Forex News from InstaForex

**InstaForex Gertrude** · 06-12-21, 07:19

AUSTRALIA DATA ON TAP FOR MONDAY

Australia will on Monday see November figures for job ads and inflation, highlighting a light day for Asia-Pacific economic activity.

In October, the job advertisement survey from ANZ was up 6.2 percent on month, while the inflation gauge from TD Securities was up 0.2 percent on month.

Also, the markets in Thailand are closed on Monday in observance of the late King Bhumibol's birthday; they'll re-open on Tuesday.

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**InstaForex Gertrude** · 08-12-21, 09:02

EUR/USD: Euro believed in itself and pushed the US dollar aside

The European currency was under strong pressure at the beginning of this week, fluctuating on the verge of a serious collapse. However, it found balance and tried to rise, pulling the EUR/USD pair to a new level.

In view of a relatively volatile US dollar, the euro steadily fell, occasionally rising to an acceptable level. Experts did not give it a chance, because the ECB's "dovish" strategy was acting against it. It can be recalled that the European regulator adheres to the position of non-interference in the current monetary policy, refusing to curtail incentives and raise rates. It seems that the ECB is following the path of the Fed, which until recently insisted on the "temporary" nature of inflation. Now, its European colleague is doing this.

The US currency retains its basic strength against the European one. It is supported by market expectations about the tightening of the Fed's monetary policy and the prospect of a rate hike in May next year. According to preliminary calculations, three rate increases are expected in 2022, starting from the last month of spring. This decision is facilitated by the revival of inflation expectations in the United States, which recovered after falling to the highs of November 2021.

Analysts explain the current strengthening of the indicator by the "hawkish" attitude of the Fed, whose representatives ignored weak data on the US labor market (nonfarm payrolls). The focus is on the upcoming report on US inflation, which may cover the negative impact of Nonfarm data. According to preliminary estimates, US consumer prices in November increased to 6.7% year-on-year.

At the moment, there is a situation in the market that is not too favorable for the US currency. Experts have recorded an increase in risk sentiment and a departure from the "safe haven" currencies, primarily from the USD. On Wednesday morning, the EUR/USD pair was trading at the level of 1.1294. The euro managed to make an upturn and catch up a little. A day earlier, the Euro currency was trading in the range of 1.1263-1.1266.

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**InstaForex Gertrude** · 15-12-21, 02:35

Eurozone production rises - economic recovery pushes numbers up

According to the report, eurozone industrial production increased in October - the forecasts of economists came true. At the same time, the largest increase in comparison with the previous month was shown by the sector of production of consumer goods and durable goods, and the volume of production of short-term goods is even leading year-on-year.

Manufacturing in the eurozone is growing - the economic recovery pushes the numbers up

The statistical office Eurostat reported that industrial production in 19 countries using the euro increased by 1.1% in October compared to the previous month. This is 3.3% more compared to the same period last year. Median estimates of economists predicted growth of 1.2% per month and 3.2% per year.

Eurostat reported that compared with September, the volume of industrial production of goods produced with the attraction of investments increased by 3.0% after falls in August and September. On an annualized basis, the production of such goods increased by 5.2%, which shows the volume of flows that hit the financial and production segments.

The output of durable goods also rose sharply, increasing by 1.7% for the month and 2.3% for the year, while the production of consumer goods for short-term use was 6.9% higher than a year earlier, continuing the general trend of strong growth in the previous months.

Of course, the economic recovery will not last forever. Some economists even believe that a sharp rise in demand, combined with supply disruptions and further quarantine measures, may over-stimulate inflation. Nevertheless, against the background of restrictions in energy resources, the recovery of the eurozone economy looks optimistic.

This is likely to push the euro up, especially against the background of sad news from the United States about the growth of consumer prices. March Euro Stoxx 50 futures have grown well after the release of the data.

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**InstaForex Gertrude** · 16-12-21, 07:43

US shares higher at close of trade; Dow Jones up 1.08%

At the close in New York, the Dow Jones gained 1.08%, the S&P 500 climbed 1.63% and the NASDAQ Composite rose 2.15%.

In the leaders of growth among the components of the Dow Jones at the end of today's trading were shares of Cisco Systems Inc, which rose in price by 2.16 points (3.74%), to close at 59.93. UnitedHealth Group Incorporated rose 3.11% or 14.92 points to end at 494.38. Apple Inc rose 2.85% or 4.97 points to end at 179.30.

The biggest losers were Nike Inc, which fell 0.91% or 1.50 points to end the session at 163.90. JPMorgan Chase & Co is up 0.75% or 1.19 points to end at 157.94, while Chevron Corp is down 0.57% or 0.66 points to 115. , 56.

Eli Lilly and Company, which gained 10.39% to 275.28, and Advanced Micro Devices Inc, gained 8.04% to close at 146.50, were the top performers among the S&P 500 index components at the end of today's trading. and NVIDIA Corporation, which rose 7.49% to end the session at 304.59.

The biggest decline was led by Nucor Corp, which fell 8.61% to close at 108.22. Medtronic PLC shed 6.04% to end the session at 104.94. Newmont Goldcorp Corp was down 3.45% to 54.23.

The leaders of growth among the components of the NASDAQ Composite index at the end of today's trading were the shares of Theseus Pharmaceuticals Inc, which rose 34.12% to 12.58, CMC Materials Inc, which gained 33.93%, to close at 195.50, and also Biofrontera Inc, which rose 26.36% to end at 6.95.

The biggest losers were ATAI Life Sciences BV, which fell 31.94% to close at 6.82. Pulmatrix Inc shed 31.58% to trade at 0.4851. China Xiangtai Food Co Ltd was down 28.17% to 1.8100.

On the New York Stock Exchange, the number of securities that gained in price (2,151) exceeded the number of securities that closed in the red (1109), while the quotations of 149 shares remained practically unchanged. On the NASDAQ stock exchange, 2,462 companies rose in price, 1,332 declined, and 218 remained at the level of the previous close.

The CBOE Volatility Index, which measures the value of S&P 500 options trading, was down 11.88% to trade at 19.29.

Gold Futures for February delivery was up 0.29% or 5.10 to $ 1,777.40 a troy ounce. In other commodities, WTI crude for January delivery rose 1.05%, or 0.74, to $ 71.47 a barrel. Futures contracts for Brent oil for February delivery fell 0.01% or 0.01 to trade at $ 74.31 a barrel.

Meanwhile, on the Forex market, the EUR / USD pair was up 0.09% to hit 1.1295, while the USD / JPY was up 0.00% to hit 114.03.

The US Dollar Index Futures was down 0.25% at 96.293.

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**InstaForex Gertrude** · 22-12-21, 08:05

US shares higher at close of trade; Dow Jones up 1.60%

At the close in New York, the Dow Jones climbed 1.60%, the S&P 500 gained 1.78% and the NASDAQ Composite rose 2.40%.

In the leaders of growth among the components of the Dow Jones at the end of today's trading were shares of Nike Inc, which rose in price by 9.65 points (6.15%), to close at 166.63. Boeing Co rose 5.86% or 11.04 points to end at 199.52. American Express Company added 3.22% or 5.02 points to close at 160.91.

The biggest losers were Merck & Company Inc, which fell 1.14% or 0.87 points to end the session at 75.54. Verizon Communications Inc rose 0.58% or 0.31 points to end at 52.78, while Johnson & Johnson was down 0.32% or 0.54 points to 167. , 21.

The growth leaders among the S&P 500 index components at the end of today's trading were Citrix Systems Inc, which gained 13.63% to 95.05, Micron Technology Inc, which gained 10.54% to close at 90.68, and also Expedia Inc, which was up 9.14% to end at 177.27. The biggest losers were General Mills Inc, which fell 4.03% to close at 65.06. The Kroger Company shed 3.60% to end the session at 43.87. Pfizer Inc was down 3.39% to 58.95.

The leaders of growth among the components of the NASDAQ Composite index at the end of today's trading were shares of Reliance Global Group Inc, which rose in price by 78.69% to the level of 5.450, Biofrontera Inc, which gained 44.75%, to close at 11.03, as well as shares IsoPlexis Corp rose 40.82% to end at 6.90.

On the New York Stock Exchange, the number of shares that went up (2,671) exceeded the number of those that closed in the red (604), while the quotes of 88 shares remained practically unchanged. On the NASDAQ stock exchange, 2889 companies rose in price, 880 declined, and 215 remained at the level of the previous close.

Aldeyra The shares fell to a 52-week low, shedding 50.91%, 3.63 points to trade at 3.50. Biofrontera Inc rose to an all-time high, gaining 44.75%, 3.41 points, to trade at 11.03. DBV Technologies shares fell to historic lows, down 48.52%, 1.310 points, and ended trading at 1.390. CytomX Therapeutics Inc fell to a 52-week low, down 40.00%, 2.580 points to trade at 3.870.

The CBOE Volatility Index, which measures the value of S&P 500 options trading, was down 8.13% to trade at 21.01.

Gold Futures for February delivery was down 0.28% or 5.05 to $ 1,789.55 a troy ounce. Elsewhere, WTI crude for February delivery rose 3.92%, or 2.69, to $ 71.30 a barrel. Futures contract for Brent oil for February delivery was flat 0.00%, or 0.00, to trade at $ 74.03 a barrel.

Meanwhile, on the Forex market, the EUR / USD pair was up 0.02% to hit 1.1286, while the USD / JPY was up 0.01% to hit 114.10.

The US Dollar Index Futures was down 0.10% at 96.445.

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**InstaForex Gertrude** · 24-12-21, 07:16

Forex Analysis & Reviews: US shares higher at close of trade; Dow Jones up 0.55%

At the close in New York, the Dow Jones gained 0.55%, the S&P 500 rose 0.62% and the NASDAQ Composite rose 0.85%.

In the leaders of growth among the components of the Dow Jones at the end of today's trading were shares of Caterpillar Inc, which increased in price by 4.05 points (2.00%), to close at around 206.20. Dow Inc added 1.68% or 0.91 points to end trade at 55.14. Honeywell International Inc rose 1.67% or 3.38 points to close at 205.22.

The biggest losers were Visa Inc Class A, which fell 0.61% or 1.34 points to end the session at 216.62. Merck & Company Inc is up 0.56% or 0.43 points to end at 75.73 and Walmart Inc is 0.22% or 0.31 points down to 139. , 49.

The leaders of growth among the components of the S&P 500 at the end of today's trading were Tesla Inc, which rose 5.76% to 1.067.00, ViacomCBS Inc, which gained 4.80% to close at 30.58, and shares Micron Technology Inc rose 4.52% to end the session at 94.42.

The biggest losers were Coterra Energy Inc, which fell 1.82% to close at 19.39. Hologic Inc shed 1.42% to end the session at 76.12. Pfizer Inc was down 1.41% to 58.71.

The growth leaders among the components of the NASDAQ Composite index at the end of today's trading were shares of 22nd Century Group Inc, which rose 38.64% to the level of 3.050, Oncology Institute Inc, which gained 38.46%, to close at 10.44, and Pasithea Therapeutics Corp rose 36.73% to trade at 2.01 at the close.

The biggest losers were InnovAge Holding Corp, which fell 35.64% to close at 5.31. Jupiter Wellness Inc shed 24.89% to trade at 0.954. American Virtual Cloud Technologies Inc was down 24.00% to 1,900.

On the New York Stock Exchange, the number of securities that went up (2,289) exceeded the number of securities that closed in the red (971), while the quotations of 126 shares remained virtually unchanged. On the NASDAQ stock exchange 2679 companies rose in price, 1163 declined, and 181 remained at the level of the previous close.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 3.60% to 17.96, hitting a fresh monthly low.

Gold Futures for February delivery was up 0.42% or 7.65 to $ 1.809.85 a troy ounce. Elsewhere, WTI crude for February delivery rose 1.32%, or 0.96, to $ 73.72 a barrel. Futures contracts for Brent oil for March delivery rose 0.01%, or 0.01, to trade at $ 76.61 a barrel.

Meanwhile, on the Forex market, EUR / USD was up 0.03% to hit 1.1331, while USD / JPY was up 0.04% to hit 114.41.

The US Dollar Index Futures was down 0.02% at 96.035.

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**InstaForex Gertrude** · 28-12-21, 07:20

European stock markets in Europe ended trading with growth

Markets continue to be heavily influenced by the worldwide spread of the new COVID-19 strain omicron. Investors are closely monitoring the incidence rate in European countries and are worried that new surges could lead to a slowdown in economic activity.

The composite index of the largest enterprises in the region Stoxx Europe 600 climbed 0.6% to 485.49 points. Nevertheless, the value of the index is still below the high of 489.95 points reached on November 17.

France's CAC 40 Index added 0.8%, Germany's DAX Index added 0.5%, while Spain's IBEX and Italy's FTSE MIB gained 0.7% and 0.8%, respectively.

The leaders of growth among the components of Stoxx 600 on Monday came the shares of the Norwegian NEL ASA, working with renewable energy sources (+ 5.6%), the Swiss biopharmaceutical Idorsia Ltd. (+ 4.4%), as well as the Swedish online casino operator Evolution Gaming Group AB (+ 5%).

The stock quotes of the Swiss Roche Holding AG (+ 1.1%) also rose on the news that the US authorities approved the emergency use of the company's home tests for COVID-19, showing the result within 20 minutes.

CNH Industrial N.V., an international industrial group that announced the separation of its truck division Iveco Group, gained 2.7%. Iveco shares will begin trading on the Milan Stock Exchange on January 3.

In addition, shares of the main European technology companies completed trading in positive territory: ASML Holding (+ 1%), SAP (+ 0.7%), Nordic Semiconductor ASA (+ 3.5%) and Infineon Technologies (+ 2.4%) ...

The leaders of the fall in the Stoxx 600 were shares of the Swiss online pharmacy chain Zur Rose Group AG (-2.9%), the Danish energy Oersted A / S (-2.4%) and the operator of the food delivery service HelloFresh SE (-2.1 %).

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**InstaForex Gertrude** · 03-01-22, 09:34

Who will take the lead between the US dollar and Chinese yuan?

The eternal rivals, the American and Chinese currencies, reasserted themselves at the beginning of the new year. Analysts said that they have rejoined the race to take control of the global financial market.

Experts believe that the yuan has quite high chances in relation to the US dollar. Many analysts view the Chinese currency as a successor of the American one, which can take the place of the global reserve means of payment. This gives confidence to the yuan and adds nervousness to the US dollar, although no one doubts the strength of the latter. It can be recalled that the US currency showed the best result in six years at the end of 2021, although it slightly lost its position at the close of the final trading day of the past year.

In the long term, experts admit that the US dollar's decline will be moderate, but not very loud. The value of the US dollar is declining against the background of the gradual recovery of the global economy after the curtailment of lockdowns caused by COVID-19. Other reasons for the potential decline will be increased political tensions between the United States and Europe, as well as the aggressive policy of the US towards China and Mexico. Experts also highlighted that the increased pressure from Washington on the above-mentioned trading partners with the use of anti-dumping measures and sanctions contributes to the devaluation of the USD.

As for the Euro currency, this year can also bring disappointment amid the Fed's rate hike. The past year seemed extremely unfortunate for the euro, so the markets are worried that this might happen again as the ECB continues to adhere to soft monetary policy. According to the President of the regulator Christine Lagarde, tightening monetary policy is now unreasonable, since it interferes with economic recovery. The European regulator does not plan to raise interest rates this 2022.

The euro is currently inferior to the US dollar again, and the EUR/USD pair is capable of returning to the range of 1.0850-1.0900 and staying there for a long time. However, experts expect the pair to recover in the coming month, although they are not hoping for steady growth. On Monday morning, the EUR USD pair was trading at the level of 1.1338, attempting to keep its recovered positions.

There may be no winners or losers in the global financial market this year. The US currency has impressive potential to maintain its strength, but the Chinese one is strong due to its wait-and-see strategy. At the same time, experts summarize that both currencies claiming leadership are capable of peacefully coexisting in the global financial space.

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**InstaForex Gertrude** · 07-01-22, 09:06

Gold has good prospects in the long-term

Gold suddenly went out of the way after starting 2022 positively. However, experts consider the current fall short-term, expecting the yellow metal to rise in the long term. The current.

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**InstaForex Gertrude** · 11-01-22, 09:03

Is the EUR/USD pair preparing for a new battle?

Some analysts explain the short-term lull in the EUR/USD pair by grouping before a new surge. First of all, this concerns the US dollar, in the shadow of which the euro resides.

The US currency started the current year with a rise and is trying to consolidate in an upward trend. It already succeeds in this without huge efforts, contrary to the euro, which is still lying low. However, the US dollar remained inactive, weakly reacting to what was happening. On Tuesday morning, the EUR/USD pair was trading at the level of 1.1341. The pair is now dominated by a bullish mood, which can change anytime. The possible targets for the bulls are 1.1364, 1.1385, and 1.1442.

Currently, the US dollar is moving in the middle of the current range against major world currencies, as markets are waiting for the Fed's decisions on the timing and pace of normalization of monetary policy. The regulator keeps the markets in suspense, continuing the "hawkish" strategy launched at the end of December 2021. Experts are worried about the Fed's excessive enthusiasm, which is ready to use every fund to curb the powerful inflation.

Amid the Federal Reserve's high activity, the smoother actions of the ECB seem unnecessarily slow. Analysts fear that the European regulator will lose time to normalize the economic situation in the region. This development of events will seriously weaken the euro, which somewhat looks neglected right now. Experts consider Europe's sharp rise in gas prices to be an additional negative factor for the euro. The strengthening of this trend contributes to the further decline of the euro and the strengthening of its rival in the EUR/USD pair. After all, the US currency is given a head start in anticipation of a rate hike in March 2022 and an accelerated transition to cut stimulus.

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**InstaForex Gertrude** · 13-01-22, 08:21

EUR/USD: Euro's gradual movements are more effective than the US dollar's surges

The US currency, which has fallen again after some macro statistics, finds it difficult to maintain balance in the EUR/USD pair. On the other hand, the euro is having a hard time keeping up with the US dollar, so it prefers to move slowly but surely towards achieving its goal.

Currently, the market is evaluating the US inflation data released yesterday. According to the report, consumer prices in the country in December 2021 increased by 0.5%, accelerating to 7% year-on-year. The key index gained 0.6% over the month, rising to 5.5% year-on-year. As for the prices excluding energy carriers and food, more than 1.7% was added in three months.

Based on the data obtained, economists concluded that high inflation penetrates into the very core of the economy. In this situation, the Fed has no choice but to raise interest rates in March 2022. The regulator fears not only soaring inflation but also the "overheated" US labor market. The Fed officials consider high inflation a significant threat to a full economic recovery, so they are ready to raise interest rates since there is no longer a need for emergency monetary support.

As a response to the published macro data, the US dollar sharply declined. It is worth noting that the EUR/USD pair passed through the upper border of the range 1.1200-1.1350 again before the release of the report. To date, the upward movement of the pair continues. The EUR/USD pair rose by 0.5% immediately after the release of inflation data, leaving the level of 1.1400 behind. On Thursday morning, it was trading at the level of 1.1444, trying to break new borders.

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**InstaForex Gertrude** · 28-01-22, 09:14

US stocks closed lower, Dow Jones down 0.02%

At the close on the New York Stock Exchange, the Dow Jones fell 0.02% to a one-month low, the S&P 500 index fell 0.54%, and the NASDAQ Composite index fell 1.40%. Dow Inc was the top performer among the components of the

Dow Jones index today, up 2.96 points or 5.17% to close at 60.18. Chevron Corp rose 2.68 points or 2.02% to close at 135.37. Merck & Company Inc rose 1.44 points or 1.82% to close at 80.58.

The losers were shares of Intel Corporation, which lost 3.64 points or 7.04% to end the session at 48.05. Boeing Co was up 2.33% or 4.52 points to close at 189.75 while American Express Company was down 1.95% or 3.42 points to close at 171. 90.

Among the S&P 500 index components gainers today were ServiceNow Inc, which rose 9.14% to hit 528.69, Ball Corporation, which gained 8.57% to close at 93.99, and Seagate Technology PLC, which gained 7.65% to end the session at 103.68.

The biggest losers were Teradyne Inc, which shed 22.41% to close at 111.24. Shares of Tesla Inc lost 11.55% and ended the session at 829.10. Quotes of Advanced Micro Devices Inc decreased in price by 7.33% to 102.60.

On the New York Stock Exchange, the number of securities that fell in price (2349) exceeded the number of those that closed in positive territory (941), while quotes of 143 shares remained virtually unchanged. On the NASDAQ stock exchange, 3,122 companies fell in price, 838 rose, and 174 remained at the level of the previous close.

Chevron Corp shares rose to an all-time high, up 2.02%, 2.68 points, to close at 135.37. Shares in National Security Group Inc surged to a 52-week high, up 69.65% or 6.43 points to close at 15.65. Epizyme Inc shares fell to all-time lows, down 44.21% or 0.840 to close at 1.060. TG Therapeutics Inc shares fell to a 52-week low, falling 40.65%, 5.65 points, to close at 8.25. Cyngn Inc shares tumbled to all-time lows, dropping 36.47% or 0.93 points to close at 1.62.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 4.60% to 30.49.

Gold futures for February delivery lost 1.81%, or 33.15, to $1,796.55 a troy ounce. In other commodities, WTI crude for March delivery fell 0.08%, or 0.07, to $87.28 a barrel. Brent oil futures for April delivery rose 0.24%, or 0.21, to $88.90 a barrel.

Meanwhile, in the Forex market, EUR/USD fell 0.02% to hit 1.1141, while USD/JPY shed 0.01% to hit 115.32.

Futures on the USD index rose 0.87% to 97.235.

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**InstaForex Gertrude** · 01-02-22, 06:30

US stock market closes higher, Dow Jones gains 1.17%

At the close in the New York Stock Exchange, the Dow Jones was up 1.17%, the S&P 500 was up 1.89% and the NASDAQ Composite was up 3.41%.

The leading gainer among the components of the Dow Jones index today was Boeing Co, which gained 9.67 points or 5.07% to close at 200.24. Salesforce.com Inc rose 10.50 points or 4.73% to close at 232.63. The Walt Disney Company rose 4.34 points or 3.13% to close at 142.97.

The biggest losers were Walgreens Boots Alliance Inc, which shed 0.70 points or 1.39% to end the session at 49.76. Amgen Inc was up 0.87% or 2.00 points to close at 227.14, while Visa Inc Class A was down 0.80% or 1.83 points to close at 226. ,17.

Leading gainers among the S&P 500 index components in today's trading were Enphase Energy Inc, which rose 13.41% to 140.47, SolarEdge Technologies Inc, which gained 12.33% to close at 238.22, and also shares of Netflix Inc, which rose 11.13% to end the session at 427.14.

L3Harris Technologies Inc led the decline, shedding 4.29% to close at 209.29. Shares of Kellogg Company shed 3.46% to end the session at 63.00. Quotes of Citrix Systems Inc decreased in price by 3.42% to 101.94.

Leading gainers among the components of the NASDAQ Composite in today's trading were Calithera Biosciences Inc, which rose 55.65% to hit 0.650, Inspira Technologies Oxy BHN Ltd, which gained 36.52% to close at 3.14, and also shares of Vaccinex Inc, which rose 33.63% to close the session at 1.510.

The drop leaders were shares of Imperial Petroleum Inc, which lost 55.05% to close at 0.98. Shares of Appharvest Inc lost 12.06% to end the session at 2.99. Quotes of Vigil Neuroscience Inc decreased in price by 11.95% to 12.90.

On the New York Stock Exchange, the number of securities that rose in price (2,680) exceeded the number of those that closed in the red (574), while quotes of 106 shares remained virtually unchanged. On the NASDAQ stock exchange, 3323 companies rose in price, 582 fell, and 154 remained at the level of the previous close.

Imperial Petroleum Inc shares tumbled to historic lows, down 55.05% or 1.20 points to close at 0.98. Shares in Appharvest Inc plunged to all-time lows, shedding 12.06% or 0.41 points to close at 2.99.

The CBOE Volatility Index, which is based on S&P 500 options trading, fell 10.23% to 24.83.

Gold Futures for February delivery added 0.76%, or 13.60, to $1,798.50 a troy ounce. In other commodities, WTI crude for March delivery rose 1.49%, or 1.29, to $88.11 a barrel. Brent oil futures for April delivery rose 0.07%, or 0.06, to $89.28 a barrel.

Meanwhile, in the Forex market, EUR/USD was down 0.00% to hit 1.1233, while USD/JPY was up 0.03% to hit 115.14.

Futures on the USD index fell 0.65% to 96.632.

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**InstaForex Gertrude** · 02-02-22, 12:12

US dollar is torn between recession and attempts to rise

This week has not been set for the US currency. It fell due to the probability of disappointing macro statistics and the short-term strengthening of the euro. However, it does not give up, trying to leave the price hole.

On Tuesday, the US dollar collapsed from a 19-week high. It is declining for the second session in a row, unsuccessfully trying to stay above. There are several reasons for the decline – the expectation of the Fed's rate hike, increased cash flows at the end of January, due to which investors have to sell dollars and an increase in risk appetite. At the end of last month, the risk appetite in the markets increased significantly. The catalyst for this was the rebalancing of investors' portfolios and their move into protective assets.

American macro statistics provided temporary support for the US dollar. Last month, the index of business activity in the industry of the country declined to 57.6% from the previous 58.7% and analysts' expected fall of 57.5%. Currently, markets are waiting for signals from the European regulator, as the US has already did an action, marking the course for tougher monetary policy.

According to experts, the US dollar's decline was facilitated by market fears about a possible reduction in the gap between the ECB and the Fed. Some analysts suggest that the European regulator will raise rates before the American one. At the same time, the markets are not confident that the Fed will raise rates five times this year. It can be recalled that the US regulator has repeatedly had to change its plans. Nevertheless, the market is still counting on a five-fold increase in the Fed's rates, the first of which is expected in March. As for the ECB, it is still adhering to the ultra-soft monetary policy, refusing to raise rates this year.

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**InstaForex Gertrude** · 07-02-22, 09:54

Euro and US dollar's main concern is to reach new highs

The price highs that the euro reached last Friday are not the limit for it. It aims to break through new barriers. At the same time, the US dollar is set up in a similar way, which is waiting for the Fed's help.

The Euro currency started the new week with the high reached over the past three weeks, but there is one problem – a small correction. Last Friday, the single currency approached a three-week high and is trying to hold on to its gained positions. The reason for the surge was a hawkish reversal in ECB policy. However, experts believe that the euro's further growth is unlikely amid the impending tightening of the Fed's monetary policy. In such a situation, the US dollar will take the lead. Analysts are sure that the US currency will need the Fed's tightening of monetary policy to further rise.

Experts believe that the EUR/USD pair is in for serious changes. The first step along this path was the change in ECB's monetary policy. Earlier, the European regulator confidently defended its position, planning to maintain the current interest rate until the end of 2022. However, the situation has changed dramatically now as the ECB revised its strategy during its last meeting. According to analysts, the regulator will update the previous inflation forecast and abandon the current dovish position at the March meeting. Experts allow similar actions by the ECB following the results of the June meeting.

The current situation contributed to the euro's sharp growth across the entire market. The US dollar followed suit, although its results were more modest. Against the backdrop of impressive US macroeconomic data, the market's expectations regarding the tightening of the monetary policy have intensified. Analysts said that the Fed can immediately raise the rate by 50 basis points (bp) next month. In such a situation, the US currency will get a head start and can bypass the euro.

The general upswing that swept the markets contributed to the growth of the EUR/USD pair. At the end of last week, the pair was steadily gaining momentum. Its vector is still directed up, despite the short-term decline. On Monday morning, the EUR/USD pair was around the level of 1.1432. Some instability was caused by the euro's downward correction, recorded after a 2% increase against the US dollar.

The US currency is gaining momentum amid a noticeable strengthening of the US labor market and the upcoming Fed rate hike. The sharp rise in the euro did not prevent the dollar from strengthening its position and adding 0.4%. According to experts, the US dollar's growth will continue soon.

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**InstaForex Gertrude** · 14-02-22, 09:02

If there is war tomorrow? Fear of an attack on Ukraine drove up the price of gold

Every day the Russian-Ukrainian conflict flares up with greater force.

On Friday, the White House statement added fuel to the fire that Moscow could attack Ukraine any day On the evening of February 11, American officials recommended that US citizens urgently leave the territory of Ukraine. According to the West, there is now a high probability of Russia's invasion of the Black Sea Republic at any moment.

The alarming comment immediately raised the quotes of protective assets, including gold. Late on Friday evening, precious metal prices soared sharply, ramming through the key resistance at $1,850.

Bullion also met the new working week with steady growth. At the time of preparation of the material, gold futures were trading at $1,859. They rose 0.9% compared to Friday's close, when they rose 0.26%.

In general, over the past week, the value of the precious metal has risen by 1.9%. Expectations of January inflation data in the United States contributed to the positive dynamics.

As for the beginning of the current seven-day period, the main price-forming factor in the gold market remains geopolitical risks.

On Sunday, the United States said that Russia could create an unexpected pretext for invading Ukraine. In turn, the Kremlin denied this possibility and accused the American side of hysteria.

Nevertheless, another escalation of the conflict led to strong volatility on the Asian stock market on Monday morning. The drop in demand for risky assets caused an increase in appetite for gold.

At the beginning of the day, the yellow asset approached the highest value for three months. Analyst Philip Nova believes that its further dynamics depends on two upcoming meetings.

Today, German Chancellor Olaf Scholz will discuss the situation with Ukrainian President Vladimir Zelensky, and his talks with Russian President Vladimir Putin are scheduled for tomorrow.

If, following the results of the meetings, the German politician does not signal a reduction in tension, this will serve as another impetus for the growth of prices for precious metals. According to the expert, in the near future, the quotes may jump to $1,900.

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**InstaForex Gertrude** · 17-02-22, 09:48

Three main factors for USD growth: geopolitics, risk appetite, and macro statistics

The US dollar's steady growth, observed from time to time, is due to the interaction of three main factors – a decrease in risk appetite, inspiring US macro statistics, and the easing of geopolitical conflict. At the moment, the key "pillar" supporting the US dollar is American statistics.

Today, the US currency found it difficult to choose a direction, as markets assessed several factors affecting it. Its growth was facilitated by positive macroeconomic statistics from the US, which turned out to be better than forecasts. In particular, US retail sales soared 3.8% m/m in January 2022 against an expected rise of 2.1%. At the same time, the volume of industrial production in the country increased by 1.4%, while a growth rate of 0.4% was forecasted. Both indicators indicate favorable conditions for further tightening of the Fed's monetary policy.

The decline in risk appetite is also another factor stimulating the growth of the US dollar. In such a situation, investors go to protective assets, primarily gold and the US dollar. However, risk appetite has returned amid certainty over the Fed's new minutes, which is less hawkish than expected. This situation provoked the USD's temporary decline. At the same time, retail sales and the strengthening of the US labor market can improve global risk appetite.

Moreover, some weakening of the US dollar was facilitated by geopolitical tensions, namely, the alleged ceased of the military conflict around Ukraine. This provoked significant price dynamics for key trading instruments. As a result, the US currency turned to the downside. It was followed by gold and oil.

On Thursday morning, the EUR/USD pair was near the level of 1.1354. It is worth noting that the euro rose to the level of 1.1363 against the US dollar yesterday and managed to consolidate at this level a little later.

The growing inflation continues to put pressure on the US dollar. The current situation requires the Fed to take decisive action – to raise rates as soon as possible. The regulator cannot afford dovish rhetoric, otherwise, it will provoke serious economic shifts. ECB also made "hawkish" statements, which allows the key rate to be raised by the end of the year.

The US dollar is supported by the growth of retail sales in the country. The strong indicator neutralizes concerns about a possible recession in the American economy. Earlier, investors were worried that the upcoming Fed rate hike would negatively affect the US economy. It should be noted that the high probability of a recession poses a threat to further USD growth. However, experts believe that there are now no reasons to implement an unfavorable scenario.

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**InstaForex Gertrude** · 24-02-22, 10:18

Things getting worse in Ukraine, so European market trading in red

European stock futures dropped this morning after reports that Russian troops fired missiles at a number of Ukrainian cities and landed troops on its coast. This caused a big wave of risk-off in the global market. Worries about increased inflation and the derailing of the economic recovery after the outbreak of the pandemic affected investors and resulted in German DAX index contracts down more than 5 %, EuroSTOXX futures dropped 5 % and FTSE futures down 2.8 %. While the European market is quite reliant on Russian energy products, the current political situation raised worries in other markets as well. Some Asian stocks, in particular, also fell, and U.S. index futures showed losses of around 2% later on Wall Street. Oil prices are up more than 5% and gold soared 2%.

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**InstaForex Gertrude** · 01-03-22, 08:07

Second round of talks between Russia and Ukraine to be held in coming days. Dollar to stay in demand globally

Demand for safe-haven assets is set to remain strong in the near future. Gold prices are on the rise. Nevertheless, the US dollar briefly retraced down on Monday, while market players were awaiting the outcome of the Russia-Ukraine talks. The talks are unlikely to resolve the conflict, but the willingness of the parties to negotiate has somewhat eased fears in the market. In the coming days, Russia and Ukraine are expected to hold the second round of talks. Officials from both sides returned to their capitals for further consultations.

"We have identified certain points from which we can predict general positions," Vladimir Medinsky, the delegate from Russia, said. A similar announcement was made by Mykhailo Podolyak, Ukraine's presidential advisor.

Meanwhile, the dollar rally is expected to extend. Global demand for the greenback, as well as other safe-have assets, remains strong due to both geopolitical risks and stressed dollar liquidity conditions.

"As such we will keep a close eye on the cross-currency basis swap market for any kinds of stress as well as seeing whether there is any increased demand for dollar liquidity at e.g. the ECB 7-day USD auction," economists at ING said.

DXY is heading back to the high at 97.70 and could break higher still.

"Euro losses have been relatively well contained so far," according to ING. Russia, the United States, and the European Union are now waging an information war. They impose sanctions, threaten, and accuse each other.

Although Europe relies heavily on energy, there have already been some reports of it looking at quotas and limits on Russian energy. Clearly, Europe would have to pay a lot higher price for its energy under such a scenario, and growth forecasts would have to be downgraded.

On Monday, the euro/dollar pair retested the low of 1.1120. Barring any surprise breakthrough in Ukraine-Russia talks, EUR/USD might hit 1.1000 this week.

This week promises to be full of not only political but also macroeconomic events. The eurozone CPI for February is scheduled for Wednesday. In France, the CPI came in higher unexpectedly. But given the events in the east, the ECB is likely to become more hawkish if the eurozone CPI comes in stronger. Bearish bias for EUR/USD continues.

Some analysts anticipate monetary policy tightening in the eurozone. The euro could strengthen on expectations of a rate hike by the ECB, Societe Generale said. The European regulator would raise rates by 25 basis points, experts forecast. The next ECB meeting is scheduled for March 10.

Data on US unemployment could somewhat affect EUR/USD by the close of the week. The figure is estimated to drop to 3.9% versus 4%, while Nonfarm Payrolls are seen to increase by 438K.

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**InstaForex Gertrude** · 04-03-22, 09:52

Apocalypse now: The threat of a second Chernobyl has sharply raised the price of gold

This morning, after a Russian attack, the Zaporizhzhia nuclear power plant, which is the largest in Europe, caught fire. Fear has reached a climax, causing the price of gold to soar again.

On Thursday, Russian troops captured Kherson, located in southern Ukraine, and continued to advance towards Zaporizhzhia. Early on Friday morning, disturbing news came from the region: a local nuclear power plant was on fire.

The fire at the Zaporizhzhia nuclear power plant was caused by shelling by Russian forces who were trying to take control of the facility.

Recall that earlier Russia had already seized the inactive Chernobyl station, located about 100 km north of Kyiv.

Unlike the Chernobyl nuclear power plant, the Zaporizhzhia station is an important strategic facility. It is the largest in Europe and generates approximately 20% of the total volume of all Ukrainian electricity.

The news of the fire at the nuclear power plant raised great concerns about its safety. The threat of a second Chernobyl quickly sowed panic in the stock markets and increased the demand for safe-haven assets.

This morning, gold rose sharply by 0.6% to $1,948.60. However, later, when comments from the Ukrainian authorities about the real situation at the nuclear power plant appeared, the quotes also plummeted.

Ukraine informed the International Atomic Energy Agency that the fire did not affect the main equipment. It was also noted that the radiation background is not disturbed.

The severity of the incident was also assessed by US Secretary of Energy Jennifer Granholm. She assured that all reactors at the Zaporizhzhia NPP are reliably protected and will be safely shut down in an emergency.

Despite the fact that the level of anxiety about the emergency at the nuclear power plant has already decreased, gold still maintains a confident upward trend. Now bullion is aiming to end the current week with an increase.

According to preliminary estimates, since Monday, the yellow asset has risen in price by more than 2%. This is the best weekly increase in the precious metal since May last year.

Geopolitics continues to be the key pricing factor in the gold market. Yesterday, waiting for the outcome of Russian-Ukrainian negotiations, the cost of bullion rose to $1,935.90. The difference with the previous trade, when the quotes fell by 1.1%, amounted to 0.7%.

Investors foresaw that the meeting of the two sides would not lead to a de-escalation of the conflict, and they were right. It seems that there is no point in hoping for a ceasefire anytime soon. The military operation will drag on for a long time, as a result of which the world economy may face a severe crisis.

Markets are already feeling the economic impact of Russia's invasion of Ukraine. Oil prices are rising, fueling fears of accelerating inflation.

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