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
Headquarters
Key documents
Social Responsibility
20.05.2025 12:40 AM
The Dollar Has Sold America Out Completely
Open trading account Open demo account

Overall, the strength of the EUR/USD uptrend remains intact. The erosion of confidence in the U.S. dollar outweighs the divergence in monetary policy between the Fed and the ECB.

Technical Outlook: On the daily EUR/USD chart, a bullish 1-2-3 reversal pattern is in play. Long positions initiated on the breakout of the internal bar near 1.1225 should be held.The transition from being respected to facing ridicule can happen in an instant. This is evident in the shift from "Buy America" to "Sell American," a change prompted by Moody's downgrade of the U.S. credit rating. The downgrade, which was attributed to a growing budget deficit, has sparked renewed interest among investors in de-dollarization.

The blow to the greenback came from multiple directions. Moody's verdict pushed both nominal and real yields on U.S. Treasuries higher—a troubling development for an economy already showing signs of slowing down. It's also bad news for the bottom line of American corporations: costs are rising, profits are shrinking. All of this will likely result in a decline of the S&P 500. And when the index falls, the U.S. dollar—already seen by many as a risky currency—will likely follow.

U.S. Bond Yield Dynamics

This image is no longer relevant

At the same time, Moody's decision raised doubts about Congress's willingness to renew the tax-cut stimulus packages that Donald Trump is banking on.

According to Bank of America, fiscal uncertainty, a slowing economy, and unclear White House policy are now key drivers of the USD index's downward trend. Other contributing factors include portfolio diversification away from U.S. assets, a worsening capital account, and the U.S. president's intent to weaken the dollar.

In contrast, Europe appears to be gaining favor, moving from fiscal restraint toward spending. According to a Bloomberg leak, all 27 EU member states have approved a €150 billion defense fund. The spending could act as a powerful stimulus for the eurozone economy.

Even though the European Commission expects inflation in the euro area to fall to 2% in 2025 and 1.7% thereafter—due to an influx of Chinese goods, a stronger euro, and lower energy costs—this hasn't scared off EUR/USD bulls. As European Central Bank President Christine Lagarde aptly noted, while the dollar once strengthened in times of political uncertainty, it now weakens due to a collapse in trust—all the better for the euro.

Eurozone Inflation Trends and Forecasts

This image is no longer relevant

Without a doubt, Moody's downgrade soured the mood in Washington. Treasury Secretary Scott Bessent called the rating agency "perpetually late" and claimed that the current administration couldn't have done all the damage in just 100 days. He pinned the blame on the former president and his team. But the bigger question is: what will Washington do to prevent the stock market from tanking because of the downgrade?

This image is no longer relevant

Overall, the strength of the EUR/USD uptrend remains intact. The erosion of confidence in the U.S. dollar outweighs the divergence in monetary policy between the Fed and the ECB. On the daily EUR/USD chart, a bullish 1-2-3 reversal pattern is in play. Long positions initiated on the breakout of the internal bar near 1.1225 should be held.

Marek Petkovich,
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
Wave analysis
GBP/USD Analysis on June 19, 2025 The wave pattern for GBP/USD continues to indicate the formation of a bullish impulsive wave structure. The wave pattern is nearly identical to that of EUR/USD, since the U.S. dollar
Chin Zhao
20:20 2025-06-19 +02:00
1015
Wave analysis
EUR/USD Analysis on June 19, 2025 The wave pattern on the 4-hour EUR/USD chart continues to indicate the formation of an upward trend section. The transformation in the structure has occurred solely
Chin Zhao
20:16 2025-06-19 +02:00
1015
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

The Japanese yen is showing weakness against the stronger U.S. dollar, with the USD/JPY pair reaching a new monthly high. This rise in the dollar against the yen is mainly
Irina Yanina 20:12 2025-06-19 UTC+2

Bank of England to Keep Rates Unchanged

Today, the Bank of England is expected to keep interest rates at 4.25% and signal that it is maintaining its approach of one cut every other meeting, as policymakers
Jakub Novak 11:02 2025-06-19 UTC+2

The Fed Maintains Its Previous Position

The U.S. dollar responded with growth, while risk assets such as the euro and pound declined. Following yesterday's meeting, Federal Reserve officials stated they expect two interest rate cuts
Jakub Novak 10:58 2025-06-19 UTC+2

The Iran-Israel War Has Yet to Exert Significant Negative Influence on Markets (Limited downside risk for gold and upward momentum for #USDX remains possible)

As expected, the U.S. central bank left all key monetary policy parameters unchanged, once again citing ongoing uncertainty about the future state of the national economy—a factor that has become
Pati Gani 09:14 2025-06-19 UTC+2

The Market Keeps Its Options Open

While the White House and the Federal Reserve are in wait-and-see mode, the market has also decided to hold steady. Donald Trump has yet to make a final decision
Marek Petkovich 09:08 2025-06-19 UTC+2

What to Pay Attention to on June 19? A Breakdown of Fundamental Events for Beginners

No macroeconomic reports are scheduled for Thursday. The only points of attention today will be Christine Lagarde's speeches and the results of the Bank of England meeting, which will
Paolo Greco 06:45 2025-06-19 UTC+2

GBP/USD Overview – June 19: UK Inflation and the Bank of England Meeting

The GBP/USD currency pair traded relatively calmly on Wednesday, though the day before, it had posted a substantial decline in the second half of the session—more than 100 pips
Paolo Greco 04:02 2025-06-19 UTC+2

EUR/USD Overview – June 19: Trump Continues to Work Wonders

The EUR/USD currency pair traded more calmly on Wednesday than the previous day. However, the previous day's significant movement also began only closer to the evening. It was not related
Paolo Greco 04:02 2025-06-19 UTC+2

GBP/USD. Inflation, the Bank of England, and Geopolitics

GBP/USD traders did not react to the UK inflation growth report that was published on Wednesday, just before the June Bank of England meeting. The focus of the market remains
Irina Manzenko 00:42 2025-06-19 UTC+2

The Canadian Dollar Still Looks Like a Favorite

Markets remain cautious as several high-impact events loom that could significantly alter the risk balance—namely, the FOMC meeting on Wednesday evening and a potential U.S. intervention in the war between
Kuvat Raharjo 00:42 2025-06-19 UTC+2

Top analytics

EUR/USD Overview – June 18: Will the Fed Save the Dollar?
03:57 2025-06-18
Fundamental analysis
EUR/USD Forecast for June 18, 2025
05:49 2025-06-18
Technical analysis
Trading Recommendations and Analysis for GBP/USD on June 18: Pound Remains in a Flat Range
03:56 2025-06-18
Trading plan
Trading Recommendations and Analysis for EUR/USD on June 18: The Dollar Rises Paradoxically
03:56 2025-06-18
Trading plan
USD/JPY Forecast for June 18, 2025
04:58 2025-06-18
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.