{myadvertisements[zone_1]}
Thread Rating:
  • 1 Vote(s) - 1 Average
  • 1
  • 2
  • 3
  • 4
  • 5
Wave Analysis by InstaForex
EURUSD: ECB revised the interest rate forecast. Mario Draghi is pleased with the growth of the economy in the 1st quarter, but fears for its future

The euro ignored data on the growth of the eurozone economy in the 1st quarter of this year, as traders closely followed the ECB report. Even despite the fact that the expected dates for raising interest rates in the eurozone were shifted to the middle of next year, and Mario Draghi signaled a possible decrease in interest rates to a negative level if necessary, the euro held its position and even rose against the US dollar.

According to the report, a good increase in consumer spending in the euro area in the 1st quarter of this year contributed to accelerating economic growth. Export has also made a significant contribution.

According to the EU statistics agency, the eurozone economy grew by 0.4% in the 1st quarter of this year compared to the 4th quarter. Compared with the 1st quarter of 2018, the economy grew by 1.2%. In annual terms, an increase of 1.6%.

However, it is already known from the results of the latest reports that in the 2nd quarter of this year, GDP growth slows down, and, as many experts expect, growth will be the weakest since the beginning of economic recovery in 2014.

As I noted above, the attention of traders was focused on the ECB meeting, at which the regulator left the refinancing rate unchanged, at the level of 0.0%. The European Central Bank left the deposit rate unchanged at -0.40%.

The central bank revised its forecast, saying that rates would remain at current levels, at least until the end of the first half of 2020. The ECB will continue to completely reinvest the income from the QE program over a long period after the first rate increase.

A new TLTRO program was also announced, according to which targeted long-term loans for banks will be offered at a rate of 10 bp above the average refinancing rate.

The euro rose during the speech of the ECB President Mario Draghi, although the statements made by in principal were negative.

Draghi noted that he is closely following how monetary policy affects banks, and is ready to act. If necessary, the ECB will adjust monetary policy instruments. As for the extension of the forecast period of saving rates, it was quite expected due to the long-term uncertainty, which is now observed in the global economy. First of all, uncertainty is associated with conflicts in international trade and changes in the policies of central banks. Draghi also said that the ECB may lower interest rates if necessary.

As for the economy, the head of the ECB is confident that, despite the stronger growth in eurozone GDP in the 1st quarter of this year, the difficulties in the world still put pressure on the prospects for further growth, and the data indicate a slightly weaker growth in the economy 2nd and 3rd blocks.

ECB economists forecast GDP growth in 2019 by 1.2% against the previous forecast of growth of 1.1%, while in 2020 it is expected to grow by 1.4% against the previous forecast of growth by 1.6%.

The ECB president is confident that the increase in employment and wage growth will continue to support the eurozone economy, but the threat of protectionism and geopolitical factors will slow it down.

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
EURUSD: ECB revised the interest rate forecast. Mario Draghi is pleased with the growth of the economy in the 1st quarter, but fears for its future

The euro ignored data on the growth of the eurozone economy in the 1st quarter of this year, as traders closely followed the ECB report. Even despite the fact that the expected dates for raising interest rates in the eurozone were shifted to the middle of next year, and Mario Draghi signaled a possible decrease in interest rates to a negative level if necessary, the euro held its position and even rose against the US dollar.

According to the report, a good increase in consumer spending in the euro area in the 1st quarter of this year contributed to accelerating economic growth. Export has also made a significant contribution.

According to the EU statistics agency, the eurozone economy grew by 0.4% in the 1st quarter of this year compared to the 4th quarter. Compared with the 1st quarter of 2018, the economy grew by 1.2%. In annual terms, an increase of 1.6%.

However, it is already known from the results of the latest reports that in the 2nd quarter of this year, GDP growth slows down, and, as many experts expect, growth will be the weakest since the beginning of economic recovery in 2014.

As I noted above, the attention of traders was focused on the ECB meeting, at which the regulator left the refinancing rate unchanged, at the level of 0.0%. The European Central Bank left the deposit rate unchanged at -0.40%.

The central bank revised its forecast, saying that rates would remain at current levels, at least until the end of the first half of 2020. The ECB will continue to completely reinvest the income from the QE program over a long period after the first rate increase.

A new TLTRO program was also announced, according to which targeted long-term loans for banks will be offered at a rate of 10 bp above the average refinancing rate.

The euro rose during the speech of the ECB President Mario Draghi, although the statements made by in principal were negative.

Draghi noted that he is closely following how monetary policy affects banks, and is ready to act. If necessary, the ECB will adjust monetary policy instruments. As for the extension of the forecast period of saving rates, it was quite expected due to the long-term uncertainty, which is now observed in the global economy. First of all, uncertainty is associated with conflicts in international trade and changes in the policies of central banks. Draghi also said that the ECB may lower interest rates if necessary.

As for the economy, the head of the ECB is confident that, despite the stronger growth in eurozone GDP in the 1st quarter of this year, the difficulties in the world still put pressure on the prospects for further growth, and the data indicate a slightly weaker growth in the economy 2nd and 3rd blocks.

ECB economists forecast GDP growth in 2019 by 1.2% against the previous forecast of growth of 1.1%, while in 2020 it is expected to grow by 1.4% against the previous forecast of growth by 1.6%.

The ECB president is confident that the increase in employment and wage growth will continue to support the eurozone economy, but the threat of protectionism and geopolitical factors will slow it down.

Analysis are provided by InstaForex
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
USD/JPY to test resistance, a drop is possible!

[Image: analytics5cff0b8796950.png]

USDJPY to test key resistance, a drop to 1st support is possible
Entry: 109.012
Why it's good : 61.8% Fibonacci extension, 23.6% Fibonacci retracement, horizontal pullback resistance
Stop Loss : 109.914
Why it's good :50% Fibonacci retracement,horizontal swing high resistance
Take Profit : 107.854
Why it's good: 61.8% Fibonacci retracement, 100% Fibonacci extension, horizontal swing low support

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
GBP/USD near support, a bounce is possible!

[Image: analytics5d01b67898639.png]

GBPUSD is near support, a bounce to 1st resistance is possible
Entry: 1.2844
Why it's good : 100% Fibonacci extension, 38.2% & 23.6% Fibonacci retracement, horizontal swing low support
Stop Loss : 1.1256
Why it's good :38.2% & 61.8% Fibonacci retracement,100% Fibonacci extension, horizontal swing low support
Take Profit : 1.1342
Why it's good: 100% Fibonacci extension, horizontal swing high resistance

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
Technical analysis of GBP/USD for 14/06/2019:

[Image: analytics5d032ce572805.jpg]

Technical Market Overview:
After two Pin Bar like candlestick formation around the upper consolidation boundary, the GBP/USD pair keeps trading close to the support zone located between the levels of 1.2652 - 1.2668. The momentum is barely holding the neutral fifty level and it looks like is about to go lower as well. The stochastic is in the middle of the range now, so all sum up there is no direct signal regarding the future price move now, but the support zone is tempting to be violated. In this scenario, the next target for bears is seen at level 1.2605.

Weekly Pivot Points:
WR3 - 1.2954
WR2 - 1.2856
WR1 - 1.2800
Weekly Pivot Point: 1.2708
WS1 - 1.2658
WS2 - 1.2549
WS3 - 1.1502

Trading Recommendations:
The best strategy in the current market conditions is to trade in the direction of the main trend, which is still down. All the local bounces and correction should be treated as another opportunity to open the sell orders for a better price. Please notice, the larger time frame trend is down and there are no signs of any trend reversal.

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
USD/CAD approaching resistance, potential reversal!

[Image: analytics5d06f4a270553.png]

Price is approaching its resistance where we expect to see a reversal.
Entry : 1.3437
Why it's good : 61.8% Fibonacci retracement, 100% Fibonacci extension, horizontal pullback resistance
Stop Loss : 1.3499
Why it's good : 78.6% Fibonacci retracement
Take Profit : 1.3364
Why it's good : Horizontal pullback support, 38.2% Fibonacci retracement

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}
EUR/GBP near resistance, a drop is possible!

[Image: analytics5d0847dd2371a.png]

EURGBP is near resistance, a drop to 1st support is possible
Entry: 0.8982
Why it's good : 100% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing high resistance
Stop Loss : 0.9063
Why it's good :horizontal swing high resistance
Take Profit : 0.8791
Why it's good: 61.8% Fibonacci extension, horizontal overlap support, 61.8% Fibonacci retracement

Analysis are provided byInstaForex.
Best regards, PR Manager
Learn more about InstaForex Company at http://instaforex.com

Reply
{myadvertisements[zone_3]}


Possibly Related Threads...
Thread Author Replies Views Last Post
  Forex News from InstaForex IFXGertrude21 110 1,213 Yesterday, 04:31 PM
Last Post: IFXGertrude21
  InstaForex Company News IFXGertrude21 195 4,144 Yesterday, 02:53 PM
Last Post: IFXGertrude21
  Forex analysis from SuperForex SFX_Official 145 2,402 03-29-2019, 01:38 AM
Last Post: SFX_Official
  Daily Market Analysis from ForexMart AndreaForexMart 391 5,729 07-02-2018, 07:33 PM
Last Post: AndreaForexMart

Forum Jump:


Users browsing this thread: 1 Guest(s)
{myadvertisements[zone_2]}