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 to New Yearly Low Amidst USD Surge and Rate Cut Speculations
The EUR/USD pair experienced a significant decline, reaching a new yearly low around the 1.0700 mark as the US dollar strengthened across the board, driven by heightened expectations of a Federal Reserve monetary easing cycle potentially starting in June. This outlook was reinforced by rising US yields and a decrease in the likelihood of a May rate cut, following unexpectedly low US inflation figures. Meanwhile, in Europe, despite positive economic sentiment indicators from Germany and the broader euro area, concerns over the economic situation and expectations of ECB interest rate cuts reflect growing economic uncertainty. The ECB’s cautious stance on the timing and extent of future rate cuts underscores the delicate balance central banks are navigating in their efforts to control inflation while supporting economic growth.
On Tuesday, the EUR/USD moved lower and reached the lower band of the Bollinger Bands. Currently, the price is moving just above the lower, suggesting a potential slightly upward movement to reach the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 32, signaling a bearish outlook for this currency pair.
Resistance: 1.0725, 1.0796
Support: 1.0662, 1.0595
XAU/USD Plummets to Two-Month Low Amid Surging US Inflation and Dollar Strength
Gold prices tumbled to their lowest in two months, hitting $1,989.97 per ounce, as the US revealed stronger-than-expected inflation data, prompting a sharp rally in the US Dollar. The US Consumer Price Index (CPI) for January indicated a monthly rise of 0.3% and a core inflation increase of 0.4%, both surpassing market forecasts. This inflationary pressure, evidencing a year-over-year rise to 3.1%, has bolstered the Federal Reserve’s cautious stance on monetary policy adjustments, leading to a surge in risk aversion across financial markets. Consequently, gold’s value has suffered significantly due to the strengthened US Dollar and shifting investor sentiment.
On Tuesday, XAU/USD moved lower and reached the lower band of the Bollinger Bands. Currently, the price moving around the lower band, suggesting a potential downward movement to reach lower to the support level. The Relative Strength Index (RSI) stands at 27, signaling a bearish outlook for this pair.
Resistance: $2,004, $2,023
Support: $1,988, $1,973
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
