Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD Gains Momentum Amid Mixed Central Bank Signals and Economic Data
Amidst a consolidating US dollar and cautious market sentiment ahead of the Federal Reserve’s FOMC meeting, EUR/USD has shown bullish movements, surpassing 1.0850. The Federal Reserve, expected to maintain its Fed Funds Target Range at 5.25%-5.50%, is facing speculation about delaying a rate cut, possibly shifting from March to May, as recent US economic data indicates a resilient economy. Concurrently, the ECB’s President Lagarde maintains a dovish outlook, emphasizing data dependence and the possibility of a summer rate cut, despite the region’s marginal GDP growth. Contrarily, ECB Board member Centeno surprisingly advocates for earlier rate cuts, supporting economic growth. These mixed signals from central banks, coupled with upcoming US Nonfarm Payrolls data, are contributing to the cautious yet dynamic trading environment for EUR/USD.
On Tuesday, the EUR/USD moved slightly higher, able to reach the middle band of the Bollinger Bands. Currently, the price moving lower near the lower band, suggesting a potential downward movement to reach the lower band. Notably, the Relative Strength Index (RSI) maintains its position at 40, signaling a neutral but bearish outlook for this currency pair.
Resistance: 1.0890, 1.0954
Support: 1.0814, 1.0745
XAU/USD Retreats Amid Strengthening US Dollar and Mixed Economic Signals
In the American session, Gold (XAU/USD) witnessed a retreat from its weekly peak of $2,048.64, influenced by the strengthening US Dollar following the release of upbeat US economic data. The surge in job openings to 9.02 million in December, as reported by the US Bureau of Labor Statistics, and a significant rise in Consumer Sentiment to a two-year high, contributed to the dollar’s appreciation. Despite a decrease in government bond yields and the US Treasury’s lowered borrowing estimate for the first quarter of 2024, Wall Street showed mixed performance. The market’s focus remains on the upcoming Federal Reserve monetary policy decision, with expectations of maintained interest rates but a keen interest in potential future rate cuts, as hinted in the Fed’s latest projections.
On Tuesday, XAU/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price moving lower between the middle band and the upper band suggesting a potential downward movement to reach above the middle band. The Relative Strength Index (RSI) stands at 54, signaling a neutral outlook for this pair.
Resistance: $2,035, $2,052
Support: $2,010, $1,993
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
