EUR/USD Moves Higher, Breaks above 1.2100, Gold Eyes $1,850
- EUR/USD peaks above 1.2100
- Broad US dollar weakness across the currency market
EUR/USD Moves Above 1.2100
The EUR/USD pair has climbed sharply to the upside this week. This comes after rather disappointing economic data coming out of the US on Friday. The US Labor Department published their latest numbers, showing the economy added 49,000 new jobs in January. The figures were below the consensus of 50,000. Which led the US dollar was quick to depreciate across the board.
This week the broad US dollar weakness continues to prevail in the currency market. The EUR/USD is now hovering above the 1.2100 level, posting an increase of 1.20% from its two-month low reached on Friday. Today’s upside in the pair marks a third straight session of gains while the US dollar continues to drop against other competitors. The USD/CHF drops today in a three-day streak of losses as the pair slid below 0.8950 from a high of 0.9046 on Friday. The USD/CAD is also negative on Tuesday as investors push the rate towards the 1.2700 regions, down nearly 1.00% from its Friday peak of 1.2832.
Gold and Silver Move to the Upside
Gold has also seen increased volatility as traders and investors digest the latest economic data, prospects for new stimulus, and the progress of over-vaccination programs around the globe. The precious metal slipped to a low of $1,784 on Thursday but gold bugs were quick to buy the dip. On Friday, gold began its move to the upside. From Thursday’s low to today’s current market price of $1,845, gold has risen by over 3.00%, or more than $60.
Silver is also pointing to the upside in today’s trading session. It has climbed as much as 6.65% since Thursday. Silver was recently at the crosshairs of retail traders who intended to short-squeeze hedge funds and big banks holding bets against the precious metal. However, due to the complexity and the depth of the silver market, the initiative turned out to be short-lived. The spike caused by the retail frenzy pushed the price above $30 for a brief moment, before it dived back below $27 to trade at normal levels.
Presently, a move higher is seen in the precious metal markets. Both gold and silver are gaining as market participants look to purchase precious metals as a hedge against inflation and protection against a weak US dollar. Additionally, investors are waiting for developments over the proposed $1.9tn fiscal relief package by US President Joe Biden.
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