Forex News from InstaForex

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Re: Forex News from InstaForex

Postby IFX Gertrude » Tue Jul 12, 2022 9:37 pm

The euro is in a deep depression. Is it a dead end?

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The European currency is frantically looking for a way out of the current situation, when the decline persists, and parity with the dollar looms on the horizon. At the same time, the US currency remains in an upward trend, fueled by the interest of investors seeking to withdraw into the USD amid the possible onset of a recession.

At the beginning of trading on Tuesday, July 12, the euro was balancing near a 20-year low, steadily approaching parity with the dollar. Experts believe that the main reason for this phenomenon is the growing fears about the energy crisis, which can plunge Europe into recession. Against this background, the actions of the Federal Reserve, which continues to aggressively tighten the monetary policy in order to curb inflation, contrast sharply with the indecisiveness of the European Central Bank.

According to Trading Economics analysts, the euro has updated its low against the greenback over the past 20 years. The single currency lost about 1.2% on Monday, July 11, dropping to 1.0067. In the future, the fall continued. On the morning of Tuesday, July 12, the EUR/USD pair was trading at 1.0011, breaking another anti-record.

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The euro reached new lows on Monday, remaining under pressure against the dollar. According to preliminary estimates, the strengthening of the euro is unlikely in the second half of 2022, since the European economy may suffer a technical recession. According to analysts of the National Bank of Canada, in the near future, the euro will remain "at a level close to the bottom."

The improvement of the situation for EUR is possible with the stabilization of energy prices, experts are certain. Currently, the single currency is suffering from a sharp rise in energy prices. The situation is complicated by the geopolitical conflict in Eastern Europe and rising inflation in the eurozone. These factors are steadily pushing the euro to parity with the dollar, that is, to the level of 1.0100.

The second half of 2022 does not imply the formation of conditions suitable for strengthening the euro. According to experts, the European economy is closer than ever to a burst of technical recession. In the near future, the EUR will remain at a low level, analysts summarize.

Against this background, the US currency is strengthening its position, overtaking its rival in the EUR/USD pair and bringing the probability of parity closer. On Wednesday, July 13, the markets are expecting reports for June on inflation in the US and Germany. According to analysts, annual inflation in Germany slowed to 7.6% in June (from the previous 7.9%). As for the preliminary calculations about the United States, last month consumer prices increased by 8.8% year-on-year. Recall that this figure was 8.6% in May.

Confirmation of this scenario means that inflation in the US remains at the highest level in the last 40 years. At the same time, a weaker consumer price index will slow down the potential fall of the EUR/USD pair to parity. However, a postponement is possible only until the European Central Bank decides on the rate, that is, until the meeting next Thursday, July 21.

Most analysts agree that further acceleration of inflation contributes to an increase in the key rate in the United States (by another 75 bps). At the same time, decisive action is also likely from the ECB, which is prone to procrastination in this matter. The course of tightening monetary policy taken by the Fed will provide additional support to the greenback and increase pressure on the euro.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Wed Jul 13, 2022 9:19 pm

Asian markets advance slightly on Wednesday

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Asian stock indexes increased slightly on Wednesday. The S&P/ASX 200 edged up by 0.05%, while the Shenzhen Composite rose by 0.95%. The Shanghai Composite and the Nikkei 225 gained 0.36% and 0.41% respectively. The Hang Seng Index advanced by 0.71%, while the KOSPI increased by 0.73%.

Indexes in the Asia-Pacific region entered a slight correction following an earlier slump triggered by fears of a new wave of COVID-19 in the region. China has re-imposed quarantine measures, while South Korea reports an increase in coronavirus infections.

New lockdowns could weigh down on Asia-Pacific economic growth.

Traders also noted policy decisions by the main central banks, which are striving to bring soaring inflation under control. The Bank of Korea has increased the interest rate by 50 basis points to 2.25% from 1.75%, matching market expectations. Economists see the South Korean regulator hike the rate further in the near future.

South Korean stocks increased slightly, with LG Electronics, Inc. and Samsung Electronics, Co. gaining 0.7% and 0.5% respectively.

On the S&P/ASX 200, the best performing stock was Megaport, Ltd, which jumped by 6.5%. St. Barbara, Ltd. rose by 4.7%, while Pointsbet Holdings, Ltd. increased by 5%.

Investors also awaited the release of US CPI data. Inflation in the US was projected to increase to 8.8% in June, up from 8.6% in May.

Rising inflation would boost expectations of further monetary tightening by the Fed. However, it can also indicate that inflation has peaked amid falling crude oil prices. Market players are wary of higher interest rates weighing down on the global economy.

According to the latest statistic data, China's exports increased by 13.2% year-on-year over the past 6 months. Imports rose by 4.8%.

On the Hang Seng Index, Haidilao International Holding, Ltd. increased by 6%, while JD.com, Inc. and Sands China, Ltd. rose by 4.6% and 3.8% respectively. Shares of Tianqi Lithium, Corp. dived by 10% in their market debut.

On the Nikkei 225, the best-performing stock was Toho, Co., which climbed by 6.1%. The movie theater company's net revenue surged by 72% in the first quarter thanks to a rise in theater visitors.

Tokyo Electric Power Co Holdings Inc. increased by 5.6%, Recruit Holdings Co., Ltd. gained 2.9%, Honda Motor Co., Ltd. rose by 2.6%, and SoftBank Group, Corp. advanced by 2.4%.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Thu Jul 14, 2022 10:00 pm

Dollar: fireworks of growth and inflationary confrontation

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The US currency once again took advantage of rising inflation, soaring after the release of the consumer data index (CPI) in the US. However, "skimming the cream" after an inflationary turn, the dollar risks sinking in the medium and long-term planning horizons.

According to reports from the US Department of Labor, the inflation rate measured by the consumer price index (CPI) has soared to the highest in four decades. By the end of June, it reached 9.1% year-on-year, demonstrating the most significant increase since 1981. Recall that this indicator did not exceed 8.6% in May. At the same time, the expanded inflation indicator in the United States increased by 1.3%, which is the highest level since 2005. This indicator reflects the increase in prices for gasoline, housing and food.

Against this background, the US currency showed an incredible rise, sharply overtaking the euro in the EUR/USD pair. In the current situation, the euro sank by 0.3%, reaching 1.0004. As a result, the dollar, having tested another high, returned to parity with the euro after a short-term breakthrough. On Wednesday, July 13, the single currency fell to the level of 0.9998 for the first time since December 2002. Then the euro fell by 0.39% on the morning of Thursday, July 14, reaching 1.0020. Later, the EUR/USD pair traded at 0.0023, unsuccessfully trying to get out of the price hole.

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The sharp spurt of the dollar amid the rise in consumer prices was accompanied by a violation of parity on the part of the euro. After the release of US inflation data, the euro slipped below the parity level in the EUR/USD pair. According to analysts at Commonwealth Bank of Australia, the parity of both currencies, settled at 0.9900, remains the lower limit for the EUR/USD pair. In the future, currency strategists expect consolidation to come in tandem.

Movements in the EUR/USD pair are taking place amid rapidly growing inflation, which has accelerated significantly after reaching a high over the past 40 years. Further strengthening of inflation increases the risk of an aggressive rate hike by the Federal Reserve. According to analysts, this will trigger a recession in the near future. At the same time, concerns about the recession provide significant support to the greenback.

According to Rafael Bostic, president of the Atlanta Fed, extremely high inflation leaves the US central bank no choice in raising interest rates, which is likely to be resolved positively. This statement was supplemented by Wells Fargo analysts, explaining that the Fed will need several monthly inflation indicators to make a final decision on the rate. Regarding the June consumer price index (CPI), experts expected that it "will be hot, but this report just burns." Recall that consumer price inflation in the United States outstripped already inflated expectations, soaring by 1.3%. In annual terms, prices rose by 9.1%, which is a new cyclical high.

According to experts, a steady increase in prices for basic goods, recorded for two months, is extremely undesirable for the Fed. The central bank seeks to weaken core inflation in the consumer goods segment amid a rapid rise in the cost of food and energy. However, progress in this matter is minimal so far.

In such a situation, the greenback was the winner, drawing strength from the unwinding of the inflationary spiral. However, there is a walk on thin ice here: in the long term, the USD risks to sink significantly. At the moment, the dollar feels confident, demonstrating its importance to the world. The recent aggressive USD rally indicates that the US currency acted as a shield for the population of the United States suffering from extremely high inflation.

In the current situation, the purchasing power of American imports is increasing. Note that a strong dollar provides protection from inflation in the form of cheaper imports. However, Morgan Stanley analysts believe that the strengthening USD adds risks for the Fed, as a strong national currency makes it difficult for the central bank to cool demand. Such a situation provokes further tightening of the monetary policy or leads to stagflation. Recall that with stagflation, high inflation persists, but economic growth slows down significantly.

Another important factor undermining the strength of the dollar in the EUR/USD pair remains the cardinal difference in the monetary strategies of the Fed and the European Central Bank. This year, the US central bank has raised rates by 1.50%, and the European one is still in thought, although inflation in the eurozone is also breaking records. The gap between the Fed and ECB rates will grow after the June consumer price index in the United States showed a new 40-year high. At the same time, experts do not rule out that this month the ECB will begin its rate hike cycle, but with a smaller step – 0.25%.

In the long term, the strengthening of the greenback will contribute to further tightening of financial conditions. Against this background, the Fed continues to reduce its balance sheet, Morgan Stanley emphasizes. As a result, a strong dollar increases the risk of a recession in the United States, which many investors consider inevitable.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Fri Jul 15, 2022 5:20 am

Gold cannot withstand the onslaught of a strong dollar

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Gold is falling in price on Thursday amid a rising dollar. Judging by the rise in US currency quotes, investors reacted with enthusiasm to record inflation data in the US.

So, in the morning hours of the European trading session, the price of the August gold futures on the New York Comex exchange fell by 0.52% to $1,726.45 per troy ounce. By 14:50 GMT, the quotes had already fallen by 2.23% to $1,696.85. Silver by this time managed to decline by 5.61%, to $18,117.

At one point the August gold futures were at $1,704.28.

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The dollar index, or its exchange rate against a basket of six other currencies, rose 0.96% today, reaching 109.03 points. A stronger dollar makes gold less affordable when buying in a different currency. The yield on 10-year US Treasury bonds is 2.982%. The yield curve of 2-year and 10-year Treasury bonds remains inverted and the most inverted over the past 22 years. This indicates an approaching economic recession.

In addition, another inflation report was published on Thursday, which made a lot of noise and caused a storm of emotions among traders. According to the data, in June, annual inflation in the United States rose to 9.1% in annual terms (it was at the level of 8.6% in May). This June figure was the highest in the United States since November 1981.

Obviously, in this scenario, the Federal Reserve is forced to keep its finger on the pulse of aggressive tightening of monetary policy. According to the CME Group, almost 82% of analysts are confident that at the July Fed meeting the discount rate will be significantly increased – immediately by 100 basis points, that is, to the level of 2.5-2.75%. By the way, before these data were released, about 91% predicted a rate increase of only 75 basis points. It just so happened that the increase in the US rate (and even expectations of its increase) has a very beneficial effect on the exchange rate of the US national currency, but for the demand for gold, this news can be called negative.

A significant difference in interest rates in large countries (they are higher in the US) leads to the spread of the so-called Carry Trade, when international traders and institutions exchange their own currencies for possession of the US dollar. As history shows, this phenomenon can persist for quite a long time, which once again will only strengthen the dollar.

The strong drop in crude oil futures prices this week is also a factor reducing the prospects for gold. NYMEX futures dropped overnight to the lowest level in the last three months – $93.24 per barrel. January crude oil futures are trading at $84 per barrel. This indicates that the market is confident that crude oil prices will decline in the coming months. The fall in the cost of crude oil contributes to a decrease in the value of assets in other commodity markets. Such a noticeable weakening of the commodity sector is an important early sign that inflationary pressure has already reached its peak.

So, we are seeing an increase in bond yields, a rise in the dollar, while a noticeable drop in crude oil prices. Obviously, these are all clearly bearish elements that are working against bulls in the metals market today. In addition, investors' fears about the recession in the United States are growing stronger and there is a decline in consumer and commercial demand for metals.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Mon Jul 18, 2022 3:57 am

Forex Analysis & Reviews: Forecast for GBP/USD on July 18, 2022

The British pound's growth from last Friday amounted to 42 points. This morning, the pound added another 32 points, coming close to the upper border of the descending wedge on the daily scale chart. Consolidating above it will open the way to the 1.2073 target level. The Marlin Oscillator is set strongly up. Its signal line has already gone above the sloping resistance line.

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The price's exit from the wedge can transform it into a normal descending channel, the upper hypothetical border of which is indicated on the chart in light green. It will be a complex and ambiguous growth. The Marlin Oscillator is growing in the positive area on the four-hour chart, there is not much left to the MACD line (1.1925). The exit above the line will give the corrective growth an additional charge of optimism. The target will be resistance at 1.2073.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Mon Jul 18, 2022 9:48 pm

Asian markets close higher on Monday

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Asia-Pacific markets broadly advanced on Monday. The S&P/ASX 200 rose by 0.80%, while other indexes gained 1.50% or more. The Shanghai Composite and the Shenzhen Composite increased by 1.49% and 1.48%, respectively. The KOSPI went up by 1.65%, while the Hang Seng Index climbed by 2.64%. Japanese stock exchanges were closed today, however the Nikkei 225 edged up by 0.54% on Friday.Asian markets followed US indexes, which finished Friday in positive territory. American stock indexes gained about 2% on Friday thanks to strong statistic data which eased recession fears among market players. However, there is still a possibility of a 100 basis point interest rate hike by the Federal Reserve.The upsurge of COVID-19 infections in China is putting pressure on the upside potential of Asian indexes. New quarantine measures threaten to affect economic recovery, increasing the possibility of a recession in China.However, the markets found support in statements by Chinese officials that the country has enough financial resources and options to maintain economic stability in the country. The People's Bank of China has injected 12 billion yuan into the financial system via a seven-day reverse repurchase agreement.On the Hang Seng Index, the best performing stocks were Country Garden Services Holdings, Co., Ltd. (+7.2%), Meitua (+6.4%), and Country Garden Holdings, Co., Ltd., (+6.3%).Chinese oil stocks also went up, with CNOOC, Ltd. increasing by 4.5% and China Petroleum & Chemical, Corp. advancing by 4.1%. Shares of Alibaba Group Holding edged up by 0.8%.On the KOSPI, Samsung Electronics, Co. rose by 2.7%, while LG Electronics, Inc. increased by 1.6%.On the S&P/ASX 200, BHP Group, Ltd. and Rio Tinto, Ltd. gained 1.8% and 1.9% respectively. Shares of Australia & New Zealand Banking Group, Ltd. declined by 1.3% after the company announced it was set to buy Suncorp Bank for 4.9 billion Australian dollars or $3.3 billion.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Tue Jul 19, 2022 2:08 am

Forex Analysis & Reviews: Elliott wave analysis of EUR/USD for July 19, 2022

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EUR/USD tested the channel support line at 0.9952 which was just above our ideal target at 0.9902. This could be enough to fulfil the target of wave C and 2 and set the stage for wave 3 higher. The expected impulsive rally in wave 3 should ultimately break above the peak of wave 1 at 1.6038.

To confirm that wave 2 has indeed completed and wave 3 is in motion, we will need a break above minor resistance at 1.0220 and more importantly above resistance at 1.0615.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Tue Jul 19, 2022 8:02 pm

Bitcoin steadily rises, but experts see downsurge ahead

Bitcoin went into an upward correction early on Tuesday, reaching $21,793 at the time of writing.

According to CoinMarketCap, over the past 24 hours BTC reached an intraday low of $21,190 and an intraday high of $22,795.

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During the trading session, bitcoin rallied and jumped 7.5% to $22,306 in several hours, surpassing $22,000 for the first time since June 8.

However, despite the strong upward movement of the past two days, the bear market still continues for bitcoin, analysts note. The leading currency needs to break above $30,000 to end its downtrend.

Altcoin market
Ethereum, the leading competitor to BTC, has also advanced. At the time of writing, ETH gained 8.12% over the past day and rose to $1,527.

Last week, Ethereum climbed by 20%. ETH has jumped by 47% since the beginning of July, but remains below its all-time high of November 2021 by 71%.

At the end of last week, ETH surged upwards by 12% to $1,300 following an announcement by one of the project's developers that the transition to the proof-of-stake algorithm could occur as early as mid-September.

Out of the top 10 cryptocurrencies by market capitalization, most coins advanced yesterday, except for XRP and several stablecoins.

The best-performing cryptocurrencies were Avalanche (+12.07%), Dogecoin (+5.19%), and Binance Coin (+4.4%).

According to CoinGecko, the best performing coin out of the top 100 cryptocurrencies by market cap was Ethereum Classic, which jumped by 22.8%. The worst performing currency was Lido DAO, which tumbled by 15.4%.

Contrasting outlooks by crypto experts

According to CryptoQuant, a BTC sell-off by miners in the future could push bitcoin's price down significantly.

CryptoQuant's analysts noted that June's downward correction forced miners to dump their BTC holdings to minimize losses and lower the overall risks. The analysts stated that miners are now in a distribution phase and warned that growing pressure caused by the miners' capitulation could push the price well below the $20,000 mark in the near future.

Matthew Kimmell, digital asset analyst at CoinShares, also stated that troubles plaguing the crypto mining sector could cause a downturn for leading digital assets. As mining companies go bankrupt, the prices of mining rigs could also slump, putting extra pressure on crypto assets.

An analysis by Glassnode said the capitulation in the crypto market would likely continue amid ongoing severe financial stress. Rising pressure in the digital asset market would send bitcoin below $20,000.Some experts, such as Nassim Nicholas Taleb, former trader and author of "Black Swan", refused to give any predictions on when the bear market would end. "The journalistic expression 'crypto winter' is highly deceiving; it implies seasonality and, perhaps worse, a reversion to some trend. No, your winter may not be transitory, and what you call winter may degrade into a permanent & inescapable ice age fraught with extinctions," Taleb claimed.

An outlook by Grayscale Investments was more bullish on crypto and bitcoin and particular.

The investment company's analysts claimed the bear market could last for another 250 days, citing their estimates of trend cycles in the crypto market. Grayscale stated the downtrend was a regular market event that repeats every several years, and that it presented a good buying opportunity.

Investment advisor Edward Dowd said bitcoin could soon become an integral part of any investment portfolio, despite the repeated turmoil in the market. Dowd added that BTC could also surpass gold thanks to its decentralized nature and transparency.

Arthur Hayes, former CEO of BitMEX, claimed bitcoin would rise swiftly after touching the bottom. Hayes sees the Federal Reserve begin printing trillions of dollars in the future, which would then push BTC up.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Wed Jul 20, 2022 8:14 pm

EUR/USD. Trapped in inflated expectations: ECB July meeting preview

The European Central Bank will sum up the results of its next - July - meeting on Thursday. This is by no means a "passing" meeting: for the first time in the last 11 years, the ECB will raise interest rates.

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By itself, the fact that there will be an increase in the rate has already been resolved, the intrigue remains regarding the magnitude of this increase. In addition, traders are interested in further prospects for tightening monetary policy amid existing risks for the debt market. In other words, the results of tomorrow's meeting will surely provoke strong volatility for the EUR/USD pair. The only question is, on whose mill will the water be poured. If the central bank surprises with an ultra-hawkish tone, the pair could not only test the 1.0300 resistance level, but also consolidate in the area of the 3rd figure. Otherwise, the euro will again be under pressure throughout the market. In my opinion, current market expectations are somewhat overstated, so there is a possibility that the ECB will not live up to its hopes on Thursday.

It is worth noting that a few weeks before the July meeting, traders actually resigned themselves to the fact that the ECB would gradually and measuredly tighten monetary policy. Representatives of the ECB have repeatedly said that it is impossible to sharply raise the rate to curb inflation - primarily because of the risks for the debt market. Just last week, a member of the Board of Governors of the central bank, Olli Rehn, announced that at the July meeting the rate would be increased by 25 basis points. Similar forecasts have been voiced by ECB President Christine Lagarde and some other members of the Board of Governors.


With such a wide-ranging and unequivocal preview, the market has grown accustomed to the idea of a 25-point advance in July. All attention was focused mainly on the prospects for further steps by the ECB, primarily in the context of the September meeting.

However, the day before yesterday, the market was stirred up by journalists from the news agency Reuters. Referring to their anonymous sources in the ECB, they said that the option of a 50-point rate hike is still on the agenda. At the same time, agency reporters quite recently (July 15) interviewed more than 60 economists about the possible outcomes of the July meeting. 62 out of 63 experts surveyed unanimously stated that the central bank will increase the rate by 25 points. In this case, economists reflected market expectations, which until recently prevailed among traders. However, insider information from Reuters, as they say, mixed all the cards.

Amid these hawkish rumors, the euro has significantly strengthened its position against the dollar. Bulls were able to move away from the parity level by more than 200 points, updating a two-week price high on Wednesday, rising to 1.0274. But, in my opinion, this is a Pyrrhic victory for the EUR/USD bulls, which could have negative consequences for the euro.

In fact, EUR/USD bulls are repeating the mistake of the dollar bulls, who were inspired last week by rumors that the Federal Reserve could raise rates by 100 points at once following the results of the July meeting. Such a hawkish scenario was supported by Fed spokeswoman Mary Daly, who, however, does not have a vote in the Committee this year. Nevertheless, the hawkish rumors did their job: the EUR/USD pair again renewed the 20-year price low, plunging below the parity level, to the level of 0.9953. But as soon as other Fed officials (primarily those with voting rights) criticized the idea of a 100-point increase, the greenback weakened across the market. The dollar literally slipped out of the blue and allowed opponents to seize the initiative.

EUR/USD bulls may find themselves in a similar situation on Thursday. After all, now a 25-point increase in the rate is no longer the base scenario, but a "conditional dove" scenario, the implementation of which will put pressure on the euro. To strengthen the single currency, the ECB needs to either raise the rate by 50 points on Thursday or announce such a step in the context of the September meeting in plain text. Any doubts of the central bank will be interpreted against the euro.

Also on the ECB's agenda is the issue of a possible uncontrolled expansion of spreads between the yields of government bonds of the EU core countries and the southern states of the bloc. Back in June, the ECB announced the development of a new tool to limit fragmentation in the eurozone. According to Bloomberg, at its July meeting, the central bank will present an unlimited bond buying tool that will help markets "adjust to sharper and faster interest rate hikes than previously thought." However, if the representatives of the ECB show excessive caution in tightening monetary policy, this fundamental factor will be ignored by the market.

Thus, the single currency found itself in a kind of trap of inflated expectations ahead of the ECB meeting. In my opinion, it will be difficult for ECB members to realize the expected hawkish scenario, even despite a record increase in headline inflation. It is also necessary to take into account that the core consumer price index in the eurozone (excluding volatile energy and food prices) unexpectedly slowed down its growth on an annualized basis, reaching 3.7% instead of the planned growth of 3.9%. And German inflation last month showed the first signs of a slowdown. All these factors reduce the likelihood that the ECB will decide on a 50-point rate hike.

Consequently, EUR/USD bulls are forced to rely only on an unexpected "hawkish impulse" of the ECB. To put it bluntly, this is an unlikely scenario.

In anticipation of such important events of a fundamental nature, it is advisable to stay out of the market. Amid a general weakening of the US currency and a (possible) weakening of the euro, it is reasonable to wait for the results of the ECB's July meeting: the pendulum will swing in one direction on Thursday, determining the further vector of movement for EUR/USD.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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Re: Forex News from InstaForex

Postby IFX Gertrude » Thu Jul 21, 2022 7:58 pm

Asian indicators show different directions

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The main indices of the Asia-Pacific region show different directions. Some indices are declining, among them the Chinese Shanghai Composite and Shenzhen Composite, which lost 0.42% and 0.06% respectively, as well as the Hong Kong Hang Seng Index, which decreased by 1.35%. At the same time, other indices show a slight increase: the Australian S&P/ASX 200 gained 0.08%, the Japanese Nikkei 225 at 0.22%, and the Korean KOSPI at 0.71%.

A number of different reasons contributed to this ambiguous behavior of the Asia-Pacific indices: the deterioration of the situation with COVID-19 in China and the concerns about the possible economic recovery as a result.

Market participants reacted positively to the Bank of Japan's decision to leave the rate unchanged at -0.1%. However, the central bank's forecasts regarding the increase in GDP worsened somewhat: to 2.4% from 2.9% announced in April. As for the increase in inflation, expectations, on the contrary, increased to 2.3% from 1.9%.

At the same time, the country has seen an increase in imports of goods by 46.1%, which turned out to be higher than analysts' forecasts, who expected an increase in imports by 45.7%. Exports also increased (by 19.4%), which also exceeded expectations of 17.5%.

Of the companies included in the calculation of the Nikkei 225 index, Nikon, Corp. (+2.5%), GS Yuasa, Corp. (+2.4%), as well as Fujitsu, Ltd. (+2%) noted an increase in the value of securities.

Some support for the Asia-Pacific indices was provided by US indicators, which closed the day before with an increase of up to 1.5%. The growth of US indicators is primarily due to the good results of quarterly reporting of companies, especially among the technology sector.

Of the components of the Hang Seng Index, Country Garden Services Holdings, Co., Ltd. (-6.4%), Longfor Group Holdings, Ltd., (-5.3%), China Resources Land, Ltd. (-4.4%), as well as Haidilao International Holding, Ltd. (-2.2%) were marked by a drop in quotes.

The companies that form the basis of the calculation of the Korean KOSPI, on the contrary, showed an increase in the share price. Thus, Samsung Electronics, Co. securities gained 1.5%, and Kia Corp. at 0.5%.

The largest companies from Australia show a drop in quotes: BHP Group, Ltd. securities fell by 1.7%, and Rio Tinto. Ltd. by 2.8%.

While the price of Zip Co. shares rose by 13% after the announcement of the company's plans to optimize its operations in the international market for profit.

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