empty
23.06.2022 12:39 PM
Negative statistics from Europe and the US will worsen the situation (expect GBP/USD to decline)

Although the report of Fed Chairman Jerome Powell to the US Senate Banking Committee did not have a negative impact on the markets, it did not contribute to growth either. This is because his statements confirmed the course of the bank, that is, to continue aggressively raising interest rates at least in the coming months. Since this was already announced at the end of the Fed meeting last week, markets did not show much reaction.

Now, all attention is focused on the upcoming business activity reports from Germany, Europe, the UK, and the US, as those will give investors an idea of whether a recession has begun. Authorities have denied this in every possible way, trying to weaken its influence on financial markets. However, inexorably growing inflation and the need to raise interest rates will definitely push the economies of Europe and the US into a long-term crisis.

In short, if the figures show growth, stock markets will soar, which, in turn, will put pressure on dollar and Treasury yields. Risk appetite will also return. But if data is worse than expected, the mood in the markets will change, causing a decrease in the stock markets and, as a result, will increase dollar demand and raise Treasury yields.

Forecast for today:

This image is no longer relevant

GBP/USDAlthough the pair is currently trading above 1.2220, negative statistics from the UK will bring it down to 1.2160.

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

EUR/USD: The Dollar Falls Out of Favor Again

The euro/dollar pair has been climbing for two days, mirroring a general decline in the U.S. dollar. Having briefly regained strength, the greenback is now under pressure again: the U.S

Irina Manzenko 18:07 2025-05-14 UTC+2

AUD/JPY. Analysis and Forecast

The current technical and fundamental setup for the AUD/JPY pair points to short-term pressure from the Japanese yen. However, fundamental factors favoring the Australian dollar help maintain the pair's upside

Irina Yanina 11:28 2025-05-14 UTC+2

USD/JPY. Analysis and Forecast

At the moment, the Japanese yen is showing positive momentum against the U.S. dollar for the second consecutive day.The key factor supporting the Japanese currency has been hawkish comments from

Irina Yanina 11:28 2025-05-14 UTC+2

The Market Is Changing the Rules of the Game

Don't go against the crowd. According to Goldman Sachs and the Federal Reserve, individual investors held $35 trillion worth of U.S. stocks at the end of 2024, equivalent to 38%

Marek Petkovich 09:32 2025-05-14 UTC+2

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

There are very few macroeconomic events scheduled for Wednesday. The only item of note is the second estimate of Germany's Business Activity Index for April. Second estimates typically

Paolo Greco 06:11 2025-05-14 UTC+2

GBP/USD Overview – May 14: Only the Trade Deal Matters

On Tuesday, the GBP/USD currency pair also ended what could only be called disgrace — its decline. On Monday, the U.S. dollar strengthened quite well following a successful first round

Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD Overview – May 14: The Music Didn't Last Long

The EUR/USD currency pair experienced upward movement for most of Tuesday. One gets used to good news quickly, and the market expected further strengthening of the U.S. dollar. We anticipated

Paolo Greco 03:52 2025-05-14 UTC+2

EUR/USD. And Then They Woke Up: Market Euphoria Over the U.S.-China Trade Truce Fades

The currency market's initial euphoria following the announcement of a temporary trade truce between the U.S. and China has now faded. The early optimism has given way to the sobering

Irina Manzenko 01:23 2025-05-14 UTC+2

Inflation Does the Dollar a Bearish Disservice

One of the few indicators the market occasionally pays attention to is U.S. inflation. After Donald Trump introduced trade tariffs, economists immediately started discussing rising inflation. This conclusion is logical

Chin Zhao 01:14 2025-05-14 UTC+2

The Euro Prepares for Retaliation

Man proposes, God disposes. After the White House imposed strict tariffs on America's Independence Day, there was much discussion about rising inflation and a slowing U.S. economy. However, instead

Marek Petkovich 00:18 2025-05-14 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.