The US dollar remains firm as oil hits a 4-year high; XAUUSD rebounded from a one-month low; EURUSD remains below 1.17000 ahead of the ECB meeting; Bitcoin slightly recovered after touching a one-week low.
- The US dollar pushed higher amid a hawkish tilt from the Fed amid inflation fears.
- XAUUSD spiked by 1% after approaching the $4,510 level the previous day.
- Oil’s rally weakened EURUSD ahead of the ECB meeting due later today.
- Bitcoin approaches the $76,000 resistance.
Today’s focus
FX snapshot
XAUUSD
Gold currently trades near the $4,600 resistance. However, the move is rather corrective (buying dips) than trend-looking as rate concerns pressure the metal.
EURUSD
The ECB is also expected to keep rates unchanged today. However, heightened inflation concerns may lead to a possible hike later this year.
BTC
The price failed to stay above the $76,500 zone, so the pair might extend its downside move, should it struggle to fix above that level.
Market sentiment
Markets want cuts soon, but the Fed didn’t give a clear green light for it yesterday, as the economy is holding up better than expected. So, it keeps “higher-for-longer”, although officials are split on the paths ahead.
