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 Soars Amidst Fed and ECB Policy Moves
The EUR/USD pair experienced a surge, hitting 1.1009 before a minor pullback, driven by contrasting central bank actions. The US Dollar faced pressure post-Fed, while the Euro gained ground following the ECB’s decision to maintain rates and continue PEPP reinvestments through H1 2024, with plans to reduce the portfolio by €7.5 billion monthly in H2. Despite expectations of a gradual inflation decline till 2024 and concerns over price pressures, ECB President Christine Lagarde clarified no discussions on rate cuts occurred. Additionally, the Dollar’s slide was compounded by a drop in Treasury yields. While positive US data on Retail Sales and Jobless Claims surpassed expectations, the focus remains on Friday’s release of S&P Global’s preliminary December PMIs for the EU and the US.
On Thursday, the EUR/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential continuation movement, potentially reaching the resistance level at 1.1017. Notably, the Relative Strength Index (RSI) maintains its position at 77, signaling a bullish outlook for this currency pair.
Resistance: 1.1017, 1.1060
Support: 1.0963, 1.0912
XAU/USD Hold Steady Amidst Dollar Respite and Central Bank Divergence
Gold (XAU/USD) navigates a week of fluctuations, poised for a weekly gain after a retreat from record highs. The Asian market’s influence is marked by the US Dollar’s pause in its decline, propelled by a slight rebound in US Treasury bond yields. Amidst this, the US Dollar finds stability as Asian stocks trim early gains, awaiting pivotal preliminary PMI data from the US and Eurozone, crucial for gauging global economic health. The backdrop is a US Federal Reserve embracing a dovish stance, contrasting with the Bank of England and European Central Bank hinting at potential tightening, revealing a pronounced monetary policy divergence that weighs heavily on the dollar. Despite temporary Dollar recoveries due to unexpected US Retail Sales upticks, the dovish Fed outlook continues to fuel a global risk-on sentiment, supporting Gold prices near recent highs. As the week concludes, the focus remains on the PMI data’s impact and potential profit-taking amid a volatile week dominated by central bank actions.
On Thursday, XAU/USD moved in consolidation around the upper band of the Bollinger Bands. Currently, the price moving below the upper band, suggesting a potential continuation movement, potentially reaching the resistance level at $2,041. The Relative Strength Index (RSI) stands at 64, signaling a bullish outlook for this pair.
Resistance: $2,041, $2,068
Support: $2,008, $1,985
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
