empty
 
 
23.03.2023 10:23 AM
Trading plan for EUR/USD and GBP/USD on March 23

A 25 basis point rate hike was announced by the Fed on Wednesday. However, investors already expected it, so nothing really changed in the markets.

It was after the speech of Jerome Powell that dollar started to decline as his statements gave an impression that the central bank does not really know what to do. Of course, the Fed chairman tried to reassure everyone and downplay the situation, but judging from the quotes, the markets did not believe him. It is quite clear that the unprecedented crisis in the banking sector took a toll on the bank, which is a very frightening idea.

Interest rate (US):

This image is no longer relevant

UK inflation also surprised everyone as instead of slowing down, it accelerated once again. This gave some intrigue to today's Bank of England board meeting, in which it is likely that the refinancing rate will be increased by another 25 basis points. However, there could be hints of further tightening in subsequent comments, which will mean that by the end of the year, the interest rate level in the UK will be higher than in the US. This will push pound up, and with it, the euro.

Interest rate (UK):

This image is no longer relevant

EUR/USD hit 1.0900 immediately after it broke down 1.0800. This indicates that the pair is recovering the losses it had in February. However, the movement was quite rapid, not to mention signals are pointing that euro is overbought. This could result in a technical pullback later in the week, unless the upward momentum persists in the market. In that case, the pair will will head towards the local high in the medium term.

This image is no longer relevant

GBP/USD jumped above 1.2300, indicating once again that buyers are looking to rebound from February's slump. Stable price retention above this level will allow a subsequent rise to a local high in the medium term. However, in the way is the level of 1.2300, where a reduction of the volume of long positions may occur.

Mark Bom,
Analytical expert of InstaForex
© 2007-2024
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
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback