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 Faces Consolidation Amid Divergent Economic Data and Central Bank Speculations
The EUR/USD pair witnessed a notable pullback, hitting a low of 1.0883 after a recent surge past 1.1000. With the Eurozone CPI registering a slower annual increase in November, lingering below the ECB’s target, speculation looms regarding potential rate cuts. This news, coupled with the Euro’s lag against the Swiss Franc, hints at a short-term downside risk for the Euro. Meanwhile, the US Dollar, bolstered by recovering Treasury yields despite mixed US data, showcased resilience. As the market eyes the upcoming US ISM Manufacturing PMI release and ECB monetary policy, the pair remains poised for consolidation amidst divergent economic trends and central bank anticipations.
On Thursday, the EUR/USD experienced a downward movement, creating a push to the lower band of the Bollinger Bands. Currently, the price moving slightly above the lower band, suggesting a potential upward movement, potentially reaching the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 40, signaling a neutral with a slight bearish outlook for this currency pair.
Resistance: 1.0945, 1.1041
Support: 1.0842, 1.0760
XAU/USD Edges Down as Inflation Data Favors Rate-Cut Speculations
Gold prices slightly declined on Thursday as investors pivoted away from safe-haven assets in response to the release of US inflation data. The Core PCE Price Index rose by 0.2% MoM and 3.5% YoY in October, aligning with expectations but falling below September’s figures. This news was embraced by financial markets as an indication of the Fed’s likely shift toward a rate-cut monetary policy. Simultaneously, major economies like the Eurozone witnessed diminishing price pressures, evidenced by a decline in HICP figures. This trend bolstered hopes that central banks may forego additional rate hikes, averting a severe economic downturn. The flight from safety also impacted government bonds, propelling yields upwards, with the 10-year Treasury note at 4.32% and the 2-year note at 4.69%, although notably lower than previous peaks recorded in October.
On Thursday, XAU/USD moves in a period of consolidation, currently oscillating between the middle and upper bands within the Bollinger Bands. This current movement suggests a potential upward trend, potentially reaching the upper band once again. The Relative Strength Index (RSI) stands at a level below 63, indicating that the bullish sentiment for this pair remains robust.
Resistance: $2,052, $2,079
Support: $2,038, $2,012
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