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USD/JPY Bulls Cautious

USD/JPY Bulls Cautious Near 159.00, Highest Since April Amid Intervention Fears

USD/JPY Bulls Cautious Near 159.00, Highest Since April Amid Intervention Fears

The USD/JPY pair is trading within a narrow range during the Asian session on Friday, consolidating recent gains near the 159.00 mark, the highest level since late April. The pair’s fundamental backdrop supports prospects for further appreciation, although fears of intervention might limit the upside.

The Japanese Yen (JPY) remains under pressure due to the Bank of Japan’s (BoJ) reluctance to commit to near-term interest rate hikes. Data released earlier on Friday showed that Japan’s core-core Consumer Price Index (CPI), which excludes food and energy prices, slowed for the ninth consecutive month, easing to a 2.1% yearly rate from 2.4%. This data increases uncertainty about whether the BoJ will raise interest rates in July or later in the year. Additionally, the prevailing bullish sentiment in global equity markets reduces demand for the safe-haven JPY, providing a tailwind for the USD/JPY pair.

On the other hand, the US Dollar (USD) remains strong near the top end of its weekly trading range following a sharp rise in US Treasury bond yields overnight. This has further widened the US-Japan rate differential, putting additional pressure on the JPY and supporting the USD/JPY pair. However, investors remain cautious amid speculations that Japanese authorities might intervene to support the domestic currency. Moreover, increasing bets on an imminent start to the Federal Reserve’s (Fed) rate-cutting cycle in September could limit further gains for the Greenback and the USD/JPY pair.

Despite these concerns, the USD/JPY pair is on track to end in positive territory for the second consecutive week. Investors are now looking forward to the release of global flash PMI prints for additional market direction. The upcoming US Existing Home Sales data, along with US bond yields and broader market risk sentiment, are also expected to provide short-term trading opportunities on the last day of the week.

Overall, while the USD/JPY pair has seen recent gains and stands at a significant level, the potential for intervention by Japanese authorities and the uncertain path of the BoJ’s monetary policy add layers of complexity to its future movements. Traders will need to stay vigilant to both Japanese economic indicators and broader market trends to navigate the near-term landscape effectively.

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GBP/USD Holds Steady at 1.2700, Awaits UK CPI Data

GBP/USD Holds Steady at 1.2700, Awaits UK CPI Data

GBP/USD Holds Steady at 1.2700, Awaits UK CPI Data

The GBP/USD pair is struggling to gain any significant traction on Wednesday, trading within a narrow range around the 1.2700 mark during the Asian session. Despite this, spot prices are holding above the one-month low reached last Friday, as traders eagerly anticipate the release of the latest UK consumer inflation figures before committing to any substantial moves.

The upcoming UK Consumer Price Index (CPI) data is expected to show a slight increase, with monthly inflation ticking up to 0.4% in May from 0.3% in April. However, the annual inflation rate is projected to decelerate to 3.5% from the previous 3.9%. This data will be crucial in shaping market expectations for the British Pound (GBP) and could provide the necessary impetus for the GBP/USD pair to break out of its current trading range.

In addition to the inflation data, market participants are also focusing on the Bank of England’s (BoE) monetary policy meeting scheduled for Thursday. The decisions and guidance provided by the BoE will play a significant role in determining the near-term trajectory of the GBP/USD pair. Any indications of future rate hikes or a shift in the bank’s policy stance could lead to increased volatility and directional movement in the currency pair.

On the other side of the Atlantic, subdued price action in the US Dollar (USD) is also influencing the GBP/USD pair. Tuesday’s US Retail Sales report came in softer than expected, signaling potential fatigue among American consumers. This has reinforced market expectations that the Federal Reserve (Fed) may start cutting interest rates as early as September. Consequently, US Treasury bond yields have declined, undermining the USD and providing a supportive backdrop for the GBP/USD pair.

Despite these supportive factors, the GBP/USD pair has yet to attract significant follow-through buying. This cautious market sentiment is likely due to the looming uncertainty surrounding the key economic data and central bank meetings. Traders appear hesitant to position themselves aggressively before gaining more clarity from the upcoming UK CPI release and BoE meeting.

In summary, while the GBP/USD pair holds steady above its recent lows and is supported by a softer USD and positive expectations from the UK inflation data, the lack of decisive movement suggests that market participants are awaiting further confirmation from key economic events. The UK CPI data and the BoE’s policy decisions will be critical in providing direction for the GBP/USD pair in the coming days. Until then, the pair is likely to remain range-bound, oscillating around the 1.2700 level.

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EUR/USD Consolidates Near 1.0700

EUR/USD Consolidates Near 1.0700 After Recent Low

EUR/USD Consolidates Near 1.0700 After Recent Low

The EUR/USD pair starts the week on a subdued note, consolidating its recent losses to the lowest level since early May, around the 1.0670-1.0665 region touched on Friday. Currently trading around the 1.0700 mark, the pair appears vulnerable to further declines.

Concerns over a potential snap election in France, which could worsen the fiscal situation in the Eurozone’s second-largest economy, continue to weigh on the shared currency. The right-wing National Front party leads in the polls, and French Finance Minister Bruno Le Maire warned on Friday of a financial crisis risk if either the far right or left won due to their heavy spending plans. This, coupled with a modest uptick in the US Dollar (USD), supports a near-term negative outlook for the EUR/USD pair.

The Federal Reserve’s (Fed) hawkish surprise at the end of the June policy meeting, indicating a median projection of just one rate cut in 2024, supports elevated US Treasury bond yields. Additionally, ongoing geopolitical tensions in the Middle East bolster the safe-haven Greenback, suggesting a downward trend for the EUR/USD pair. However, signs of easing inflationary pressures in the US keep the door open for a potential interest rate cut by the Fed in September.

This outlook was reinforced by US data released on Friday, showing an unexpected drop in import prices in May, further boosting the domestic inflation outlook. Additionally, a survey by the University of Michigan revealed a sharp deterioration in US consumer sentiment in June, which might prevent USD bulls from placing aggressive bets and help limit losses for the EUR/USD pair. With no relevant US economic data due for release on Monday, the pair remains at the mercy of the USD.

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EUR/USD Declines for Third Consecutive Day

EUR/USD Declines for Third Consecutive Day Ahead of Fed Rate Decision

EUR/USD Declines for Third Consecutive Day Ahead of Fed Rate Decision

The EUR/USD experienced its third consecutive day of losses on Tuesday as market sentiment soured following the European Union parliamentary elections. The elections resulted in a significant shift towards center-right and far-right parties, with European voters showing strong support for these groups. Meanwhile, left-leaning political parties suffered steep losses, reflecting widespread dissatisfaction among EU citizens regarding economic fragility and the current policy strategies of the established European ruling parties.

This political upheaval in Europe has added to the market’s uncertainty. Investors are now anxiously awaiting key economic updates from the United States. On Wednesday, the US Consumer Price Index (CPI) inflation data and the latest Federal Reserve (Fed) rate decision are due to be released. These announcements are expected to have a significant impact on market sentiment, which is currently quite volatile.

The US CPI inflation data is anticipated to show a cooling in April, with expectations of a 0.1% month-over-month increase compared to the previous month’s 0.3%. Annualized Core CPI inflation is also expected to tick down slightly to 3.5% year-over-year, from the previous 3.6%. These figures are critical as they will provide insight into the inflationary pressures facing the US economy and inform the Fed’s future policy decisions.

In addition to the CPI data, the Fed’s latest rate call and Monetary Policy Statement are set to draw significant attention. Although the Fed is broadly expected to hold interest rates steady this week, investors are particularly interested in updates to the Fed’s “dot plot” – a summary of interest rate expectations going forward. There is growing concern that the dot plot may shift, reflecting fewer or no rate cuts in 2024, which could have substantial implications for market dynamics.

The possibility of a significant adjustment in the Fed’s rate expectations has added to the market’s anxiety. Investors are increasingly worried that the Fed might signal a more hawkish stance, potentially indicating that the anticipated rate cuts in 2024 might not materialize. This scenario could further pressure the EUR/USD, which has already been affected by the recent political shifts in Europe and ongoing economic uncertainties.

As the market prepares for these pivotal announcements, the EUR/USD will likely remain under scrutiny. The combination of political instability in the EU and critical economic updates from the US sets the stage for continued volatility. Investors will be closely monitoring the outcomes of Wednesday’s data releases and the Fed’s communications for any indications of future policy directions.

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GBP/USD Defensive Below

GBP/USD Defensive Below 1.2750 Amid Stronger USD

GBP/USD Defensive Below 1.2750 Amid Stronger USD

During the early Asian trading hours on Monday, the GBP/USD pair recovered some of its lost ground, hovering around 1.2725. However, the upside for GBP/USD might be limited due to lower expectations of US Federal Reserve (Fed) rate cuts this year, following stronger-than-expected US Nonfarm Payrolls (NFP) data. Investors are now turning their attention to the UK employment data for May, which is scheduled for release on Tuesday. Additionally, key events on the US economic calendar this week include the Consumer Price Index (CPI) and the Federal Reserve’s interest rate decision, which will be closely watched by the market.

On Friday, the US Nonfarm Payrolls report revealed a substantial increase of 272,000 jobs in May, up from a 165,000 rise in April and significantly above the market consensus of 185,000. Despite this strong job growth, the Unemployment Rate edged up to 4.0% in May from 3.9% in April. Average Hourly Earnings also showed an impressive year-over-year increase of 4.1% in May, revised up from 3.9% in April, and surpassing the estimated 3.9%. These figures, released by the US Bureau of Labor Statistics, highlight the robustness of the US labor market.

The solid employment data has led to a reassessment of future monetary policy moves by the Federal Reserve. The likelihood of a rate cut before September has diminished, with futures traders seeing almost no chance of such a move, according to data from CME Group. This higher-for-longer rate outlook is expected to provide support for the US Dollar (USD) in the near term.In contrast, the focus in the UK will be on the employment data set to be released on Tuesday. This includes the Claimant Count Change, Employment Change, and Average Earnings data. Any indication of increased layoffs could prompt expectations of early rate cuts by the Bank of England (BoE), which would likely weaken the Pound Sterling (GBP).

The market’s attention is also on the upcoming US CPI data and the Federal Reserve’s interest rate decision. The CPI data will offer insights into the inflationary pressures in the US economy, while the Fed’s decision will provide guidance on the future path of interest rates. These events are crucial for the USD’s performance and, by extension, the GBP/USD pair’s movement.Overall, while the GBP/USD pair has shown some recovery, its upside potential may be constrained by the current economic data and central bank policies. Investors will be closely monitoring the UK employment report and the US CPI and Fed announcements for further direction.

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USD/CAD Holds Above Mid-1.3600s Ahead of US NFP

USD/CAD Holds Above Mid-1.3600s Ahead of US NFP

USD/CAD Holds Above Mid-1.3600s Ahead of US NFP

The USD/CAD pair is showing resilience below the 200-hour Simple Moving Average (SMA), but it seems to struggle to attract any significant buyers during the Asian session on Friday. Currently, spot prices trade with a mild positive bias, hovering around the 1.3670 area. Traders are keenly awaiting the release of the US monthly employment details before making fresh directional bets.

The much-anticipated Nonfarm Payrolls (NFP) report is expected to reveal that the US economy added 185,000 jobs in May, up from 175,000 in the previous month. Additionally, the unemployment rate is projected to hold steady at 3.9%. This data, along with Average Hourly Earnings, will play a crucial role in shaping the inflation outlook and the Federal Reserve’s future policy decisions. Consequently, this will influence the demand for the US Dollar (USD) and provide fresh directional impetus to the USD/CAD pair.

As the market heads into this key data risk, participants have been pricing in a higher probability that the Federal Reserve will begin cutting interest rates in September due to signs of a slowdown in the US economy. This expectation has kept US Treasury bond yields and the USD under pressure. Moreover, this week’s rebound in Crude Oil prices has supported the commodity-linked Canadian Dollar (CAD), further capping the USD/CAD pair’s upside.

Meanwhile, the Bank of Canada (BoC) recently lowered its benchmark rate for the first time in four years, from a more than two-decade high, expressing concerns about slowing economic growth. The central bank also acknowledged improvements in underlying inflation, fueling speculations about another rate cut next month. This development could limit the Canadian Dollar’s gains and act as a supportive factor for the USD/CAD pair.

Given the mixed fundamental backdrop, aggressive traders should exercise caution, as the USD/CAD pair is more likely to continue its range-bound price action on the last trading day of the week. Despite this, spot prices remain on track to register modest weekly gains, although they stay within a familiar range held since early May.

In summary, the USD/CAD pair remains resilient below the 200-hour SMA but struggles to attract substantial buyers ahead of the US NFP report. The anticipated employment data will significantly influence USD demand and the pair’s direction. While market participants expect a Fed rate cut in September, supporting the CAD, the BoC’s recent rate cut and potential for another could cap the CAD’s upside, providing a mixed outlook for the USD/CAD pair. As such, the pair is likely to maintain its range-bound movement, with modest gains expected for the week.

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Japanese Yen Weakens as Investors Await Key US Data

Japanese Yen Weakens as Investors Await Key US Data

Japanese Yen Weakens as Investors Await Key US Data

On Wednesday, the Japanese Yen (JPY) edged lower as investors exercised caution ahead of crucial US economic data releases, including the US ADP Employment Change and the ISM Services PMI reports. Market participants are also looking ahead to the Nonfarm Payrolls (NFP) report, set to be released on Friday, which could further influence the currency markets.

The JPY is under pressure due to the interest rate differential between the United States and Japan, which favors the US Dollar (USD) over the Yen. The USD/JPY pair is buoyed by this rate disparity, which makes the USD more attractive to investors. However, the potential for significant gains in the USD/JPY pair is tempered by recent positive economic data from Japan.

On Wednesday, the Jibun Bank Japan Services PMI was revised upwards to 53.8 in May, from an initial reading of 53.6. Although this revision indicates an improvement, it still falls short of April’s eight-month peak of 54.3, suggesting the slowest growth in the Japanese service sector since February. 

Additionally, Japan’s Labor Cash Earnings surged by 2.1% year-on-year in April, surpassing forecasts of a 1.7% increase and marking the highest growth rate since June of the previous year. These stronger-than-expected figures offer some support to the JPY and could limit the upside potential of the USD/JPY pair.

Meanwhile, the US Dollar Index (DXY), which measures the value of the USD against a basket of six major currencies, has edged higher, bolstered by rising US Treasury yields. However, the weaker US Manufacturing PMI for May has sparked speculation about a potential rate cut by the US Federal Reserve (Fed). This softer-than-expected manufacturing data has led traders to price in nearly 64.9% odds of a Fed rate cut of at least 25 basis points by September, a notable increase from 46.3% just a week earlier, according to the CME FedWatch Tool.

The upcoming US ADP Employment Change and ISM Services PMI reports are expected to provide further insights into the health of the US economy. Stronger-than-expected data could reinforce the USD’s strength and put additional pressure on the JPY. Conversely, weaker data could heighten expectations for a Fed rate cut, potentially providing some relief to the Yen.

In conclusion, while the Japanese Yen is facing downward pressure due to the interest rate differential between the US and Japan, recent positive economic data from Japan and the potential for a Fed rate cut could influence the USD/JPY pair’s movements in the coming days. Investors will be closely monitoring the upcoming US economic data releases and the Nonfarm Payrolls report for further direction.

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Asia Stocks Slide on US Rate Hike, China Economic Concerns

Asia Stocks Slide on US Rate Hike, China Economic Concerns

The Asian stock markets are grappling with substantial declines driven by a combination of factors, including heightened concerns over a US interest rate hike and the precarious state of China’s economic prospects. The confluence of these factors has set the stage for a notable selling spree across the region’s stock exchanges.

A significant catalyst in this downward trajectory is the perception of an impending interest rate hike by the US Federal Reserve. The robustness of the US labor market has fueled speculation that the central bank could opt for another round of interest rate increases, which has sent waves of apprehension through the investment landscape. This sentiment has triggered a chain reaction of selling across Asian markets.

China’s economic landscape is adding fuel to the fire, further exacerbating the decline in stock prices. The Shanghai Composite Index, emblematic of China’s primary stock market, is grappling with a decline of 0.06%. Similarly, the Shenzhen Component Index has faced a notable decrease of 0.54%. The repercussions of China’s economic woes are also felt in Hong Kong’s Hang Seng Index, which has witnessed a substantial dip of 1.12%. This trend extends across the region: India’s NIFTY 50 has seen a drop of 0.31%, South Korea’s Kospi Index has undergone a decline of 0.62%, and Japan’s Nikkei Index has experienced a loss of 0.63%. 

A central point of concern within China’s economic landscape is the unfolding situation surrounding Evergrande, the country’s second-largest real estate company. The company’s decision to file for bankruptcy in a US court has reverberated across global markets, intensifying the already present fears of a significant Chinese property crisis. These concerns are exacerbated by the fact that the Chinese House Price Index for July has registered a notable decrease, further contributing to the prevailing unease. The potential reevaluation of China’s sovereign credit rating by Fitch Ratings looms as another potential consequence of these ongoing challenges.

In Japan, amidst this tumultuous backdrop, the National Consumer Price Index for July has managed to surpass expectations. However, the Bank of Japan is still anticipated to hold steadfast to its loose monetary policy, reflecting an approach aimed at supporting the nation’s economic recovery.

As the market continues to grapple with these multifaceted issues, market participants remain closely attuned to developments in China’s ongoing debt crisis and real estate predicament. The interplay of these dynamics is expected to significantly influence the risk sentiment driving market movements, setting the tone for trading activity as the week draws to a close.

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Stocks Dip on Fed Minutes Hinting at Potential Rate Hikes

Stocks Dip on Fed Minutes Hinting at Potential Rate Hikes

On Wednesday, the stock market witnessed a noticeable decline in response to the Federal Reserve’s indication of potential rate hikes, prompting a reevaluation of investment strategies among traders and investors. The Dow Jones Industrial Average (^DJI) recorded a decrease of approximately 0.5%, equivalent to a drop of around 180 points. Similarly, the S&P 500 (^GSPC) experienced a decline of nearly 0.8%, while the Nasdaq Composite (^IXIC), dominated by technology-focused companies, suffered its second consecutive day of losses with a drop exceeding 1%.

Amidst this market activity, a prominent occurrence in the retail sector was the stark projection provided by Target (TGT), which adjusted its full-year profit forecast downward. The rationale behind this adjustment was attributed to the combination of escalating interest rates and the prevailing uncertainty surrounding the resumption of student loan repayments. Despite this unfavorable news, Target’s stock exhibited a surprising increase of over 3%, a surge attributed to the company’s robust quarterly profit performance that overshadowed the downward outlook.

The spotlight then turned to the release of minutes from the Federal Reserve’s recent meeting. The minutes divulged that a majority of officials maintained their stance that inflation presented a potential risk, while a select few expressed hesitance toward further rate increases in the month of July. Notably, the central bank had already executed an interest rate hike, elevating rates to their highest point since 2001 during that specific meeting. Investors eagerly sifted through the minutes in search of clues regarding the Fed’s forthcoming strategies. Data from the CME Group’s FedWatch tool demonstrated that almost 90% of traders were anticipating a status quo in terms of rates, a figure that saw a marginal decrease from before the minutes were released.

Elsewhere in the economic landscape, insights from the Census Bureau highlighted an uptick in housing starts during July. This increase, amounting to a seasonally adjusted annual rate of 1.452 million units for both new single-family and multi-family residences, represented a growth of 5.9% when compared to the previous year. These figures slightly surpassed economists’ expectations, which had projected 1.450 million units. However, the sentiment among builders experienced a minor decline in August, marking the conclusion of a seven-month streak of continuous improvements.

In summation, the collective response to the Federal Reserve’s suggestions of potential rate hikes, coupled with discouraging retail projections and a blend of varied economic data, converged to trigger the stock market’s decline on this particular trading day. As investors absorb these developments, the landscape remains primed for continued scrutiny and adaptation to the evolving financial environment.

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Asian stock market remains under pressure due to China’s economic woes

Asian stock market remains under pressure due to China’s economic woes

The Asian stock markets are grappling with sustained pressure as China’s economic challenges continue to cast a shadow over the region’s financial landscape. The markets are currently experiencing a cautious atmosphere, largely influenced by a combination of disheartening Chinese economic data and robust US retail sales figures.

China’s stock indices have undergone a relentless decline spanning four consecutive days. This disheartening trend was underscored by the July House Price Index plummeting to a concerning -0.1%. The pronounced drop in this index raises alarming concerns about the possibility of a looming property crisis. Notably, one of the major real estate developers, Country Garden Holdings, is encountering significant difficulties in meeting its debt obligations. Adding to the prevailing unease, the People’s Bank of China’s recent decision to reduce the medium-term lending facility rate has only heightened apprehensions about the overall health of China’s economy.

In Japan, despite the release of encouraging GDP data, the Nikkei has stumbled to its lowest point since July 12. This subdued performance is rooted in investor wariness regarding potential interventions by the Bank of Japan to stabilize foreign exchange rates, which has engendered an aura of hesitancy among market participants.

On a different note, the Reserve Bank of New Zealand has chosen to maintain its benchmark interest rates at their existing levels. Notably, the central bank’s governor has also conveyed a hawkish stance aimed at managing the escalating expectations surrounding inflation.

As the markets look ahead, a keen eye is being kept on the imminent release of the FOMC Minutes and any statements from Federal Reserve officials, as they hold the potential to offer insights into the trajectory of future monetary policies. These events are expected to wield considerable influence over riskier assets like equities and currencies sensitive to risk. Further down the line, the forthcoming Japanese trade data and the National Consumer Price Index are anticipated to contribute to the ever-evolving dynamics of the market.

In conclusion, the Asian stock markets are in the throes of persistent strain attributed to the ongoing uncertainties stemming from China’s economic adversities. The concerning drop in Chinese house prices, coupled with fears of a looming property crisis, along with cautious sentiments emanating from Japan and the Reserve Bank of New Zealand’s decision to maintain unchanged interest rates, have collectively shaped the prevailing market sentiment. The careful observation of forthcoming economic indicators and the actions of central banks will continue to provide valuable insights into the potential trajectories of the Asian stock markets in the days to come.

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S&P 500, Nasdaq Rise on Nvidia’s Surge

S&P 500, Nasdaq Rise on Nvidia’s Surge

In a notable market development, the S&P 500 and Nasdaq closed higher on the back of a surge in chipmaker Nvidia’s stock. This upward momentum was largely propelled by a bullish note from Morgan Stanley, leading to Nvidia’s impressive rise of 7.1%. This marked the largest single-day increase for the company since May 25, and had a positive ripple effect on megacap growth stocks and the overall technology sector, which saw gains of 1.85%.

It’s worth highlighting that several other major growth stocks also experienced upward movement during this period. Alphabet, the parent company of Google, recorded a 1.4% increase, while e-commerce giant Amazon.com rose by 1.6%. Micron Technology, a leading semiconductor manufacturer, witnessed an even more significant surge with a 6.1% rise in its stock price.

By the end of the trading day, the S&P 500 closed at 4,489.72 points, reflecting a 0.58% increase. Similarly, the Nasdaq Index registered a gain of 1.05%, reaching a value of 13,788.33 points. The Dow Jones Industrial Average also experienced a modest rise of 0.07%, closing at 35,307.63 points.

Market analyst Jay Hatfield attributed the outperformance of tech stocks to Nvidia’s positive report and its potential impact on the broader tech market. As the chipmaker’s stock surged, it instilled confidence in investors and bolstered sentiment towards the technology sector as a whole.

On the other hand, electric vehicle manufacturer Tesla faced a slight setback with a 1.2% decrease in its stock price. This decline came after the company announced price reductions for certain versions of its Model Y vehicles in China.

Investors are closely monitoring economic data, with a particular focus on the upcoming retail sales figures for July. These numbers have the potential to influence expectations regarding U.S. interest rates. Currently, traders anticipate that the Federal Reserve will maintain interest rates at their current levels next month.

Meanwhile, concerns persist regarding China’s leveraged property sector, exacerbated by the recent delayed bond payment by property developer Country Garden. This has further underscored the need for caution among investors, particularly those with exposure to the Chinese real estate market.

In other news, PayPal Holdings experienced a 2.8% increase in its stock price after the announcement of Alex Chriss, a key executive at Intuit, as the company’s new CEO. This leadership change generated optimism within the market and contributed to PayPal’s positive performance.

However, AMC Entertainment’s common shares took a significant hit, falling by nearly 36%. Similarly, Hawaiian Electric Industries shares plunged by almost 34%, reflecting the challenges faced by these particular companies within their respective industries.

During this trading period, trading volume remained relatively light, and declining stocks slightly outnumbered rising ones within the S&P 500. This suggests a cautious approach among investors and a certain level of indecisiveness in the market.

Both the S&P 500 and Nasdaq reported new highs and lows during this time, highlighting the dynamic nature of the market and the constant flux experienced by individual stocks and indices.

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Stocks Conclude with Gains Following Inflation Data

Stocks Conclude with Gains Following Inflation Data

Stocks closed higher on Thursday following the release of the latest inflation data, which showed a slight increase on an annual basis. This marks the first time in over a year that inflation has shown signs of picking up. However, investors found solace in the fact that disinflationary trends remained positive.

At the end of the trading day, the Dow Jones Industrial Average (^DJI) recorded a gain of approximately 0.2%. The S&P 500 (^GSPC) remained relatively flat, while the Nasdaq Composite (^IXIC) saw a modest increase of 0.1%. It’s worth noting that all three indexes had trimmed their larger gains from earlier in the session.

The Consumer Price Index (CPI), a widely followed measure of inflation, showed a 0.2% increase compared to the previous month and a 3.2% increase compared to the previous year in July. These figures were in line with the 0.2% month-over-month increase seen in June but slightly higher than the 3% annual increase recorded in the same period. Economists surveyed by Bloomberg had anticipated a 3.3% yearly increase for July.

On a “core” basis, which excludes the more volatile costs of food and gas, prices rose by 0.2% over the previous month and 4.7% over the last year in July. These figures exceeded economists’ expectations slightly. Notably, core inflation experienced its slowest pace of growth since October 2021.

As quarterly earnings season nears its close, investors are keeping a close eye on the reports from Alibaba (BABA) and Ralph Lauren (RL). Shares of Disney (DIS) closed up nearly 5% after the company announced plans to raise monthly prices for its ad-free streaming plans.

The reaction in the market to the inflation data indicates a cautious optimism among investors. While any increase in inflation could raise concerns, the fact that disinflationary trends remained positive helped alleviate some of those worries. The Federal Reserve has been closely monitoring inflation as it determines its monetary policy decisions.

Overall, the market remains vigilant, closely watching economic indicators and corporate earnings. This ongoing assessment of the recovery trajectory and potential implications for future policy actions will continue to shape investor sentiment in the coming days and weeks.

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Asian Shares Fall on Bank Concerns and Chinese Economic Worries

Asian Shares Fall on Bank Concerns and Chinese Economic Worries

Asian markets experienced declines on Wednesday due to concerns about the U.S. banking system’s performance, which triggered a slide on Wall Street. Simultaneously, worries about Chinese economic growth added to the downward trend in the region’s stock markets.

Japan’s Nikkei 225 dropped 0.2% to 32,323.31 during morning trading, while Australia’s S&P/ASX 200 remained almost unchanged, inching up by less than 0.1% to 7,316.60. South Korea’s Kospi, however, recorded a nearly 1.0% increase to reach 2,598.96. Meanwhile, Hong Kong’s Hang Seng declined by 0.4% to 19,105.19, and the Shanghai Composite also fell by 0.4% to 3,247.64.

Clifford Bennett, the chief economist at ACY Securities, highlighted concerns over China’s export data, which experienced the sharpest decline in three years. He emphasized that this decline reflects not only China’s situation but also the global economy’s challenges.

On Wall Street, the S&P 500 decreased by 0.4% to 4,499.38, marking the fifth loss in the last six days, following strong performance in the initial seven months of the year. The Dow Jones Industrial Average also fell by 0.4% to 35,314.49, recovering slightly from an earlier loss of 465 points. The Nasdaq composite witnessed an 0.8% decrease to 13,884.32.

Moody’s downgraded the credit ratings of 10 smaller and midsized U.S. banks, with six others under review, citing concerns related to their financial strength. Factors such as rising interest rates and the impact of remote work on office vacancies were highlighted.

The Federal Reserve’s decision to raise its main interest rate to the highest level in over two decades aimed at curbing inflation has impacted banks significantly. The higher rates have also devalued investments made during the low-rate period, contributing to recent high-profile U.S. bank failures.

Moody’s warned that banks with substantial commercial real estate loans could face challenges due to the ongoing work-from-home trends affecting office spaces.

In the bond market, the 10-year Treasury yield declined to 4.02% from 4.10%, influencing rates for mortgages and other loans. The two-year Treasury yield, which reflects expectations for the Fed, slipped to 4.75% from 4.79%.

In energy trading, U.S. crude oil prices decreased by 13 cents to $82.79 per barrel, while Brent crude, the international standard, fell by 9 cents to $86.08 per barrel. Regarding currency trading, the U.S. dollar slightly dropped to 143.31 Japanese yen from 143.36 yen, while the euro increased to $1.0963 from $1.0960.

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Asian Stocks Decline on Geopolitical Tensions; Nikkei Falls on Inflation Data

Nasdaq 100 Futures Ascend as Investors Balance Big Tech Earnings

Nasdaq 100 Futures Ascend as Investors Balance Big Tech Earnings

Nasdaq 100 futures saw a slight increase on Friday morning as investors closely analyzed the latest earnings reports from prominent technology companies ahead of a crucial employment report scheduled for release. Futures linked to the tech-heavy index rose by approximately 0.72%, while S&P 500 futures climbed 0.48%. Additionally, futures tied to the Dow Jones Industrial Average experienced a gain of 92 points, or 0.26%.

Several earnings reports released after the market’s closing bell had a significant impact on individual stocks. Amazon surged nearly 9% after surpassing profit expectations and providing positive guidance, while Apple declined around 2% due to lower revenue compared to the same quarter last year.

Apart from the major tech companies, Airbnb’s stock slid as the company revealed that nights and experiences booked grew at a slower rate than anticipated by Wall Street. On the other hand, DraftKings and Dropbox stocks rose approximately 13% and 4%, respectively, following reports that exceeded analysts’ expectations.

These earnings reports constitute a part of the ongoing earnings season, during which roughly 79% of S&P 500 companies have disclosed their results, with about 80% surpassing Wall Street’s expectations, according to FactSet data.

Investors are closely monitoring the jobs data scheduled for release on Friday morning to gain further insights into the labor market and overall economy’s strength. They hope that slower growth in hourly earnings will signal to the Federal Reserve that the previous interest rate hikes have achieved their intended effects on the economy. Rob Haworth, senior investment strategist at U.S. Bank, emphasized the significance of the upcoming jobs report and its potential implications for inflation.

Economists polled by Dow Jones anticipate nonfarm payrolls to grow by 200,000 in July, with the unemployment rate expected to remain steady at 3.6%. Average hourly wages are projected to rise by 0.3% from June and 4.2% on an annualized basis.

The recent increase in the 10-year U.S. Treasury yield had a negative impact on stocks during Thursday’s trading session, causing the three major indexes to close in the red.

As the trading week approaches its end, the three major indexes are set to finish lower. The Nasdaq Composite and S&P 500 are poised to post their worst weekly performances since March, down about 2.5% and 1.8%, respectively, while the Dow has slid 0.7% on a week-to-date basis.

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Gold Struggles Below $3,300 as Fed Rate Cut Hopes Dim Ahead of FOMC Minutes

Gold Struggles Below $3,300 as Fed Rate Cut Hopes Dim Ahead of FOMC Minutes

Gold (XAU/USD) dipped to a one-and-a-half-week low near $3,284 during the Asian trading session on Wednesday, weighed down by a stronger US Dollar and rising Treasury yields. Investors are increasingly convinced that recent US tariff hikes may fuel inflation, prompting the Federal Reserve to keep interest rates elevated for longer. 

The firmer Greenback, bolstered by expectations of prolonged Fed tightening and a robust June jobs report, has dulled the appeal of non-yielding assets like gold. Benchmark 10-year US bond yields also climbed, adding further pressure on the precious metal. 

Market participants remain cautious amid ongoing concerns about the economic fallout from Donald Trump’s aggressive tariff proposals. On Tuesday, the former US President threatened to impose duties of up to 50% on copper and 200% on foreign pharmaceuticals, unsettling global markets. However, gold’s traditional safe-haven demand has yet to see significant support in response. 

Traders are now eyeing the release of the FOMC meeting minutes later today, hoping for clues on the Fed’s rate path. Although a July rate cut appears off the table, markets are still pricing in up to 50 basis points of easing by year-end, likely beginning in October. 

Technically, a break below the $3,300 level, coupled with resistance at the 100-period SMA on the 4-hour chart, signals further downside. Momentum indicators suggest gold could slide towards the next support at $3,270, with a deeper drop towards $3,248–$3,247 not ruled out. 

On the upside, recovery attempts may face initial resistance near $3,310 and stronger barriers around $3,326 and $3,340. A decisive move above $3,360 could open the door to a short-term rebound toward the $3,400 mark. 

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Gold Price Climbs Steadily

Gold Price Climbs Steadily, Eyes Record High Amid Trade War Concerns

Gold (XAU/USD) extends its intraday rally, reaching the $2,880 region during the Asian session on Monday. The gains come in response to US President Donald Trump’s plan to impose new 25% tariffs on all steel and aluminum imports, reigniting fears of a global trade war and driving demand for the safe-haven precious metal. Additionally, concerns that Trump’s protectionist policies could fuel inflation further bolster gold’s appeal as a hedge against rising prices.

Gold Supported by Trade War Fears, But Fed Policy Remains a Concern

Despite strong upside momentum, gold’s gains may face limitations due to the resilient US Dollar (USD) and expectations that the Federal Reserve (Fed) might delay further rate cuts. The strong US employment data released on Friday, coupled with inflationary concerns, has reinforced speculation that the Fed will maintain a cautious stance.

Overbought conditions on the daily chart could also deter traders from initiating fresh bullish positions, especially in the absence of key US economic data early in the week.

Trump’s Tariff Announcement Sparks Market Uncertainty

On Sunday, Trump reaffirmed plans to impose 25% tariffs on all steel and aluminum imports into the US, adding that his administration would match tariff rates imposed by other countries. These announcements have further fueled uncertainty and strengthened gold’s safe-haven appeal.

Meanwhile, geopolitical tensions remain elevated. Russian Deputy Foreign Minister Galuzin stated there are no satisfactory proposals for Ukraine peace talks, dismissing Western statements as mere rhetoric. US Vice President JD Vance is reportedly heading to Germany this week to outline US policy proposals.

Fed Policymakers Express Caution Amid Economic Uncertainty

The latest US Nonfarm Payrolls (NFP) report showed 143K jobs were added in January, falling short of the 170K estimate but offset by an unexpected dip in the Unemployment Rate to 4.0%. While the report provides mixed signals, it has reinforced the belief that the Fed will remain cautious regarding further monetary easing.

Several Fed officials have weighed in on economic policy:

  • Minneapolis Fed President Neel Kashkari stated he would consider supporting further rate cuts if inflation data remains favorable and the labor market stays strong.
  • Chicago Fed President Austan Goolsbee noted that inconsistent US government policies create economic uncertainty, making it difficult to assess inflation trends.
  • Fed Governor Adriana Kugler acknowledged steady US economic growth but warned that progress toward the 2% inflation target remains uneven and slow.

What’s Next for Gold?

A stronger US Dollar could act as a headwind for gold prices, limiting aggressive bullish momentum. Traders will closely monitor Fed Chair Jerome Powell’s semi-annual congressional testimony and the upcoming US consumer inflation figures for further market direction.

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Gold Price Rally Holds Strong, But Overbought Conditions Raise Caution

Gold Price Bulls Hold Firm, But Overbought Conditions Suggest Caution

Gold (XAU/USD) continues its upward trajectory through the Asian session on Wednesday, reaching a fresh all-time high near $2,858. Concerns about the economic impact of US President Donald Trump’s trade tariffs continue to drive demand for the safe-haven metal. Furthermore, predictions that the Federal Reserve (Fed) would continue its easing cycle, backed by signs of deteriorating momentum in the US labor market, are fuelling demand for the non-yielding yellow metal.

 

Meanwhile, the US dollar (USD) remains under pressure near its weekly low, with rising expectations of further Fed policy easing, offering an extra lift to gold prices. However, Trump’s decision to suspend tariffs on Canada and Mexico has contributed to a risk-on mentality, which may restrict future gains for XAU/USD. Furthermore, gold is entering overbought territory on the daily chart, implying a short-term consolidation or minor retreat before the advance begins. Traders are now waiting for significant U.S. data releases, such as the ADP private-sector employment report and the ISM Services PMI, for new market signals.

Gold Bulls Retain Control Amid US-China Trade Tensions

Despite the positive risk tone, a further escalation in U.S.-China trade tensions continues to lend support to the upward momentum in gold. In response to President Trump’s latest tariffs, China has imposed targeted duties on US imports, and the threat of a trade war between the world’s two biggest economies has seen gold reach an all-time high on Wednesday.

On the macroeconomic front, the Job Openings and Labor Turnover Survey (JOLTS) released Tuesday revealed a decline in U.S. job openings, dropping to 7.6 million in December from a previous 8.09 million. The data signals a cooling labor market, increasing the likelihood of additional Fed rate cuts. This has kept USD bulls on the defensive and further strengthened XAU/USD.

Trump’s decision to postpone the application of a 25% tax on Canadian and Mexican imports by 30 days has revived hopes that a global trade war can be avoided. However, this has done little to undermine the positive enthusiasm toward gold.

Market players will be keenly monitoring Wednesday’s U.S. economic data, such as the ISM Services PMI and the ADP employment report, which may cause short-term changes in gold prices. However, Friday’s highly anticipated Nonfarm Payrolls (NFP) report continues to be the main focus. Furthermore, any fresh information about trade tariffs is probably going to cause financial markets to become more volatile.

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WTI Crude Oil Struggles Near $72.00, 100-Day SMA Holds as Key Support

WTI Crude Oil Struggles Near $72.00, 100-Day SMA Holds as Key Support

West Texas Intermediate (WTI) crude oil prices fell from a one-week high on Tuesday, attracting sellers for the second straight session. The commodity trades at $72.00, barely above last week’s one-month low and close to the important 100-day Simple Moving Average (SMA) support. 

US Tariff Delay Weighs on Oil Prices

US President Donald Trump has announced a one-month suspension on newly imposed tariffs on imports from Canada and Mexico, easing worries about potential supply disruptions from two of the country’s main oil suppliers. This development put downward pressure on crude oil prices. Furthermore, fears of lower gasoline demand—driven by the larger economic impact of Trump’s trade policies—are contributing to gloomy sentiment in the oil market.

OPEC+ Stands Firm on Production Policy

Despite Trump’s calls for higher output to combat rising oil prices, the Organization of Petroleum Exporting Countries and its allies (OPEC+) have chosen to keep current production levels. This decision may give some support for crude oil prices, avoiding further losses in the near term.

Key Technical Levels to Watch

Traders will closely monitor the 100-day SMA, currently positioned near the $71.00 mark, which serves as a crucial support level. A decisive break below this threshold could trigger an extended pullback from the recent multi-month highs. Conversely, a bounce from this level may reinforce buying interest and help WTI recover from its recent slump.

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Gold Holds Below $2,800 Despite Intraday Recovery

Gold Price Trims Intraday Losses but Remains Below $2,800 Amid Stronger USD

The gold price (XAU/USD) recovers some of its losses following the strong Asian session sell-off but remains in negative territory, hovering around $2,785, down about 0.60% for the day. The recent rise in the US Dollar (USD), fueled by President Donald Trump’s decision to impose tariffs on Canada, Mexico, and China, has pushed the greenback closer to a two-year high, weighing on gold and dragging it away from its all-time high of $2,817, hit on Friday.

However, projections that the Federal Reserve (Fed) would lower interest rates twice by the end of 2025, combined with indications about probable economic disruptions from Trump’s trade policies, contribute to gold’s safe-haven appeal. The current risk-off mentality further shields the downside, so bearish traders should exercise caution ahead of this week’s key US macroeconomic data, which begins with today’s ISM Manufacturing PMI release.

Technical Outlook: Gold’s Uptrend Intact Despite Intraday Pullback

From a technical perspective, the intraday decline found support near the $2,772 resistance-turned-support level, which now serves as a pivotal point. A decisive break below this zone could trigger further selling pressure, exposing gold to the next key support levels:

 

  • $2,755 – Initial downside target
  • $2,740 – Intermediate support
  • $2,725-$2,720 – Strong demand zone
  • $2,700 – Psychological level, a break below which could accelerate losses

Conversely, immediate resistance is seen in the $2,790-$2,800 region, followed by the record high of $2,817. Notably, momentum indicators on the daily chart remain comfortably positive, indicating that gold has not yet reached overbought levels. This provides room for additional upward momentum, confirming the broader bullish trend that began with the December swing bottom.

If gold manages to sustain a move above $2,817, it could pave the way for fresh record highs, with bulls eyeing further gains amid ongoing market uncertainty.

Market Drivers to Watch

US Dollar Strength: The impact of Trump’s tariffs on global trade could continue supporting the USD, potentially weighing on gold.

Federal Reserve Policy: Expectations of rate cuts in 2025 remain a crucial factor for gold’s long-term trajectory.

US Economic Data: The upcoming ISM Manufacturing PMI and Nonfarm Payrolls (NFP) report later this week could trigger volatility in gold prices.

Risk Sentiment: Any escalation in geopolitical or economic tensions could further boost gold’s safe-haven demand.

Overall, while gold has retreated from its highs, the larger bullish trend remains intact, with technical signals suggesting further upward movement as long as critical support levels hold.

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WTI Slips to $71.00 Amid Trade Tariff Concerns and Weak China Data

WTI Slips to $71.00 Amid Trade Tariff Concerns and Weak China Data

West Texas Intermediate (WTI) crude oil prices edge lower during Wednesday’s Asian session, erasing part of the previous day’s modest recovery from a nearly three-week low. The commodity trades near $71.00, down over 0.25% for the day, and remains vulnerable to further losses amid prevailing bearish sentiment.

Investor concerns persist over US President Donald Trump’s threat to impose trade tariffs on Canada, China, and Mexico by February 1, which could weigh on global fuel demand. Additionally, weak Chinese economic data adds to downward pressure. Official PMIs released on Monday highlighted continued weakness in the world’s second-largest economy and top crude importer, raising concerns over lower consumption.

Further pressure on oil prices comes from Trump’s energy policies, which include plans to ramp up US energy production and calls for the Organization of Petroleum Exporting Countries (OPEC) to increase output to drive prices lower.

With bearish fundamentals dominating, WTI remains susceptible to further downside risks in the near term.

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WTI Drops Toward

WTI Drops Toward $74.00 as Trump Pressures OPEC to Lower Oil Prices

West Texas Intermediate (WTI), the US crude oil benchmark, trades near $74.10 on Friday, continuing its downward trend after US President Donald Trump urged Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) to reduce oil prices.

Uncertainty surrounding Trump’s proposed tariffs and energy policies adds to the pressure on WTI. Speaking at the World Economic Forum in Davos on Thursday, Trump announced plans to request Saudi Arabia and OPEC to lower oil prices, saying, “I’m also going to ask Saudi Arabia and OPEC to bring down the cost of oil.”

Expectations of increased US production under Trump’s administration further weigh on oil prices. Earlier this week, Trump declared a national energy emergency, leveraging his authority to expedite the approval of oil, gas, and electricity projects that would typically require years of permitting.

Meanwhile, US crude inventories declined for the ninth consecutive week. The US Energy Information Administration (EIA) reported a drop of 1.017 million barrels in crude oil stockpiles for the week ending January 17, following a 1.962 million-barrel decline in the prior week. Market expectations had forecast a larger decrease of 2.1 million barrels.

Oil traders will closely monitor developments surrounding Trump’s energy policies and tariff announcements. Additionally, attention will shift to the preliminary US S&P Global Purchasing Managers Index (PMI) for January, set for release later on Friday. A weaker-than-expected reading could pressure the US Dollar (USD), potentially offering some support to the USD-denominated WTI price.

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EUR/USD Price Forecast

EUR/USD Price Forecast: Consolidating Below 1.0500 Amid Multi-Week High

The EUR/USD currency pair is having a hard time continuing its recent winning streak, trading in a tight range just below the 1.0500 psychological mark during the Asian session on Monday. In spite of the consolidation, the pair is still close to its three-week high of Friday, buoyed by a weaker US Dollar (USD).

Technically, the pair‘s location above the 38.2% Fibonacci retracement level of the November-January bear run, combined with upbeat oscillators on the daily chart, indicates that the bullish momentum is still intact. This leaves room for a potential rally towards the 1.0545-1.0555 resistance area, which coincides with the 50% Fibonacci retracement level and the 100-day Exponential Moving Average (EMA).

A successful breach above this crucial barrier may set the stage for additional gains, with EUR/USD potentially challenging the 1.0600 level. A break above this level may propel the pair towards the December 2024 swing high of 1.0630, close to the 61.8% Fibonacci retracement level. Further bullish momentum may continue to drive the rebound from its more than two-year low in January.

To the contrary, however, the 38.2% Fibonacci level of 1.0465 acts as an instant support level. A resolute breach through this area can drive selling momentum faster, pulling the pair towards the 1.0400 round number and down further into the mid-1.0300s (23.6% Fibonacci level). Failure to hold these levels could shift the bias in favor of bearish traders, potentially exposing the 1.0200 handle.

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EUR/USD Eases Near

EUR/USD Eases Near 1.0300 Ahead of Lagarde’s Speech

The EUR/USD pair edges lower to approximately 1.0310 during the Asian session on Monday, weighed down by a stronger US Dollar (USD). Market participants are focused on the upcoming Eurozone Sentix Investor Confidence data for February and a speech by European Central Bank (ECB) President Christine Lagarde later in the day.

On Friday, former US President Donald Trump announced plans to introduce reciprocal tariffs on multiple countries by Tuesday or Wednesday, though he did not specify which ones. This move has heightened concerns about a global trade war, fueling demand for the safe-haven USD.

“The immediate concern might not be inflation, as counter-effects like a demand slowdown could come into play. However, the bigger issue is uncertainty and the shift toward a more protectionist world,” said Charu Chanana, Chief Investment Strategist at Saxo.

Meanwhile, the Euro faces pressure from growing expectations of further ECB rate cuts amid sluggish economic growth. ECB Governing Council member Boris Vujcic stated that the market’s anticipation of three rate cuts this year is reasonable. However, he emphasized that greater clarity on monetary policy direction may not emerge until early in the second quarter.

Traders will keep a close eye on US trade policies, especially Trump’s repeated threats against Europe. JPMorgan economist Nora Szentivanyi noted that the objectives, timing, and tariff rates remain unclear. Nonetheless, the European Commission has stated it would retaliate firmly against any tariffs imposed by the US.

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EUR/USD Holds Below 1.0400 Ahead of Eurozone Retail Sales Data

EUR/USD Struggles Below 1.0400 Ahead of Eurozone Retail Sales Data

EUR/USD is trading lower around 1.0390 in the Asian session on Thursday, extending losses following a two-day recovery. Investors remain wary ahead of the release of Eurozone Retail Sales data later today.

Market predictions suggest that Eurozone retail sales scaled by 1.9% year on year in December, up from the previous 1.2% increase. However, the monthly number is expected to fall by 0.1%, erasing the 0.1% increase reported in November.

The euro remains under pressure as market sentiment points to further monetary easing by the European Central Bank (ECB). Policymakers feel optimistic that inflation will steadily return to the ECB’s 2% objective, lessening the need for additional tightening.

Meanwhile, the US Dollar Index (DXY), which tracks the dollar against six major currencies, has stabilized at 107.70, restricting EUR/USD’s upside potential. The dollar’s resiliency comes after a three-day losing skid, which puts pressure on the pair.

On Thursday, Federal Reserve Vice Chair Philip Jefferson reiterated his desire for keeping existing interest rates, underlining that the Fed’s policy remained restrictive despite the 100-basis-point drop. Meanwhile, San Francisco Federal Reserve President Mary Daly emphasized the central bank’s cautious attitude in the face of prolonged economic uncertainties.

The dollar weakened on Wednesday following a disappointing US Services PMI reading. The ISM Services PMI dropped to 52.8 in January from a revised 54.0 in December, falling short of the market consensus of 54.3. Looking ahead, traders are watching Friday’s US Nonfarm Payrolls (NFP) report, which might influence the Federal Reserve’s next policy actions.

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EUR/USD Stuck in Range Near 1.0375-1.0380 as Bulls Struggle for Direction

EUR/USD Struggles for Clear Direction, Stays Range-Bound Near 1.0375-1.0380

The EUR/USD pair continues in consolidation mode, failing to build on its recent recovery from the 1.0200 region—the lowest level since January 13. After reaching a weekly high earlier on Wednesday, the pair is fluctuating within a narrow range around 1.0375-1.0380, showing little change for the day amid mixed market signals.

Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) indicated a cooling U.S. labor market, reinforcing expectations of Federal Reserve (Fed) policy easing. Markets are now factoring in the likelihood of two rate cuts by the Fed this year. Risk-on sentiment also remains prevalent, but should continue to weigh on demand for the safe-haven USD, and thereby support EUR/USD.

Upside momentum, however remains constrained by issues on the introduction of U.S. tariffs over the goods to be imported in Europe under Trump’s administration, among others, and the ECB dovish direction which is being felt in restraining the Euro though HICP was reported higher to an annual rate of 2.5% in the last month, still, does not allow much upside in this pair.

Looking ahead, market participants will focus on the final Eurozone Services PMI release, while the U.S. economic calendar highlights the ADP private-sector employment report and the ISM Services PMI. Movements in the USD could also be influenced by key FOMC member speeches. Still, Friday’s NFP report will focus more attention on it as it will help deliver a better picture of the situation in the U.S. labor market and set the direction for future Fed policy.

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GBP/USD Holds Above 1.2400 as Markets Watch China Tariff Developments

GBP/USD Holds Above 1.2400 as Markets Watch China Tariff Developments

GBP/USD extends its gains for a second consecutive session, trading around 1.2430 during Asian market hours on Tuesday. With  the  decision   by   U.S. President Donald Trump   to pause tariffs on Mexico and Canada , the pair benefits from a risk-on sentiment .

Despite this, investors continue to pay close attention to ongoing trade negotiations, making market volatility a major concern. Trump declared that he would postpone imposing high tariffs on Canada and Mexico for at least 30 days following their agreements to send 10,000 troops to the U.S. border to fight drug trafficking.

This move follows Trump’s recent decision to impose 25% tariffs on Mexican and Canadian goods, along with a 10% tariff on Chinese imports. Additional tariffs on China are anticipated to go into effect Tuesday at 5:00 GMT. Trump managed to say that talks with Chinese officials might happen “probably over the next 24 hours,” and that tariffs on China would be “very, very substantial” if an agreement could not be made.

Meanwhile, the U.S. Dollar Index (DXY), which tracks the USD against six major currencies, hovers around 108.70 after erasing most of its gains from the previous session. Strong U.S. economic data could provide support for the greenback, as the ISM Manufacturing PMI climbed to 50.9 in January from 49.3 in December, surpassing the expected 49.8.

While GBP/USD may rise, the British Pound’s upside may be limited, given the expectation that the Bank of England (BoE) will cut interest rates once again. Despite rising wages in the UK, the BoE is expected to lower interest rates by 25 basis points to 4.5% on Thursday.

The BoE’s Monetary Policy Committee (MPC) is expected to vote 8-1 in favor of the rate cut, with one member likely advocating for maintaining rates at their current level for now.

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EUR/USD Drops to 1.0200 on Trump’s Trade Tariffs

EUR/USD Slumps to Multi-Week Low Near 1.0200 Amid Trump’s Trade Tariffs

The EUR/USD pair extends its decline on Monday, plunging to the 1.0200 region—a three-week low—during the early Asian session. This drop brings the pair closer to its lowest level in over two years, last seen in January, reinforcing the ongoing multi-month downtrend.

The US Dollar (USD) gains broad strength following President Donald Trump’s weekend announcement of new tariffs: 25% duties on imports from Canada and Mexico, along with an additional 10% tariff on Chinese goods. These measures escalate global trade tensions, dampening investor appetite for riskier assets and boosting demand for the safe-haven USD. As a result, the EUR/USD pair faces renewed selling pressure.

Adding to the bearish sentiment, Trump also declared on Friday evening that he would impose tariffs on goods from the European Union. This, coupled with the European Central Bank’s (ECB) dovish stance, further weighs on the euro. Last Thursday, the ECB cut borrowing costs by 25 basis points (bps) as expected and signaled the possibility of additional rate cuts before the year’s end, exacerbating the euro’s weakness.

The policy divergence between the ECB and the Federal Reserve (Fed) further tilts market sentiment in favor of the USD. While the Fed has opted for a hawkish pause, supporting the dollar’s strength, a recent pullback in US Treasury yields may limit further USD gains and offer some relief to the EUR/USD pair. However, the overall market outlook suggests that the pair’s downside momentum is likely to persist.

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EUR/USD Holds Above 1.0400 | Focus on Q4 GDP & ECB Policy Decision

EUR/USD Holds Above 1.0400 Ahead of Q4 GDP Data and ECB Policy Decision

The EUR/USD pair is edging higher after three consecutive losses, trading near 1.0420 during Thursday’s Asian session. The rebound is primarily driven by a technical pullback in the US Dollar (USD). Meanwhile, the US Dollar Index (DXY), which tracks the greenback against six major currencies, remains just below 108.00.

Despite the recent uptick, further gains for EUR/USD may be capped as the USD could regain strength following the Federal Reserve’s (Fed) cautious approach to monetary policy. The Fed reinforced its hawkish stance by removing language suggesting confidence in inflation reaching its 2% target.

During his press conference, Fed Chair Jerome Powell emphasized that any policy changes would require “real progress on inflation or some weakness in the labor market.” As expected, the Fed maintained its overnight borrowing rate at 4.25%-4.50% during its January meeting on Wednesday. This decision follows three consecutive rate cuts since September 2024, totaling a one-percentage-point reduction.

Meanwhile, the Euro faces downward pressure as the European Central Bank (ECB) is widely expected to cut interest rates by 25 basis points in its policy meeting on Thursday, lowering the Deposit Rate to 2.75%. Market sentiment suggests that further rate cuts from the ECB may follow in the coming months, potentially weighing on the Euro.

Investors will closely watch the release of fourth-quarter Gross Domestic Product (GDP) data from the Eurozone and Germany on Thursday. Later in the day, focus will shift to the US Annualized GDP report, which could influence market sentiment and currency movements.

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Yen Subdued as USD Advances on Risk Aversion

Yen Subdued as USD Advances on Risk Aversion

Yen Subdued as USD Advances on Risk Aversion

The Japanese Yen (JPY) continued its downward trend for the second consecutive trading day on Monday, with the USD/JPY pair finding support as the US Dollar (USD) regained strength. This resurgence in the USD follows the release of better-than-expected US employment data last Friday, which bolstered market confidence in the US economy.

On Monday, Japan released a mix of economic data that could help limit the Yen’s downside. Japan’s Gross Domestic Product (GDP) on an annualized basis showed that the economy contracted less than anticipated in the first quarter. However, the quarter-on-quarter GDP figures confirmed a shrinkage, aligning with the preliminary data. This mixed economic picture adds some complexity to the Yen’s outlook, offering slight support amid otherwise bearish sentiment.

Concurrently, the US Dollar Index (DXY), which tracks the USD against six major currencies, continued to climb, supported by rising US Treasury yields. The robust US jobs report has reinforced expectations of a hawkish stance from the Federal Reserve. This is reflected in the CME FedWatch Tool, which shows that the probability of a Fed rate cut of at least 25 basis points in September has decreased to nearly 48.0%, down from 54.8% just a week ago. The stronger job market data suggests that the Federal Reserve may maintain higher interest rates for longer to manage inflation, providing further support to the USD.

The combination of strong US economic data and mixed signals from Japan’s economy is influencing the current dynamics between the Yen and the Dollar. As the USD strengthens on the back of higher yields and reduced expectations of rate cuts, the Yen remains subdued. However, the nuanced economic data from Japan could prevent a steeper decline in the Yen.

Looking ahead, the market will closely monitor upcoming economic reports and central bank communications for further clues on the future direction of the USD/JPY pair. Any significant developments in US inflation data or changes in the Federal Reserve’s policy outlook could further impact the pair’s movement. Similarly, any new economic data from Japan or shifts in Bank of Japan policy could also play a crucial role in determining the Yen’s trajectory.

In summary, the interplay of strong US employment data, rising Treasury yields, and mixed Japanese economic indicators is shaping the current performance of the USD/JPY pair, with the Dollar advancing on risk aversion while the Yen remains under pressure.

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Yen Consolidates as Suzuki Signals No FX Intervention Limit

Yen Consolidates as Suzuki Signals No FX Intervention Limit

Yen Consolidates as Suzuki Signals No FX Intervention Limit

On Friday, the Japanese Yen (JPY) consolidated following the release of Japanese Foreign Reserves for May by the Ministry of Finance, which showed a significant drop to $1,231 billion from $1,279 billion. This marks the lowest level since February 2023, as the government engaged in foreign exchange intervention operations to support the JPY.

Japanese Finance Minister Shunichi Suzuki stated that the government will take action against excessive currency volatility as needed and will evaluate the effectiveness of such interventions. Suzuki stressed the importance of maintaining market trust in public finances, noting that there is no fund limit for foreign exchange (FX) intervention, according to Reuters.

Meanwhile, the US Dollar (USD) struggled due to lower-than-expected employment data from the United States. This has increased hopes for two interest rate cuts by the US Federal Reserve (Fed) in 2024. A Reuters poll conducted from May 31 to June 5 revealed that nearly two-thirds of economists now anticipate an interest rate cut in September. Additionally, the CME FedWatch Tool indicates that the probability of a Fed rate cut in September by at least 25 basis points has risen to nearly 70%, up from 51% a week earlier.

In summary, the Japanese Yen is holding steady as the government continues its efforts to defend the currency through foreign exchange interventions. Finance Minister Suzuki’s commitment to addressing currency volatility and ensuring market confidence underscores the government’s proactive approach. Concurrently, the US Dollar faces downward pressure as expectations grow for the Fed to cut interest rates later this year, influenced by recent employment data. These developments highlight the dynamic nature of global currency markets and the ongoing interplay between monetary policy decisions and economic indicators.

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Australian Dollar Rises on Risk-On Sentiment and Strong China Services PMI

Australian Dollar Rises on Risk-On Sentiment and Strong China Services PMI

Australian Dollar Rises on Risk-On Sentiment and Strong China Services PMI

The Australian Dollar (AUD) gained ground on Wednesday, bolstered by improved risk sentiment and a stronger-than-expected China Services PMI. However, the upward momentum of the Aussie Dollar may be constrained by weaker-than-anticipated domestic economic data. The Gross Domestic Product (GDP) for the first quarter grew by only 0.1% quarter-on-quarter, falling short of the 0.2% expected. On an annual basis, the economy expanded by 1.1%, just below the forecasted 1.2%.

Additionally, the AUD/USD pair faced pressure as the Judo Bank Purchasing Managers Index (PMI) for May was reported at 52.5, lower than the anticipated 53.1. These economic indicators suggest a softer performance for the Australian economy, which could limit the AUD’s gains.

Reserve Bank of Australia (RBA) Governor Michele Bullock commented on the economic outlook, anticipating low GDP growth for the first quarter. Bullock reiterated the central bank’s readiness to act if the Consumer Price Index (CPI) does not return to the target range, highlighting the RBA’s commitment to maintaining price stability.

Across the Pacific, the US Dollar (USD) showed signs of potential rebound due to an upward correction in US Treasury yields. The USD had recently weakened amid rising speculation that the Federal Reserve (Fed) might cut interest rates later this year. However, key US economic data releases, including the ADP Employment Change and ISM Services PMI reports, are expected to provide further direction for the USD. Investors are closely watching these reports for indications of the health of the US economy and any potential shifts in Fed policy.

The Australian Dollar’s performance is also influenced by broader market risk sentiment. The stronger China Services PMI, which indicated robust activity in China’s service sector, contributed to the positive sentiment, as China is a major trading partner for Australia. This external factor helped support the AUD despite the weaker domestic economic data.

In summary, while the Australian Dollar is currently benefiting from improved risk sentiment and strong data from China, its gains are tempered by weaker-than-expected GDP growth and PMI figures. The outlook for the AUD/USD pair will depend on upcoming economic data from both Australia and the US, as well as broader market trends. Investors will be particularly attentive to the US data releases later in the day, which could significantly impact currency movements and broader market sentiment.

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Australian Dollar Stagnant as US Dollar Rises Before ISM PMI

Australian Dollar Stagnant as US Dollar Rises Before ISM PMI

Australian Dollar Stagnant as US Dollar Rises Before ISM PMI

The Australian Dollar (AUD) maintained its stability as investors adopted a cautious stance ahead of the upcoming release of the ISM Manufacturing PMI in the United States on Monday. The AUD found some early support during the Asian trading session following an increase in Australia’s minimum wage by 3.75%, which was within the anticipated range of 3.5% to 4.0%. This policy adjustment provided a mild boost to the domestic currency.

Additionally, the AUD/USD currency pair saw some strengthening after the release of the US Personal Consumption Expenditure (PCE) data. As the Federal Reserve’s favored inflation gauge, the PCE data indicated a softening of price pressures in April, which in turn diminished some of the upward pressure on the US dollar. Simultaneously, Australia’s own inflation metrics showed a pickup, with the monthly inflation rate rising to 3.6%. This increase in inflation may prompt the Reserve Bank of Australia (RBA) to consider further interest rate hikes to temper inflationary pressures.

The Australian Dollar also saw benefits from external influences, notably the Caixin Manufacturing Purchasing Managers Index (PMI) from China, which exceeded expectations for May. This positive data suggested robust manufacturing activity in Australia’s largest trading partner, which is typically a bullish signal for the AUD given the substantial trade ties between the two nations. However, the mood was somewhat tempered by China’s National Bureau of Statistics (NBS) PMI data released on Friday, which came in below expectations and hinted at reduced import demand from China. This is particularly significant for Australia, a leading commodity exporter, as fluctuations in Chinese demand can have substantial repercussions on its economy.

Meanwhile, the US Dollar saw a decline as US Treasury yields fell. This was compounded by comments from Federal Reserve officials suggesting that the central bank might achieve its 2% annual inflation target without the need for further rate hikes. Looking ahead, market participants are keenly awaiting the ISM Manufacturing PMI, with many also gearing up for additional key indicators such as the US Nonfarm Payrolls report due on Friday. These data points will be crucial in shaping market expectations regarding the future monetary policy directions of the Fed.

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US Core PCE Inflation Likely to Hold Steady

Pound Sterling Dips Amid Uncertainty Before US Core PCE Data

Pound Sterling Dips Amid Uncertainty Before US Core PCE Data

The Pound Sterling (GBP) is facing downward pressure in Friday’s early London trading session, as its recovery from a four-day low near 1.2680 seems to have lost momentum. The GBP/USD pair is trading with caution due to the looming release of the United States core Personal Consumption Expenditures (PCE) Price Index data for April, set for publication at 12:30 GMT.

The core PCE Inflation data, which is the Federal Reserve’s (Fed) preferred gauge of inflation, is projected to show a steady increase of 0.3% on a monthly basis and 2.8% annually. These figures are closely watched by investors as they provide crucial insights into inflation trends, influencing the Fed’s monetary policy decisions.

This upcoming release is particularly significant as it comes at a time when the market is attempting to gauge the Fed’s future actions regarding interest rates. Policymakers at the Fed have indicated that they would need to see a sustained decrease in inflation before considering any moves towards policy normalization. Therefore, in-line inflation numbers are likely to temper expectations for any imminent rate cuts, particularly at the Fed’s September meeting.

Conversely, a higher-than-expected inflation reading could stir market speculation that the Fed might delay any interest rate reductions, possibly pushing such actions out to November or later. On the other hand, if the inflation figures come in below expectations, it could bolster the likelihood of the Fed lowering key borrowing rates as early as September.

The anticipation surrounding this data release is causing heightened market sensitivity, with potential implications for currency valuations, bond yields, and stock market movements. Investors and traders are thus keenly observing these indicators, which serve as a barometer for not only U.S. economic health but also global financial stability.

Furthermore, the outcomes of this data release could influence other central banks’ policies, particularly in major economies closely tied to the U.S. financial system. This makes the PCE Inflation data a key focal point not just for currency traders but for the broader financial markets, underscoring its significance in shaping global monetary policy landscapes.

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Australian Dollar Stabilizes Post-Inflation Data, US Dollar Stays Strong

Australian Dollar Stabilizes Post-Inflation Data, US Dollar Stays Strong

The Australian Dollar (AUD) recovered some of its earlier losses on Wednesday following the release of the higher-than-expected Monthly Consumer Price Index (CPI). This robust inflation data has fueled speculation that the Reserve Bank of Australia (RBA) might consider another interest rate hike. The minutes from the RBA’s May policy meeting revealed that the central bank had already contemplated a potential rate increase, adding weight to this possibility.

Earlier in the Asian trading session, the AUD struggled due to increased risk aversion and a stronger US Dollar (USD). The USD’s strength can be attributed to rising US Treasury yields, with the US Dollar Index (DXY), which measures the USD against six major currencies, trading higher around 104.70. 

At the time of reporting, the yields on 2-year and 10-year US Treasury bonds were at 4.96% and 4.54%, respectively.The US Dollar’s rebound on Tuesday followed remarks from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, who suggested that a rate hike might still be on the table. Kashkari expressed uncertainty about the disinflationary process and predicted only two rate cuts. This hawkish stance has led to increased speculation about the Federal Reserve’s future actions.

According to the CME FedWatch Tool, the probability of the Federal Reserve implementing a 25 basis-point rate cut in September decreased to 41.7%, down from 44.9% the previous day. This shift in expectations underscores the market’s reaction to the Fed’s evolving outlook on interest rates and inflation.Looking ahead, New York Fed President John Williams is scheduled to speak on Wednesday, and the Fed’s Beige Book will be released. 

The Beige Book provides an overview of the current US economic situation based on interviews with key business contacts, economists, market experts, and other sources from the 12 Federal Reserve Districts. These events are likely to offer further insights into the Fed’s perspective on economic conditions and potential policy actions.

In summary, the AUD’s recovery was driven by stronger-than-expected inflation data, raising the prospect of an RBA rate hike. Meanwhile, the USD remains firm, supported by rising Treasury yields and a cautious yet hawkish stance from the Federal Reserve. Market participants will closely monitor upcoming Fed communications and economic reports for further indications of future policy directions.

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Australian Dollar Struggles as US Dollar Strengthens Ahead of US PPI Release

Australian Dollar Stabilizes Ahead of Retail Sales Data

Australian Dollar Stabilizes Ahead of Retail Sales Data

The Australian Dollar (AUD) continued its upward trajectory against the US Dollar (USD) for the second consecutive trading session on Monday, buoyed by an improved risk appetite in global markets. This positive momentum comes even as expectations for imminent Federal Reserve rate cuts diminish. Investors are now keenly focused on the upcoming release of Australia’s Retail Sales data for April, expected to show a modest recovery with a forecasted increase of 0.3%, following a 0.4% decline in the previous month.

The anticipation around the Retail Sales report is high, as it could signal resilience in the Australian consumer market despite ongoing economic uncertainties. A positive outcome could further bolster the Australian Dollar, as it reflects a robust domestic economic activity.

Recent minutes from the Reserve Bank of Australia’s (RBA) meeting have revealed a cautious stance from the board, with uncertainties making it challenging to forecast future adjustments to the cash rate. The board acknowledged the risk of inflation remaining above the target range of 2-3% for a longer period, indicating that tight monetary policies might persist longer than initially expected.

On the American front, the US Dollar experienced some weakening following recent economic reports. The University of Michigan’s 5-year Consumer Inflation Expectations for May was revised slightly downward to 3.0% from the anticipated 3.1%. Additionally, the Consumer Sentiment Index was adjusted upward to 69.1 from an initial estimate of 67.4, though it still represents the lowest sentiment level recorded in the past six months. These indicators suggest a tempered outlook on inflation, potentially influencing the Federal Reserve’s decision-making on interest rates.

Market analysts, using data from the CME FedWatch Tool, now see a reduced likelihood of a Fed rate cut in September, with the probability dropping to 44.9% from 49% just a week ago. This shift in expectations could impact currency dynamics, particularly as the US markets remain closed for the Memorial Day holiday, possibly leading to thinner trading conditions and increased volatility for the AUD/USD pair.

As the Australian economy faces these pivotal moments, the response of the AUD to both domestic economic data and international monetary policy shifts will be critical in determining its short-term trajectory in the forex markets.

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US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

The dollar strengthened on Tuesday, driven by rising U.S. yields, putting pressure on low-yielding currencies like China’s yuan and Japan’s yen, which fell to its lowest level since 1986.

Benchmark 10-year Treasury yields increased nearly 14 basis points to 4.479% overnight. Analysts attributed this rise to expectations of Donald Trump winning the U.S. presidency, which could lead to higher tariffs and increased government borrowing.

As the dollar gained, the euro reversed part of a small rally following the first round of France’s election, which aligned with polling predictions. The euro last traded at $1.0735.

The yen dropped to 161.72 per dollar on Monday, its weakest in nearly 38 years, primarily due to the significant interest rate gap between the U.S. and Japan. On Tuesday, the yen traded at 161.55 per dollar in Asia and was under pressure from yen bears wary of potential intervention by Japanese authorities. The yen also hit a lifetime low of 173.67 against the euro on Monday and remained near that level on Tuesday.

In the bond market, the 10-year yield gap between U.S. and Japanese rates stood at 340 basis points, and nearly 440 basis points at the two-year tenor. China’s yuan, which reached a seven-month low against the dollar last week, faced similar pressure, with U.S. 10-year yields more than 220 basis points higher than Chinese government bond yields.

Robust manufacturing data in China and an announcement from the central bank about borrowing bonds, likely to sell them and stabilize falling yields, provided only a brief boost to the currency on Monday. The yuan last traded at 7.3043 in offshore markets on Tuesday, close to its June low.

The New Zealand dollar slipped 0.3% in early trade and was testing support at its 200-day moving average at $0.6075. The British pound remained steady at $1.2641. The Australian dollar hovered within its recent range at $0.6650, with traders focused on central bank minutes to gauge the likelihood of future interest rate hikes. Swaps market pricing suggests a one-in-three chance of a rate hike as soon as next month.

The question remains about the trigger for such a move. ING economist Rob Carnell noted that discussions have taken place, but the specific trigger for a hike is still uncertain. There is a leaning towards forecasting a hike at the August meeting.

Overall, the strengthening dollar and rising U.S. yields continue to exert pressure on low-yielding currencies, with markets closely watching upcoming central bank decisions and geopolitical developments.

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Cryptocurrency Move Back to Support the Pack to Level

If we have a look at the bearish start to the day in the majors and the Bitcoin move back to the level by $18,500 to the support pack. The Bitcoin to USD was seemed down at the level by 1.16% on this Thursday that reversing a 1.25% gain to the Wednesday to the ended the day at the level $18,260.0. At the start of the day, the Bitcoin rose to the early morning intraday to the high at the level before hitting the reverse level.

The major resistance level goes at the level by $18,878 and the Bitcoin fell to the intraday low to the level by $17,935.0.

The close term bullish pattern stayed flawless, disregarding the most recent pullback to sub-$18,000 levels. For the bears, Bitcoin would have to slide through the 62% FIB of $10,095 to shape a close term bearish pattern.

The Bitcoin was somewhere near at the level by 1.03% to $18,072.0. A blended beginning to the day saw Bitcoin ascend to an early morning high of $18,299.0 prior to tumbling to a low of $18,070.0.

Bitcoin left the significant help and obstruction levels untested from the get-go.

Somewhere else, it was a bearish beginning to the day for the majors. The Ripple’s XRP was somewhere around at the level 2.69% to lead the route down.

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Bitcoin Slips Down Below at Level $13,000 Since the Last Rally

Bitcoin Slips Down Below at Level $13,000 Since the Last Rally

The Bitcoin seems to the low at the level of $9,813 in September that managed the bitcoin to reach at the level high at $13,868. The bitcoin price is rejected to the sequential indicators on the 3-day chart.

If we have a look at the current candlestick of the 3-day chart it will seem significantly bearish and the TD sequential indicators are presented a sell signal. The 50- SMA seems down at the level of $10,600 and the 100 SMA at the level of $9,47.

The In/Out of the Money Around Price chart shows the closest and most grounded help region to be somewhere in the range of the level at $12,687 and $13,073 with near 624,000 BTC in volume. A break below this point can drive the cost of Bitcoin down to $11,914.

Despite the fact that bears appear to have assumed responsibility for the present moment, the powerful day by day upswing stays unblemished for Bitcoin. The 50-SMA and the 100-SMA harmonize around $11,200 which will go about as a critical help level. The MACD keeps bullish and the most basic obstruction level is still at $13,863. A breakout over this point can without much of a range drive the lead digital currency towards the untouched high at the level of $20,000.

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Bitcoin Price Clear the Path and Rose to the Level $13,000

Bitcoin Price Clear the Path and Rose to the Level $13,000

Bitcoin Price of the bulls has been the full control of the market to the price at the level of $11,340 to $12,835. The cryptocurrency had the largest to the single day that put the gain. The MACD shows the increasing the bullish momentum to price the growth anticipated.

The position detector is a convenient little apparatus that causes us to imagine solid opposition and backing levels. According to the everyday conjunction detector, there is an absence of solid obstruction levels on the potential gain. This should be empowering news for the buyers as they plan to bring BTC into the $13,000-zone.

Santiment’s holder’s distribution charts show you the number of addresses having a place with a specific symbolic section. According to the chart, the number of addresses holding 10,000-100,000 tokens tumbled from 111 on October 8 to 104 on October 20. This is an intensely bearish sign as it shows that the whales are selling off their property.

Bitcoin buyers have the opportunity to bring the cost into the level at $13,000 and even the $14,000 interference. The everyday intersection finder shows a total absence of solid opposition barriers straightforward.

For the bears, the drawback is covered off at the $12,000-$12,100 uphold divider. A break below that zone will bring the value down to $11,000, which has both the 50-day and 100-day SMA

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Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

The BTC/USD traded at the level of $11,355 after the mild rejection of the top-level $11,720 that losing some of the bullish.

Ethereum USD had a similar fate at the higher risk that seeing the longer pullback than the Bitcoin. If we talk about the XRP/USD is the clear loser after breaking below the 50 SMA and the 100 SMA on the daily chart that currently trading at the level of $0.2482 after yet facing another rejection.

Bitcoin, BTC to USD, fell by 1.02% on Tuesday. Incompletely turning around a 1.55% increase from Monday, Bitcoin finished the day at the level of $11,442.0.

It was a quiet beginning to the day. Bitcoin rose to a late morning intraday high to the level of $11,574.9 before operating reverse.

Missing the mark concerning the primary significant obstruction level at $11,830, Bitcoin tumbled to an early evening intraday low of $11,333.0.

Avoiding the primary significant help level at $11,201 Bitcoin quickly returned to $11,470 levels before moving back.

The close term bullish pattern stayed perfect, upheld by the most recent move back through to $11,000 levels. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to shape a close term bearish pattern.

Bitcoin was up by 0.22% to $11,467.0. A beginning to the day saw Bitcoin tumble to an early morning low of $11,427.0 before ascending to a high at the level of $11,467.0. Bitcoin left the support and Resistance levels untested at an early stage.

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Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

Let’s have a look at the cryptocurrency that hovering near to the level at $10,600 mark. The Bitcoin price is consolidating to the 50-12 Hour SMA and the 200-12 Hours SMA. The strong resistance lies at the level 50-12 SMA that repeatedly rejected the price.

This repeated dismissal may drop the value down to the level at  $10,400 uphold level, which is by all accounts the main observable help level on the drawback. If case this level doesn’t hold firm, at that point you can anticipate that the cost should plunge below $10,000. For this situation, one can anticipate that BTC should tumble to the level of $9,700 before it experiences another solid help.

While this may not appear to be a huge number, remember that every one of these addresses holds a great many dollars worth of Bitcoin. The fishes using the stale value activity to merge their positions look good for the general market.

With respect to the top 50 digital forms of money, the greatest failures incorporate Compound, down 12% over the most recent 24 hours, UMA down 12%, OMG Network down at the level 13%, Yearn.finance down 16%, and Aave down 18%. The main bull among the sloths of bears is EOS, which broke out greatly as covered Tuesday.

Ethereum has since September 23, been holding inside a rising equal channel. Recuperation towards $400 flamed out marginally above $360 a week ago. On the drawback, the misfortunes that followed grasped uphold at the level of $335 throughout the end of the week, permitting the shrewd agreement sign to revitalize, making strides above $350.

The Ethereum selling pressure in the market halted the increase at the 50 SMA and 100 SMA. Ether fell below the climbing channel, confirming a bear banner.

The downside of a significant help zone shows that Ethereum is at grave risk of spiraling to the level at $300. Other than the various simple help zones, the most significant one lies somewhere in the range of $298 and $309. Previously, around 879,000 locations purchased almost 2 million ETH.

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Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

The Bitcoin moves back and shows the bearish to the start of the day with the support level at $10,900 to the broader market.

The Bitcoin BTC to USD is rose by the level at 1.33% this Tuesday and reversing the loss at the level of 0.83% on Monday.

It was a mixed start to the day. Bitcoin fell to an early morning low $10,674.2 before finding support.

Steering clear of the major support levels, Bitcoin struck a late morning high at the level of $10,815.4 before operating reverse.

Coming up short of the major resistance levels, Bitcoin slid to a late afternoon intraday low $10,654.0.

Steering clear of the first major support level at $10,585, Bitcoin rallied to a final hour intraday high at the level of $10,889.0.

Falling short of the first major resistance level at $10,915, Bitcoin eased back to end the day at sub-$10,860 levels.

The near-term bullish trend remained whole, in contempt of the latest pullback. For the bears, Bitcoin would need to slide through the 62% FIB of $6,400 to form a near-term bearish trend. At the hour of composing, Bitcoin was somewhere around 0.28% to the level of $10,826.0. It was a blended beginning to the day. Bitcoin rose to an early morning high $10,866.0 before tumbling to a low $10,826.0.

Bitcoin started the significant help and obstruction levels untested from the get-go. Somewhere else, it was a blended beginning to the day.

Bitcoin Cash ABC (+0.54%), Bitcoin Cash SV to the level (+0.62%), and Crypto.com Coin (+0.65%) evaded the pattern right off the bat.

It was a bearish beginning to the day for the remainder of the majors, in any case. Binance Coin was somewhere around 1.18% to lead the way down.

https://xtreamforex.com/nasdaq-futures-shows-the-short/

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