The US dollar has slackened to the lines of the rate reversal amid the upcoming main events in the USA (release of March CPI and FOMC protocol) to take place in the middle of the week. At the same time, the pound sterling traders stand still so far, though the Brexit summit slated for April 10 can become a driver for movement in any direction.
The stock markets post new peaks on Tuesday, while the currency segment is characterized by soft volatility. At the same time, the US dollar has already weakened enough to summon certain breaks in the pairs with Australian and Canadian counterparts.
Besides, there are some positive signs regarding the global economic upturn on steadily soft monetary policy. In particular, the US Federal Reserve is expected to remain flexible and express no intentions to raise the interest rate in case of the further positive economic outlook. Moreover, higher inflation is unlikely to affect its position given hints about symmetrical inflation planning which suggests.
In that case, it is necessary that the US yield curve rose again. As a result, the important area is 2.50-2.60% for the yield of US 10Y state bonds, which will make clear whether further development of this scenario may take place or risk demand improves pushing commodities currencies up further.
Along with the US events, the middle of the week will play a significant role in the Brexit process. An emergency summit will be held during which the parties can decide to delay the Brexit in line with Article 50 for 9 or 12 months. Meanwhile, Theresa May strives to get a delay till June 30, though the UK Parliament can take an opposite decision today forcing the market think over possible conditions that Brussels can demand in exchange for that.