This site uses cookies to provide you with a great user experience. By visiting monetamarkets.com, you accept our cookie policy.
Allow all
This site uses cookies to provide you with a great user experience. By visiting monetamarkets.com, you accept our cookie policy.
Allow all
This website is operated by Moneta Markets Ltd, which is not authorised or regulated by the UK Financial Conduct Authority (FCA) and does not offer or promote services to UK residents. Access to this website is restricted in the UK and the content is not intended for distribution to, or use by, any person located in the UK. If you believe you have reached this website in error, please exit the page now
Global markets opened the week on a cautious note as investors positioned ahead of the Federal Reserve’s key policy decision. Precious metals like Silver (XAG/USD) extended their rally on growing rate cut expectations, while major currencies such as the EUR/USD and GBP/USD held steady above key levels. Meanwhile, oil prices (WTI) edged higher amid geopolitical tensions, though gains were capped by oversupply fears. The Australian Dollar also found support as traders scaled back bets on further Reserve Bank of Australia (RBA) cuts.
Silver (XAG/USD) extended its rally above $42.00 as investors leaned into safe-haven assets while ramping up bets on aggressive Fed easing. The metal’s resilience reflects both strong demand for hedging against policy uncertainty and broader weakness in the U.S. dollar.
Geopolitical Risks: Persistent global tensions have underpinned safe-haven flows into precious metals.
US Economic Data: Sticky inflation and weak labor data continue to cloud the Fed’s policy outlook.
FOMC Outcome: Expectations of a potential jumbo rate cut this week remain the central catalyst.
Trade Policy: Ongoing tariff concerns add to safe-haven demand.
Monetary Policy: Fed’s dovish tilt amplifies upside momentum in silver.
Trend: Strong bullish momentum above $42.00.
Resistance: $42.50, followed by $43.20.
Support: $41.50, then $40.80.
Forecast: Silver is likely to stay bid while Fed cut expectations dominate, with scope to retest $43.00 if dovish sentiment persists.
Market Sentiment: Firmly bullish on safe-haven demand and Fed-driven tailwinds.
Catalysts: Fed policy decision, U.S. CPI revisions, and geopolitical headlines.
The euro-dollar pair (EUR/USD) is consolidating just above 1.1700, with traders staying cautious ahead of the Federal Reserve’s key policy decision later this week. While a dovish Fed is broadly anticipated, the pair’s sideways movement reflects balanced forces between euro support from a hawkish ECB and dollar resilience amid risk-off flows.
Geopolitical Risks: Tensions across Europe and ongoing trade uncertainties keep volatility elevated.
US Economic Data: Softer labor data and mixed inflation readings reinforce expectations of Fed easing.
Trade Policy: Tariff concerns continue to weigh on global sentiment, indirectly impacting EUR/USD flows.
Trend: Consolidative, neutral bias near key support.
Forecast: EUR/USD likely to remain rangebound until the Fed meeting, with potential breakout depending on the size of the rate cut.
Market Sentiment: Cautious, with traders hesitant to take big positions ahead of the Fed.
Catalysts: Fed policy decision, U.S. inflation revisions, ECB commentary.
West Texas Intermediate (WTI) crude oil is trading between $62.65 and $62.70, gaining modestly on renewed geopolitical tensions that have injected support into energy markets. However, lingering concerns over weak demand and oversupply continue to limit the upside, keeping price action contained within a narrow range.
Geopolitical Risks: Heightened tensions in the Middle East and Asia have lifted safe-haven demand for crude.
US Economic Data: Mixed U.S. growth signals point to softer demand outlook, weighing on oil’s bullish momentum.
FOMC Outcome: Anticipated Fed rate cuts could support demand recovery, indirectly aiding oil prices.
Trend: Sideways with mild bullish tilt.
Resistance: $63.20, followed by $64.00.
Support: $62.00, then $61.50.
Market Sentiment: Cautious optimism, with traders eyeing geopolitical headlines.
Catalysts: U.S. crude inventory data, OPEC+ production updates, Fed’s interest rate decision.
The British pound is holding steady above 1.3550 against the U.S. dollar (#GBPUSD), supported by broad weakness in the greenback as markets brace for a potential Fed rate cut later this week. Despite the pair’s resilience, cautious trading prevails ahead of key U.S. and U.K. data, leaving GBP/USD in consolidation mode.
Geopolitical Risks: Ongoing uncertainty around trade policy and UK-EU relations adds a layer of caution.
US Economic Data: Softer U.S. labor and inflation data has revived expectations for Fed easing, weakening the dollar.
FOMC Outcome: The looming Fed decision remains the biggest short-term catalyst, with a rate cut seen as increasingly likely.
Trend: Mildly bullish while above 1.3550.
Resistance: 1.3600, followed by 1.3675.
Support: 1.3520, then 1.3470.
Forecast: GBP/USD likely to remain range-bound between 1.3520 and 1.3675 until clarity from the Fed.
Market Sentiment: Cautiously bullish, with traders positioning for a dovish Fed.
Catalysts: FOMC rate decision, UK retail sales, and U.S. CPI revisions.
The Australian dollar (#AUDUSD) is holding firm as markets scale back expectations of further rate cuts from the Reserve Bank of Australia. Despite softer Chinese economic data dampening risk sentiment, the Aussie found support from resilient domestic conditions and a weaker U.S. dollar ahead of the Fed’s policy decision.
Geopolitical Risks: Limited impact, though broader market risk sentiment remains fragile.
US Economic Data: Focus on upcoming U.S. releases that may sway Fed expectations and influence USD.
FOMC Outcome: Anticipation of Fed easing continues to cap U.S. Dollar strength.
Trade Policy: Australia’s reliance on Chinese demand means weaker Chinese data still poses downside risks.
Trend: Stabilizing with a mild bullish bias.
Resistance: 0.6520, followed by 0.6575.
Support: 0.6450, then 0.6400.
Forecast: #AUDUSD likely to consolidate between 0.6450 and 0.6575, with momentum favoring the upside if Fed delivers a dovish outcome.
Market Sentiment: Mildly bullish, underpinned by Fed expectations and reduced RBA cut risks.
Catalysts: Fed policy decision, RBA meeting minutes, and China’s economic data trajectory.
Overall, market sentiment remains firmly anchored to the Fed’s policy outlook, with traders weighing the likelihood of a larger rate cut and its ripple effects across currencies, commodities, and energy markets. Until clarity emerges from the Fed, choppy trading and cautious positioning are expected to dominate global markets.
Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!
