The US dollar has significantly lost ground against most risk assets.

Yesterday's weak data on job openings and labor turnover from the US Bureau of Labor Statistics put pressure on the dollar. Recently, traders have been closely watching such macroeconomic data, and it is clear that the decline in job openings has been interpreted as a signal of a possible slowdown in the growth rate of the US economy. The published data indicated a decrease in the number of open vacancies, which may suggest a decline in demand for labor.

Today's economic calendar does not spoil us with an abundance of events. The only significant release will be the data on the change in retail sales volume in the Eurozone for July of this year. Economists unanimously forecast a decline in this indicator, which, in turn, casts doubt on the euro's ability to receive noticeable support in the first half of the day. A fall in retail sales is often interpreted as a sign of slowing economic growth, as consumer spending is a key driver of the economy.

As for the pound, in the first half of the day, data on the UK Construction Purchasing Managers' Index is also expected to be published. This indicator, reflecting the opinions of procurement managers at construction firms, is closely studied by traders, as it is an early sign of the UK's economic health. A reading above 50 points indicates an increase in industry activity, while a reading below this level signals a decline.

If the data matches economists' expectations, it's better to act based on the Mean Reversion strategy. If the data is much higher or lower than expected, it's best to use the Momentum strategy.

Momentum Strategy (Breakout):

EUR/USD

Buying on the breakout above 1.1665 could lead to a rise in the euro towards 1.1685 and 1.1715

Selling on the breakout below 1.1645 could lead to a fall in the euro towards 1.1610 and 1.1575

GBP/USD

Buying on the breakout above 1.3435 could lead to a rise in the pound towards 1.3465 and 1.3490

Selling on the breakout below 1.3415 could lead to a fall in the pound towards 1.3380 and 1.3340

USD/JPY

Buying on the breakout above 148.35 could lead to a rise in the dollar towards 148.85 and 149.10

Selling on the breakout below 148.10 could lead to a sell-off in the dollar towards 147.85 and 147.50

Mean Reversion Strategy (Pullbacks):

EUR/USD

I will look to sell after an unsuccessful breakout above 1.1667 followed by a return below this level;

I will look to buy after an unsuccessful breakout below 1.1645 followed by a return above this level.

GBP/USD

I will look to sell after an unsuccessful breakout above 1.3450 followed by a return below this level;

I will look to buy after an unsuccessful breakout below 1.3416 followed by a return above this level.

AUD/USD

I will look to sell after an unsuccessful breakout above 0.6559 followed by a return below this level;

I will look to buy after an unsuccessful breakout below 0.6520 followed by a return above this level.

USD/CAD

I will look to sell after an unsuccessful breakout above 1.3815 followed by a return below this level;

I will look to buy after an unsuccessful breakout below 1.3787 followed by a return above this level.