EUR/USD Approaches Daily Highs
Gold Remains Under Pressure
The housing market is showing tentative signs of stabilizing, which is a noteworthy development. Mortgage applications are still declining, but the rate of that decline has slowed considerably from -1.8% to -0.3%. Looking back at how 30-year mortgage rates surged past 7% in 2023, this moderation suggests the market may be finding a floor, even with rates still elevated.
For currency traders, the British Pound is showing resilience despite softer UK inflation data. The market seems to believe the Bank of England will maintain its firm stance, holding GBP/USD steady near 1.3360. This suggests that for now, interest rate differentials are a more powerful driver for the pound than a single soft inflation reading.
Gold is at a critical juncture, testing the $4,000 per ounce level. The primary pressure is coming from rising US Treasury yields, with the 10-year Treasury yield recently hitting 4.9%, its highest since 2024. Traders should watch this inverse relationship closely, as a cooler-than-expected US inflation report could send yields lower and push gold decisively back above this key psychological level.
