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!
Are there safe?haven assets in today's world? The conflict in the Middle East has slammed gold prices. US Treasuries have been sold off en masse. The Japanese yen is so weak that the government is forced to employ regular verbal — and hinted — currency interventions. The franc feels out of place. At first, the American dollar stood out, but as the situation around Iran unfolded, it has lost its shine.
G10 currencies vs the US dollar
Indeed, as soon as Donald Trump announced a five?day ban on strikes against Iran's energy infrastructure and spoke of negotiations, the greenback was swept into a wave of selling amid an improved global risk appetite. But let's face facts. US and Israeli military operations continue. Saudi Arabia is ready to join a coalition. The Strait of Hormuz is blocked. Iran insists there are no negotiations with the United States.
There is no talk of de?escalation. Yet the US dollar is looking unwell. It is being battered, and this process began with the meetings of central banks that compete with the Fed. The ECB and other regulators are worried about the threat of stagflation — the combination of slowing growth and high inflation. They are using decidedly "hawkish" rhetoric, which is forcing the futures market to revise its views.
Forecasts of central bank's interest rate
Before the war, derivatives were pricing little from the ECB and even two cuts to the Bank of England's repo rate. By late March, the situation had turned upside down. It is now forecast that Frankfurt and London could raise rates almost three times. Unsurprisingly, German and UK bond yields are rising much faster than their US equivalents. That puts pressure on the US dollar and offsets the positive effect of its safe?haven status.
Although Christine Lagarde says the eurozone economy is in good shape and can withstand the Middle East shock, the ECB chair is clearly being misleading. In 2022, when inflation surged and the ECB delayed hikes, the economy was stronger. GDP growth then rested on pandemic?era fiscal and monetary stimulus. That support is not there now.
Interest rates are high, domestic demand is weak, and business activity has slowed to a 10?month low. In such conditions, tightening monetary policy is close to economic self?harm. It is unlikely the eurozone can withstand further rate increases in the current environment. Eventually, the ECB may have to reverse course.
Technically, on the daily chart, EUR/USD sees a fierce battle between bulls and bears around the fair value level of 1.161. A victory for buyers would open the way north for the euro. Conversely, if sellers prevail, it will create an opportunity to build short positions.
*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।
