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 on Weakening US Dollar Amidst Inflation Data, Awaited Economic Reports and Central Bank Minutes
The EUR/USD extended its upward momentum, driven by a sharp decline in the US Dollar following disappointing US inflation data. The pair reached monthly highs as Treasury yields dropped and stocks rallied on Wall Street, boosting risk sentiment.
Market participants anticipate the Federal Reserve’s rate hike in July, but the lower-than-expected inflation figures have sparked optimism that this could be the final increase. Traders are now eagerly awaiting the US Producer Price Index report and the European Commission’s economic forecast, Industrial Production data, and the release of the European Central Bank’s latest meeting minutes.
With ongoing volatility, the pair faces the potential for both continued gains and significant corrections.
According to technical analysis, the EUR/USD pair is experiencing an upward movement on Wednesday, pushing towards the upper band of the Bollinger Bands. Presently, the price is still near the upper bands of the Bollinger Bands, and the bands themselves indicate the potential for further upward movement.
This suggests that the price has the potential to reach the upper band of the Bollinger Bands. Additionally, the Relative Strength Index (RSI) is currently at 78, which is within the overbought area, indicating a bullish trend for the EUR/USD.
Resistance: 1.1185, 1.1271
Support: 1.1086, 1.0990
Gold (XAU/USD) Surges as Disappointing US Inflation Data Weighs on Dollar
XAU/USD experienced a strong rally, hitting an intraday high of $1,959.30 per troy ounce during the American session, as the US Dollar faltered due to lower-than-anticipated inflation figures. The Consumer Price Index (CPI) for June rose by a modest 0.2% month-on-month, falling short of the expected 0.3%, while the year-on-year CPI increase was 3%.
Additionally, the core annual reading came in at 4.8%, both below forecasts, indicating a continued easing of price pressures. This development bolstered risk appetite, leading to a surge in global stocks and further weakening of the US Dollar across foreign exchange markets.
The prospect of a potential shift in the Federal Reserve’s tightening cycle gained traction, suggesting a potential easing or conclusion of rate hikes, which could potentially mitigate the risk of a severe recession in the United States.
According to technical analysis, the XAU/USD pair underwent an upward movement on Wednesday, pushing towards the upper band of the Bollinger Bands. Currently, the price is close to the upper bands of the Bollinger Bands, and the bands themselves suggest the possibility of further upward movement. This indicates the potential for the price to reach the upper band of the Bollinger Bands. Furthermore, the Relative Strength Index (RSI) is currently at 76, within the overbought area, indicating a bullish trend for the XAU/USD.
Resistance: $1,965, $1,981
Support: $1,946, $1,929
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
