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 (4 Hours)
EUR/USD Drops Amid Cautious Markets as Focus Shifts to Central Bank Meetings
The EUR/USD experienced a decline while trading around the 1.0700 area, with attention turning to upcoming central bank meetings. The European Central Bank (ECB) is expected to raise interest rates by 25 basis points next week, followed by another potential hike in July. However, economic indicators, such as stagnant retail sales in the Eurozone and a decline in German factory orders, reflect consumer caution. The US Dollar saw modest gains as market participants remained wary ahead of a crucial week, considering a bleak global outlook and the anticipation of higher interest rates. The Federal Reserve’s upcoming FOMC meeting is awaited with caution, as analysts closely monitor the May Consumer Price Index as a determining factor.
According to technical analysis, the EUR/USD pair moved lower on Tuesday, trying to reach the lower band of the Bollinger Bands and moved flat before closing the day. Currently, the EUR/USD is running just below the middle band, with the potential for it to move lower to reach the lower band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 45, indicating that the EUR/USD is in a neutral trend.
Resistance: 1.0724, 1.0766
Support: 1.0671, 1.0634
XAU/USD (4 Hours)
Gold (XAU/USD) Under Pressure as Markets Await Central Bank Decisions and Inflation Data
Gold (XAU/USD) facing slight downward pressure, hovering around $1,960, as financial markets adopt a cautious stance due to discouraging macroeconomic data and upcoming major announcements. Weighing on market sentiment are softer-than-expected figures, alongside anticipation of monetary policy decisions by the US Federal Reserve and the European Central Bank. While the Fed is expected to maintain its current stance, the ECB is likely to implement another rate hike. Additionally, the US will release an update on inflation before the Fed’s decision, with the May Consumer Price Index anticipated to rise by 4.2% YoY. Despite the Fed’s tightening measures, the labour market remains tight, and wage inflation remains a concern. Economic growth has slowed due to monetary tightening, and central banks are striving to strike a delicate balance between maintaining economic activity and curbing inflation. The recent bank crisis in March has prompted policymakers to adopt a cautious approach, but if inflation remains high and the labour market remains tight, the US central bank may resume raising interest rates, leading to uncertainty in the financial markets.
According to technical analysis, the XAU/USD pair is moving higher on Tuesday, reaching above the middle band of the Bollinger Bands. There is a possibility that the XAU/USD will continue to move higher and try to reach the upper band of the Bollinger Bands. Currently, the Relative Strength Index (RSI) is at 54, suggesting that the XAU/USD is in a neutral but slightly bullish trend.
Resistance: $1,970, $1,984
Support: $1,951, $1,937
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