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 Fluctuates Amidst Central Bank Moves and Growth Outlook Uncertainty
The EUR/USD saw an initial rise to near 1.0700 on Monday, driven by a US Dollar correction in a calm session. Despite the European Central Bank’s expected 25 basis point rate hike last Thursday, the Euro weakened but found support at 1.0630, subsequently recovering. Market sentiment suggests no further ECB rate increases, shifting the focus to rate duration. Likewise, the Federal Reserve’s upcoming FOMC meeting anticipates no rate changes, focusing on statements, projections, and Chair Powell’s remarks. Current fundamentals favor the US Dollar due to a stronger US growth outlook. This week’s data, including preliminary PMIs and CPI readings, will offer insights into differing growth prospects between Europe and the US.
According to technical analysis, EUR/USD moved slightly higher on Monday and is currently trading just around the middle band of the Bollinger Bands. This movement suggests the possibility of further consolidation. The Relative Strength Index (RSI) is currently at 47, indicating that EUR/USD is in a neutral stance.
Resistance: 1.0711, 1.0759
Support: 1.0653, 1.0605
XAU/USD Starts the Week with Optimism Amidst Economic Uncertainty
XAU/USD started the week on a positive note, trading near the upper end of Friday’s range, while market focus remains on stocks and government bond yields due to a lack of significant news. The demand for the US Dollar is subdued as stock markets grapple with tepid earnings reports, particularly in the tech sector. European indexes saw modest losses, but Wall Street rebounded from last week’s slump. US Treasury yields continue to rise due to inflation concerns ahead of the Federal Reserve’s monetary policy meeting this Wednesday. Currently, the 10-year note yields 4.33%, while the 2-year note offers 5.06%. Speculators anticipate the Fed will keep rates unchanged this week, though caution prevails as market players hope for hints regarding future interest rate moves.
According to technical analysis, XAU/USD moved higher on Monday and was able to create a higher push to the upper band of the Bollinger Bands. Currently, the price is trading slightly below the upper band with the potential for further higher movement. The Relative Strength Index (RSI) is currently at 65, indicating that the XAU/USD pair is now entering the bullish bias.
Resistance: $1,939, $1,951
Support: $1,928, $1,915
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
