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 Peaks Amid Speculation on Fed Rate Decisions
The EUR/USD pair reached a new high since early February, closing near 1.0800, as it gained from the widespread weakness of the US Dollar. This shift was largely influenced by market speculation that the Federal Reserve might postpone interest rate cuts, with expectations for a May reduction significantly dropping post the latest Fed meeting. Despite a light economic calendar, the euro found additional support from positive data releases like the EU Current Account surplus and an increase in Construction Output. Investors now await the FOMC Meeting Minutes for further direction on the Fed’s rate policy outlook.
On Tuesday, the EUR/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential slight downward movement to reach the middle band before it goes back higher. Notably, the Relative Strength Index (RSI) maintains its position at 62, signaling a neutral but bullish outlook for this currency pair.
Resistance: 1.0845, 1.0896
Support: 1.0783, 1.0723
XAU/USD Hits Week-High as US Dollar Weakens Amid Rate Speculation
Spot Gold (XAU/USD) continues its ascent, marking a fourth day of gains by reaching around $2,030, a peak not seen in over a week. This surge comes as the US Dollar weakens, driven by increasing speculation that the Federal Reserve will maintain elevated interest rates longer than some investors expected. Despite the resilient US economy, bets against the Fed’s intentions have been cautioned against by officials, shifting market expectations towards a later rate adjustment, now more heavily anticipated in June rather than March. Meanwhile, Wall Street experiences a downturn, though mitigated by some positive earnings reports, and a recovery in government bond yields further pressures the USD, contributing to Gold’s upward momentum.
On Tuesday, XAU/USD moved back lower after reaching the upper band of the Bollinger Bands. Currently, the price is moving between the upper and middle bands, suggesting a potential downward movement toward the middle band. The Relative Strength Index (RSI) stands at 59, signaling a neutral but bullish outlook for this pair.
Resistance: $2,030, $2,042
Support: $2,017, $2,004
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
