The Eurozone’s HCOB Manufacturing PMI dropped to 48.4 in May, missing the expected 49.3. This signals a decline in business activity in the private sector. The EUR/USD remains above 1.1300, but the weak PMI data suggests that the Euro may not gain much. On the other hand, the UK’s S&P Global Composite PMI rose to 49.4 in May from 48.5 in April.

Gold Prices Update

Gold prices are pulling back from their recent peaks, showing a slow decline. This movement doesn’t seem driven by any new data and is likely to continue moderately due to various supportive factors. Chainlink’s price rose nearly 2%, boosted by increased whale activity and capital flow. Since February, large holders have bought up 25 million LINK tokens. Retail buyers are becoming more active amid economic risks and earnings concerns, while institutional investors are being cautious. Ongoing worries about trade tensions, U.S. debt, and the careful approach of the Federal Reserve are affecting markets.

Forex Trading Strategies

For those looking to trade EUR/USD, several brokers offer competitive spreads, fast execution, and strong platforms, suitable for both beginners and experienced traders in the Forex market. The Eurozone’s Manufacturing PMI for May recorded at 48.4, falling short of expectations. Since this figure is below 50, it shows that factory activity in the region is contracting. Traders with euro-denominated contracts should check forward-looking indicators to see if this decline will continue into the summer. Adjustments to speculative positions on EUR/USD are recommended since such underperformance can shake confidence among businesses and investors. Even though the FX market keeps the EUR/USD pair above 1.1300, the recent PMI data suggests limited potential for further gains. Any upward movement seems restricted unless there are changes in fiscal policy or an increase in regional production. The euro’s strength may be tested if upcoming figures, like retail sales or industrial production, turn out disappointing. In contrast, the UK offers slightly better news with a PMI of 49.4 in May. While it’s still below 50, indicating mild contraction, it’s an improvement from the previous month. This type of less-negative data often gives a slight boost to sterling-based contracts, especially when compared to weaker Eurozone data. Gold is also adjusting after its recent rise. This pullback is not prompted by any new information; it resembles a typical correction after a considerable rally. We are observing technical support levels for signs of fresh long positions. Given the ongoing uncertainty around monetary policy and mixed real yields, this gradual decline in gold prices may continue. Attention is turning to Chainlink, where large token holders, perceived as more knowledgeable investors, have been quietly increasing their positions since early this year. This accumulation has stabilized the price, and the recent 2% increase reflects ongoing interest. While modest, this steady action could pave the way for greater volatility in the future as liquidity increases or utility activity rises. In the broader market, there’s a noticeable rise in retail activity. Traders seem more willing to engage despite evident earnings risks and unresolved macro threats like trade tensions and the U.S. fiscal outlook. In contrast, institutional flows have been more cautious. This difference is revealing; when larger players pull back, it often indicates that short-term returns may struggle until risks improve or Fed communication changes. Execution is also important. With competitive spreads and faster execution on platforms, now is a good time to assess execution efficiency. Whether pursuing directional strategies or hedging, modern tools offer tighter control over positions. Those already exposed to FX or digital assets should evaluate the strength of their entry and exit points as market volatility fluctuates. Create your live VT Markets account and start trading now.

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