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 euro continues its bullish correction for the fourth consecutive week, but there is uncertainty regarding the sustainability of this movement. In the absence of economic news, the euro has not found an impetus for growth, despite the efforts of some European Central Bank representatives who have commented on recent changes in inflation, employment, and economic recovery.
The minutes of the ECB meeting published on Friday showed increased confidence that inflation is on track back to 2% and it also confirmed rate cut intentions for June. Some ECB members were ready to cut rates as early as April, but the minutes suggested a preference for June if "...additional evidence received by then confirmed the medium-term inflation outlook embedded in the March projections." If the market becomes confident in a rate cut in June, the euro will likely fall against the dollar.
The second estimate of GDP for the first quarter will be published on Wednesday. The initial estimate was 0.3%, marking the first quarter of growth since the second quarter of 2023 and the strongest since the third quarter of 2022. This fairly confident recovery was a surprise following a very weak 2023 (only the COVID-affected 2020 was worse). If the initial estimate does not become worse, the euro may have grounds to correct higher. Supporting a "good" scenario is the rise in April's PMI, particularly in Germany, which left the negative territory for the first time since June 2023.
The weekly change in the euro amounted to +1.5 billion, the net short position was liquidated and a cumulative long position of 0.6 billion was formed. A neutral position; a fragile equilibrium has been established after large-scale closures of long positions on the euro. However, the report marked large volumes of euro purchases for the second consecutive week. The price has moved above the long-term average.
A week ago, we suggested that the EUR/USD pair has a high chance of rising further. The euro is trading near the upper boundary of the bearish channel. In the absence of a clear driver, the pair traded in a sideways range last week, with the nearest resistance at 1.0810/20 holding for now. However, the chances of successfully breaking through this resistance seem to have increased. The next target is 1.0980, and we expect stronger movements to start after the release of the US inflation report on Wednesday.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.
