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 Hits Mid-June Lows Amidst Dollar’s Strength and Economic Concerns
The EUR/USD currency pair experienced a significant drop, marking its lowest daily close since mid-June. The decline came after a brief two-day recovery, highlighting the persistent pressure on the pair driven by a strong US Dollar. The Eurozone’s current account surplus of €35.8 billion in June, attributed to reduced imports due to lower energy prices, is juxtaposed against expectations of a slight dip in the August PMI composite index. The Eurozone’s economic concerns are further fueled by a cautious market atmosphere, contrasting the robustness of the US economy. As the US Dollar Index (DXY) surged above 103.50 and US Treasury yields rose, data from the US housing market added to the narrative. Attention now turns to the forthcoming Jackson Hole Symposium, where addresses by Federal Reserve Chair Powell and European Central Bank President Lagarde are eagerly anticipated.
According to technical analysis, the EUR/USD moved lower on Tuesday and managed to reach the lower band of the Bollinger Bands. Currently, the price is slightly above the lower band of the Bollinger Bands. The Relative Strength Index (RSI) currently stands at 39, indicating that the EUR/USD is currently back in a bearish mode.
Resistance: 1.0935, 1.1038
Support: 1.0837, 1.0789
XAU/USD‘s Volatile Rally Amidst Dollar’s Rebound and Market Uncertainty
The XAU/USD currency pair experienced a fluctuating rally, surging to $1,904.44 in London trading before reversing due to renewed US Dollar demand, prompted by S&P Global Ratings’ downgrade of US bank ratings following a similar move by Moody’s. Equities maintained a bullish tone as Wall Street and European indexes held onto gains despite retracements from intraday highs, and XAU/USD recovered from its low of $1,889.12. The Dollar’s performance was influenced by rising government bond yields, with the 10-year Treasury note hitting 4.366% and the 2-year note reaching 5.01%. Market unease prevailed ahead of the Jackson Hole Symposium, where speeches by US Federal Reserve Chair Jerome Powell and European Central Bank President Christine Lagarde are anticipated.
Based on technical analysis, the XAU/USD moved higher on Tuesday and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band of the Bollinger Bands. The Relative Strength Index (RSI) is currently at 55, indicating that the XAU/USD pair is now in a neutral stance with a slight bull mode.
Resistance: $1,907, $1,916
Support: $1,896, $1,885
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
