The legend in the InstaSpot team!
Legend! You think that's bombastic rhetoric? But how should we call a man, who became the first Asian to win the junior world chess championship at 18 and who became the first Indian Grandmaster at 19? That was the start of a hard path to the World Champion title for Viswanathan Anand, the man who became a part of history of chess forever. Now one more legend in the InstaSpot team!
Borussia is one of the most titled football clubs in Germany, which has repeatedly proved to fans: the spirit of competition and leadership will certainly lead to success. Trade in the same way that sports professionals play the game: confidently and actively. Keep a "pass" from Borussia FC and be in the lead with InstaSpot!
The assassination attempt on Donald Trump unsettled the EUR/USD bulls, but it didn't deter them from their plans to push further up. The currency pair is rising due to expectations of the imminent start of the Federal Reserve's rate cut cycle amid the slowdown of the American economy. If U.S. retail sales disappoint following the labor market and inflation data, the euro could jump above $1.1. Moreover, it appears that the European Central Bank does not plan to give a signal about its next rate cut.
Bloomberg experts believe that the ECB will not change the deposit rate from its current level of 3.75% in July, but will lower it in September and December. In a year, borrowing costs are expected to fall to 2.5%. The futures market is more cautious, expecting only one rate cut with a small chance of a second ECB rate cut. Opinions differ, as do the positions of the Governing Council members.
ECB Deposit Rate Forecasts
Belgian Pierre Wunsch, Irish Gabriel Makhlouf, and Slovak Peter Kazimir said that the ECB would only lower the rate once in 2024, with a second cut necessary only if inflation quickly moves toward the 2% target. Greek Yannis Stournaras would like to see two cuts, while Portuguese Mario Centeno wants several. Other ECB officials were more vague in their comments. Klaas Knot from the Netherlands agreed with the market pricing of 1-2 rate cuts, while German Joachim Nagel said that the Bank would not act on autopilot after starting the cycle in June.
While the centrists of the Governing Council point to a strong labor market, wage growth at 5%, and services inflation at around 4% to justify a cautious approach to monetary easing, the "doves" cite the slowdown in economic growth in the eurozone. According to Bloomberg experts, one risk factor for the currency bloc is the potential victory of Donald Trump in the US presidential elections in November. His pro-inflationary policies could accelerate price growth not only in North America but also in Europe.
Risks to the European Economy
The assassination attempt on the Republican candidate caused EUR/USD to "take a break". However, the bears did not celebrate. The temptation to sell the US dollar is too great, given the increased probability of a federal funds rate cut in September from 73% to 95%. Most likely, the Fed will prepare the markets for such a step, and the dovish rhetoric of FOMC officials is a strong argument in favor of buying the main currency pair.
Technically, the EUR/USD continues to rise on the daily chart. As long as the euro quotes are above the trend line and the pivot level of $1.0865, the strategy of forming long positions should be adhered to. The realization of the 1-2-3 reversal pattern could take the main currency pair to 1.0945, 1.0970, and 1.1015.
*এখানে পোস্ট করা মার্কেট বিশ্লেষণ আপনার সচেতনতা বৃদ্ধির জন্য প্রদান করা হয়, ট্রেড করার নির্দেশনা প্রদানের জন্য প্রদান করা হয় না।
ইন্সটাফরেক্স বিশ্লেষণমূলক পর্যালোচনাগুলো আপনাকে মার্কেট প্রবণতা সম্পর্কে পুরোপুরি সচেতন করবে! ইন্সটাফরেক্সের একজন গ্রাহক হওয়ায়, দক্ষ ট্রেডিং এর জন্য আপনাকে অনেক সেবা বিনামূল্যে প্রদান করা হয়।
