EURUSD
- EUR/USD fell 0.2% to 1.0817, hovering near a six-week low, with market focus on an upcoming speech by ECB President Christine Lagarde and the ongoing U.S. debt situation.
- The recent interest rate hike by the European Central Bank adds to investor interest in future monetary policy actions.
- The level of 1.0800 is an important gauge of market sentiment, aligning with the 100-day moving average.
- The U.S. dollar strengthened in early European trade on Thursday due to ongoing debt ceiling negotiations and the anticipation of remarks from additional Federal Reserve officials.
- Investors will closely monitor these developments as they continue to influence the EUR/USD exchange rate.
| SMA (20) | Slightly Falling |  | |||
| RSI (14) | Falling | |
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| MACD (12, 26, 9) | Falling | |
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Closing statement: EUR/USD remained under pressure near a six-week low as market participants awaited ECB President Christine Lagarde's speech and monitored the U.S. debt situation, contributing to the strength of the U.S. dollar.
GBPUSD
- GBP/USD declined by 0.27% to 1.2453 as market participants awaited the release of the Bank of England's quarterly bulletin, which provides insights on market developments and monetary policy operations.
- The British pound rebounded from the support level around 1.2425, testing it again today.
- The dollar index, which measures the dollar against a basket of six other currencies, rose by 0.18% to 103.045, nearing a seven-week high.
- President Joe Biden and top Republican Kevin McCarthy have agreed to engage in direct negotiations to raise the U.S. government's debt ceiling of $31.4 trillion, alleviating concerns about a prolonged standoff.
- Although optimism has grown regarding a potential agreement to avoid a detrimental debt default, a cautious sentiment has restrained risk-taking in the market.
| SMA (20) | Neutral | |||
| RSI (14) | Slightly Falling | |
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| MACD (12, 26, 9) | Slightly Falling | |
Closing statement:GBP/USD experienced a decline ahead of the Bank of England's quarterly bulletin release, while the dollar strengthened amid negotiations to raise the U.S. debt ceiling, fostering a sense of cautiousness among investors.
GOLD
- Gold prices remained relatively unchanged in Asian trade on Thursday, following significant losses earlier in the week. Market participants awaited further information on the U.S. economy and monetary policy to gain direction.
- From a technical standpoint, gold is approaching a test of the 38.2% Fibonacci level, located at $1966.79, traced back from the lows in February.
- The U.S. Federal Reserve is expected to pause its cycle of interest rate hikes in June. However, Fed officials have maintained a generally hawkish stance on monetary policy this week, citing persistent inflationary pressures.
- Traders will closely monitor a series of speeches by Federal Reserve representatives throughout the week, with particular attention on Chair Jerome Powell's remarks on Friday, for additional insights into future monetary policy decisions.
Closing statement: Gold prices remained steady as market participants awaited further guidance on the U.S. economy and monetary policy. The upcoming speeches by Federal Reserve officials, including Chair Jerome Powell, will be closely watched for indications of future policy direction.
CRUDE OIL
- Crude oil prices declined on Thursday as market attention turned towards the progress on raising the U.S. debt ceiling.
- The previous session witnessed a significant surge of over 3% in crude prices following the Biden administration's positive outlook on reaching a debt limit agreement.
- According to the Weekly Petroleum Status Report by the U.S. Energy Information Administration, U.S. crude inventories increased by 5.040 million barrels during the week ended May 12.
- The market observed some bargain buying as crude oil reached a support level of $70 per barrel.
- Investors remained cautious, awaiting further cues and developments related to the U.S. debt ceiling negotiations.
| SMA (20) | Falling | |
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| RSI (14) | Neutral | |||
| MACD (12, 26, 9) | Neutral |
Closing statement: Crude oil prices experienced a slight decline on Thursday amid market anticipation regarding the resolution of the U.S. debt ceiling issue. The focus remains on developments surrounding this matter, while support at $70 per barrel and the increase in U.S. crude inventories continue to impact market sentiment.
DAX
- European stock markets displayed positive momentum on Thursday, driven by investor optimism regarding a potential resolution to the U.S. debt ceiling issue, while also anticipating remarks from ECB chief Christine Lagarde.
- The DAX index in Germany recorded a 1.04% increase, while the FTSE 100 in the U.K. rose by 0.19% and the CAC 40 in France saw a rise of 0.97%.
- The DAX index is approaching its all-time high at 16,301, showing strong performance in morning trading. The index has effortlessly surpassed previous resistance levels.
- Deutsche Bank's stock climbed by 0.7% following the bank's agreement to pay $75 million to settle a lawsuit filed by women who accused the late financier Jeffrey Epstein of abuse and claimed that the bank facilitated his sex trafficking activities.
| SMA (20) | Neutral | ||
| RSI (14) | Rising |
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| MACD (12, 26, 9) | Slightly Rising |
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Closing statement:European stock markets experienced positive gains on Thursday, with the DAX index leading the way. Investor optimism regarding the U.S. debt ceiling negotiations and positive developments within the banking sector contributed to the overall positive sentiment in the market.