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 fresh U.S. Consumer Price Index (CPI) data released on Wednesday, although below the consensus forecast, confirmed the persistence of inflationary pressure. This fully justifies the Federal Reserve's reluctance to resume interest rate cuts.
According to the CPI report, U.S. inflation rose year over year from 2.3% to 2.4%, while the forecast was 2.5%. The core inflation rate remained at 2.8%, below the expected 2.9%. On a monthly basis, inflation rose less than forecast.
There are two main reasons. The first is global in nature, tied to the ongoing trade war between the U.S. and China. The recent round of talks in London yielded only one tangible result—an agreement on rare earth metals trade. However, this did not resolve the complex economic stalemate, which largely contributes to another issue in the U.S. economy: persistently high inflation.
The decoupling of trade links between China and the U.S. does not benefit the latter, whose real economy (aside from specialized sectors) has long relied on imported goods. For decades, Americans purchased Chinese-manufactured products—everything from Nike to smartphones and computers—designed in the U.S. but produced mostly in Asia, particularly China. Donald Trump's ill-conceived tariff policies disrupted these economic ties, ultimately fueling price increases on goods now arriving through more expensive, indirect routes.
Since global financial markets are heavily tied to the U.S., they have reacted negatively to this geoeconomic instability and the resulting high inflation. This inflation, in turn, pushes the prospect of further Fed rate cuts into the distant future. That's why we are witnessing market pessimism and decreased demand for stocks, cryptocurrencies, and oil. Meanwhile, gold prices are understandably gaining support as a safe-haven asset. Even the dollar—normally expected to strengthen on a CPI report—remains under pressure due to waning interest in dollar-denominated assets globally.
The negative sentiment seen in European trading will likely carry over into the U.S. session. Although inflation showed only a slight uptick, it is still enough to reduce the likelihood of near-term Fed rate cuts, dampening demand for equities. The crypto market will likely remain under pressure. The U.S. dollar index (ICE) is expected to consolidate around the 98.00 mark. Gold may continue to attract buying interest, potentially moving toward recent highs.
The S&P 500 futures contract shows a local downward reversal, suggesting the possibility of a corrective decline in U.S. equities. Amid broad pessimism, a break below 5990.25 may lead to a fall first to 5866.20 and then to 5773.20, corresponding to a 23% Fibonacci retracement. The level of 5983.95 could be used as a trigger for selling.
Gold prices may see a moderate upside amid overall market negativity. A rise above 3351.00 could intensify the bullish trend, with a target toward 3408.00. The 3355.00 mark could serve as a good entry point for buying.
*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।
