EURUSD clawing back losses
The euro firms up as the Fed is expected to give more hints at what direction to take at this week’s FOMC meeting. With the Fed policy dominating trader sentiment for a while now, it’s now the turn of the eurozone to see if last week’s mixed bag of PMI data was just a blip. The pair will be looking to maintain its bullish run after cancelling out some of the sell-off that it witnessed at the back end of April. The pair is heading towards 1.1400, with 1.1580 as the closest support.
XAUUSD ( yellow metal (Gold)) hitting lower high
Gold remains elevated as global tensions continue to drive the yellow metal (Gold). The recent decline in the American dollar has also boosted safe-haven demand as the fallout from the recent credit downgrade lingers. Long-term fiscal concerns and the growing burden of servicing debt in a high-rate environment were the main reasons for the cut. But with no upswing in sight for the greenback, gold could see another record high within weeks. The price hovers above 3300, with 3400 being the immediate target.
SPX 500 looking for full recovery
The main problem for US indices in their attempt to hit a full recovery is that bond yields continue to climb. The S&P maintains the charge back to its previous high with progressive sentiment. With the backdrop of lingering concerns over slowing growth, it will be up to the Fed to calm the noise and inject some stability into the market. As stocks charge higher with soothing news that America and China will agree to a trade deal, 6000 is a key hurdle ahead, and 5600 is a major floor.
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