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 Slides to 1.0520 as Stronger US Dollar, Rising Yields Pressure Pair
The EUR/USD pair dipped from weekly highs above 1.0630 to 1.0520, driven by a stronger US Dollar bolstered by higher Treasury yields and encouraging US economic data. The European Central Bank’s recent meeting minutes revealed support for a potential interest rate hike, though this had a limited impact on the Euro. Meanwhile, the US Dollar gained further momentum following a 0.4% rise in the Consumer Price Index (CPI) for September, adding to expectations of prolonged higher interest rates. With the 10-year yield surging to 4.72%, the Greenback’s correction ended, leaving it poised to challenge cycle highs.
Based on technical analysis, the EUR/USD fell on Thursday, pushing towards the lower band of the Bollinger Bands. Currently, the EUR/USD is trading around the lower band, while the bands are trending upwards, suggesting the potential for consolidating move to retest the middle Bollinger Band. The Relative Strength Index (RSI) stands at 42, indicating that the EUR/USD is back to netural bias.
Resistance: 1.0582, 1.0640
Support: 1.0520, 1.0460
XAU/USD Dip as Hawkish Fed Sentiment Surges on Strong US CPI Data
Investors are reevaluating their expectations for the US Federal Reserve as robust Consumer Price Index (CPI) data, revealing a 0.4% increase last month and an annual inflation rate of 3.7% in September, further strengthens the narrative of “higher rates for longer.” This has boosted the US Dollar and Treasury bond yields, causing Gold prices to retreat from their recent two-week high above $1,880 and dip below $1,870. The surge in hawkish Fed sentiments is fueling uncertainty, with markets now placing a 38% probability of a December rate hike, compared to the previous 28%. In addition, softer Chinese CPI and Producer Price Index data are contributing to risk aversion. As we await US Consumer Sentiment and Inflation Expectations data, along with speeches from Fed policymakers, the future of the US Dollar remains uncertain.
Based on technical analysis, XAU/USD is moving slightly lower on Thursday and able to reach the middle band of the Bollinger Bands. Currently, the price of gold is trading slightly above the middle band with the potential of moving back higher. The Relative Strength Index (RSI) currently registers at 62, indicating a bullish bias for the XAU/USD pair.
Resistance: $1,887, $1,900
Support: $1,857, $1,845
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
