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 Faces Bearish Pressure as Fed Maintains Rates Amidst Bullish Dollar Momentum
The EUR/USD pair experienced renewed selling pressure as bullish momentum in the US dollar pushed it towards the lower end of the weekly range, hovering around the 1.0800 region. The Federal Reserve, maintaining its Fed Funds Target Range at 5.25%-5.50%, provided no surprises during its event, with Chair J. Powell expressing a belief that the policy rate may have peaked. Despite this, the greenback’s upside pressure increased as Powell indicated that an interest rate cut in March is unlikely. Investors are now debating the possibility of a rate cut in March or May, with probabilities at approximately 36% and 58%, respectively, according to the FedWatch Tool by CME Group. As market participants await the critical US Nonfarm Payrolls on February 2, the focus remains on deciphering clues about the potential timing of a rate move in March or May.
On Wednesday, the EUR/USD moved higher to reach the upper band of the Bollinger Bands before going back lower. Currently, the price is moving lower near the lower band, suggesting a potential downward movement to reach below 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: 1.0850, 1.0907
Support: 1.0795, 1.0745
XAU/USD Surges Past $2,050 as US Dollar Weakens Amidst Inflationary Easing
The US Dollar faces significant selling pressure as the Federal Reserve approaches a monetary policy decision, causing Gold (XAU/USD) to climb beyond $2,050 per troy ounce. The Greenback weakened following the release of US employment data, indicating a further easing of inflationary pressures. Despite a slower-than-expected job market growth in January, the ADP National Employment Report suggests improved prospects for inflation. Simultaneously, the Q4 Employment Cost Index reveals a modest 0.9% increase in wages and benefits, contributing to a decline in government bond yields. Investors now turn their attention to the upcoming Fed decision, anticipating potential impact on the US Dollar, especially if Chair Jerome Powell’s statements lean towards a dovish stance.
On Wednesday, XAU/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving lower between the middle and upper bands suggesting a potential downward movement to reach the middle band. The Relative Strength Index (RSI) stands at 56, signaling a neutral but bullish outlook for this pair.
Resistance: $2,052, $2,062
Support: $2,031, $2,019
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
