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 Resilience Amidst Fed’s Policy Uncertainty and Labor Market Dynamics
In the face of a recent dip to a two-month low near 1.0780, EUR/USD showed resilience by rebounding beyond 1.0800, coinciding with the 100-day SMA. The USD Index (DXY) remained in a consolidative range post the latest FOMC event, where Powell indicated the Fed’s readiness to maintain the current policy rate for an extended period. Powell’s cautious stance and the uncertainty surrounding future rate decisions have fueled investor debates, with expectations of a potential interest rate cut in March or May. As the market awaits the US Nonfarm Payrolls report on February 2, a solid jobs print could solidify perceptions of a tight labor market, potentially supporting a May rate cut and, in the short term, bolstering the US dollar and yields.
On Thursday, the EUR/USD moved higher to reach the upper band of the Bollinger Bands. Currently, the price moving just below the upper band with wider bands, suggesting a potential upward movement to reach the resistance levels. Notably, the Relative Strength Index (RSI) maintains its position at 59, signaling a neutral but bullish outlook for this currency pair.
Resistance: 1.0907, 1.0985
Support: 1.0851, 1.0780
XAU/USD Surges to Weekly High of $2,065.54 Amidst Positive Economic Data and Fed’s Inflation Commentary
In response to the Federal Reserve’s recent announcement, Gold (XAU/USD) resumed its upward trajectory, reaching a fresh weekly high of $2,065.54. The financial markets, now looking beyond the Fed’s statement, are focusing on encouraging United States data, including an improvement in the ISM Manufacturing PMI to 49.1 in January. The economy’s resilience is further demonstrated by Q4 Nonfarm Productivity rising 3.2%, surpassing expectations. Wall Street turned positive, and government bond yields fell, placing additional pressure on the Greenback. As attention turns to the January US Nonfarm Payrolls (NFP) report, expectations are set for 180K new jobs added, with a modest increase in the Unemployment Rate to 3.8%. Fed Chairman Jerome Powell’s remarks about easing inflation and minimal unemployment pressure have contributed to the evolving market dynamics.
On Thursday, XAU/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price moving slightly below the upper band, suggesting a potential upward movement to reach the resistance level. The Relative Strength Index (RSI) stands at 61, signaling a bullish outlook for this pair.
Resistance: $2,062, $2,077
Support: $2,048, $2,031
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
