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 Gains Amid Speculation of US Interest Rate Cuts and ECB’s Prudent Stance
The EUR/USD pair experienced a rebound, touching the 1.0860 mark as the new trading week began, fueled by a weakening US dollar and speculation about potential Federal Reserve interest rate cuts, possibly starting in June. This speculation has been supported by recent US inflation data and a tight labor market, increasing the odds of monetary easing. Meanwhile, European Central Bank (ECB) official Yannis Stournaras emphasized the need for cautious monetary policy adjustments, aiming for a gradual approach to rate cuts to ensure inflation targets are met. The interplay between anticipated US monetary policy adjustments and the ECB’s prudent stance is likely to continue driving EUR/USD price actions in the near term.
On Monday, 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 downward movement to reach the middle band. Notably, the Relative Strength Index (RSI) maintains its position at 60, signaling a slightly bullish outlook for this currency pair.
Resistance: 1.0858, 1.0896
Support: 1.0823, 1.0783
XAU/USD Retreats Below $2,030 Amid Rising US Treasury Yields and Technical Pressure
Gold experienced a slight downturn, falling below the $2,030 mark during the American trading session on Monday, as it faced technical and fundamental pressures. The recovery of the 10-year US Treasury bond yields toward 4.3% contributed to the decline in the XAU/USD pair, reflecting a dampened appeal for the non-yielding asset. Technical analysis reveals a decrease in buying interest, with a potential for a bearish extension highlighted by the metal’s performance around critical simple moving averages (SMAs) and technical indicators. Meanwhile, the broader market’s cautious stance ahead of significant US economic data releases, including the closely watched US Core Personal Consumption Expenditures (PCE) Price Index, adds to the bearish sentiment surrounding gold.
On Monday, XAU/USD moved lower to reach the middle band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential consolidation movement. The Relative Strength Index (RSI) stands at 55, signaling a neutral outlook for this pair.
Resistance: $2,042, $2,056
Support: $2,030, $2,017
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