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 on Dollar Weakness Triggered by US CPI Data
The EUR/USD pair saw a substantial 200-pip surge following a Dollar selloff catalyzed by the release of stagnant US consumer inflation data. Despite the Eurozone experiencing a slight contraction, the Dollar’s tumble to monthly lows came as US CPI remained unchanged in October, sparking Treasury bond rallies and Wall Street stock gains. This shift strengthened the Euro against the Dollar, with expectations firming that the Federal Reserve might hold off on further rate hikes. The upcoming US Producer Price Index (PPI) release and October Retail Sales report are anticipated to provide further insights, potentially keeping the US Dollar vulnerable pending signs of easing inflation and consumer softness.
According to technical analysis, the EUR/USD moved higher on Tuesday, reaching above the upper band of the Bollinger Bands. Currently, the EUR/USD is trading just above the upper band, indicating the potential for a continuation move to widen the band further. The Relative Strength Index (RSI) is at 79, signaling a bullish bias for the EUR/USD.
Resistance: 1.0890, 1.0935
Support: 1.0835, 1.0772
XAU/USD Surges Amidst Dollar Decline and Inflation Data: Market Anticipates Fed’s Move
Spot Gold experienced a significant surge, propelled by a notable downturn in the US Dollar and an upswing in Treasury bonds. Climbing from $1,945 to $1,970, its highest in six days, XAU/USD rallied following the release of US inflation figures that triggered a strong market response, bolstering stocks and pushing the Dollar to multi-month lows. The Consumer Price Index showed a drop in annual inflation rates, below market expectations, easing speculation of a Federal Reserve rate hike before year-end. This led to a shift in market sentiment, advancing predictions for an earlier rate cut. With upcoming data releases on the Producer Price Index and Retail Sales, further evidence of softening inflation and consumer metrics might sustain Gold’s rally, reinforcing beliefs that the Fed’s tightening phase has reached its conclusion.
According to technical analysis, XAU/USD moved higher on Tuesday and managed to reach the upper band of the Bollinger Bands. Presently, the price of gold is moving just below the upper band, creating the possibility of further upward movement to push towards the upper band. The Relative Strength Index (RSI) is currently at 56, indicating that the XAU/USD pair is still in a neutral bias.
Resistance: $1,970, $1,992
Support: $1,955, $1,933
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
