Philip Lane: the regulator will evaluate three factors
April 6, 2023 6:24 pm
Regarding the foreign exchange market, the demand for the euro and the pound continues to rise, while the demand for the dollar continues to fall. I’ve said many times that this kind of change is normal, but it’s hard to predict what will happen in the long run. Both wave analyses depict the movements of three-wave patterns eloquently. This implies that each trend requires a brief period, after which a reversal occurs. For the EUR/USD pair, wave c has already surpassed wave a’s peak, so the entire “three-wave” can finish its formation at any moment. This is the current difficulty of analyzing waves.
Exchange rates depend on what central banks do in the future, so it’s important to know what they plan to do. However, it is only possible to derive conclusions from this information. The Bank of England has yet to indicate what to expect. The ECB, which previously published its plans regularly, now chooses to refrain from doing so. Philip Lane, the ECB’s chief economist, said today that the ECB would decide on interest rates based on three factors instead of announcing its plans in advance. He said that the regulator would look at inflation predictions for the main measure of inflation and the effect of tightening monetary policy on the economy. In other terms, the ECB will attempt to occupy three chairs simultaneously. The way things are right now is that core inflation isn’t going down, core inflation is going down, and quarterly economic growth is about 0%. If the GDP decreases, the ECB will take a break. If core inflation declines, the ECB will halt its monetary policy. If core inflation does not decline within the next few months, we will be forced to choose between economic development and “cooling” inflation. How can we speculate which option will be selected? Since this is the major target of the ECB, it is reasonable to presume that it is in favor of inflation, but this conclusion is similar to fortune-telling. Consequently, the word “uncertainty” best describes the current circumstance.
Based on the analysis, the formation of the section with the downward trend is complete. Nonetheless, the upward segment of the trend can also be concluded in the same manner, which consists of three waves. Therefore, providing advice on sales and purchases is now possible. The news context does not answer the query of the pair’s most probable direction of movement. Also, wave analysis. I recommend cautious purchases with targets near 1.1033 in the current market environment.
The wave pattern of the pound/dollar indicates the conclusion of a segment of a downward trend. Currently, the wave markup is ambiguous, so you should purchase cautiously if your targets exceed 25 figures. Now that formation of wave b can also commence, I do not see a news background that would support the British pound in the long term. If you trade, it should be for-profit and done properly.
The material has been provided by InstaForex Company – www.instaforex.com
Regarding the foreign exchange market, the demand for the euro and the pound continues to rise, while the demand for the dollar continues to fall. I’ve said many times that this kind of change is normal, but it’s hard to predict what will happen in the long run. Both wave analyses depict the movements of three-wave patterns eloquently. This implies that each trend requires a brief period, after which a reversal occurs. For the EUR/USD pair, wave c has already surpassed wave a’s peak, so the entire “three-wave” can finish its formation at any moment. This is the current difficulty of analyzing waves.
Exchange rates depend on what central banks do in the future, so it’s important to know what they plan to do. However, it is only possible to derive conclusions from this information. The Bank of England has yet to indicate what to expect. The ECB, which previously published its plans regularly, now chooses to refrain from doing so. Philip Lane, the ECB’s chief economist, said today that the ECB would decide on interest rates based on three factors instead of announcing its plans in advance. He said that the regulator would look at inflation predictions for the main measure of inflation and the effect of tightening monetary policy on the economy. In other terms, the ECB will attempt to occupy three chairs simultaneously. The way things are right now is that core inflation isn’t going down, core inflation is going down, and quarterly economic growth is about 0%. If the GDP decreases, the ECB will take a break. If core inflation declines, the ECB will halt its monetary policy. If core inflation does not decline within the next few months, we will be forced to choose between economic development and “cooling” inflation. How can we speculate which option will be selected? Since this is the major target of the ECB, it is reasonable to presume that it is in favor of inflation, but this conclusion is similar to fortune-telling. Consequently, the word “uncertainty” best describes the current circumstance.
Based on the analysis, the formation of the section with the downward trend is complete. Nonetheless, the upward segment of the trend can also be concluded in the same manner, which consists of three waves. Therefore, providing advice on sales and purchases is now possible. The news context does not answer the query of the pair’s most probable direction of movement. Also, wave analysis. I recommend cautious purchases with targets near 1.1033 in the current market environment.
The wave pattern of the pound/dollar indicates the conclusion of a segment of a downward trend. Currently, the wave markup is ambiguous, so you should purchase cautiously if your targets exceed 25 figures. Now that formation of wave b can also commence, I do not see a news background that would support the British pound in the long term. If you trade, it should be for-profit and done properly.
The material has been provided by InstaForex Company – www.instaforex.com
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