17.01.201810:10 Forex Analysis & Reviews: Prolonged correction for the dollar

Yesterday, the dollar began to strengthen against the single European currency and the pound against the background of inflation data in the UK This trend will continue today against the situation.

Inflation data in the U.K. has fully coincided with the forecasts, and it slowed from 3.1% to 3.0%. In principle, the market always perceives the decline in inflation to be negative but the current situation shows any results to have a bad effect on the pound. Inflation is high enough, and the Bank of England does not take any measures. Investors are increasingly convinced that the regulator simply lost control of the situation. Moreover, the dollar was seriously oversold that made the rollback was self-evident, which has happened. Pound also pulled a single European currency.

Today, there are inflation data from Europe which is expected to confirm its slow down from 1.5% to 1.4%. Given that the imbalance in the market has not yet straightened, the general slowdown in inflation of Europe and the UK becomes an excellent reason for correction. At the same time, the data for the euro area is much more important than in the U.K. It is projected to accelerate the growth rate of industrial production in the U.S. is projected to be 3.7% from 3.4%.

The GBP/USD pair will fall to 1.3700.