empty
InstaForex Loprais Team - Official participant of the Dakar rally
InstaForex Loprais Team - Official participant of the Dakar rally
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
13.03.2025 11:39 AM
Euro Faces Some Challenges
Open trading account Open demo account

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 by challenges in trade, defense, and climate, which could increase inflation volatility and raise the risk of more persistent price growth," ECB President Christine Lagarde said on Wednesday.

This image is no longer relevant

These factors prevent the ECB from clearly signaling its policy intentions, making it even more crucial for the bank to commit to its 2% inflation target and outline how it will respond to various economic shocks.

Since June last year, the ECB has cut interest rates six times, but last week it refrained from giving any clear guidance on future policy, leaving markets uncertain about the onset of a period of heightened instability. This uncertainty is further fueled by the Trump administration's challenge to established international cooperation.

"Our expectations have indeed been overturned in recent years, especially in the last few weeks," Lagarde noted. "We have witnessed political decisions that would have been unimaginable just a few months ago."

The deterioration in trade relations is likely to lead to larger and more disruptive price changes. Additional spending on defense and infrastructure could also fuel inflation. However, Lagarde acknowledged the possibility that such shocks might counterbalance each other, neutralizing inflationary pressures.

The key issue for the ECB is that inflation reacts disproportionately to major shocks rather than smaller ones, potentially making it more persistent. ECB economists warn that this asymmetrical price response, combined with current wage-setting mechanisms, could create lasting inflation problems.

"If state-driven pricing becomes the norm, the regional economy will face serious shocks," Lagarde stated. "Major shocks will accelerate inflation growth, and wages will once again have to gradually catch up with prices."

Lagarde did not propose specific solutions but emphasized that the ECB must clearly define what it can and cannot do.

"While the ECB cannot promise to keep inflation at exactly 2% at all times, nor provide explicit policy direction, it must set policies that ensure inflation approaches the target over the medium term," she explained.

However, as I mentioned earlier, this speech had little immediate impact on the foreign exchange market, particularly the euro.

EUR/USD Technical Outlook

Currently, EUR/USD buyers need to break above the 1.0930 level to aim for a test of 1.0970. A further rise toward 1.1010 is possible but will be challenging without support from major players. The most distant target would be 1.1050.

In the event of a decline, strong buyer interest is expected around 1.0870. If no significant demand emerges at this level, a deeper correction toward 1.0840 or even 1.0800 could provide new long opportunities.

GBP/USD Technical Outlook

For GBP/USD, buyers need to break through the nearest resistance at 1.2960 to target 1.3010, where further progress will be difficult. The most ambitious target would be 1.3040.

If the pair moves downward, bears will attempt to regain control at 1.2940. A successful breakdown of this area would deal a significant blow to the bulls, pushing GBP/USD down to 1.2915 with a potential move toward 1.2875.

Jakub Novak,
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
All Analytics
Analytical News
US Market News Digest for March 21 US stock market in limbo despite positive economic data such as unexpected growth in existing home sales On Thursday, US benchmark stock indices closed in the red: the Dow Jones
Natalia Andreeva
15:48 2025-03-21 +02:00
1570
Technical analysis
Trading Signals for EUR/USD for March 21-24, 2025: buy above 1.0810 (+1/8Murray - rebound) Our medium-term forecast remains bearish. So, any technical rebound will be seen as a signal to sell with a medium-term target at about 1.0361, the level where the instrument left
Dimitrios Zappas
14:22 2025-03-21 +02:00
1735
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

USD/JPY. Analysis and Forecast

Today, following the release of data showing a February slowdown in the national Consumer Price Index (CPI), the Japanese yen continues to trade with a negative tone, creating uncertainty
Irina Yanina 11:07 2025-03-21 UTC+2

US stock market getting ready for zero hour

The Federal Reserve has done all it can to calm the markets, but in 2025, the spotlight has shifted away from the central bank. The S&P 500 has brushed
Marek Petkovich 09:20 2025-03-21 UTC+2

What to Pay Attention to on March 21? A Breakdown of Fundamental Events for Beginners

There are no scheduled macroeconomic events for Friday. The euro and the pound have finally declined against the U.S. dollar. The Federal Reserve has done its part to calm
Paolo Greco 06:06 2025-03-21 UTC+2

GBP/USD Pair Overview – March 21: The Bank of England Had No Impact on the Current Situation

The GBP/USD currency pair traded very calmly on Thursday, as on Wednesday evening. As the chart below clearly shows, volatility has recently dropped to noticeably low levels. What
Paolo Greco 04:16 2025-03-21 UTC+2

EUR/USD Pair Overview – March 21: Markets Panicked in Vain, but That Doesn't Help the Dollar

The EUR/USD currency pair began showing a semblance of a downward correction between Wednesday and Thursday. The price has consolidated below the moving average on the 4-hour chart, but it's
Paolo Greco 04:16 2025-03-21 UTC+2

The Outlook for the Japanese Yen Remains Confidently Bullish

The Bank of Japan (BoJ) kept interest rates unchanged on Wednesday, and the market reacted neutrally, as this outcome was widely expected. BoJ Governor Kazuo Ueda stated that the risk
Kuvat Raharjo 23:46 2025-03-20 UTC+2

The Dollar Takes Back Its Own

Markets shoot first and ask questions later. Upon hearing Jerome Powell's assurance that the Federal Reserve had everything under control and that there would be no recession, U.S. stock indices
Marek Petkovich 23:45 2025-03-20 UTC+2

XAU/USD. Analysis and Forecast

Gold is experiencing a slight decline after reaching a new all-time high, remaining in a defensive stance. Currently, bullish traders are exercising caution, as indicated by overbought conditions
Irina Yanina 10:29 2025-03-20 UTC+2

Fed's message music to bulls' ears

The Fed is not throwing a lifeline to the S&P 500, but does it need one? Lifelines are for those drowning, while the market is merely spooked by a fleeting
Marek Petkovich 09:05 2025-03-20 UTC+2

Markets Are Stuck in a Vicious Circle with No Exit in Sight (Potential Decline for Bitcoin and Gold Prices)

The markets are currently experiencing significant shock due to a prevailing negative sentiment that looms over them like a heavy burden, with no resolution in sight. Given this situation
Pati Gani 08:23 2025-03-20 UTC+2

Top analytics

Relevance up to 22:00 2025-03-21 UTC--4
EUR/USD Forecast for March 21, 2025
04:43 2025-03-21
Technical analysis
Relevance up to 05:00 2025-03-22 UTC--4
USD/JPY. Analysis and Forecast
12:07 2025-03-21
Fundamental analysis
Relevance up to 00:00 2025-03-23 UTC--4
EUR/USD and GBP/USD March 21 – Technical Analysis
07:25 2025-03-21
Technical analysis
Relevance up to 05:00 2025-03-22 UTC--4
Forecast for EUR/USD on March 21, 2025
12:02 2025-03-21
Technical analysis
Relevance up to 02:00 2025-03-22 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on March 21. Review of Yesterday's Forex Trades
09:16 2025-03-21
Forecast
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

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.