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 Weaker US Dollar Boosts Sentiment Ahead of FOMC Meeting
The EUR/USD currency pair experienced a notable upswing on Thursday, driven by a declining US Dollar and improved risk appetite. The Greenback weakened across the board following lacklustre employment data from the US, which softened expectations ahead of the upcoming Federal Open Market Committee (FOMC) meeting. Although Euro area Q1 GDP saw downward revisions, it did not have a significant impact on the Euro’s performance. Despite mixed growth figures among European countries, the European Central Bank (ECB) meeting next week is still anticipated to include a 25 basis points rate hike. The rally in EUR/USD was further supported by technical factors, while the negative employment numbers in the US contributed to easing hawkish expectations from the Federal Reserve. The release of the May Consumer Price Index (CPI) on Tuesday will be a crucial report to watch before the FOMC decision. As market sentiment favours riskier assets, the US Dollar is expected to remain weak, potentially leading to further losses. However, a deterioration in sentiment could limit upward movements and facilitate a sharp correction in the currency pair.
According to technical analysis, the EUR/USD pair moved higher on Thursday as the price creating a push to the upper band of the Bollinger Bands. Currently, the EUR/USD is still running around the upper band of the Bollinger Bands showing that there’s a possibility that the market still trying to move higher. The Relative Strength Index (RSI) is currently at 66 just below the overbought area, indicating that the EUR/USD is still in the bullish trend.
Resistance: 1.0808, 1.0847
Support: 1.0757, 1.0721
Gold (XAU/USD) Rallies as Weaker US Dollar and Dismal Employment Report Spur Investor Sentiment
After hitting a weekly low of $1,939 per troy ounce, the XAU/USD pair staged an impressive comeback. The US Dollar initially traded with a soft tone, but its decline accelerated during American trading hours, triggered by a worse-than-expected employment-related report. Initial Jobless Claims unexpectedly surged to 261K for the week ended June 2. The disappointing data pushed investors to increase bets on a dovish Federal Reserve (Fed), with the odds of a rate hike next week surpassing 70% once again. The unexpected interest rate hikes by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) also contributed to doubts about the US tightening cycle. Additionally, the US Dollar was influenced by a sharp retracement in government bond yields, with both the 10-year and 2-year Treasury yields experiencing a decline.
According to technical analysis, the XAU/USD pair is moving higher on Thursday and try to cover the losses on previous day, moves higher above the middle band of the Bollinger Bands. There is a possibility that the XAU/USD will continue to moves higher and try to create a push to the upper band of the Bollinger Bands. Currently, the Relative Strength Index (RSI) is at 54, suggesting that the XAU/USD is in neutral with potential bullish trend.
Resistance: $1,972, $1,982
Support: $1,955, $1,939
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
