Important events today:

15:00 UTC – US: inflation expectations from the University of Michigan.

The main event of the day will be the release of the inflation expectations in the United States and this currency pair can either rise after the release of the statistics or fall. What is the paradox of this event? Today there is a high probability to see a decline in inflation expectations amid slowing wage growth and shrinking money supply.

Traders may start selling the U.S. dollar as the weak statistics cast doubt on the Fed’s strong interest rate hike. On the other hand, the weak statistics is good for the American stock market, which, in turn, historically correlates with this currency pair.

Recommendations: flat 131.00 -132.00