Date: 10 Jun 2020
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
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