Important events today:

9:00 UTC – GER: Business sentiment index from the ZEW institute.

US: Ministry of Finance auctions.

It is reasonable to use the quotes growth to the area of the nearest resistance levels to open Sell positions for two reasons. First, today the US Ministry of Finance will hold auctions on placement of long-term bonds in the amount of $18 bln, which will reduce the surplus of dollar liquidity in the financial system and will provide short-term support to the US currency.

Secondly, in the British debt market, the value of securities fell to a two-month low and now the road to the lows of this year is open, which is negative for companies in the financial sector (banks and pension funds), which in the past has always put pressure on the value of the pound.

Recommendations: Sell 1.2735/1.2770 and TP 1.2620.