[FXdudy]

USD
The American currency on Asian bids set new absolute minimums, after which traders began to open the positions for the sale USD, which led to its strengthening to levels of opening.
Statistics from the American economy shown that capital inflows (according to the U.S. Treasury - Tsy Intl Capital System) have increased from $56 to $ 62 billion, that shows confidence of foreign investors in the future of the American economy.
Perhaps USD is at its minimum below which it will not be able to fall no more that pushes investors to buy American securities as they are relatively inexpensive.
Other indicators, among which it is worth to mention manufacturing production - Industrial Production and Business Activity Index - NY Fed Empire State Survey showed a slight deterioration, but it was within the permissible limits.
The market is waiting for a decision on interest rates, which will be published tomorrow at 21:15. No one doubts that rate will be lowered. The question is whether how they will be reduced. The range of opinions is verifying from 0.5% to 1%, but the majority believes that the Fed will reduce rate by 0.5%.
Besides reducing the interest rate tomorrow there will be published data on Producer Price Index. If the index stays at current points, it could cause much greater decline in the American currency because the Fed will have additional opportunities for lowering the interest rate.
In addition, investors' attention will be drawn to the start of construction of new houses -Housing Starts. This is an advanced rate indicator. It depends on many factors and therefore varies greatly, but if it shows a growing trend for the 3rd consecutive time, it will mean the completion of the negative effects in the construction sector, preceding future growth of the American economy and the strengthening of USD.

GBP
GBP is descending against USD two days running. After deviation of pair above the level of 2,008 the cost of USD expressed in terms of GBP has become very attractive for Bid and the main reason for reducing of GBP | USD.
Among the British data the main attention focuses on the inflationary data to be published before a decision on interest rates in the United States, as well as the publication of the Bank of England meeting minutes which will be published on Wednesday.
The British economy at the moment needs to reduce interest rates to support its growth, but inflation does not allow lowering them, forcing the Bank of England to keep their current levels for a long time.
At the end of trading day on Monday GBP/USD was above the level of 1.9870 (closing of the second three-year period), which is the first intermediate goal before further decline of pair. The next support is at 1.9575-1.94 (the area of closing five-year cycle). Further support is at 1.9175 (closing of a three-year period). Break by 1.94 may mean the final declining of pair, which should last for three years at least. The cause of decline will be the growth of USD and the decline of GBP, which will be caused by the needs of both economies.