The euro and the pound continued to rise yesterday, and did so at a reasonably solid pace. The absence of important data allows risk assets to demonstrate such movement.

Today, in the first half of the day, there are no scheduled data releases for the eurozone, so the chances of a further rise in the EUR/USD pair remain quite good. However, it's essential to consider several factors that may impact trading dynamics. First, there is the overall sentiment in financial markets. If investors are inclined toward risk, the euro — being a sentiment-sensitive currency — may strengthen. On the other hand, if uncertainty and fear dominate the market, for example, due to Jerome Powell's stance within the Federal Reserve or new trade tariffs from Donald Trump, then the dollar, as a safe-haven asset, may appreciate.

Second, attention should be paid to news and comments from representatives of the European Central Bank. Their rhetoric may have a significant impact on the euro's exchange rate. If the ECB hints at the possibility of further monetary policy easing, this would put pressure on the euro. Conversely, if concerns about eurozone inflation prospects are voiced, the euro may strengthen.

As for the UK, today's focus will be on the public sector net borrowing data, as well as a speech by Bank of England Governor Andrew Bailey. Traders will be closely watching these events to assess the state of the British economy and the possible next steps of the BoE regarding monetary policy. It is expected that the borrowing data will reflect the extent to which the government needs financing to cover its expenditures. A high level of borrowing could indicate financial strain and pressure on the British pound. At the same time, a reduction in borrowing may be seen as a sign of economic improvement.

Andrew Bailey's speech is also of great interest to the market. Traders will analyze his comments on inflation, economic growth, and interest rate prospects. Any hints of a possible rate hike or cut could trigger volatility in the currency market.

If the data matches economists' expectations, it's better to act based on the Mean Reversion strategy. If the data deviates significantly from expectations, the Momentum strategy is more suitable.

Momentum Strategy (Breakout):

EUR/USD

Buying on a breakout above 1.1696 may lead to a rise toward 1.1721 and 1.1747;

Selling on a breakout below 1.1666 may lead to a decline toward 1.1641 and 1.1615.

GBP/USD

Buying on a breakout above 1.3507 may lead to a rise toward 1.3546 and 1.3583;

Selling on a breakout below 1.3469 may lead to a decline toward 1.3436 and 1.3402.

USD/JPY

Buying on a breakout above 147.75 may lead to a rise toward 148.10 and 148.46;

Selling on a breakout below 147.50 may trigger a sell-off toward 147.20 and 146.78.

Mean Reversion Strategy (Pullbacks):

EUR/USD

I will look for selling opportunities after an unsuccessful breakout above 1.1701, followed by a return below this level.

I will look for buying opportunities after an unsuccessful breakout below 1.1676, followed by a return above this level.

GBP/USD

I will look for selling opportunities after an unsuccessful breakout above 1.3494, followed by a return below this level.

I will look for buying opportunities after an unsuccessful breakout below 1.3465, followed by a return above this level.

AUD/USD

I will look for selling opportunities after an unsuccessful breakout above 0.6530, followed by a return below this level.

I will look for buying opportunities after an unsuccessful breakout below 0.6512, followed by a return above this level.

USD/CAD

I will look for selling opportunities after an unsuccessful breakout above 1.3700, followed by a return below this level.

I will look for buying opportunities after an unsuccessful breakout below 1.3675, followed by a return above this level.