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 labor market disappointed the US dollar yesterday, which sharply declined against the euro and the British pound.
As the data showed, the US unemployment rate rose again in September to 4.4%, significantly weakening the US dollar. The rise in unemployment is not just a statistic; it reflects the real difficulties faced by millions of American families. Layoffs, salary reductions, and loss of health insurance all exert tremendous pressure on consumer spending and, consequently, on economic growth.
Now, the central bank faces a difficult dilemma: support the weakening economy by lowering interest rates or keep inflation under control by maintaining the current rates. Lowering interest rates would undoubtedly make loans more accessible, stimulating investments and consumer spending. However, this could also lead to further weakening of the dollar and possibly a rise in inflation.
In the first half of the day today, data on the manufacturing PMI index for the Eurozone, the services PMI index, and the composite PMI index are expected. Shortly afterward, European Central Bank President Christine Lagarde will give a speech. These events will undoubtedly be crucial for determining the short-term dynamics of the euro. The PMI index, or Purchasing Managers' Index, is a leading indicator of the economic health of the region. Its values reflect the sentiment of key players in the economy—purchasing managers—and provide valuable information about the current state of affairs in the manufacturing and service sectors. A drop in the index below 50 signals a contraction in business activity, while exceeding this level indicates growth. Lagarde's speech, on the other hand, will provide a unique opportunity to receive direct comments from the ECB's head on the current economic situation and the central bank's future plans. However, considering that the central bank does not intend to change its monetary policy in the near future, Lagarde's statements are unlikely to significantly influence market sentiment.
As for the pound, several important reports are also expected in the first half of the day. The market eagerly awaits retail sales data, which serves as an initial signal of consumer demand. This is particularly relevant in the context of current inflation and concerns about a potential economic slowdown. The PMI indices, in turn, will provide a broader picture of the state of affairs in the manufacturing and services sectors. The composite PMI index, which combines data from these two sectors, will be a key indicator of the UK's overall economic health.
If the data aligns with economists' expectations, it is better to act based on the Mean Reversion strategy. If the data is significantly higher or lower than economists' forecasts, it is best to use the Momentum strategy.
*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.
Uz InstaSpot-ove analitičke preglede uvek ćete biti u toku sa tržišnim trendovima! Klijentima InstaSpot-a su dostupni mnogobrojni besplatni servisi za uspešno trgovanje.
