The EUR/USD gained 0.31% on Tuesday, reversing a 0.06% loss from the previous day. This article will analyze the potential impact of European Central Bank (ECB) commentary and the US economic calendar on the EUR/USD exchange rate. Investors must closely monitor ECB commentary throughout the session. Despite recent warnings of a higher-for-longer ECB rate path
Forecasts
In the realm of financial markets, the future trajectory of interest rates holds immense significance. This article delves into the ongoing debate surrounding the timing and depth of potential interest rate cuts by the Federal Reserve. Moreover, it explores the implications of these speculations on the price of gold, given its historical safe-haven appeal. As
The AUD/USD gained 0.48% on Tuesday, ending the session at $0.68241. This positive performance comes after the Australian dollar fell to a low of $0.67913 earlier in the day before rising to a high of $0.68270. The rise in the AUD/USD suggests that investor sentiment towards the Australian dollar has improved. On Wednesday, industrial profit
The U.S. Dollar Index (DXY) is currently under pressure as traders remain focused on the Federal Reserve’s policy outlook. If the index settles below the key level of 101.50, it is likely to head towards the support zone between 100.50 and 100.80. The uncertain Fed policy has contributed to the weakening of the U.S. dollar,
The dollar is currently facing instability due to signs of cooling inflation in the U.S. economy. This has led to expectations that the Federal Reserve might ease interest rates in the coming year. The dollar index is hovering near a five-month low, highlighting the market’s response to changing economic indicators. In the Treasury market, yields
Inflation, while reduced from its peak in 2022, still remains higher than the desired 2% target set by central banks in developed economies worldwide. This situation is a cause for concern as it indicates sustained high prices for goods and services, resulting in a prolonged wage/price spiral. The process of inflation returning to acceptable levels
Understanding the relationship between economic reports and gold prices is crucial for investors and traders. Today, we examine the recent US Bureau of Economic Analysis’ report on the Personal Consumption Expenditures (PCI) index for November and explore its implications on the gold market. The PCI index is the preferred inflation measure of the Federal Reserve,
The U.S. Dollar Index (DXY) has recently tested new lows, mainly due to the release of the PCE Price Index report. This report highlighted a decline in the PCE Price Index from 2.9% in October to 2.6% in November. However, the American currency received some support from the better-than-expected Michigan Consumer Sentiment report. If the
The euro has displayed a highly positive performance throughout the week, reaching the significant 1.10 level against the US dollar. This level not only holds psychological significance as a large, round figure but is also marked by the presence of the 200-Week EMA. Moving forward into the Christmas week, concerns over liquidity may arise. Nevertheless,
Gold futures are currently experiencing a decline of 0.51%, amounting to a drop of $10.40. Surprisingly, this decline is higher in percentage terms compared to the gains witnessed in the dollar today. As gold is paired against the dollar, there exists a strong inverse correlation between the strength or weakness of the dollar and the
The US dollar experienced a slight retreat during Wednesday’s trading session, encountering resistance at the 200-Day Exponential Moving Average (EMA). The current market presents a challenging situation as traders grapple with determining which central bank’s policy to follow. While the US Federal Reserve has expressed potential rate cuts in 2024, the Bank of Japan has
China plays a crucial role in the Australian economy, accounting for one-third of Australian exports. The increased demand for Australian products from China is expected to provide a significant boost to the Australian economy and the value of the Australian dollar. This positive development comes at a time when Australia already has a trade-to-GDP ratio