empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Key documents
Social Responsibility
26.06.2024 12:22 PM
The Fed's tough stance is driving risky assets into a hole
Open trading account Open demo account

The euro continues to decline, and this is not surprising, especially after the repeated comments about the ultra-easy policy from European Central Bank officials and the tough stance from Federal Reserve officials in the United States.

Yesterday, Federal Reserve Governor Lisa D. Cook stated that it would be appropriate to lower interest rates at some point this year, adding that she expects gradual improvement in inflation in the second half of the year before more rapid progress occurs in 2025. "With substantial progress on inflation and gradual cooling of the labor market, it will be appropriate at some point to lower the level of policy restraints to maintain economic health," Cook said in a prepared speech to the Economic Club of New York on Tuesday. "The timing of any such adjustment will depend on economic data and their impact on economic prospects and risk balance," she said.

This image is no longer relevant

Just a reminder: earlier this month, the US central bank left the key interest rate unchanged at its highest level in the last twenty years, which they have maintained for almost a year now. Policymakers say they need to see more data to ensure that inflation is on a stable path towards the 2% target.

Cook expects that the three- and six-month inflation rates will continue to decline, but this decline will occur along a rather bumpy path. Monthly data by the end of the year will also manage to return to a deflationary path, but annual inflation will move towards a smoother decline. "Moreover, I see that next year inflation will slow down even more: inflation in housing and utilities will decrease, reflecting the previous slowdown in rent, as will goods inflation, which will remain negative. Problematic inflation in the services sector, excluding housing, will also normalize over time," Cook said.

According to the Federal Reserve representative, the current monetary policy is restrictive in nature, and there is no need to adjust it. However, even under these conditions, the economy remains stable, and the labor market is strong. Cook believes that the rising levels of delinquencies on mortgage payments do not currently pose a concern for the economy as a whole, but this indicator should now be monitored more closely.

"The labor market is approximately at the same level as it was before the pandemic," she added, describing it as "tight but not overheated." According to her, data indicates that wage growth was inflated last year and may remain similar this year. Cook also mentioned that she and other policymakers are attentive to the risk that the labor market could change very quickly, requiring swift reactions from officials.

As I mentioned earlier, against this backdrop, it is not surprising that demand for the US dollar persists while risky assets are experiencing difficulties.

Regarding the current technical outlook for EUR/USD, buyers should now consider how to reach the level of 1.0730. Only this will allow aiming for a test of 1.0760. From there, climbing to 1.0790 is possible, but doing so without support from major players will be quite problematic. The ultimate target is at 1.0820. If the trading instrument declines only to around 1.0700, I expect significant action from large buyers. If no one steps in, it would be wise to wait for a drop to update to 1.0670 or open long positions from 1.0640.

As for the current technical picture of GBP/USD, pound buyers need to break the nearest resistance at 1.2700. Only then can they aim for 1.2735, above which further breakthrough will be quite problematic. The ultimate target is in the area of 1.2760, after which there could be talk of a sharper upward surge towards 1.2780. In case of a decline, bears will attempt to take control below 1.2670. If successful, breaking this range will significantly impact bullish positions, pushing GBP/USD towards a minimum of 1.2645 with the potential to reach 1.2620.

Jakub Novak,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Trading plan
Trading Recommendations and Analysis for GBP/USD on March 17: The Pound Shows No Interest in the Economy The GBP/USD currency pair experienced a slight decline on Friday, with minimal volatility. In fact, the British currency has been falling for three consecutive days, losing a total
Paolo Greco
03:54 2025-03-17 +02:00
1015
Trading plan
Trading Recommendations and Analysis for EUR/USD on March 17: The Euro Remains Steady at Highs The EUR/USD currency pair traded upward again on Friday, although no clear reasons emerged for this movement. The increase occurred during the European trading session, followed by a period
Paolo Greco
03:54 2025-03-17 +02:00
1060
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Dollar: Weekly Preview

America will once again be a major focus in the news. Surprisingly, it won't primarily be due to economic updates or the Federal Reserve meeting, but rather news surrounding Donald
Chin Zhao 23:05 2025-03-16 UTC+2

EUR/USD Weekly Preview: All Eyes on the Fed

After experiencing a significant surge of 500 pips, the EUR/USD pair has settled into a period of stagnation, awaiting further news. The Federal Reserve may either alleviate or heighten concerns
Irina Manzenko 23:05 2025-03-16 UTC+2

What to Pay Attention to on March 17? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday, with the only notable report being on retail sales in the US. It's important to note that the market has shown
Paolo Greco 22:27 2025-03-16 UTC+2

A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)

The confrontation between the U.S. and the EU has entered a new phase. The U.S. president is taking a hardline approach toward Europe, effectively following a "tit for tat" strategy
Pati Gani 14:06 2025-03-14 UTC+2

USD/JPY: Analysis and Forecast

The Japanese yen is losing ground today. Positive news on U.S.-Canada trade negotiations and reports that Democrats have secured enough votes to prevent a U.S. government shutdown are improving global
Irina Yanina 13:33 2025-03-14 UTC+2

XAU/USD: Analysis and Forecast

Gold is consolidating after reaching a new all-time high. Concerns over U.S. President Donald Trump's aggressive trade policy and its impact on the global economy continue to drive demand
Irina Yanina 10:08 2025-03-14 UTC+2

What to Pay Attention to on March 14? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Friday, and none of them are significant. The UK will release reports on GDP and industrial production, but strong figures are not expected
Paolo Greco 07:05 2025-03-14 UTC+2

GBP/USD Pair Overview – March 14: The Last Day of the Week as a Mere Formality

On Thursday, the GBP/USD currency pair also began a slight downward correction. While the pound did not depreciate significantly, explaining why it rose for two weeks is difficult. Of course
Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD Pair Overview – March 14: Maybe That's Enough?

The EUR/USD currency pair finally began to decline on Thursday, but once again, this movement was not linked to macroeconomic factors or fundamental events. It wasn't even related to Donald
Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD: A Southern Impulse That Should Not Be Trusted

On Thursday, the EUR/USD pair reached a three-day low of 1.0823 but did not break into the 1.07 range, as the downward momentum gradually faded. The EUR/USD pair is currently
Irina Manzenko 23:55 2025-03-13 UTC+2

Top analytics

Relevance up to 13:00 UTC--4
US Dollar: Weekly Preview
00:05 2025-03-17
Fundamental analysis
Relevance up to 07:00 UTC--4
EUR/USD Weekly Preview: All Eyes on the Fed
00:05 2025-03-17
Fundamental analysis
Relevance up to 14:00 2025-03-18 UTC--4
SPX – Weekly Results and Future Prospects
23:25 2025-03-16
Technical analysis
Relevance up to 02:00 UTC--4
US stock market: NASDAQ and SP500 going through correction, 10% down from their historic highs
11:53 2025-03-14
Stock Markets
Relevance up to 04:00 UTC--4
A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)
15:06 2025-03-14
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.