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 Amidst Dollar Weakness Triggered by Economic Data
The EUR/USD saw its most substantial daily gain in a month on Tuesday, surging from below 1.0800 to near 1.0900, driven by a notable correction in the weakening US Dollar, which stemmed from disappointing US economic indicators and a decline in Treasury bonds. US data unveiled employment setbacks, particularly in the JOLTS report and CB Consumer Confidence index, which led to a decline in US Treasury yields, applying downward pressure on the US Dollar. The DXY index dropped below 103.50 after being at 104.40. Upcoming economic data releases, including the ADP private employment report and US consumer inflation data, may continue to impact the US Dollar’s trajectory.
Based on technical analysis, the EUR/USD moves higher on Tuesday, reaching the upper band of the Bollinger Bands. Currently, the price is moving around the upper band, showing that there’s potential for another higher movement. The Relative Strength Index (RSI) is currently at 59, signaling that the EUR/USD is trying to move higher into a bullish trend.
Resistance: 1.0874, 1.0935
Support: 1.0833, 1.0789
XAU/USD Surges as US Economic Data Points to Easing Monetary Measures
On Tuesday, the XAU/USD shifted its trajectory, surging to $1,938.08 per troy ounce, driven by US macroeconomic indicators that suggested a potential conclusion to the monetary tightening cycle. The US Dollar faced a sharp decline after the US Bureau of Labor Statistics reported fewer job openings than expected, indicating a loosening labor market trend. The number of job openings stood at 8.82 million in July, down from the anticipated 9.46 million.
Adding to this, Consumer Confidence dwindled to 106.1 in August from 114.0 in July, reflecting a decrease in household demand. As a result, financial markets are increasingly predicting the Federal Reserve will maintain rates in the upcoming September meeting, with the likelihood of a 25 basis points hike in November dropping from 50.9% to 44.5%. This news spurred Wall Street to reach new weekly highs, and Treasury bond yields experienced a downturn, with the 10-year note yielding 4.12% (down 8 bps) and the 2-year note offering 4.88% (down 12 bps).
Based on technical analysis, the XAU/USD moves higher on Tuesday and trying to widen the bands for the Bollinger Bands. Currently, the price is trying to push the upper band higher showing there’s potential for Gold to move even higher. The Relative Strength Index (RSI) is at 73 currently, showing that the XAU/USD pair is still in a positive mode.
Resistance: $1,945, $1,965
Support: $1,926, $1,910
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
