EURUSD advances ahead of NFP
The euro firms up as the Fed is expected to leave the rate steady in its next meeting. With the Fed policy dominating sentiment for some time, it is now the turn of the ECB as they have been busy drumming up support for a June cut. This is a relief to the Fed as they now seem unlikely to cut rates this year, let alone soon. The euro bloc is prompting most economists to expect at least two cuts this year, which could further shake up the currency pair. The pair is heading towards 1.0800, with 1.0650 as the closest support.
XAUUSD remains indecisive
After the recent sell-off, gold remains elevated after economists were left wondering where prices would go. Its biggest daily plunge in almost two years left the yellow metal holding on. Traders are now paying attention to the US economy, including the Fed’s meeting and the upcoming NFP numbers. Gold has been up over 10% since February, with gains supported by geopolitical risks, despite advances in the dollar and Treasury yields. The price hovers above 2300, with 2360 as the immediate target.
SPX 500 corporate earnings push
The S&P 500 maintains the charge to record highs with progressive corporate earnings data. Against the backdrop of lingering concerns over slowing growth, impressive reports from Tesla have had a soothing effect. However, with Meta shares sinking over 15% after their second quarter outlook disappoints, traders will need to be careful from another sell-off. 5160 is a crucial hurdle ahead, and 5000 is a significant floor.
