not show much movement due to low volatility. This may also indicate the accumulation of trading forces and become a catalyst for speculative interest.

Although GBP/USD demonstrated an upward trend for several days, a characteristic flat between the levels of 1.2600/1.2700 could be seen. This means that the rise started from the lower boundary of 1.2600, and around 1.2700 there may be a decrease in the volume of long positions, which will lead to a slowdown in the upward cycle.