The dollar remains close to multi-month lows, with softer US Treasury yields continuing to limit demand for USD. Gold is recovering after yesterday’s nearly 2% decline, which was largely driven by a sharp rise in US Treasury yields. EURUSD is approaching 1.1600 from below, remaining close to its recent multi-month highs. Bitcoin has started retreating from the $65,000 area and is trading closer to $64,000 as buyers struggle to maintain momentum.
- The USD remains soft ahead of the release of the FOMC Meeting Minutes, with tonight’s data likely to determine the next short-term direction.
- XAUUSD is moving back towards $4,360, although the recovery should currently be viewed as a technical rebound rather than a confirmed fresh leg higher.
- The 1.1600 area has repeatedly attracted selling interest in EURUSD, making a sustained break more important than another brief move above it.
- The continuing outflows from US spot Bitcoin ETFs add pressure and suggest that institutional demand has yet to return to crypto.
FX Snapshot
XAUUSD
$4,360–4,400 is the immediate test: buyers are returning, but tonight’s Fed signal will determine whether the rebound has staying power.
EURUSD
EURUSD continues testing 1.1600, but the upcoming eurozone CPI data and the late-night Fed signal will determine whether that level becomes support or remains resistance.
BTC
BTC remains neutral-to-soft: $65K is the immediate barrier, whilst weak ETF flows are keeping buyers cautious.
Market tone
Markets are firmly in a wait-and-see mode ahead of tonight’s Fed minutes. The USD remains weak, gold is attempting to recover, EURUSD is testing 1.1600 again, whilst Bitcoin remains under pressure from softer institutional flows.
