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 Rises Amid USD Weakness and Central Bank Signals
As the US Dollar experiences a corrective decline, dipping back to the 104.00 area due to lower US yields and speculations around the Federal Reserve’s potential easing in its May or June meetings, the EUR/USD pair found the opportunity to climb back to the 1.0780 level. This move is further supported by Fed Chair Jerome Powell’s remarks on a cautious approach to interest rate adjustments and Minneapolis Fed Neel Kashkari’s openness to evaluating data before rate cuts, hinting at 2-3 adjustments this year. Meanwhile, the European Central Bank (ECB) Board member Isabel Schnabel highlights the critical phase of monetary policy adjustment in the EU, advocating for prudence amidst challenging economic signals. This juxtaposition of the Fed’s easing potential and the ECB’s cautious stance contributes to the current dynamics of the EUR/USD exchange rate.
On Wednesday, the EUR/USD moved higher and able to reach above the middle band of the Bollinger Bands. Currently, the price is moving just above the middle band with narrower bands, suggesting a potential slightly upward movement to reach the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 49, signaling a neutral outlook for this currency pair.
Resistance: 1.0817, 1.0880
Support: 1.0724, 1.0662
XAU/USD Rise Amid Weakening US Dollar and Static Treasury Yields
Gold (XAU/USD) experienced a notable increase, reaching $2,044.64, driven by a combination of Wall Street’s positive momentum and a weakening US Dollar, which struggled throughout the day due to a lack of significant market events. This shift came as investors adjusted their positions following recent announcements from major central banks, which tempered expectations for rate cuts. Despite optimistic remarks from Federal Reserve officials on inflation trends, caution was advised against premature policy adjustments. Concurrently, a decrease in early gains for US Treasury yields, with the 10-year note dropping slightly to 4.09%, contributed to the Dollar’s underperformance, further bolstering gold’s appeal.
On Wednesday, XAU/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving slightly above the middle band, suggesting a potential upward movement to reach back to the upper band. The Relative Strength Index (RSI) stands at 52, signaling a neutral outlook for this pair.
Resistance: $2,043, $2,062
Support: $2,031, $2,016
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
