The dollar remains in demand, supported by several factors.

The reduction of the negative balance in the U.S. trade deficit, revealed yesterday, combined with unexpectedly low initial jobless claims, caused a noticeable revival in financial markets. These macroeconomic signals, indicating some recovery in external trade positions and strengthening of the labor market, served as a powerful impetus for buying the U.S. currency yesterday. Traders, evaluating incoming information and the prospects of geopolitical tensions escalating in the Middle East, found confirmation of the U.S. economy's resilience despite ongoing global challenges.

Today, the first half of the day is set to be rich in macroeconomic events that could significantly influence financial markets. The main focus will be on Eurozone data, particularly on industrial production changes. This indicator is key to assessing the state of the manufacturing sector, which plays a fundamental role in driving economic growth in the region. The published figures are expected to disappoint significantly, leaving the euro with little chance of success. Concurrently with the Eurozone data, Italy's Consumer Price Index (CPI) will also be released. This indicator reflects the dynamics of prices for goods and services consumed by households and serves as an important benchmark for evaluating inflation.

For the pound, today also holds potential for significant activity. In the first half of the day, traders' attention will be focused on the GDP change data. This indicator provides the most comprehensive reflection of the state of the economy, covering all industries and sectors. The GDP report is expected to provide a clear picture of the pace of economic growth or decline, as well as its main driving forces. Following the GDP figures, data on changes in industrial production will also be presented. Although this indicator is part of the overall GDP, it provides a more detailed picture of the manufacturing sector. It reflects the activity of factories and plants and can serve as a leading indicator of future economic development. Strong data may lead to a slight correction of the pound; however, it is unlikely to significantly affect the bearish market observed this week.

If the data aligns with economists' expectations, it is better to act based on the Mean Reversion strategy. If the data turns out to be significantly higher or lower than economists' expectations, the Momentum strategy would be the best approach.

Momentum Strategy (Breakout):

For the EUR/USD Pair

• Long positions on a breakout of the 1.1525 level could lead to a rise of the euro to the 1.1555 and 1.1585 areas;
• Shorts on a breakout of the 1.1490 level could lead to a drop in the euro to the 1.1470 and 1.1443 areas;

For the GBP/USD Pair

• Longs on a breakout of the 1.3345 level could lead to a rise of the pound to the 1.3370 and 1.3406 areas;
• Shorts on a breakout of the 1.3325 level could lead to a drop in the pound to the 1.3286 and 1.3255 areas;

For the USD/JPY Pair

• Longs on a breakout of the 159.53 level could lead to a rise of the dollar to the 159.74 and 159.94 areas;
• Shorts on a breakout of the 159.18 level could lead to a sell-off of the dollar to the 158.81 and 158.53 areas;

Mean Reversion Strategy (Return):

For the EUR/USD Pair

• I will look for shorts after a failed breakout above 1.1520 on a return below this level;
• I will look for longs after a failed breakout below 1.1489 on a return to this level;

For the GBP/USD Pair

• I will look for shorts after a failed breakout above 1.3355 on a return below this level;
• I will look for longs after a failed breakout below 1.3315 on a return to this level;

For the AUD/USD Pair

• I will look for shorts after a failed breakout above 0.7079 on a return below this level;
• I will look for longs after a failed breakout below 0.7046 on a return to this level;

For the USD/CAD Pair

• I will look for shorts after a failed breakout above 1.3656 on a return below this level;
• I will look for longs after a failed breakout below 1.3630 on a return to this level;