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 Gains Momentum Ahead of US Inflation Data
The EUR/USD pair rallied to a two-month high at 1.1027 before retracing slightly and finding support around 1.0980. Later, it regained strength above the 1.1000 level as the US Dollar weakened, while market participants eagerly awaited crucial US data.
Tuesday’s German ZEW survey revealed a decline in expectations and current conditions, aligning with a contraction in economic activity in the Eurozone. With the final German inflation numbers unchanged and an empty calendar for Wednesday, all eyes are now focused on the release of the US Consumer Price Index (CPI) for June.
Analysts anticipate a 0.3% monthly increase, a drop in the annual rate from 4% to 3.1%, and a decrease in the core index from 5.3% to 5%. The outcome of this data will likely impact market sentiment and potentially determine whether the EUR/USD pair can maintain its bullish bias or face downward pressure as attention shifts to the struggling Eurozone economy.
According to technical analysis, the EUR/USD pair experienced an upward movement on Tuesday, although it has not yet reached the upper band of the Bollinger Bands. Presently, the price is situated between the middle and upper bands of the Bollinger Bands, while the bands themselves are indicating a likelihood of further upward movement.
This suggests the potential for the price to reach the upper band of the Bollinger Bands. Additionally, the Relative Strength Index (RSI) currently stands at 69, further indicating a bullish trend for the EUR/USD.
Resistance: 1.1033, 1.1057
Support: 1.1002, 1.0965
Gold (XAU/USD) Prices Rise as Market Eyes US CPI Data Amidst Dollar Demand
Gold prices experienced an early advance on Tuesday, reaching a nearly month-long peak at $1,938.45. However, renewed demand for the US Dollar caused XAU/USD to trade in the $1,930 range during the American session.
The positive market sentiment, fueled by easing government bond yields and a favourable tone in equities during Asian trading, initially weakened the US Dollar. Nevertheless, the dollar rebounded despite this sentiment carrying over throughout the various sessions.
While Wall Street continues to extend its gains from Monday, financial markets remain cautious ahead of the release of the US Consumer Price Index (CPI). Analysts expect a 0.3% increase in inflation for June, compared to a modest 0.1% in May.
The annual figure is anticipated to be at 3.1%, down from the previous 4%, with the core annual reading predicted to decrease to 5% from 5.3% in the previous month. These CPI figures hold significance as they could provide insights into the future monetary policy decisions of the Federal Reserve (Fed).
Higher-than-expected inflation readings may prolong the central bank’s tightening measures, potentially strengthening the US Dollar across the board as investors seek safe-haven assets.
According to technical analysis, the XAU/USD pair is moving higher on Tuesday, creating upward momentum towards the upper band of the Bollinger Bands. Currently, the price is slightly below the upper band, suggesting the possibility of further upward movement today that could potentially breach the upper band.
The Relative Strength Index (RSI) is currently at 69, indicating a potential bullish movement for XAU/USD.
Resistance: $1,946, $1,954
Support: $1,929, $1,920
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
