Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD Sees Mild Losses Amidst Light Trading
The EUR/USD pair hovers near 1.1037, experiencing marginal setbacks amidst subdued trading conditions. The Federal Reserve’s favored inflation metric, the Core PCE, exhibited a 3.2% year-on-year growth, slightly under the anticipated 3.3%, further affecting the US Dollar’s stance. Conversely, ECB statements from President Christine Lagarde emphasized the bank’s data-dependent approach, dismissing market pressures. Eurozone outlook remained cautiously optimistic, with ECB Vice President Luis de Guindos highlighting a reluctance to alter monetary policy prematurely. As economic calendars lack major data releases, the EUR/USD trend hinges on prevailing market sentiment, potentially swayed by upcoming US Richmond Fed Manufacturing Index and Initial Jobless Claims reports, influencing near-term price movements.
On Tuesday, the EUR/USD moved slightly higher and tried to reach the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 64, signaling a neutral but slightly bullish outlook for this currency pair.
Resistance: 1.1042, 1.1138
Support: 1.0946, 1.0852
XAU/USD Holds Steady Above $2,060 Amid Dollar Weakness and Easing Speculations
In the early Asian session, Gold (XAU/USD) maintained its position above $2,060 despite a marginal 0.09% dip, set amidst a quiet trading week expected due to light volumes in the final stretch of 2023. The US Dollar weakened against its counterparts, pressing the US Dollar Index (DXY) to its lowest since July near 101.45. As Treasury yields edged lower, resting at 3.89%, expectations of Federal Reserve easing intensified, with the market pricing in potential cuts in January and fully anticipating cuts by March 2024. This dovish stance, alongside recent data showing a softer increase in the Core PCE, has positioned lower interest rates as a potential boon for gold, reducing its opportunity cost as a non-yielding asset. Geopolitical tensions in the Middle East, particularly Yemen’s threat to Red Sea shipping and Iran’s potential actions in the Gibraltar Strait, are adding pressure, potentially elevating gold’s safe-haven appeal. Traders are keenly observing the unfolding geopolitical landscape alongside upcoming economic indicators like the US Richmond Fed Manufacturing Index and Initial Jobless Claims.
On Tuesday, XAU/USD moved slightly higher and tried to reach the upper band of the Bollinger Bands. Currently, the price moving just below the upper band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 62, signaling a neutral but slightly bullish outlook for this pair.
Resistance: $2,068, $2,088
Support: $2,048, $2,031
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