- The price of silver fell sharply recently, following strong US jobs and housing data.
- The ECB surprised markets with a 50 basis point hike; the following meetings are live.
- XAG/USD Price Analysis: Maintain bearish bias, below $21.80.
the price of silver it fluctuates between gains and losses after reaching a daily high of $22.08, erasing some of its previous gains. The European Central Bank (ECB) surprised markets with a 50 basis point rise, amid a period of turmoil in financial markets, with Credit Suisse (CS) about to go into receivership. At the time of writing these lines, the XAG/USD trades on $21.54.
US jobless claims fell, justifying further action by the Fed.
Sentiment remains fragile, with most global stocks down, except the Nasdaq 100. The European Central Bank (ECB) raised rates by 50 basis points (bp) and stated that inflation remains too high. However, the statement did not provide guidance on future monetary policy decisions.
The US economic agenda published applications for unemployment benefits, reported by the US Bureau of Labor Statistics (BLS), fell below the 200,000 signal, a sign of the rigidity of the labor market. Initial claims for jobless benefits increased by 192,000 compared to the 205,000 estimated by market participants. At the same time, housing sector data, led by housing starts and building permits, beat estimates, showing the economy’s resilience despite the Fed’s aggressive tightening cycle.
The dollar remains under pressure, as shown by the Dollar Index (DXY), which fell 0.26% to 104,478 points. US Treasury yields are picking up some ground, with the 2s rising 13bp to 4.019%. By contrast, the 10-year yield is 3.432%, down two basis points, which is a tailwind for XAG/USD.
What to expect?
Industrial Production, Capacity Utilization and Consumer Sentiment from the University of Michigan (UM) will be published in the US economic calendar.
XAG/USD Technical Analysis
XAG/USD traded for two consecutive days at $22.00, but the failure to hold the gains showed the sellers’ commitment to keeping the price below the mark. Because? Because after both attempts, XAG/USD fell below the confluence of daily EMAs, in particular the 200-day EMA at $21.78. Therefore, the path of least resistance is down. The first support for the XAG/USD would be $21.50, followed by the 20-day EMA at $21.29, and then the figure at $21. Alternatively, a daily close above $22.00 could pave the way for further upside.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
