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 Despite Positive US Data and Rising Treasury Yields; ECB Policy Meeting Looms
The EUR/USD pair defied positive US economic data and surging Treasury yields on Tuesday, reaching a high of 1.0595 before retreating slightly. The Eurozone exhibited encouraging signs with the ZEW survey reporting an improved Eurozone Sentiment Index, while the German ZEW also exceeded expectations. The European Central Bank (ECB) is expected to maintain its interest rates unchanged next week. Although both US and European bond yields increased significantly, the robust US data may limit the EUR/USD pair’s upside potential, as it experienced a brief drop before reversing course. Upcoming economic indicators and the ECB meeting will likely continue to influence this currency pair.
Based on technical analysis, the EUR/USD was slightly higher on Tuesday, pushing towards the upper band of the Bollinger Bands. Currently, the EUR/USD is trading just below the upper band, suggesting the potential for another higher movement. The Relative Strength Index (RSI) stands at 55, indicating that the EUR/USD is still in neutral bias.
Resistance: 1.0616, 1.0655
Support: 1.0557, 1.0502
XAU/USD Rebounds to Weekly High as Strong US Data Boosts Market Sentiment Despite Rising Bond Yields
In the world of precious metals, spot Gold (XAU/USD) made a significant recovery, trading around $1,923 per troy ounce and hitting a fresh weekly high of $1,913.57, though still slightly below the previous week’s peak. The rally was fueled by upbeat US data, including a 0.7% increase in September Retail Sales, surpassing market expectations, and positive reports on Capacity Utilization and Industrial Production. Meanwhile, global concerns over inflation eased as New Zealand and Canada reported declining inflation rates, providing a further boost to market sentiment. However, rising government bond yields, particularly the 10-year Treasury note, which reached 4.80%, tempered the decline of the US Dollar.
Based on technical analysis, XAU/USD is moving slightly higher on Tuesday and consolidating between the upper and middle bands of the Bollinger Bands. Currently, the price of gold is moving higher with the potential of reaching the upper band. The Relative Strength Index (RSI) currently registers at 70, indicating a bullish bias for the XAU/USD pair.
Resistance: $1,946, $1,959
Support: $1,928, $1,913
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
