Spreads
Spreads
Spreads
Spreads
Spreads
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
EUR/USD Surges as Dollar Weakens Amid Falling Fed Rate Hike Expectations
The EUR/USD experienced a significant rally on Thursday, propelled by a widespread decline in the US dollar as expectations for Federal Reserve rate hikes diminished ahead of the US employment report. Eurozone data confirmed a slowdown in inflation, providing relief for the European Central Bank (ECB) and reducing the need for further interest rate increases. The weakening dollar was driven by signals from Fed officials suggesting a pause in rate hikes and increasing market expectations of future rate cuts.
Additionally, improved market sentiment, supported by positive Chinese data, the resolution of the debt ceiling issue, and easing inflation data, contributed to the dollar’s decline. Focus now turns to the Nonfarm Payrolls report on Friday, which is expected to provide further insights into the US economic situation.
According to technical analysis, the EUR/USD pair is moving higher on Thursday, creating upward momentum towards the upper band of the Bollinger Bands. Currently, EUR/USD is trading near the upper band of the Bollinger Bands. We anticipate that the EUR/USD will experience a slight downward movement today and attempt to reach the middle band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 61, indicating that the EUR/USD has entered the overbought zone.
Resistance: 1.0766, 1.0824
Support: 1.0706, 1.0671
Gold (XAU/USD) Rises as US Dollar Weighed Down by Mixed Economic Signals
The US dollar experienced a turbulent day of fluctuations as investors digested news from the United States, resulting in significant selling pressure on the currency and pushing XAU/USD (gold) to trade around $1,980 per troy ounce. The initial optimism surrounding the suspension of the debt-limit ceiling was followed by a brief recovery in the dollar due to positive labour market indicators. However, a downward revision in Q1 Unit Labor Costs and a contraction in the May ISM Manufacturing PMI underscored the fragility of the US economy, weakening the dollar and creating an environment favourable for gold. These mixed economic signals have put the Federal Reserve in a challenging position, with pressure to maintain an aggressive monetary policy while inflation remains subdued.
According to technical analysis, the XAU/USD pair is exhibiting upward movement on Thursday, approaching the upper band of the Bollinger Bands. There is a possibility that the XAU/USD will experience a minor downward correction and retrace towards the middle of the Bollinger Bands throughout the day. At present, the Relative Strength Index (RSI) is at 62, suggesting that the XAU/USD is currently in the overbought zone.
Resistance: $1,984, $2,004
Support: $1,963, $1,951
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
