Spreads
Spreads
Spreads
Spreads
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EUR/USD Modestly Falls on Quiet Day, Focus Shifts to FOMC Minutes and US Labor Market Data
The EUR/USD experienced a slight decline on a quiet day in the financial markets, with limited price action due to a US holiday. The Euro lagged behind the pound without any significant economic reports. Volatility is expected to increase on Wednesday with the release of Eurozone economic data and the FOMC minutes.
Market participants remained cautious on US Independence Day, but trading activity is expected to return to normal. The focus is now on the FOMC minutes and upcoming US labour market data, which will influence expectations regarding the actions of the Federal Reserve.
In the Eurozone, the May Producer Price Index (PPI) is anticipated to show a decline, providing some positive news for the European Central Bank (ECB). Additionally, the final reading of the Markit Services PMI is due, with no major revisions expected.
According to technical analysis, the EUR/USD pair remained unchanged on Tuesday and reached the middle band of the Bollinger Bands. Currently, the price is slightly below the middle band, indicating a possible downward movement towards the lower band. The Relative Strength Index (RSI) is currently at 43, suggesting that the EUR/USD is in a neutral position but slightly bearish.
Resistance: 1.0926, 1.0965
Support: 1.0842, 1.0790
Spot Gold (XAU/USD) Holds Near Weekly High as Financial Markets Remain Quiet on Independence Day
Spot Gold maintained its position near the weekly high reached on Monday at $1,930.98, extending its gains for the fourth consecutive day. With the United States observing Independence Day and no significant news developments, financial assets remained stagnant, trading within familiar levels.
The Reserve Bank of Australia (RBA) announced no change to the Official Cash Rate (OCR) at 4.1%, noting that inflation in the economy has peaked. Initially, the decline in the Australian dollar provided support to the US Dollar, but the American currency reversed its course and weakened against most major counterparts, buoyed by stable Asian shares.
However, European markets closed in the negative territory. Market participants eagerly awaited upcoming labour market updates from the United States scheduled for the latter half of the week, as the macroeconomic calendar offered little else of significance.
According to technical analysis, the XAU/USD pair is experiencing an upward movement on Tuesday, with the potential to reach the upper band of the Bollinger Bands. Currently, the price is slightly below the upper band and may potentially move downward towards the middle band of the Bollinger Bands. The Relative Strength Index (RSI) currently stands at 55, having fallen from a higher level, indicating a neutral stance for XAU/USD.
Resistance: $1,932, $1,939
Support: $1,911, $1,903
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
