Pressure on the euro, the pound, and other risky assets has increased significantly, and the US dollar is in demand again for objective reasons.

During the tense, but unfortunately fruitless, negotiations over the weekend between the United States and Iran, key issues remained unresolved. The fate of the Strait of Hormuz, a vital shipping route through which a significant portion of the world's oil passes—and had passed until the war began—is particularly concerning. The strait remains closed, and the chances of it being opened in the near future are minimal. Simultaneously, progress regarding Iran's nuclear program remains unsatisfactory. The failure to reach consensus on uranium enrichment levels and inspections by international agencies continues to fuel fears about Tehran's potential desire to develop nuclear weapons. This uncertainty creates fertile ground for further escalation of military conflict.

Given that there are no significant data for the Eurozone and the UK in the first half of today, it is quite likely that pressure on the euro and the British pound will persist. The lack of new economic indicators that could provide grounds for optimism or, conversely, reinforce bearish sentiment leaves the market in a somewhat suspended state. Traders and investors, deprived of fresh information, will likely focus on existing trends and sentiments, as well as on news from the Middle East. The absence of reports for the UK today also means that significant drivers for a trend reversal are not anticipated in the near future.

If the data matches economists' expectations, it is better to act based on a Mean Reversion strategy. If the data is significantly above or below economists' expectations, the Momentum strategy is the best approach.

Momentum Strategy (Breakout):

For the EUR/USD Pair

• Buy on a breakout above the level of 1.1705, which could lead to the euro rising towards 1.1730 and 1.1765;
• Sell on a breakout below the level of 1.1676, which could lead to a decline in the euro toward 1.1650 and 1.1620;

For the GBP/USD Pair

• Buy on a breakout above the level of 1.3412, which could lead to a rise in the pound toward 1.3444 and 1.3475;
• Sell on a breakout below the level of 1.3395, which could lead to a decline in the pound toward 1.3377 and 1.3343;

For the USD/JPY Pair

• Buy on a breakout above the level of 159.85, which could lead to a rise in the dollar toward 160.10 and 160.25;
• Sell on a breakout below the level of 159.60, which could lead to dollar selling pressure toward 159.35 and 159.15;

Mean Reversion Strategy (Return):

For the EUR/USD Pair

• Look for sell opportunities after a failed breakout above 1.1703 and a return below this level;
• Look for buy opportunities after a failed breakout below 1.1671 and a return above this level;

For the GBP/USD Pair

• Look for sell opportunities after a failed breakout above 1.3416 and a return below this level;
• Look for buy opportunities after a failed breakout below 1.3389 and a return above this level;

For the AUD/USD Pair

• Look for sell opportunities after a failed breakout above 0.7054 and a return below this level;
• Look for buy opportunities after a failed breakout below 0.7029 and a return above this level;

For the USD/CAD Pair

• Look for sell opportunities after a failed breakout above 1.3870 and a return below this level;
• Look for buy opportunities after a failed breakout below 1.3851 and a return above this level;