empty
18.02.2025 12:21 PM
Markets Likely to Remain in Sideways Ranges for Some Time (Potential Decline in EUR/USD and GBP/USD)

Markets continue to fluctuate back and forth amid Donald Trump's active domestic and foreign policies, which affect not only geopolitical and social issues but also economic concerns both within the U.S. and globally.

Observing market movements, it is likely that this situation will persist for some time until investors see stabilization in the resolution of the Ukraine issue, U.S. trade policies under the 47th president, and the broader direction of the American economy.

Yesterday's statements from Federal Reserve officials Christopher Waller, Patrick Harker, and Michelle Bowman were particularly significant. These FOMC representatives essentially signaled that the Fed should refrain from resuming rate cuts as long as inflation remains elevated. Waller suggested holding off on rate reductions, independent of recent economic data, unless inflation mirrors last year's decline toward the 2% target. Bowman also called for patience, urging the Fed to wait for further confirmation that inflation is genuinely moving toward 2%. Harker echoed these sentiments, advocating for maintaining interest rates at current levels while describing the U.S. economy as strong.

Market participants, now understanding the Fed's stance, anticipate the release of the FOMC meeting minutes this week to gain further clarity on the future of interest rate policy.

Last week, the U.S. dollar faced pressure due to mixed economic data from the U.S. and easing concerns over Trump's aggressive tariff policies on imports.

U.S.-Russia Talks Remain a Key Focus

Global attention remains on the ongoing negotiations between the U.S. and Russia regarding Ukraine. Should these talks move toward a final peaceful resolution, particularly one favorable to Russia, we could see:

  • A continued recovery in the Russian stock market
  • Strengthening of the ruble against major currencies
  • The potential renewal of economic ties between Russia and the U.S., which could pave the way for Europe and other pro-Trump regions to follow suit.

This would likely trigger a strong bullish signal for stock indices, oil prices, and the U.S. dollar. However, gold prices could decline sharply, as the resolution of the Ukraine crisis would remove a major source of geopolitical risk.

While this scenario represents the most optimistic outcome, even a partial realization of such developments could serve as a catalyst for these expected market shifts.

What to Expect in Markets Today?

The primary market focus today will be on Donald Trump's scheduled speech. His remarks could provide either a positive or negative impulse for financial markets. However, with a high degree of likelihood, sideways trading will continue, maintaining the current market dynamic of consolidation.

Market Forecast for the Day:

This image is no longer relevant

This image is no longer relevant

EUR/USD

The pair is trading slightly above the 1.0455 support level. A break below this level could lead to a further decline toward 1.0390, driven by dollar strength.

GBP/USD

The pair remains above the 1.2580 support level. A drop below this mark could result in a move toward 1.2500, in line with a strengthening U.S. dollar.

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

XAU/USD. Analysis and Forecast

Gold is declining below the $3300 level today. U.S. PCE data met expectations. A shift in trade flows is helping the U.S. dollar regain positive momentum. This is also undermining

Irina Yanina 17:37 2025-05-30 UTC+2

Inflation Is Almost Under Control

While the euro continues to hold its ground against the dollar, European Central Bank (ECB) Governing Council member Fabio Panetta indicated during an interview today that inflation in the eurozone

Jakub Novak 13:40 2025-05-30 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is attempting to regain positive momentum today, though traders remain cautious ahead of the key U.S. Personal Consumption Expenditures (PCE) Price Index release. As a preferred inflation

Irina Yanina 13:22 2025-05-30 UTC+2

EUR/USD. Analysis and Forecast

The EUR/USD pair continues to struggle to recover after rebounding from the 1.1200 level reached earlier, showing a moderately negative bias, although the decline remains limited. The U.S. dollar

Irina Yanina 13:19 2025-05-30 UTC+2

Legal Disputes Between Trump and Companies Over Tariffs Will Negatively Impact Markets (There Is a Likelihood of Continued Decline in Bitcoin and Litecoin Prices)

Global markets are significantly influenced by events occurring in the United States, where both political and economic spheres continue to swing like a pendulum. Earlier this week, after the U.S

Pati Gani 11:11 2025-05-30 UTC+2

More Time is Needed

Dallas Federal Reserve Bank President Lorie Logan indicated yesterday that it might take some time before policymakers understand how the economy will react to tariffs and other policy changes

Jakub Novak 10:53 2025-05-30 UTC+2

The ECB Should Not Delay Rate Cuts

While the euro is trying to regain its monthly highs after a fairly significant correction seen this week, a survey of several economists shows that the European Central Bank

Jakub Novak 10:49 2025-05-30 UTC+2

Markets Demand an Appeal

The S&P 500 started the day strong but ended on a downbeat note. Initially buoyed by the U.S. Court of International Trade's ruling that the White House's tariffs were illegal

Marek Petkovich 10:33 2025-05-30 UTC+2

What to Pay Attention to on May 30? A Breakdown of Fundamental Events for Beginners

Several macroeconomic reports are set to be released on Friday, but none are deemed particularly significant. In Germany, the inflation report for May will be released, with expectations

Paolo Greco 06:51 2025-05-30 UTC+2

GBP/USD Overview – May 30: Justice Has Prevailed, but for How Long?

The GBP/USD currency pair closed below the moving average line on Thursday, and the dollar strengthened for three consecutive days. However, everything changed in the second half

Paolo Greco 03:51 2025-05-30 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.