New statements from Trump regarding Iran and the active preparations for a ground operation have led to a further increase in energy prices, strengthening the dollar, and causing a decline in risk assets.

Statements from US Federal Reserve representatives and their hints of tighter conditions in the near future have also bolstered the dollar's position against various risk assets. Against this backdrop, corrections are observed in the currency and stock markets. Traders, wary of rising interest rates that could slow economic growth, began selling off risk assets.

Today, special attention should be paid to the March consumer price index data in Germany. This will be the first indicator released since the onset of the US and Israel's conflict with Iran, and it will be closely scrutinized by markets for potential implications for inflationary pressures in the Eurozone's largest economy. The heightened tensions in the Middle East, caused by recent events, have already significantly impacted supply chains and, consequently, energy prices, which are likely to lead to increased inflation figures. Given that Germany is the main driver of the European economy, any signs of rising inflation in Germany could increase the likelihood of the ECB tightening monetary policy in April. However, if inflation figures fall short of expectations, it could give the ECB some leeway to adopt a more cautious approach to future rate changes, especially amid slowing growth in some other Eurozone countries.

Regarding the British pound, the first half of today is expected to be relatively calm concerning macroeconomic releases; however, traders will undoubtedly focus on events unfolding in the UK. The key event for the first half of the day will be the publication of data on mortgage approvals, net lending to individuals, and the change in M4 money supply. The mortgage market serves as a sensitive barometer of consumer confidence and the state of the housing sector. The expected figures for approved mortgage applications will provide insights into how active Brits are in purchasing property. Simultaneously, data on net lending to individuals will give information about consumer spending and household debt levels. An increase in lending volumes could indicate rising consumer activity.

Finally, the change in the volume of the M4 money supply will provide insights into liquidity in the banking system and the overall money supply in circulation. An increase in M4 could signal an expansion of the money supply, potentially adding to inflationary pressures, which the Bank of England is already struggling with due to the Middle East conflict.

If the data aligns with economists' expectations, it's best to act based on the Mean Reversion strategy. If the data significantly exceeds or falls short of the economists' expectations, the Momentum strategy is preferable.

Momentum Strategy (Breakout):

For the EUR/USD Pair:

• Buy on a breakout above 1.1520, which may lead to an increase in the euro towards 1.1552 and 1.1588;
• Sell on a breakout below 1.1505, which may lead to a decrease in the euro towards 1.1485 and 1.1448;

For the GBP/USD Pair:

• Buy on a breakout above 1.3285, which may lead to an increase in the pound towards 1.3310 and 1.3339;
• Sell on a breakout below 1.3255, which may lead to a decrease in the pound towards 1.3232 and 1.3200;

For the USD/JPY Pair:

• Buy on a breakout above 159.84, which may lead to an increase in the dollar towards 159.99 and 160.21;
• Sell on a breakout below 159.65, which may lead to dollar sell-offs towards 159.29 and 159.09;

Mean Reversion Strategy (Retracement):

For the EUR/USD Pair:

• Look for short positions after an unsuccessful breakout above 1.1551 on a return below this level;
• Look for long positions after an unsuccessful breakout below 1.1498 on a return to this level;

For the GBP/USD Pair:

• Look for shorts after an unsuccessful breakout above 1.3289 on a return below this level;
• Look for longs after an unsuccessful breakout below 1.3246 on a return to this level;

For the AUD/USD Pair:

• Look for shorts after an unsuccessful breakout above 0.6885 on a return below this level;
• Look for longs after an unsuccessful breakout below 0.6849 on a return to this level;

For the USD/CAD Pair:

• Look for shorts after an unsuccessful breakout above 1.3908 on a return below this level;
• Look for longs after an unsuccessful breakout below 1.3880 on a return to this level.