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
24.02.2025 09:22 AM
Will the U.S. Stock Market Continue to Decline and the Euro Rise? (There is a chance for the growth of the CFD contract on the S&P 500 futures and the EUR/USD pair)
Open trading account Open demo account

The main U.S. stock indexes ended the week in negative territory, reflecting a surprising increase in pessimism amid signs of a slowdown in the national economy.

The Friday sell-off in U.S. stocks was largely driven by growing concerns about economic conditions. The Dow index fell by 1.69% by the end of trading, marking its worst weekly performance since October. Meanwhile, the S&P 500 and the Nasdaq Composite declined by 1.71% and 2.20%, respectively. This sharp drop was triggered by the release of the services PMI report for February, which showed a decrease to 49.7, falling below the threshold of 50 points. This was contrary to expectations of an increase to 53.0 from the previous 52.9 points. Additionally, disappointing forecasts from major retailer Walmart and data indicating weakening consumer sentiment amid ongoing inflationary pressures further contributed to the decline.

This week will focus on the personal consumption expenditure (PCE) report, the preferred inflation measure for the Federal Reserve's interest rate decision. The key corporate earnings reports from major retailers such as Home Depot and Lowe's are also expected to provide additional insight into consumer spending in the U.S. The market is also awaiting the quarterly earnings report from AI leader Nvidia this Wednesday, which will be especially interesting following the emergence of the Chinese company DeepSeek.

Attention should be focused on the eurozone's consumer inflation report today. According to the consensus forecast, the year-over-year consumer price index (CPI) is expected to rise to 2.5% from 2.4%, but the monthly comparison is expected to drop by 0.3% in January, compared to a 0.4% increase in December. The core CPI is expected to maintain a growth rate of 2.7% year-over-year but decrease by 1% month-over-month, compared to a 0.5% increase in the previous month.

How might the euro react to this news?

The euro has gained some support following the results of the German elections, where the Christian Democratic Union (CDU) won as anticipated. Investors are now turning their attention to the coalition-building process. It is expected that the new government will prioritize key tax reforms. These election results come against a backdrop of economic stagnation in Germany, the ongoing conflict in Ukraine involving Russia, its allies, and NATO countries, as well as an escalation of the trade war that began under Donald Trump. The proposed reforms are expected to address the prolonged period of underinvestment in the local economy, which could strengthen both the stocks of eurozone companies and the single currency in the Forex market.

Furthermore, if today's consumer inflation data in the EU does not fall below the consensus forecast, this could create a strong basis for further local strengthening of the euro in the Forex market.

This image is no longer relevant

This image is no longer relevant

Daily Forecast:

#SPX

The CFD contract on the S&P 500 futures is recovering in morning trading after Friday's plunge. This sharp drop will likely turn out to be local, as fundamentally, U.S. companies' stocks will likely receive support under Trump's protectionist economic policies. The previously presented corporate reports reflect the results of actions taken by the U.S. Administration in the past, so demand for cheaper stocks can be expected to recover after the local negative sentiment. On this wave, the contract may rise to 6136.00 after falling to the strong psychological level of 6000.00 points.

EUR/USD

The pair has not yet been able to break the 1.0520 mark, but its growth above this level amid a possible increase in consumer inflation could lead to overcoming this level and pushing towards a new target at 1.0600.

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
All Analytics
Analytical News
US Market News Digest for May 2 US equity indices continue to climb despite lingering economic uncertainty. Investor optimism is being driven by expectations of progress in trade talks between the US and China. Nevertheless, ongoing economic
Ekaterina Kiseleva
13:14 2025-05-02 +02:00
1570
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders on May 2nd (U.S. Session) Trade Analysis and Advice for the Japanese Yen The test of the 145.05 level occurred when the MACD indicator had already moved significantly below the zero mark, which limited
Jakub Novak
12:24 2025-05-02 +02:00
1855
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

EUR/USD: Analysis and Forecast

The EUR/USD pair is attracting buyers today, breaking a three-day losing streak and attempting to build intraday momentum above the psychological 1.1300 level. This indicates a renewed interest from buyers
Irina Yanina 11:59 2025-05-02 UTC+2

U.S. Labor Market Data Could Be a Major Disappointment

Employment growth in the U.S. likely slowed in April, although the unemployment rate is expected to remain unchanged, pointing to healthy but moderate demand for labor. However, the Trump administration's
Jakub Novak 10:08 2025-05-02 UTC+2

The ECB Has No Other Choice

The European currency continues to lose ground against the U.S. dollar as traders increasingly place bets on the European Central Bank's upcoming monetary policy decisions. According to data, the chances
Jakub Novak 10:03 2025-05-02 UTC+2

China Has Finally Responded

The euro, the pound, and other risk assets reacted with gains following statements from Chinese authorities that they are assessing the possibility of trade negotiations with the United States—marking
Jakub Novak 09:57 2025-05-02 UTC+2

The Process Has Begun. China Is Ready for Trade Talks (There's a Chance of Renewed Decline in Gold and EUR/USD Prices)

Trading on the last day of the week is unfolding positively. News that China is ready to begin negotiations has inspired investors to buy risk assets and weakened the U.S
Pati Gani 09:43 2025-05-02 UTC+2

The Market Enters Turbulent Waters

The market is confident that tariffs won't materialize or that companies can pass them on to customers. The S&P 500's eight-day rally—its longest since August—strongly hints at this. So does
Marek Petkovich 09:24 2025-05-02 UTC+2

What to Pay Attention to on May 2? A Breakdown of Fundamental Events for Beginners

Only a few macroeconomic events are scheduled for Friday, but some are quite significant. Naturally, the focus is on the U.S. NonFarm Payrolls and unemployment rate, yet it's also important
Paolo Greco 09:14 2025-05-02 UTC+2

GBP/USD Overview – May 2: The U.S. Dollar Didn't Rise for Long

On Thursday, the GBP/USD currency pair continued to decline. The dollar had strengthened for three consecutive days—despite having no objective reason. U.S. macroeconomic data has been consistently weak; there were
Paolo Greco 03:50 2025-05-02 UTC+2

EUR/USD Overview – May 2: The Dollar Faces a New Collapse – And It's Far from the Last

On Thursday, the EUR/USD currency pair once again traded relatively calmly, but the U.S. dollar failed to show any meaningful growth this time. A little bit of good news goes
Paolo Greco 03:47 2025-05-02 UTC+2

USD/JPY: A Rough Patch for the Yen

At its latest meeting, the Bank of Japan kept all key policy settings unchanged, effectively implementing the most expected baseline scenario—despite earlier conflicting statements from central bank officials
Irina Manzenko 01:19 2025-05-02 UTC+2

Top analytics

Relevance up to 03:00 2025-05-04 UTC--4
The Process Has Begun. China Is Ready for Trade Talks (There's a Chance of Renewed Decline in Gold and EUR/USD Prices)
09:43 2025-05-02
Fundamental analysis
Relevance up to 08:00 2025-05-06 UTC--4
The Dollar Demands the Impossible
01:02 2025-05-02
Fundamental analysis
Relevance up to 03:00 2025-05-07 UTC--4
The Market Enters Turbulent Waters
09:24 2025-05-02
Fundamental analysis
Relevance up to 03:00 2025-05-05 UTC--4
US market: modest but positive move
13:38 2025-05-02
Stock Markets
Relevance up to 21:00 2025-05-03 UTC--4
Technical Analysis of Intraday Price Movement Nasdaq 100 Index, Friday May 02, 2025.
08:04 2025-05-02
Technical 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.