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 Reversal and Dollar Strength Amidst Economic Indicators
The EUR/USD pair retreated from early-week gains, hovering near 1.0900 amidst a stronger USD Index reaching 102.70. Market caution ahead of US inflation data and consumer sentiment reports contributed to the dollar’s uptick. The pair’s movement was influenced by mixed US yield trends and divergent central bank policies, with the ECB possibly eyeing rate cuts while the Fed leans toward reductions. Germany’s disappointing industrial production and an unexpected jobless rate improvement in the broader Eurozone added to the euro’s bearish sentiment, shaping the currency pair’s recent downturn.
On Tuesday, the EUR/USD moved slightly lower and reached the lower band of the Bollinger Bands. Currently, the price moving just below the middle band, suggesting a potential upward movement. Notably, the Relative Strength Index (RSI) maintains its position at 44, signaling a neutral outlook for this currency pair.
Resistance: 1.0980, 1.1068
Support: 1.0892, 1.0814
XAU/USD Treads Cautiously Amidst Economic Uncertainty and Fed Rate Expectations
Spot gold, reflected by XAU/USD, remains within familiar ranges, lingering at the lower end of Monday’s spectrum. The US Dollar gains momentum amid a gloomy market sentiment as stocks dip, while anticipation builds for key macroeconomic indicators. Market optimism regarding a potential Fed interest rate trim awaits validation from forthcoming Consumer Price Index (CPI) figures. Recent employment data signaling a tight labor market raises concerns about potential inflationary pressures, posing a dilemma for the Fed’s tightening policy. With rates at multi-year highs, there’s a looming risk of an economic setback, prompting speculation on potential rate cuts as early as March. Amidst this backdrop, the surge in US Treasury yields further bolsters the USD, creating a cautious atmosphere for gold traders.
On Tuesday, XAU/USD moved lower and moving between the middle and lower bands of the Bollinger Bands. Currently, the price moving higher and trying to reach the middle band. The Relative Strength Index (RSI) stands at 42, signaling a neutral outlook for this pair.
Resistance: $2,050, $2,070
Support: $2,030, $2,009
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.