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
Headquarters
Key documents
Social Responsibility
27.08.2024 01:12 PM
The Euro Develops Bullish Momentum. Overview of EUR/USD
Open trading account Open demo account

The economic situation in the Eurozone remains stable, with incoming data not distorting the overall assessment of the key macroeconomic indicators that could potentially alter forecasts for the euro.

The PMI data for July generally aligned with expectations. The PMI for manufacturing fell slightly from 45.8 to 45.6 (expected 45.8), while the PMI for services rose from 51.9 to 53.3, with the growth attributed to a strong performance in France, which previously recorded weak economic performance. The increasing weakness in manufacturing could reflect a slowdown in activity in China and a subsequent decline in trade. However, there are no significant reasons to revise long-term models. The composite index increased from 50.2 to 51.2, indicating resilience in the economy, which gives the ECB room to conduct monetary policy without concern for the overall economic situation.

This image is no longer relevant

The ECB's report on harmonized wage rates, drawn from corporate data, stands out. In the second quarter, the average wage growth rate fell from 4.74% to 3.55%, which on one hand reduces the threat of a resurgence in inflation, but on the other hand, could prompt the ECB to further ease its policy.

Regarding inflation, the July report matched forecasts exactly. Core inflation, measured by the ECB's LIMI indicator, decreased slightly from 4.4% to 4.3%. Core inflation is the primary indicator for the ECB, as it remains high amid strong activity in the services sector and is therefore expected to remain elevated for some time. High core inflation will likely restrain the ECB from lowering rates, and the market anticipates that the ECB's rate trajectory will lag behind that of the Fed. Even if overall inflation falls to the 2% target, core inflation is expected to remain high, as is the view within both the ECB and the market, meaning there is no rush in the ECB's actions.

Currently, the market expects a 100 basis point cut by the Fed and a 50 basis point cut by the ECB by the end of the year—in September and December, respectively. The yield gap between the dollar and the euro is expected to change by approximately 50 basis points in favor of the euro. This is currently the main factor driving EUR/USD upward, assuming no unexpected macroeconomic events occur.

The net long position on the euro increased by $4.086 billion, reaching $7.79 billion during the reporting week, indicating bullish positioning. The calculated price is above the long-term average and is confidently rising.

This image is no longer relevant

The euro has successfully remained above the 1.1140 level, which we identified as the main target last week. The next target is 1.1226; a break above this level would signify an exit from the sideways range and open the door for further bullish movement. The 1.1140 level has now transformed into support, and while a pullback to this level is possible, it is less likely than a continuation of the upward trend.

Kuvat Raharjo,
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
Fundamental analysis
Trump Wants to "Pass the Ball" to Europe Last week, it became known that Donald Trump is seriously considering raising trade tariffs for all countries currently engaged in negotiations with the U.S. Trump is frustrated by the slow
Chin Zhao
00:39 2025-06-17 +02:00
1120
Fundamental analysis
The Dollar Walks on Thin Ice When there's money, you buy the best. In past years, the US dollar and dollar-denominated assets—especially shares of the "Magnificent Seven"—were considered the best investments. American stock indices
Marek Petkovich
00:39 2025-06-17 +02:00
1090
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

Trump Wants to "Pass the Ball" to Europe

Last week, it became known that Donald Trump is seriously considering raising trade tariffs for all countries currently engaged in negotiations with the U.S. Trump is frustrated by the slow
Chin Zhao 00:39 2025-06-17 UTC+2

The Dollar Walks on Thin Ice

When there's money, you buy the best. In past years, the US dollar and dollar-denominated assets—especially shares of the "Magnificent Seven"—were considered the best investments. American stock indices
Marek Petkovich 00:39 2025-06-17 UTC+2

USD/JPY. June Meeting of the Bank of Japan: A Preview

On Tuesday, June 17, the Bank of Japan will announce the results of its next policy meeting. According to preliminary forecasts, the central bank is expected to leave all monetary
Irina Manzenko 00:39 2025-06-17 UTC+2

The Pound Ignores Weak Data and Persistently Tries to Continue Rising

The macroeconomic data from the UK published last week looks frankly weak—everything is in the red zone, meaning worse than expected. Nevertheless, the pound continues to climb upward regardless
Kuvat Raharjo 19:36 2025-06-16 UTC+2

CFTC Report: The Dollar Is Being Sold Off Again. Awaiting New Revelations from Trump

Five weeks ago, the total short position on the U.S. dollar against major currencies stopped increasing, which gave reason to believe the dollar might begin an offensive in the currency
Kuvat Raharjo 12:14 2025-06-16 UTC+2

GBP/USD. Analysis and Forecast

Today, the GBP/USD pair is attempting to regain positive momentum while remaining on the defensive. Traders prefer to wait for the release of key data before opening directional positions
Irina Yanina 12:10 2025-06-16 UTC+2

EUR/USD. Analysis and Forecast

Today, the EUR/USD pair is attempting to regain positive momentum, approaching the psychological level of 1.600 and price levels last seen in 2021. Traders are eagerly awaiting the important political
Irina Yanina 12:08 2025-06-16 UTC+2

The Israel-Iran Confrontation. Fed Meeting. What's Next? (I expect further decline in USD/CAD and a local pullback in gold before a new wave of growth)

Israel and Iran are exchanging missile strikes, but it seems markets are trying to play their own game, assuming that this conflict will not cross the nuclear threshold
Pati Gani 10:51 2025-06-16 UTC+2

EUR/USD: War Is No Ally to the Greenback

At the start of the new trading week, the EUR/USD pair stayed within the 1.15 range and is even trying to approach the resistance level of 1.1600 despite the ongoing
Irina Manzenko 10:32 2025-06-16 UTC+2

What to Pay Attention to on June 16? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Monday, but the market does not lack news. This week, Donald Trump announced his intention to raise all import tariffs, as none
Paolo Greco 06:46 2025-06-16 UTC+2

Top analytics

Relevance up to 03:00 2025-06-18 UTC--5
The Israel-Iran Confrontation. Fed Meeting. What's Next? (I expect further decline in USD/CAD and a local pullback in gold before a new wave of growth)
10:51 2025-06-16
Fundamental analysis
Relevance up to 05:00 UTC--5
XAU/USD. Analysis and Forecast
12:18 2025-06-16
Technical analysis
Relevance up to 00:00 UTC--5
EUR/USD: Simple Trading Tips for Beginner Traders on June 16. Analysis of Yesterday's Forex Trades
08:55 2025-06-16
Forecast
Relevance up to 01:00 UTC--5
USD/JPY: Simple Trading Tips for Beginner Traders on June 16. Analysis of Yesterday's Forex Trades
08:55 2025-06-16
Forecast
Relevance up to 19:00 UTC--5
GBP/USD Overview – June 16: How Trump Is Undermining the Dollar
04:54 2025-06-16
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.