empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
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
Key documents
Social Responsibility
10.03.2022 09:22 AM
ECB should not rush to change monetary policy, says Rehn
Open trading account Open demo account

The European Central Bank needs time to properly assess the implications of Russia's military operation in Ukraine before continuing to withdraw support for the eurozone economy in a pandemic era. Bank of Finland Governor Olli Rehn said recently that no more stimulus is needed given the continent's robust recovery and the strengthening labor market. Instead, "prudence and optionality" are needed to ensure that premature tightening of monetary policy does not trigger a recession.

"The direction of normalization is still, in my view, appropriate. The economic recovery is relatively strong and employment is increasing. However, given the new situation, we need to take a moment of reflection as regards the speed and way of a gradual normalization of monetary policy," Rehn said in a recent interview.

This image is no longer relevant

At the moment, the futures market is only counting on a rate hike in March 2023, while most recently, the President of the European Central Bank emphasized a possible policy change as early as this year. Before today's meeting of the Governing Council, which is expected to be devoted to record high inflation, ECB policymakers should also assess the side effects of the Russian military operation and retaliatory sanctions imposed on the government of President Vladimir Putin.

The 5.1% price increase in the eurozone is more than double the 2% target. Many experts expect that price growth may accelerate, especially considering what oil prices are currently observed. All this will lead to a slowdown in economic growth in the eurozone countries, as well as excessive pressure on consumers. "In this kind of a situation, it's usually better to wait with your decisions until your sight clears so that you avoid doing damage," said Rehn, who belongs to the more dovish members of the Governing Council and has repeatedly warned against sudden changes in policy. "We would risk a slowdown or even a recession in Europe if we acted in a premature manner."

Geopolitical tensions, according to Rehn, delay rather than undermine the ECB's rejection of large-scale asset purchases and the introduction of negative interest rates. His Austrian colleague, Robert Holzmann, also recently said in an interview that the central bank is moving towards normalization, although the expected changes in ECB policy may be postponed to a later time. Mario Centeno from Portugal also supports the new policy direction, but warns of the possibility of stagflation.

In her recent speech, ECB President Christine Lagarde warned against jumping to conclusions, vowing that the ECB would "take all necessary actions" to ensure price and financial stability in the currency bloc.

As for the technical picture of the EURUSD pair

The euro is responding with growth to the expected data on inflation in the U.S., and traders are rapidly fixing profits. Although euro bulls have returned to resistance around 1.1100, which keeps the demand for a trading instrument, however, geopolitical tensions around Russia and Ukraine will limit the upward potential of the pair. Euro buyers need to consolidate above 1.1140, which will allow to continue the correction to the highs: 1.1230 and 1.1310. A decrease in the trading instrument will be met with active purchases in the 1.1000 area. However, the area of 1.0880 remains the key support level.

As for the technical picture of the GBPUSD pair

The buyers of the pound showed themselves after the recent major fall of the pair, and are now focused on the resistance of 1.3194. The return to control of this range will allow us to count on a more powerful correction of the pair in the area of 1.3240 and 1.3320. However, the prospects for growth are overshadowed by Russia's military operation on the territory of Ukraine. If we go below 1.3140, then the pressure on the trading instrument will increase. In this case, we can expect a repeated fall to 1.3085 and the exit of the trading instrument to new lows: 1.3030 and 1.2920.

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
Technical analysis
EUR/USD Forecast for March 17, 2025 After Friday's price consolidation below the 1.0882 level, the euro is attempting to rise above this level once again. The expectation is that it will fluctuate within the range
Laurie Bailey
04:40 2025-03-17 +02:00
1015
Technical analysis
GBP/USD Forecast for March 17, 2025 On the daily chart, the signal line of the Marlin oscillator is approaching the strong support level of 0.0133. An upward reversal of the oscillator is likely from this line
Laurie Bailey
04:40 2025-03-17 +02:00
1045
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

US Dollar: Weekly Preview

America will once again be a major focus in the news. Surprisingly, it won't primarily be due to economic updates or the Federal Reserve meeting, but rather news surrounding Donald
Chin Zhao 23:05 2025-03-16 UTC+2

EUR/USD Weekly Preview: All Eyes on the Fed

After experiencing a significant surge of 500 pips, the EUR/USD pair has settled into a period of stagnation, awaiting further news. The Federal Reserve may either alleviate or heighten concerns
Irina Manzenko 23:05 2025-03-16 UTC+2

What to Pay Attention to on March 17? A Breakdown of Fundamental Events for Beginners

There are very few macroeconomic events scheduled for Monday, with the only notable report being on retail sales in the US. It's important to note that the market has shown
Paolo Greco 22:27 2025-03-16 UTC+2

A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)

The confrontation between the U.S. and the EU has entered a new phase. The U.S. president is taking a hardline approach toward Europe, effectively following a "tit for tat" strategy
Pati Gani 14:06 2025-03-14 UTC+2

USD/JPY: Analysis and Forecast

The Japanese yen is losing ground today. Positive news on U.S.-Canada trade negotiations and reports that Democrats have secured enough votes to prevent a U.S. government shutdown are improving global
Irina Yanina 13:33 2025-03-14 UTC+2

XAU/USD: Analysis and Forecast

Gold is consolidating after reaching a new all-time high. Concerns over U.S. President Donald Trump's aggressive trade policy and its impact on the global economy continue to drive demand
Irina Yanina 10:08 2025-03-14 UTC+2

What to Pay Attention to on March 14? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Friday, and none of them are significant. The UK will release reports on GDP and industrial production, but strong figures are not expected
Paolo Greco 07:05 2025-03-14 UTC+2

GBP/USD Pair Overview – March 14: The Last Day of the Week as a Mere Formality

On Thursday, the GBP/USD currency pair also began a slight downward correction. While the pound did not depreciate significantly, explaining why it rose for two weeks is difficult. Of course
Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD Pair Overview – March 14: Maybe That's Enough?

The EUR/USD currency pair finally began to decline on Thursday, but once again, this movement was not linked to macroeconomic factors or fundamental events. It wasn't even related to Donald
Paolo Greco 02:39 2025-03-14 UTC+2

EUR/USD: A Southern Impulse That Should Not Be Trusted

On Thursday, the EUR/USD pair reached a three-day low of 1.0823 but did not break into the 1.07 range, as the downward momentum gradually faded. The EUR/USD pair is currently
Irina Manzenko 23:55 2025-03-13 UTC+2

Top analytics

Relevance up to 13:00 UTC--4
US Dollar: Weekly Preview
00:05 2025-03-17
Fundamental analysis
Relevance up to 07:00 UTC--4
EUR/USD Weekly Preview: All Eyes on the Fed
00:05 2025-03-17
Fundamental analysis
Relevance up to 14:00 2025-03-18 UTC--4
SPX – Weekly Results and Future Prospects
23:25 2025-03-16
Technical analysis
Relevance up to 02:00 UTC--4
US stock market: NASDAQ and SP500 going through correction, 10% down from their historic highs
11:53 2025-03-14
Stock Markets
Relevance up to 04:00 UTC--4
A New Problem Rises for America – The Debt Ceiling (Expecting #SPX and #NDX to Resume Their Decline After a Likely Short-Term Recovery)
15:06 2025-03-14
Fundamental analysis
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.