The euro is once again on the front foot
The euro is once again on the front foot, gaining 0.3% to the dollar during early Wednesday trading. The single currency continues to benefit from the almost euphoric risk-on sentiment that has taken over financial markets, as well as from signs of growing cohesion and solidarity between the member countries. Conversely, dollar weakness is explained by investors’ caution as they focus on today’s Fed meeting; some fear the central bank could set monthly targets for its asset purchasing program, in an effort to control the recent rise in treasuries yields.
Ricardo Evangelista – Senior Analyst, ActivTrades
The gold price is extending its rebound, helped by the new decline seen on the greenback. Despite stocks being back in green, investors’ appetite for bullion remains healthy as an insurance in case of new sell off on shares markets.
Technically, looking at the 4-hour chart on the spot price, we have a significant resistance level at $1,745, while a more ambitious target is the seven-and-a-half-year peak reached a few weeks ago at $1,765. Meanwhile, a new decline below the support zone at $1,700 and particularly below the recent bottom of $1,680 would be seen by markets as a weakening signal.
Carlo Alberto De Casa – Chief analyst, ActivTrades
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.