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!
Today, the ECB holds its monetary policy meeting, and all current parameters are expected to be maintained. Let's consider how this might affect the euro/dollar pair.
The forecast assumes that the ECB's decision will be to keep all settings unchanged, including the key interest rate, which is expected to remain at 2.40%.
Why is the regulator likely to leave rates unchanged when crude oil prices are rising again, and July inflation could show an uptick? There are several important reasons. First, oil has risen but still hasn't hit the $100 per barrel mark for Brent. Yes, inflation for June stands at 2.8% and could, for example, rise to around 3.0% — a level seen before, when the ECB did raise rates. Even so, there is currently no urgent need to act. Also note that the Federal Reserve, the world's leading central bank, is also very likely to wait and watch developments, especially in the Middle East, before acting.
There is another important political reason: it will be difficult for Fed Chair K. Warsh to decide to raise rates ahead of the September midterm congressional elections, since that could reduce support for Republican candidates.
So what can we expect for EUR/USD? I believe that the ECB's decision to maintain policy, together with a lack of signals for further rate hikes and the most traded currency pair will most likely stay in the 1.1365–1.1475 range. I reckon even if it rises, it should still be sold.
Forecast of the day
EUR/USD
The currency pair is testing support at 1.1410; a break below this level could push the price down to 1.1365. A suggested sell level is 1.1404.
GBP/USD
The instrument is trading above support at 1.3355; a break below that could lead to a decline toward 1.3300. A suggested sell level is 1.3350.
*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.
