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 Suffers Sharp Decline as USD Gains Momentum Amidst Divergent Central Bank Signals and Strong US Yields
EUR/USD extended its bearish trend, breaking below the critical support level at 1.0900 and hitting a new yearly low near 1.0860. The upward momentum of the US Dollar, driven by a surge in the USD Index to 2024 peaks beyond 103.00, was reinforced by robust US yields as traders returned from the MLK holiday. ECB officials’ comments, though leaning towards rate cuts, clashed with market expectations, leading to a subdued EUR. Despite positive Economic Sentiment indicators in Germany and the Eurozone, the Euro failed to find support, and the probability of a Fed rate cut in March, as indicated by CME Group’s FedWatch Tool, decreased slightly. The decline in the Euro was set against the backdrop of rising yields in both German bunds and US Treasuries.
On Tuesday, the EUR/USD moved lower, able to reach the lower band of the Bollinger Bands. Currently, the price is moving just above the lower band, suggesting a potential upward movement to reach the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 30, signaling an oversold outlook for this currency pair.
Resistance: 1.0895, 1.0954
Support: 1.0814, 1.0742
XAU/USD Faces Sell-Off Amid Interest Rate Uncertainty and Inflation Dynamics
Gold prices (XAU/USD) experienced a decline as attempts to surpass the weekly high of $2,060 fell short. This setback was triggered by investors reassessing the Federal Reserve’s potential interest rate adjustments. The release of the December Consumer Price Index (CPI) report, coupled with hawkish statements from European Central Bank (ECB) officials, influenced market sentiment. While expectations for a rate cut in March persist, the Federal Reserve remains cautious, considering the robust consumer price inflation in the U.S. economy, steady labor demand, and low recession risks. As markets await cues from upcoming data such as monthly U.S. Retail Sales, Industrial Production, and the Fed’s Beige Book, the trajectory of gold prices hinges on evolving interest rate outlooks.
On Tuesday, XAU/USD moved lower and tried to reach the lower band of the Bollinger Bands. Currently, the price moving just above the lower band suggesting a potential upward movement to reach the middle band. The Relative Strength Index (RSI) stands at 40, signaling a neutral but bearish outlook for this pair.
Resistance: $2,035, $2,048
Support: $2,023, $2,010
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
