June 25, 2021
EUR/USD: The Euro is rising against the USD for the second day in a row, rallying 0.08% around 1.1940 ahead of Friday’s European session. The underlying currency pair is supporting upbeat market sentiment as well as a pullback in the US dollar as bulls attack the key exponential moving average (EMA). Fears of personal consumption spending (PCEs) inflation in the US, confirming the Fed’s hawkish signals last week, are keeping the US dollar on hold ahead of the release of crucial data. In doing so, the dollar ignores the three-day uptrend in US Treasury yields. Immediate resistance can be seen at 1.1950. The breakout to the upside can trigger growth towards 1.20.
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.
XAU/USD: The XAU price is making another attempt to rise against USD towards the supply zone of $1790-1795, finding its positions against the background of the depressed US dollar and mixed stocks of Asian companies. Despite the modest supply, the XAU keeps trading within familiar levels amid mixed signals from the Fed about the interest rate hike and an abundance of gloomy US economic data. Now, market attention is drawn to the critical PCE inflation data in the US, which is likely to support the Fed’s hawkish turn. In addition, US stimulus updates will be closely monitored. Immediate resistance can be seen at 1789.35. The breakout to the upside can trigger growth towards 1789.45.