While the US dollar continues to regain positions against the euro and the British pound, Richmond Federal Reserve Bank President Tom Barkin stated that his outlook calls for a moderate adjustment of interest rates, given his view that there will be little change in economic activity for the remainder of the year.

"I see moderate movement in the economy," Barkin said in an interview on Tuesday. "If the economy is showing moderate dynamics, that implies a moderate adjustment of rates," he said. "But I'm not certain things will necessarily continue this way. That's what we see now. That's my forecast, but it may change."

This moderate approach, Barkin emphasized, reflects steady but not explosive economic growth, where each new economic indicator deviates only slightly from the previous one. This creates a kind of "stable plateau" where sharp fluctuations are unlikely.

Nevertheless, Barkin also noted that this forecast is based on current data and may be revised in the event of significant changes in economic conditions. Key factors that could influence his decision include inflation data, labor market figures, and consumer spending. If inflation proves more persistent than expected, or if the labor market continues to weaken, the Fed may need to adjust its policy on interest rates.

In turn, if economic growth slows more than expected, the Fed may consider a larger rate cut to stimulate economic activity. Barkin emphasized that the Fed will closely monitor economic data and make decisions based on actual data, not on predetermined trajectories. In his view, flexibility and adaptability are key elements of effective monetary policy in an environment of uncertainty.

Investors are currently betting on a rate cut at the next central bank meeting in September after Fed Chair Jerome Powell said on Friday that "the risks to employment are rising" and "a shift in the balance of risks may require an adjustment of our policy stance."

This paves the way for likely debates next month regarding further possible rate adjustments at the last two Fed meetings of the year, in October and December. The June forecasts showed that most were expecting at least two cuts, although a significant minority expected only one cut or none at all. Officials will release updated forecasts after the September meeting.

Barkin declined to say what course of action he would be inclined to support in September. "I know we still have three and a half weeks before our next meeting," he said. "I make the best decisions on the same day, having all the necessary information."

As for the current technical picture for EUR/USD, buyers now need to reclaim the 1.1630 level. Only this would allow for a test of 1.1660. From there, reaching 1.1690 is possible, but achieving this without support from major players will be quite problematic. The furthest target would be the 1.1740 high. If the instrument declines, I expect significant buying activity only around 1.1600. If there is no support there, it would be preferable to wait for a new low at 1.1565 or to open long positions from 1.1530.

Regarding the current technical picture for GBP/USD, pound buyers need to overcome the nearest resistance at 1.3490. Only after that would it be possible to target 1.3523, above which further progress will be quite difficult. The furthest target is the 1.3560 level. If the pair falls, the bears will attempt to gain control at 1.3440. If successful, a breakout of the range will deal a significant blow to the bulls' positions and send GBP/USD to a low of 1.3420, with a prospect of moving toward 1.3390.