You are about to leave
www.instaforex.eu >
a website operated by
Open Account

25.05.202310:37 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on May 25

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Although UK inflation slowed down less than expected, to 8.7% instead of the anticipated 8.5%, pound actively lost its position due to the statement made by Bank of England Governor Andrew Bailey.

The head of the bank said that the pace of consumer price growth will halve by the end of the year, ruling out the possibility of further interest rate hikes. He did not explicitly mention interest rates, but the conclusion logically follows from his words. This resulted in investors becoming concerned, causing them to start selling off pound. Euro also fell, albeit smaller.

The situation intensified as dollar became overbought. However, no hints of rebound could be seen. Markets also await the latest data on US jobless claims, which could show a decrease of about 6,000 in initial claims and a dip of 9,000 in repeated ones.

Exchange Rates 25.05.2023 analysis

EUR/USD continues to decline, exacerbating the volume of short positions. However, sooner or later, there will be trade position closures, leading to a technical rebound.

GBP/USD also shows a downward movement. It hit the support level of 1.2350, indicating a prevailing bearish sentiment among market players. Staying below this level allows a further decline. However, the pair could become oversold, especially since it already reached critical values in the short-term timeframes.

Mark Bom
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off