empty
06.07.2023 10:04 AM
Current market situation will continue in the foreseeable future

The latest Fed minutes revealed that some members voted for an increase in the key interest rate, worrying markets. This caused stock indices to decline, and local markets to dip at the opening of trading today, especially since domestic problems, such as the anticipation of a continued and real increase in interest rates by the Bank of England and ECB, persist.

ADP's employment report lies ahead, and forecast say it will show a 228,000 increase in jobs for June, slightly lower than May's 278,000. Although this number indicates an obvious slowdown, it still points at a good situation in the labor market and in the economy.

A weaker-than-expected figure will support the US stock market and dollar. However, any surge, if it does occur, will be limited due to the uncertainty hanging over markets regarding future interest rate increases.

The Fed continues its hawkish rhetoric, but real actions diverges, indicating verbal intervention. This could simply mean that the bank wants to achieve its goals without raising the level of interest rates and plunging the national economy into recession.

In short, interest rates will not increase unless inflation resumes its rise. Most likely, the current market situation will continue in the foreseeable future.

Forecasts for today:

This image is no longer relevant

This image is no longer relevant

USD/JPY

The pair may rise if the ADP employment data exceeds expectations. If that happens, 144.15 will be broken, which will lead to a limited rise to 145.15.

USD/CHF

The pair consolidates below 0.9000. Better-than-expected employment report in the US will lead to a local increase to 0.9055.

Pati Gani,
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
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

U.S. Inflation Brings Relief to the Fed but Not to the Markets

The euro and pound showed little reaction to news that consumer prices in the U.S. grew at their slowest pace in four months in February—a welcome sign for American households

Jakub Novak 11:14 2025-03-13 UTC+2

Euro Faces Some Challenges

The European currency has encountered some difficulties in its upward movement following yesterday's speech by the European Central Bank (ECB) President. "The eurozone economy is facing exceptional shocks caused

Jakub Novak 10:39 2025-03-13 UTC+2

Wall Street gets rid of dead weight

Buying US stocks is like catching falling knives. It's unpleasant and dangerous for your life — or rather, for your wallet. Nevertheless, pessimism regarding US stock indices has reached such

Marek Petkovich 09:53 2025-03-13 UTC+2

Trump and His Policies Remain the Focus of the Markets (There Is a Chance of a Corrective Decline in EUR/USD and GBP/USD)

Investors seem to have understood that Donald Trump tends to follow a pattern of making two steps forward and one step back when it comes to his economic and geopolitical

Pati Gani 09:04 2025-03-13 UTC+2

What to Pay Attention to on March 13? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Thursday, and regardless, they are unlikely to hold significant weight for traders. Over the past week and a half, the market has largely

Paolo Greco 06:46 2025-03-13 UTC+2

GBP/USD Pair Overview – March 13: The UK Does Not Want to Bury Its Economy

The GBP/USD currency pair continued to show signs of growth on Wednesday. It's important to note that this movement is primarily due to the decline of the U.S. dollar rather

Paolo Greco 03:12 2025-03-13 UTC+2

EUR/USD Pair Overview – March 13: Bad Canada and Good Trump

The EUR/USD currency pair experienced a relatively calm trading session throughout Wednesday; however, there is uncertainty regarding when the next collapse of the dollar might occur. Over the past week

Paolo Greco 03:12 2025-03-13 UTC+2

EUR/USD: What Does the February CPI Report Indicate?

The CPI report published on Wednesday indicated a slowdown in U.S. inflation. All components of the report were in the "red zone," falling short of the forecast values. While this

Irina Manzenko 23:59 2025-03-12 UTC+2

Euro Has Lost Its Fear

The euro represents the currency of optimists, and as spring begins, optimism in the financial markets is at an all-time high. Europe is standing firm against Russia without support from

Marek Petkovich 23:59 2025-03-12 UTC+2

NZD/USD: The Pair Struggles to Recover

The NZD/USD pair is facing difficulties in its recovery attempts from the 0.5680–0.5675 level. Amid modest U.S. dollar strength and anticipation of U.S. consumer inflation data, spot prices remain under

Irina Yanina 13:54 2025-03-12 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

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.