Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD Declines as Dollar Gains Ground Amidst Economic Contractions
The EUR/USD pair experienced a significant downturn, touching lows of 1.0940 amidst a stronger US Dollar driven by a gloomy market sentiment due to persistent economic contraction signals at the close of 2023. S&P Global’s released PMI data for both the Eurozone and the US showcased a slight improvement in the EU’s manufacturing index while the US saw a contraction, aligning with a risk-averse atmosphere that pushed stocks downward and lifted Treasury yields. Eyes are now on upcoming data, particularly the December US ISM Manufacturing PMI and FOMC Meeting Minutes, as Chairman Jerome Powell hinted at potential rate cuts, prompting curiosity about policymakers’ official discussions.
On Tuesday, the EUR/USD moved lower and reached the lower band of the Bollinger Bands. Currently, the price moving slightly above the lower band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 32, signaling a bearish outlook for this currency pair.
Resistance: 1.0980, 1.1068
Support: 1.0892, 1.0814
XAU/USD Holds Steady Amidst Market Caution and Dollar Strength
Spot Gold maintained a steady stance, lingering around its daily opening without a definitive trajectory, recuperating slightly from an intraday dip to $2,055.82. The US Dollar gained traction throughout the European trading session, bolstered by Wall Street’s subdued performance. Investor apprehension loomed after the long weekend, accentuated by the forthcoming pivotal US employment data and a lineup of significant economic indicators. The sentiment downturn followed the disappointing US S&P Global Manufacturing PMI, overshadowing the better-than-expected European Manufacturing PMIs. This cautionary atmosphere was compounded by US stocks dipping and government bond yields edging upwards, indicating renewed market apprehension regarding projected rate cuts across major economies. Eyes remain fixed on the imminent US employment reports and upcoming European inflation updates, shaping the short-term technical outlook for XAU/USD.
On Tuesday, XAU/USD moved lower and reached the lower band of the Bollinger Bands. Currently, the price moving just above the lower band, suggesting a potential upward movement. The Relative Strength Index (RSI) stands at 46, signaling a neutral outlook for this pair.
Resistance: $2,070, $2,090
Support: $2,048, $2,024
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
