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 Euro Outperforms and US Dollar Weakens amid Fed Chair Powell’s Comments
The EUR/USD pair experienced a surge on Wednesday, reaching its highest level in a month at 1.0989, with the Euro displaying strength while the US Dollar weakened due to lower Treasury yields. Federal Reserve Chair Powell’s comments during his testimony to the House Financial Services Committee provided no surprises. In contrast, the German IFO Institute warned of a sharper-than-expected German recession, leading to uncertainty about the European Central Bank’s (ECB) future rate hikes.
However, ECB members Schnabel and Nagel remained hawkish, suggesting more work needs to be done. Despite UK inflation numbers, the Euro continued to outperform, particularly against the GBP. Meanwhile, Fed Chair Powell reiterated the FOMC’s message from the recent monetary policy meeting, emphasizing potential rate hikes if the economy performs as anticipated.
The US Dollar faced additional pressure as US yields turned negative, pushing the EUR/USD closer to the 1.1000 level. While no significant data from the European Union was expected on Thursday, the US would release Jobless Claims and Existing Home Sales reports. Furthermore, the Bank of England’s decision could potentially impact the markets.
According to technical analysis, the EUR/USD pair experienced a strong movement on Wednesday and able to break our resistance level and create a push to the upper band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 74, indicating that the EUR/USD is back in bullish trend which can create another higher movement.
Resistance: 1.1003, 1.1034
Support: 1.0920, 1.0957
XAU/USD Recovers from Three-Month Low as US Dollar Loses Momentum on Powell’s Comments
The price of gold (XAU/USD) bounced back from a recent three-month low of $1,919.12 per troy ounce as the US Dollar lost steam following statements made by Federal Reserve Chairman Jerome Powell. Initially, the Greenback had strengthened in anticipation of a hawkish stance from the Fed chief. H
owever, Powell’s remarks, which echoed the latest Federal Open Market Committee (FOMC) Minutes, indicated that while the US economy was growing at a modest pace and the labour market remained tight, inflation was gradually decreasing, and consumer strength was waning.
This assurance alleviated market concerns, leading to a recovery in stock markets and a decline in the US Dollar against major currencies.
According to technical analysis, the XAU/USD pair is moving lower and has reached the lower band of the Bollinger Bands. There is potential for a slight upward movement, aiming to reach the middle band. Currently, the Relative Strength Index (RSI) is at 38, indicating that the XAU/USD is bearish but still in a neutral stance.
Resistance: $1,939, $1,950
Support: $1,932, $1,924
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
