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XAU/USD eyes smooth run-up towards $1,980 The tide appears to have changed once more in favor of Gold buyers. The price of gold is currently above $1,950, where it has been for the past ten months. For XAU/USD to continue rising, it must overcome the $1,960 resistance. The US Federal Reserve rise of 0.25%, which was widely anticipated and priced in, drowned the US Dollar the day before, causing the price of gold to spike. The Fed announcement indicating declining inflation pressure and Chairman Jerome Powell's suggestions of rate reduction by late 2023 if inflation lowers quicker, however, received the majority of attention. Additionally helping the XAU/USD bulls were negative US data, expectations of additional Chinese stimulus, positive stocks, and lower US Treasury bond yields.
OANDA:XAUUSD
by FOREXN1
23
EUR/USD: There is not much resistance now until the 1.12 area Impressive gains were made by EUR/USD, which moved above 1.1000 for the first time since early April. ING economists concur that the 1.12 level is clearly in reach. The EUR/USD news is good: The EUR/USD is expected to be driven more this year by a strong narrowing in rate differentials, which should take it to the 1.15 level in the second quarter. There isn't much opposition in the near term till the 1.12 region. However, buy-side positioning in the Euro is at its longest level since the summer of 2021, suggesting that the rally may be challenging. However, the EUR/USD story is encouraging.
by FOREXN1
13
GBP/USD faces rejection near 1.2400 - Double Top ?GBP/USD has lost its bullish vigor after Wednesday's recovery toward 1.2400. Prior to the Bank of England's (BOE) policy announcements, investors refrain from placing bets on future Pound Sterling strength, and the near-term technical outlook indicates a lack of buyer demand. The gains in GBP/USD remain modest, especially when compared to EUR/USD, notwithstanding the intense selling pressure surrounding the US Dollar late on Wednesday. The decision to hike the policy rate by 25 basis points was made, and FOMC Chairman Jerome Powell maintained that more rate rises will be appropriate. However, his admission of the disinflation in goods led to a decline in the US dollar. Powell also acknowledged that a quicker-than-anticipated decrease in inflation will be reflected in upcoming policy choices, which raises the prospect of a policy change later in the year. The BOE is anticipated to increase its policy rate by 50 basis points to 4% from 3.5% on Thursday. Tenreyro and Dhingra, two BOE Monetary Policy Committee (MPC) members, voted in December to maintain rates at 3%.
by FOREXN1
5
GBP/CAD has lost its bullish vigor after Wednesday's recovery.GBP/CAD has lost its bullish vigor after Wednesday's recovery toward 1.6600. Prior to the Bank of England's (BOE) policy announcements, investors refrain from placing bets on future Pound Sterling strength, and the near-term technical outlook indicates a lack of buyer demand. The Bank of England is expected to increase the interest rate by 50 basis points. There are two important things to focus on here: firstly, the bank’s take on the interest rate and how long it thinks inflation will take to come close to its target. Secondly, where is the upper limit of the bank’s interest rate.
by FOREXN1
3
The Federal Reserve's decision appears to promote buying GOLDThe Federal Reserve's decision looks to support the "buy the dips" strategy for gold. As traders stay away from the market ahead of the crucial Fed monetary policy announcement, the price of gold is floating aimlessly below $1,930 early on Wednesday. Weak US Treasury bond yields and cautious markets are making it difficult for the US Dollar to gain momentum. Gold bulls trade cautiously as we approach the crucial US Federal Reserve policy statement because of the active rising wedge collapse. On Tuesday, the shiny metal fell quickly to the $1,900 mark before mounting a strong recovery. From a short-term technical standpoint, this shows that the gold price is still a "buy the dips" play. The impending Fed event will provide the price of gold a definite direction for the ensuing weeks. To counteract the recent pessimistic sentiment, Gold purchasers must find acceptance above the $1,935 barrier. The advance higher could test the psychological threshold of $1,950 further up before advancing on the $1,960 supply zone.
OANDA:XAUUSD
by FOREXN1
15
GBP/USD trades in a range above 1.2300 as the Fed nearsIn early Europe, the GBP/USD is finding it difficult to move significantly higher than 1.2300. The pair is still supported as the US Dollar licks its wounds, US Treasury yields decline, and traders exercise caution before the Fed announces its policy decisions. US PMIs will also be monitored. The markets appear to be confident that the US central bank would moderate its aggressive approach and announce a lower 25 bps rate hike on Wednesday at the conclusion of a two-day meeting. This impacts on the USD and keeps US Treasury bond yields low. Trading participants appear hesitant to make big bearish wagers on the USD/JPY pair as the significant central bank event risk approaches. In addition, remarks made by BoJ Governor Kuroda Haruhiko, who stated that the bank must maintain its loose monetary policy and 2% inflation objective, limit the JPY's upward potential. This calls for more care before positioning for any appreciable significant fall, at least initially.
by FOREXN1
9
USD/JPY:Trading participants appear hesitant to make big bearishTrading in USD/JPY is restricted to a small range as investors eagerly anticipate the FOMC decision. Throughout the early portion of Wednesday's European session, the USD/JPY pair struggles to generate any noticeable momentum and swings between tepid gains and modest losses. As traders look hesitant and anxiously await the results of a two-day FOMC monetary policy meeting, spot prices linger below the mid-130.00s. On Monday, the USD/JPY pair experiences some intraday selling at the 130.30 region and declines by more than 100 pip from the day's peak. However, spot prices are still firmly inside a trading range that dates back a week and have now appeared to have stabilized above the mid-129.00s during the early European session. Fresh concern that high inflation may prompt a more hawkish posture from the Bank of Japan later this year is continuing to bolster the Japanese Yen (JPY). In addition, a generally negative outlook for the equities markets supports the safe-haven JPY. The USD/JPY pair has some downward pressure as a result, which adds to the overall adverse sentiment around the US Dollar and the intraday decline. In fact, as expectations for a less aggressive Fed policy tightening increase, the USD Index, which measures the value of the dollar against a basket of currencies, is currently hovering close to a multi-month low. The markets appear to be confident that the US central bank would moderate its aggressive approach and announce a lower 25 bps rate hike on Wednesday at the conclusion of a two-day meeting. This impacts on the USD and keeps US Treasury bond yields low. Trading participants appear hesitant to make big bearish wagers on the USD/JPY pair as the significant central bank event risk approaches. In addition, remarks made by BoJ Governor Kuroda Haruhiko, who stated that the bank must maintain its loose monetary policy and 2% inflation objective, limit the JPY's upward potential. This calls for more care before positioning for any appreciable significant fall, at least initially.
by FOREXN1
8