Market Movers: Understanding the Impact of US GDP and Core PCE on Silver and EUR/USD
Market Overview
Market movers such as the US GDP and Core PCE are capturing the attention of traders with potential implications for Silver and EUR/USD. Recent movements of the EUR/USD pair reached a yearly high at 1.1215 before experiencing a minor pullback of around 80 pips, attributed to strong US home sales data. Similarly, XAG/USD reflects positive momentum boosted by a weaker dollar, achieving a 5-month peak at $32.50.
Fundamental Analysis
Market dynamics are expected to fluctuate as we approach the month-end and quarter-end. Despite possibilities for the US dollar and yields to regain some strength, the Fed’s dovish outlook and forecasted cuts may keep pressure on the dollar. The divergence between the ECB and the Fed may provide support for Euro buyers. Non-yielding Silver can also gain from global interest rate cuts.
Critical Events This Week
- US GDP Report
- US Core PCE Index Announcement
- Fed Chair's Speech
A positive surprise in the US GDP above 3.0% could empower dollar bulls. If the Core PCE figures exceed 0.2%, we might witness a ripple effect leading to dollar strength against various currencies and commodities.
EUR/USD Chart Insights
The EUR/USD pair recently breached the highs of August 26, marking a bearish pin-bar candle on the daily chart. The price remains well above the 20-day SMA, suggesting that bearish reversals are unlikely in the immediate term.
Key Support and Resistance Levels
- Resistance 1: 1.1065 (recent swing low)
- Resistance 2: 1.1000 (psychological mark)
- Support 1: 1.1153 (order block)
- Support 2: 1.1200 (psychological mark)
XAG/USD Chart Insights
Following the pattern established by gold, silver's trajectory remains positive post climbing over $32.00. Yet, recent pullbacks could indicate a consolidation phase.
Silver Resistance and Support Levels
- Resistance 1: 32.73 (potential new top)
- Support 1: 31.28 (order block)
Traders focused on Silver and EUR/USD will seek opportunities surrounding critical market events such as the US GDP release and inflation data.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.