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 Rebounds from Monthly Lows Amidst Weakening US Dollar and Data-Dependent Fed Stance
The EUR/USD pair tested levels above 1.0630 before pulling back, displaying modest gains as it recovers from monthly lows. Trading in a critical area, the Euro awaits more US inflation data, benefiting from the US Dollar’s weakness due to declining yields and positive market sentiment. The unexpected rise in the US Producer Price Index didn’t significantly impact the Dollar, while the latest FOMC minutes highlighted the Fed’s data-dependent approach to policy. A busy economic calendar on Thursday includes the release of ECB minutes and the US Consumer Price Index, with potential market impact depending on the CPI’s performance.
Based on technical analysis, the EUR/USD rose on Wednesday, pushing towards the upper band of the Bollinger Bands. Currently, the EUR/USD is trading below the upper band, while the bands are trending upwards, suggesting the potential for another upward move to retest the upper Bollinger Band. The Relative Strength Index (RSI) stands at 62, indicating that the EUR/USD is currently attempting to establish a bullish bias.
Resistance: 1.0674, 1.0736
Support: 1.0583, 1.0530
XAU/USD Surges to Two-Week High Amidst US Dollar Weakness and Bond Yield Concerns
In a strong rally, the price of gold (XAU/USD) soared to a fresh two-week high at $1,877.19 per troy ounce on Wednesday. This impressive surge was attributed to the widespread weakness of the US Dollar, which was in turn linked to declining US Treasury bond yields. The dip in yields was partially driven by renewed demand for safety amid Middle East developments and dampened expectations of another Federal Reserve rate hike, as policymakers generally anticipate that robust yields will obviate the need for further tightening. Nevertheless, even as yields have eased lately, they remain near the multi-decade highs observed in September. Investor sentiment became cautious after the release of the US Producer Price Index (PPI) and in anticipation of the FOMC Meeting Minutes, as wholesale inflation in the country surged by 2.2% YoY in September, exceeding market expectations and August figures. The release of the Consumer Price Index (CPI) on Thursday is anticipated to show a 3.6% YoY increase, further influencing the gold market.
Based on technical analysis, XAU/USD is trending higher on Wednesday, creating an uptrend within the Bollinger Bands. Currently, the price of gold is trading slightly below the upper band and is beginning to consolidate between the middle and upper bands of the Bollinger Bands. The Relative Strength Index (RSI) currently registers at 75, indicating a bullish bias for the XAU/USD pair.
Resistance: $1,874, $1,887
Support: $1,845, $1,829
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