Correlation between the European currency and gold | 07 يناير 2022
07 يناير 2022, EUR/USD
EURUSD trading plan:
Gold prices slid to a two-week low, pressured by rallying U.S. Treasury yields after the Federal Reserve signaled quicker increases to interest rates. If the movement in Treasury yields goes a lot higher in the short term, that is going to be very disruptive for gold trade. Gold, a non-interest-paying asset, tends to fall out of favor among investors when interest rates increase. Benchmark 10-year yields rose to their highest level since March last year. This is a negative signal for the European currency, since the euro correlates with gold.
Investment idea: sell 1.1331 and take profit 1.1269.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
