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Analytics from ForexMart company (ForexMart) – Forecasts – February 25, 2021

Analytics from ForexMart company (ForexMart) – Forecasts – February 25, 2021


EUR / USD. 02.25 | Euro is again above 1.22

On Thursday, the euro continues to rise, reaching 1.2233. The currency is still supported by macroeconomic statistics from Europe.

According to the published data, the German economy grew by 0.3% in the IV quarter of 2020. The economic recovery was driven by an increase in investment (by 1%) and exports (by 4.5%), which offset the decline in consumer spending (by 3.3%) and government spending.

At the same time, a strong pressure on the US dollar was made by the speech of the head of the US Federal Reserve before Congress on Tuesday and Wednesday. Jerome Powell noted that the regulator intends to continue a soft policy without raising interest rates for a long period of time. Until inflation reaches the 2% target and employment returns to pre-crisis levels, rates will remain at historic lows.

Another important factor influencing the dynamics of the EUR / USD pair is the issue of agreeing on new fiscal stimulus measures in the United States. The Democrats are slated to pass a $ 1.9 trillion Senate bailout tomorrow, after which the bill will be sent to President Joe Biden for signature. If the stimulus package is adopted in full, huge cash injections can accelerate inflation, which will have a very detrimental effect on the American currency.

Brent. 02.25 | Oil has updated annual highs

Oil prices have risen for the fourth straight session, reaching a high in more than 13 months. The current Brent quote is $ 66.70 per barrel.

Prices were supported by promises from the US Federal Reserve to keep interest rates low, which supported global financial markets and investors’ appetite for risky assets.

Oil quotes are growing, despite a weak report from the US Department of Energy, according to which oil reserves in the country unexpectedly increased by 1.28 million barrels. Analysts had forecast a decline of 4.8 million.

The market ignored this data also due to a visible improvement in forecasts associated with a decrease in the increase in the number of cases of coronavirus infection in the world.

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