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 U.S. dollar may continue to weaken if the conflict in the Middle East remains limited in scope and expectations for higher U.S. interest rates continue to decline.
The U.S. Consumer Price Index (CPI) data released on Tuesday confirmed that inflation slowed in June compared with May, as expected. Moreover, the figures came in noticeably below both market forecasts and the consensus estimates.
According to the report, annual headline CPI slowed from 4.2% to 3.5%, compared with expectations of 3.8%. On a monthly basis, June CPI fell by 0.4%, marking a deflationary reading and exceeding expectations for a 0.1% decline. Annual core CPI eased from 2.9% to 2.6%, below the consensus forecast of 2.8%, while monthly core CPI was unchanged, compared with expectations that it would remain at 0.2%.
Unsurprisingly, these figures placed significant pressure on the U.S. dollar despite the renewed escalation of tensions in the Middle East. Under normal circumstances, such geopolitical developments support demand for the dollar as a safe-haven currency, strengthening its position.
Equity markets also benefited from the weaker inflation data, with U.S. stocks leading the gains as investors scaled back expectations of further Federal Reserve interest rate hikes later this year. The decline in U.S. Treasury yields following the inflation report also contributed to dollar weakness and improved sentiment toward equities.
The dollar's decline has paused for now as investors await the release of the U.S. Producer Price Index (PPI). The report is expected to confirm the disinflationary trend indicated by the CPI data. I expect the U.S. dollar to weaken further against the major currencies in the near term. Despite the current pause, the gradual decline of the dollar in the Forex market is likely to continue.
The pair is trading slightly above the 0.6990 support level. Consolidation above this level could pave the way for a move toward 0.7070. A break above 0.7003 may be considered a potential buying signal.
The pair is trading below the 0.5825 resistance level. A confirmed breakout above this level could open the way for a rise toward 0.5875. A move above 0.5829 may be considered a potential buying signal.
*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.
