Spreads
Spreads
Spreads
Spreads
Spreads
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EUR/USD Stabilizes Amid Speculations of Fed Rate Cuts
The EUR/USD pair exhibited slight fluctuations, stabilizing around the 1.0800 mark, amidst a backdrop of uncertain US dollar movements and anticipations of Federal Reserve interest rate adjustments. This period of inconclusive price action follows a recent surge to 1.0840, driven by speculations and marginal gains in US bond yields, hinting at possible Fed rate cuts later in the year. Market probabilities lean towards a rate reduction by the Fed, with a 30% chance in May, escalating to 53% in June. Concurrently, the European Central Bank (ECB) faces its rate decision pressures, amidst improved consumer confidence in the Eurozone and ongoing discussions on monetary easing, setting a complex stage for the EUR/USD dynamics as both regions navigate through inflationary pressures and economic forecasts.
On Wednesday, the EUR/USD moved higher and was able to reach near the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential upward movement to reach the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 65, signaling a bullish outlook for this currency pair.
Resistance: 1.0845, 1.0896
Support: 1.0783, 1.0723
XAU/USD Trajectory Amidst Dollar Strength and Anticipation of FOMC Minutes
As the US Dollar gained momentum with Wall Street’s opening and before the release of the Federal Open Market Committee (FOMC) Minutes, gold prices (XAU/USD) were influenced by a complex interplay of factors. The anticipation surrounding the FOMC minutes, detailing reasons for holding interest rates steady in early 2024, and Chairman Jerome Powell’s remarks on the unlikelihood of a March rate cut, set a cautious tone in the market. Despite recent employment and inflation data backing the Federal Reserve’s wait-and-see approach, shifting rate-cut expectations to June from May, the overall mixed performance of the dollar amidst a lackluster risk appetite and struggling global equities highlights a potentially volatile environment for gold as investors digest these economic cues.
On Wednesday, XAU/USD moved back lower to reach the middle band after reaching near the upper band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential upward movement toward the upper band. The Relative Strength Index (RSI) stands at 58, signaling a neutral with a slightly 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.
