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 UK labor market report differed significantly from forecasts on some parameters but nevertheless did not elicit a noticeable reaction. The unemployment rate fell sharply from 5.2% to 4.9%. The growth rate of average wages (including bonuses) also decreased but remained above expectations and remains at a high level, which further supports already elevated inflationary pressures.
After a weak January, UK GDP grew by an impressive 0.5% in February, which generally aligns with the rise in business sentiment. However, since energy prices rose significantly in March, it is likely that this growth will slow down again, the labor market will continue to weaken, and inflation will remain at high levels longer than previously thought.
On Wednesday, the UK consumer inflation index for March will be published. It is expected to rise to 3.3% year-on-year due to increases in energy prices and possibly some food items, while the Bank of England is more pessimistic, expecting a rise to 3.5%. The core index is likely to remain at 3.2%.
If the result is closer to 3.5%, it will increase the chances of no further rate cuts by the BoE, providing a boost to the pound and continuing its rise. After the March meeting, the market forecast suggested two more cuts, approximately in July and the final cut in early 2027, but if inflation turns out to be higher than expected, justifying a cut while other central banks are tightening will be problematic.
Speculative positioning in GBP has not changed much during the reporting week, with a net short position of £4.6 billion, and the estimated price is moving upward from the long-term average.
The pound has failed to capitalize on the wave of optimism, as demand for risk, which distinctly governed investor sentiment after the ceasefire announcement, is clearly stalling; negotiations between the warring sides are advancing slowly. A week ago, we saw a potential bullish impulse developing towards 1.3867; this forecast remains valid, but movement will resume only if clear signs of a decrease in global tensions emerge. Otherwise, the pound will remain within a sideways range awaiting greater clarity.
*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.
