EUR/USD lacks momentum, churns near 1 0750 fxstreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fxstreet.com Daily Mail and Mail on Sunday newspapers.
What transpired with the EUR/USD pair last week? It behaved as expected on Monday, 01 April. However, starting from Tuesday, the situation deviated. Let's delve into the details. On the first day of April, data on business activity in the US industrial sector from the ISM for March showed the economy is on the rise: PMI increased from 47.8 to 50.3 points, crossing the 50-point threshold that separates growth from contraction. This marked the end of a downward trend lasting over 15 months. With this sector accounting for over 10% of the US GDP, the PMI growth is a vital indicator of an economy that easily withstands high interest rates. Thus, logically, this data benefited the dollar, pushing the pair to 1.0730 - its lowest since 15 February. The escalation of tensions in the Middle East also supported the strengthening of the American currency as a safe haven.
Following
Gold Weekly Forecast: 200-day SMA last line of defense for XAU/USD ahead of $1,800ANALYSIS |
1/8/2021 6:14:13 PM GMT
XAU/USD lost nearly 3% on a weekly basis.
USD gathered strength supported by surging US T-bond yields.
Gold could post additional losses with a daily close below $1,840.
The XAU/USD pair started the new year on a firm footing and rose more than 2% on the first trading day of 2021. The pair preserved its bullish momentum during the first half of the week and touched its highest level in nearly two months at $1,959 on Wednesday. However, gold staged a sharp U-turn and closed the week with heavy losses below $1,850 as the sharp decline amid rising US Treasury bond yields dragged the price below key support levels and triggered additional technical selloffs.