EUR attempting to recover, Gold rising amid Delta COVID spread fears

EUR/USD: ECB’s waning impact: The single currency rallied on Thursday despite broader dollar appreciation – largely thanks to the European Central Bank’s strategic review announcement. While the Frankfurt-based institution is now aiming for a symmetric inflation target of 2%, rather than an upper limit at that level, it refrains from bolder moves.

Unlike the Federal Reserve, ECB President Christine Lagarde said the price increases would not offset past mild inflation. Moreover, the underlying European trends are focusing on the consumer price index, rather than less volatile prices, as the Fed is doing.

Immediate resistance can be seen at 1.20. The breakout to the upside can trigger growth towards 1.2035.


BUY 1.1887/TP 1.2035/SL 1.1789

 

GBP/USD: The GBP rose against the USD. After falling below 1.3900 a day earlier following the long-awaited Bank of England (BOE) monetary policy decision, the pair resumed its growth today. This movement is primarily caused by the sluggish movement of the US dollar. The dollar dipped below 91.80 and traded at a loss of 0.04%. Investors appreciated the Fed’s stance on inflation, as the central bank’s top priority is economic growth and improving labor market conditions. US Federal Reserve Chairman Jeron Powell has once again downplayed the risk of inflation. Immediate resistance can be seen at 1.3942. The breakout to the upside can trigger growth towards 1.3980.


BUY 1.3920/TP 1.3942/SL 1.3900

 

XAU/USD: Gold rose above the $1.800 mark, continuing the previous day’s rise on Monday, but failed to maintain the growth momentum. The rebound in US Treasury yields from lower levels put pressure on the yellow metal. Growth in the yield on the benchmark 10-year Treasury note supports the demand for the US dollar. The higher value of the dollar makes gold more expensive for holders of other currencies. Meanwhile, renewed fears of rising coronavirus cases due to the highly contagious Delta variant are forcing investors to flock to gold. Gold prices jumped on the back of its appeal. Sentiment increased further as minutes from the US Federal Reserve meeting last week showed no further significant progress in economic recovery. Although, further progress is expected. Immediate resistance can be seen at 1843.50. The breakout to the upside can trigger growth towards 1886.70.


BUY 1810/TP 1886.70/SL 1757.35

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