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 Rebounds Amid USD Pullback and Fed Rate Cut Speculation
The EUR/USD pair witnessed a rebound as the US dollar experienced a modest retracement, driven by a pullback in US yields and profit-taking after recent gains. This movement was influenced by the anticipation of potential Federal Reserve monetary easing, possibly starting in June, in response to higher-than-expected US inflation figures. Market odds, according to the CME Group’s FedWatch Tool, suggest a growing probability of a Fed rate cut, with significant expectations for a reduction by the June meeting. Meanwhile, Federal Reserve and ECB officials highlighted the importance of cautious monetary policy adjustments amidst inflation concerns and geopolitical risks, indicating a complex environment for future rate decisions and their implications for currency movements.
On Wednesday, the EUR/USD moved higher and reached near the middle band of the Bollinger Bands. Currently, the price is moving just below the middle band, suggesting a potential slightly upward movement to reach above the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 44, signaling a neutral outlook for this currency pair.
Resistance: 1.0744, 1.0796
Support: 1.0713, 1.0662
XAU/USD Recovery Amid Weakening USD and Optimistic Market Sentiments
Gold (XAU/USD) witnessed a dip to its lowest since last December at $1,984.03, only to rebound above the $1,900 threshold as the US Dollar weakened due to improved market sentiments and a rally on Wall Street. This shift came despite the global central banks’ firm stance against easing monetary policy, underscored by recent macroeconomic data indicating persistent inflation and tight labor markets, especially in the US. The unexpected rise in January’s inflation and strong Nonfarm Payrolls report has quashed immediate hopes for a Federal Reserve rate cut, as affirmed by Fed Chairman Jerome Powell, emphasizing a cautious yet optimistic outlook for the economy.
On Wednesday, XAU/USD moved flat and moved between the lower and middle bands of the Bollinger Bands. Currently, the price is moving above the lower band, suggesting a potential upward movement to reach the middle band. The Relative Strength Index (RSI) stands at 32, 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.
