The Federal Reserve has indicated that it requires clear signs of economic weakness and lower inflation figures to consider easing its monetary policy further. Amid these signals, the 10-year US Treasury bond yield remains robust, maintaining a position above 4.6%. However, recent US economic data has not been favorable enough for XAU/USD, preventing gold from regaining its upward momentum. After reaching a multi-month high above $2,760 on Wednesday, gold has continued its downward correction, trading below $2,740 as of Thursday.
President Trump's policy framework, characterized by low taxes and minimal regulatory intervention, is generally perceived as positive for economic growth. Despite these policies, the EUR/USD pair has shown little movement this week, hovering around the 1.0400 mark. The currency pair's lack of volatility reflects investor sentiment during a largely uneventful week. Although the week began with strength on Monday, the subsequent days have seen a lack of significant developments.
Investors are navigating through a week that has presented few surprises or notable events. The steady performance of EUR/USD and the firmness of the US Treasury bond yield emphasize the current stability yet lack of excitement in the market. As traders assess their strategies, they remain cautious in anticipation of potential policy shifts by the Federal Reserve.
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