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 Dips Amid Strengthening Dollar and Fed’s Cautious Stance
The EUR/USD pair witnessed a notable decline, breaking below key support levels to reach its lowest since early December, amid a strengthened USD following robust US job data and hawkish comments from Federal Reserve Chair Jerome Powell. Powell’s emphasis on a cautious approach to interest rate decisions, requiring further evidence of inflation moving sustainably towards the 2% target before considering rate reductions, coupled with a significant drop in the likelihood of an imminent rate cut, has bolstered the dollar. This scenario is further supported by a surge in US yields, highlighting the market’s reaction to the Federal Reserve’s stance on balancing economic stability and inflation control, ultimately influencing EUR/USD dynamics.
At the time of writing, the four-hour Stochastic indicator is moving higher trying to exit the oversold area and the price is moving below the 20-period moving average. We expect that EURUSD might move slightly lower today and reach our support level at 1.0716.
Resistance: 1.0755; 1.0813
Support: 1.0716; 1.0664
Gold Prices Waver Amid Fed Rate Cut Speculations and Geopolitical Tensions
Gold prices experienced volatility, initially buoyed by geopolitical tensions, yet later succumbed to the stronger US dollar and Treasury yields, following a robust US Nonfarm Payrolls report and the Federal Reserve Chairman’s hawkish stance. Despite early support from escalating tensions between the West and Iran-backed Houthi rebels, the anticipation of less aggressive Federal Reserve rate cuts, as implied by Fed Chair Jerome Powell’s dismissal of an immediate rate cut and the market’s adjusted expectations, pressured gold. Furthermore, the mixed signals from Fed policymakers, with some openness to rate cuts against a backdrop of strong economic indicators, have left gold traders cautious. With no significant US economic data expected, attention turns to Fed commentary for future rate cut clues and market sentiment influenced by ongoing US earnings season and Middle East tensions.
At the time of writing, the four-hour Stochastic indicator is moving higher in the middle and the price is moving below the 20-period moving average. We expect that Gold will move lower and reach our support level at $2,019.
Resistance: $2,036.91; $2,046.78
Support: $2,019.12; $2,009.71
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
