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GBP/JPY Slides to 205.00 Amid Intervention Fears

GBP/JPY Slides to 205.00 Amid Intervention Fears

GBP/JPY Slides to 205.00 Amid Intervention Fears

The GBP/JPY pair continued its downward trend for the second consecutive day on Friday, moving away from its highest level since August 2008, which was around 206.15 earlier this week. Currently, the spot prices are trading just above the 205.00 psychological mark, down approximately 0.35% for the day. This decline is largely attributed to concerns that Japanese authorities or the Bank of Japan (BoJ) may intervene in the markets to support the domestic currency.

Japan’s Finance Minister, Shunichi Suzuki, made a statement today indicating that he will closely monitor stock and forex markets with vigilance, noting that a weak Japanese Yen (JPY) is affecting prices. Despite this, a significant appreciation of the JPY remains unlikely due to the BoJ’s dovish stance. The BoJ has been hesitant to provide a detailed plan for reducing bond purchases and raising interest rates. Additionally, the prevailing risk-on environment is expected to limit the demand for the safe-haven JPY, thus restricting the losses for the GBP/JPY pair.

On the other side of the equation, the British Pound (GBP) received a slight boost from exit polls suggesting that Britain’s main opposition Labour Party is set to win a substantial majority in the UK general election. However, this outcome also paves the way for a potential rate cut by the Bank of England (BoE) in August, which could act as a headwind for the Sterling and the GBP/JPY pair. Moreover, the overbought Relative Strength Index (RSI) on the daily chart suggests that some profit-taking might occur as the week comes to an end.

Despite these factors, the GBP/JPY pair is likely to close in positive territory for the fourth consecutive week. The interplay of market interventions by Japanese authorities, the BoJ’s policy stance, and the political developments in the UK will continue to influence the pair’s movements in the near term. Traders will be closely watching these dynamics, especially with the potential for further interventions or policy shifts that could impact the GBP/JPY pair’s trajectory. 

As we move forward, the focus will remain on the actions of the BoJ and the UK political landscape, which are key drivers in the forex market, particularly for the GBP/JPY cross.

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EUR/JPY Rises Above 173.50, Focus on Eurozone PMI

EUR/JPY Rises Above 173.50, Focus on Eurozone PMI

EUR/JPY Rises Above 173.50, Focus on Eurozone PMI

The EUR/JPY pair remains in positive territory for the sixth consecutive day, trading near 173.80 during the early European session on Wednesday. This sustained upward movement is primarily due to the weakening Japanese Yen (JPY), which has been impacted by recent data indicating a contraction in Japanese business activity for June.

The final reading of Japan’s Services PMI fell to 49.4 in June from 49.8 in May, marking the largest downward shift since January 2022 and one of the most significant declines on record. This data has put selling pressure on the JPY, providing a headwind for the currency pair. However, there remains a possibility that the Bank of Japan (BoJ) could intervene in the foreign exchange market, which might lend some support to the JPY in the near term.

On the Euro side, the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) inflation rate eased to 2.5% year-over-year in June, down from 2.6% in May. Despite this slight decrease, these inflation figures are not expected to prompt the European Central Bank (ECB) to cut interest rates at its upcoming policy meeting on July 18. According to Bert Colijn, senior Eurozone economist at the Dutch bank ING, “Nothing in these figures would make the ECB cut again in July, and we think it’ll be eagerly awaiting data over the summer before seriously debating a next rate cut in September.”

Furthermore, ECB President Christine Lagarde stated on Monday that recent economic developments do not indicate an urgent need for further interest rate cuts. This stance highlights the ongoing divergence in monetary policy between the Eurozone and Japan, which continues to support the Euro against the Yen.

Overall, the EUR/JPY cross is benefitting from the contrasting economic situations and monetary policy expectations in the Eurozone and Japan. As the market anticipates further data releases and potential central bank actions, the pair’s performance will likely remain influenced by these macroeconomic factors. For now, the weakening JPY and stable Eurozone inflation are keeping the EUR/JPY on an upward trajectory.

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Asian Shares Mixed After Wall Street Gains

Asian Shares Mixed After Wall Street Gains

Asian Shares Mixed After Wall Street Gains

Asian stocks experienced mixed performance on Tuesday following gains on Wall Street and a surge in U.S. bond yields as election-related issues influenced global markets.

U.S. futures declined, while oil prices increased. The Japanese yen fell to a near 38-year low, hitting 161.67 yen to the dollar early Tuesday. This depreciation in the yen boosted Tokyo’s benchmark Nikkei 225 by 1.1% to 40,074.69, as investors bought export-oriented shares.

In contrast, Australia’s S&P/ASX 200 dropped 0.4% to 7,718.20. South Korea’s Kospi also fell, losing 0.8% to 2,781.92, despite data indicating that the country’s consumer inflation slowed to an 11-month low in June.

Hong Kong’s market showed positive momentum after a holiday break, with the Hang Seng climbing 0.3% to 17,775.84. The Shanghai Composite Index had a modest increase of 0.1% to 2,995.78. Elsewhere in Asia, Taiwan’s Taiex gained 0.6%, while Bangkok’s SET index slipped by 0.4%.

On Wall Street, the S&P 500 rose 0.3% to 5,475.09. The Dow Jones Industrial Average inched up 0.1% to 39,169.52, and the Nasdaq composite gained 0.8% to 17,879.30. European markets saw significant activity, with France’s CAC 40 index jumping as much as 2.8% before settling for a 1.1% gain. Results from France suggested a far-right party might not secure a decisive majority in legislative elections, easing concerns over potential high-debt policies.

This year is significant for elections globally, with voters heading to the polls in the United Kingdom later this week and soon in other countries. In the U.S., pollsters are assessing the impact of the recent debate between President Joe Biden and former President Donald Trump. Investors are also watching the effects of a Supreme Court ruling granting former presidents broad immunity from prosecution, likely delaying a criminal case against Trump until after the November election.

In the financial markets, Treasury yields increased, with the 10-year Treasury yield rising to 4.46% from 4.39% on Friday. This surge reflects expectations of a potential Republican victory in the upcoming elections, reminiscent of market movements from 2016. Higher yields have reversed the trend seen since spring when the yield topped 4.70% in late April.

Previously, easing yields were driven by hopes that inflation would slow enough for the Federal Reserve to cut interest rates. High rates have burdened the U.S. economy, making borrowing more expensive. Recent data showing weaker U.S. manufacturing and decelerating price increases have bolstered hopes for rate cuts.

The week’s economic highlight will be the U.S. government’s employment report on Friday. Economists predict that hiring slowed to 190,000 in June from May’s 272,000, approaching the “Goldilocks” figure of around 150,000, which indicates sustainable growth without fueling inflation.

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NZD/USD Reclaims 0.6100 Amid Weaker USD

NZD/USD Reclaims 0.6100 Amid Weaker USD, Limited Upside

NZD/USD Reclaims 0.6100 Amid Weaker USD, Limited Upside

The NZD/USD pair is experiencing some dip-buying during the Asian session on Monday, aiming to build on Friday’s modest bounce from the mid-0.6000s, its lowest level since mid-May. Currently, spot prices hover around the 0.6100 mark due to a modest weakening of the US Dollar (USD). However, there remains a lack of bullish conviction amid uncertainties regarding the Federal Reserve’s (Fed) potential rate-cut path.

On Friday, the US Personal Consumption Expenditures (PCE) Price Index confirmed the ongoing disinflationary trend, aligning with the Consumer Price Index (CPI) and Producer Price Index (PPI) data for May. This reinforced market expectations that the Fed might begin cutting interest rates at the September policy meeting, putting USD bulls on the defensive. Additionally, a positive tone in US equity futures has undermined the safe-haven appeal of the USD, lending support to the NZD/USD pair.

Despite this, the Fed adopted a more hawkish stance during the June policy meeting, forecasting only one interest rate cut in 2024. Further complicating the outlook, President Joe Biden’s challenging debate with his Republican opponent has increased the odds of a Trump presidency. This potential shift in leadership has raised concerns about the imposition of aggressive tariffs by the Trump administration, which could fuel inflation and trigger higher interest rates. This scenario supports elevated US Treasury bond yields, potentially limiting further USD losses.

Moreover, expectations that the Reserve Bank of New Zealand (RBNZ) might cut rates earlier than anticipated, coupled with China’s economic struggles, could deter bullish traders from placing fresh bets on the NZD/USD pair. Official data released on Sunday revealed that China’s manufacturing activity declined for the second consecutive month in June, while services activity fell to a five-month low. These factors suggest caution before confirming that the NZD/USD pair has formed a near-term bottom.

Looking ahead, traders will focus on important US macroeconomic releases at the start of the new month, including the ISM Manufacturing PMI, which may offer short-term opportunities during the North American session. However, the primary focus will be on the closely-watched US monthly employment report, known as the Nonfarm Payrolls (NFP) report, scheduled for Friday. This report will play a crucial role in influencing near-term USD price dynamics and driving the NZD/USD pair.

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New Zealand Dollar Hits Seven-Week Low After RBNZ Cuts Interest Rate by 50 bps

NZD/USD Nears Mid-0.6000s, Lowest Since Mid-May Ahead of US PCE

NZD/USD Nears Mid-0.6000s, Lowest Since Mid-May Ahead of US PCE

The NZD/USD pair faces renewed selling pressure after a brief respite, plummeting to its lowest level since mid-May during the Asian session on Friday. Spot prices are currently trading just above the mid-0.6000s, down 0.35% for the day, confirming a bearish breakdown through the 50-day Simple Moving Average (SMA).

The US Dollar (USD) has regained positive momentum, bouncing back from Thursday’s softer data-led decline to reach a nearly two-month peak. This resurgence is driven by the Federal Reserve’s (Fed) hawkish outlook, with recent comments from influential FOMC members indicating no rush to begin a rate-cutting cycle. This outlook has triggered a fresh increase in US Treasury bond yields. Additionally, some repositioning ahead of crucial US inflation data has further boosted the dollar, adding to the downward pressure on the NZD/USD pair.

Conversely, the New Zealand Dollar (NZD) is weighed down by expectations of an earlier-than-expected rate cut by the Reserve Bank of New Zealand (RBNZ). This anticipation has overshadowed a generally positive tone in the equity markets, failing to provide any support to the risk-sensitive Kiwi. Consequently, the path of least resistance for the NZD/USD pair remains downward. Traders, however, are likely to await the release of the US Personal Consumption Expenditures (PCE) Price Index for further insights into the Fed’s future policy decisions and the rate-cut path.

A lower-than-expected PCE deflator or a figure in line with market expectations could support the case for two rate cuts by the Fed this year, potentially weakening the USD. Conversely, an upward surprise would likely push back the timing for the first Fed rate cut and trigger a fresh rally for the dollar. Hence, this data release will be crucial in shaping near-term USD price dynamics and determining the next directional move for the NZD/USD pair.

Regardless of the upcoming data, spot prices for the NZD/USD seem poised to register significant weekly losses, continuing a nearly three-week-old downtrend.

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NZD/USD Drops to Near 0.6100

NZD/USD Drops to Near 0.6100 Amid Risk Aversion and Consumer Confidence Concerns

NZD/USD Drops to Near 0.6100 Amid Risk Aversion and Consumer Confidence Concerns

The NZD/USD pair extends its losses for the second consecutive session, trading around 0.6110 during the Asian session on Wednesday. The New Zealand Dollar (NZD) is struggling, possibly due to rising risk aversion ahead of the ANZ-Roy Morgan Consumer Confidence data for June and the release of the US Gross Domestic Product (GDP) figures for the first quarter (Q1) on Thursday. Additionally, market participants are closely watching the US Personal Consumption Expenditure (PCE) Price Index, which is scheduled for release on Friday.

The ongoing uncertainty in the global financial markets has led to heightened caution among investors, impacting the NZD/USD pair. Concerns over the upcoming consumer confidence data have intensified, as this indicator will provide insights into the economic sentiment in New Zealand. A lower-than-expected reading could further dampen the outlook for the NZD.

Moreover, the impending release of the US GDP figures adds another layer of complexity. A robust GDP report could strengthen the US Dollar (USD), making the NZD/USD pair less attractive. Conversely, a weaker GDP figure could offer some relief to the NZD. However, the market remains cautious, waiting for clear signals from these key economic indicators.

Adding to the downward pressure on the NZD, New Zealand’s Treasury issued a statement on Wednesday highlighting the risks posed by a weak economy to its forecasts. The Treasury is considering additional spending and revenue solutions to address these challenges. This admission of economic vulnerability has contributed to the bearish sentiment surrounding the NZD.

Economist McLeish echoed these concerns, pointing to recent data that suggests economic weakness in New Zealand. The combination of internal economic challenges and external uncertainties has created a challenging environment for the NZD.

The upcoming US PCE Price Index release on Friday is another critical factor influencing the NZD/USD pair. As the Federal Reserve’s preferred measure of inflation, the PCE Price Index will be closely scrutinized. A higher-than-expected reading could prompt the Federal Reserve to adopt a more hawkish stance, potentially boosting the USD further and putting additional pressure on the NZD.

In summary, the NZD/USD pair is navigating a complex landscape of economic indicators and market sentiments. The pair’s performance in the coming days will largely depend on the outcomes of the ANZ-Roy Morgan Consumer Confidence data, the US GDP report, and the PCE Price Index. Investors remain cautious, closely monitoring these developments to gauge the future direction of the NZD/USD pair.

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USD/CAD Nears 1.3700 as Fed Postpones Rate Cut

USD/CAD Nears 1.3700 as Fed Postpones Rate Cut

USD/CAD Nears 1.3700 as Fed Postpones Rate Cut

The USD/CAD pair arrested a six-day downtrend, trading near the 1.3700 mark in Monday’s Asian trading session, buoyed by robust U.S. economic data from the previous Friday. The uplift in the U.S. Dollar (USD) was primarily due to an unexpectedly strong U.S. Purchasing Managers Index (PMI) report.

June’s U.S. Composite PMI climbed slightly to 54.6, up from May’s 54.5, marking the highest level seen since April 2022. The Manufacturing PMI also exceeded expectations, rising to 51.7 from the previous 51.3 and surpassing the forecast of 51.0. Additionally, the Services PMI increased to 55.1, up from 54.8 in May, and beat the consensus prediction of 53.7.

The U.S. Dollar Index (DXY), which tracks the USD against a basket of six major currencies, edged higher. This increase follows comments from Federal Reserve officials who indicated a delay in the expected timing of the year’s first interest rate cut. Specifically, Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, noted in a Reuters report that reducing inflation to 2% could take one to two years.

Market expectations have adjusted accordingly, with the CME FedWatch Tool now showing a 65.9% likelihood of a Fed rate cut in September, a decrease from 70.2% a week earlier.

On the Canadian side, the Canadian Dollar (CAD), which often correlates with commodity prices, found some support from rising crude oil prices. Oil markets have reacted to escalating geopolitical tensions, including Israeli military actions in Gaza and continued Ukrainian drone strikes on Russian oil refineries, both of which have stirred supply concerns.

These factors combined to halt the recent slide in the USD/CAD exchange rate, setting the stage for potential fluctuations based on upcoming economic data releases and geopolitical developments.

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The Dow futures remained unchanged, but Zoom witnessed a notable 17.1% drop

The Dow futures remained unchanged, but Zoom witnessed a notable 17.1% drop

During Monday’s evening trading, U.S. stock futures experienced minimal movement, remaining within a narrow range, following moderate gains in major benchmark averages. Investors were focused on upcoming quarterly earnings reports scheduled for the week. By 7:15 pm ET (11:15 pm GMT), Dow Jones Futures, S&P 500 Futures, and Nasdaq 100 Futures were all trading flat.

In after-hours trading, ZoomInfo Technologies Inc (NASDAQ: ZI) saw a significant dip of 17.1% after reporting its Q2 earnings. The company’s earnings per share (EPS) came in at $0.26, slightly higher than the expected $0.23, while its revenues reached $308.6 million, slightly below the anticipated $310.94 million.

Similarly, Yum China Holdings Inc (NYSE: YUMC) experienced a decline of 2.8% following its Q2 earnings release. The company reported an EPS of $0.47, slightly surpassing the expected $0.46, but its revenues were $2.65 billion, falling short of the projected $2.72 billion.

Harmonic (NASDAQ: HLIT) also faced a significant drop of 13.7% after reporting Q2 earnings. The company’s EPS was $0.12, missing the expected $0.13, and its revenues were $156 million, lower than the expected $167.52 million.

In contrast, Arista Networks (NYSE: ANET) witnessed a substantial increase of 14% following its Q2 earnings announcement. The company reported an EPS of $1.58, surpassing the expected $1.44, and its revenues were $1.46 billion, higher than the expected $1.38 billion.

Looking ahead to Tuesday’s trading session, market participants will closely monitor the release of Markit and ISM manufacturing PMIs and JOLTs job openings data. Additionally, several prominent companies, including Pfizer Inc (NYSE: PFE), Advanced Micro Devices Inc (NASDAQ: AMD), Starbucks Corporation (NASDAQ: SBUX), and Uber Technologies Inc (NYSE: UBER), will be reporting their quarterly earnings.

During Monday’s regular trading hours, the Dow Jones Industrial Average increased by 100.2 points or 0.3% to reach 35,559.5. The S&P 500 also gained 6.7 points or 0.2%, reaching 4,589, and the NASDAQ Composite rose by 29.4 points or 0.2% to reach 14,346.

On the bond markets, the United States 10-Year rates were at 3.965%. Investors will keep a close eye on economic data and corporate earnings to gauge the market’s direction in the upcoming trading sessions.

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US Dollar Stabilizes After Recent Losses

U.S. Stocks Rise as Market Awaits Fed Decision

U.S. Stocks Rise as Market Awaits Fed Decision

On Tuesday, the U.S. stock market experienced a positive swing, with investors closely watching earnings reports and eagerly anticipating the outcome of the U.S. Federal Reserve’s interest rate decision.

The Dow Jones Industrial Average, one of the key indices in the stock market, ended the day with a marginal increase of 0.1 percent, settling at 35,437.93 points. This marked the twelfth straight day of gains for the index. Meanwhile, the broader S&P 500 Index rose by 0.3 percent to reach 4,567.54, and the tech-focused Nasdaq Composite Index saw an increase of 0.6 percent, closing at 14,144.56.

Several companies released their earnings reports, which resulted in a mixed response on Wall Street. Shares of General Electric, Sherwin-Williams, and 3M saw substantial increases following their respective earnings announcements. Conversely, despite raising its full-year guidance, General Motors experienced a drop in share value.

In other corporate news, shipping giant UPS saw its shares dip by 1.9 percent after it reached a tentative five-year contract agreement with the Teamsters union. The agreement helped avert a potentially devastating nationwide strike. However, despite avoiding a disruptive strike, Steve Sosnick from Interactive Brokers suggested that UPS’s costs would likely increase as a result of the agreement.

Investors also kept a close eye on Alphabet, Google’s parent company, and Microsoft, both due to release their earnings reports after the market closed. The anticipation surrounding these tech giants’ earnings reports added an extra layer of suspense to the day’s trading activities on Wall Street.

However, the main focus for investors remained the impending decision by the U.S. central bank on interest rates. The decision is due at the end of a two-day policy meeting on Wednesday. The central bank is widely expected to raise interest rates for the eleventh consecutive time. Market participants are keen to glean any signs of further increases beyond this.

According to Peter Cardillo of Spartan Capital, the market is already factoring in a hike of 25 basis points. He further speculated that there might be indications that the central bank is nearing the end of its monetary tightening cycle.

In global economic news, the International Monetary Fund (IMF) slightly upgraded its outlook for global growth this year on Tuesday. This provided a glimmer of hope amid the prevailing economic uncertainties.

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Optimism in Asian Stock Markets as Fed, ECB, and BoJ Meetings Loom; China’s Performance Lags Despite Stimulus Hopes

Optimism in Asian Stock Markets as Fed, ECB, and BoJ Meetings Loom; China’s Performance Lags Despite Stimulus Hopes

Asian stock markets experienced a mixed start to the week, with Japan’s Nikkei 225 emerging as the top performer, soaring by nearly 1.5% fueled by robust quarterly earnings from major automotive manufacturers. The overall Japanese market sentiment also received a boost from expectations that the Bank of Japan (BoJ) would maintain its ultra-dovish stance during the forthcoming two-day policy meeting set to conclude on Friday.

In contrast, Chinese stocks struggled to keep pace with their regional counterparts due to mounting concerns over a real estate sector debt crunch and fears of a slowdown in economic growth. The Hang Seng in Hong Kong experienced a significant drop of over 1%, ranking among the weakest performers on the first trading day of the week. However, there are hopes that China will implement additional stimulus measures to mitigate potential losses.

In line with these expectations, China’s National Development and Reform Commission (NDRC) revealed new measures aimed at encouraging and supporting private investments in specific infrastructure sectors. The NDRC also pledged to provide enhanced financial backing for private projects, although the exact details are yet to be disclosed. Despite these efforts, the market sentiment remained cautious and failed to see a substantial lift.

Investors across the region appeared to be exercising caution and adopting a wait-and-see approach ahead of key central bank events scheduled for the week. The Federal Reserve (Fed) is set to announce its monetary policy decision on Wednesday following a two-day meeting, and a 25 basis points interest rate hike is widely anticipated. However, there are doubts among market participants regarding the extent of the Fed’s commitment to a more dovish policy stance.

Attention will be closely focused on the accompanying policy statement and the post-meeting press conference, where Fed Chair Jerome Powell’s remarks could provide valuable insights into the central bank’s future plans. Subsequently, the European Central Bank (ECB) meeting on Thursday and the Bank of Japan’s (BoJ) policy update on Friday will be key events to watch.

Meanwhile, traders on Monday were keenly awaiting the release of flash PMI prints from the Euro Zone, the UK, and the US, hoping for valuable cues to drive market momentum.

Overall, the Asian stock markets are facing a delicate balancing act, with some countries experiencing positive economic indicators and strong corporate earnings, while others grapple with uncertainties and the need for further stimulus measures. Investors are treading cautiously, recognizing the potential impact that central bank decisions and economic data releases can have on the regional and global financial landscape. As the week unfolds, market participants will closely analyze every development to make informed decisions in this dynamic and ever-changing market environment.

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GBP/USD Drops Below 1.2500 on Dovish BoE Outlook and Trump Tariff Moves

Asian markets mixed as Japan reports weak trade data

Asian markets mixed as Japan reports weak trade data

Asian markets exhibited a varied performance in response to Japan’s disclosure of disappointing trade data for June. The revelation of a nearly 13% decline in imports from the previous year resulted in an unexpected trade surplus for Japan, primarily attributed to the reduction in oil prices. This news had a mixed impact across Asian markets, with share prices rising in Sydney and Hong Kong, but declining in Shanghai, Tokyo, and Seoul. In addition, U.S. futures experienced a slight dip, while oil prices remained relatively stable.

While Asian markets showed divergence, Wall Street continued its bullish trend as positive profit reports from major U.S. companies bolstered investor confidence. However, gains on the Nasdaq were somewhat tempered due to weaker-than-anticipated results from streaming giant Netflix and electric vehicle manufacturer Tesla, triggering caution among Asian investors.

In the U.S., the S&P 500 rose by 0.2%, reaching its highest level in over 15 months, while the Dow Jones Industrial Average saw a gain of 0.3%. One of the standout performers was Elevance Health, which reported robust profits and revenue for the spring, surpassing analysts’ expectations. Similarly, U.S. Bancorp, M&T Bank, and Goldman Sachs posted positive results, contributing to the overall market upswing.

In the commodities market, wheat prices experienced a sharp surge following Russia’s attacks on critical port infrastructure in Ukraine, resulting in the destruction of 60,000 tons of grain. The sudden spike in wheat prices was driven by concerns over potential disruptions to grain exports from Ukraine, raising global food security apprehensions.

As the earnings reporting season gains momentum, analysts are projecting a third consecutive quarter of weaker earnings per share for S&P 500 companies. However, the relatively low expectations provide companies with an opportunity to outperform and surprise the market positively.

In the currency market, the U.S. dollar depreciated slightly against the Japanese yen, while the euro displayed a marginal increase against the dollar. These currency movements reflect ongoing fluctuations in foreign exchange markets, influenced by various economic indicators and geopolitical developments.

Amidst these market dynamics, investors remain vigilant of further trade data releases and earnings reports, which have the potential to significantly influence market sentiment and impact future performance in the Asian markets. Market participants will carefully assess economic indicators and corporate results to gain insights into the trajectory of the global economy and the investment landscape. As uncertainties persist in the aftermath of the pandemic and geopolitical tensions, investors seek to navigate an ever-changing and complex market environment, making informed decisions to manage risks and identify potential opportunities.

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Asian Stock Traders Tread Cautiously Ahead of US Retail Sales Data

Asian Stock Traders Tread Cautiously Ahead of US Retail Sales Data

As Tuesday unfolded, Asian stock traders navigated the markets with caution, displaying a predominantly negative sentiment across the region. One prevailing concern on their minds was China’s economic outlook, which cast shadows of uncertainty on the trading floors. Adding to their apprehension was the imminent release of crucial U.S. data, especially the highly anticipated Retail Sales and Industrial Production figures for June. The impending data release fueled a sense of cautious anticipation, as the market eagerly awaited insights into the health of the world’s largest economy and its potential implications for global markets.

Despite the prevailing market sentiment, Japanese traders managed to defy the regional trend, with their return from a holiday marking a slight upswing in the NIKKEI index, which gained 0.23%. However, other parts of Asia did not share in this mild success. Hong Kong’s Hang Seng index experienced a significant decline of 1.85%, while China’s Shanghai Composite Index slipped marginally by 0.06%. South Korea’s KOSPI index also followed the downward trend, losing 0.5%, further adding to the cautious atmosphere.

Interestingly, amid the cautious sentiment, the Bank of Japan (BoJ) took a counterintuitive stance by maintaining its easy-money policy. This decision surprised many, as market participants had anticipated a potential departure from ultra-low interest rates and a toning down of its Yield Curve Control (YCC) policy. However, the BoJ’s steadfastness underscored its commitment to supporting the Japanese economy amid the prevailing global economic challenges.

Geopolitical developments also grabbed the attention of investors. U.S. Climate Envoy John Kerry’s optimistic remarks about future cooperation with China during a dialogue with China’s top diplomat, Wang Yi, were closely monitored. Any shifts in U.S.-China relations could significantly influence market dynamics and risk sentiment, making this a crucial factor for traders to watch closely in the days ahead.

Additionally, the latest economic indicators from China added to the market’s unease. The disclosure of an annual GDP growth rate of 6.3% fell short of the projected 7.3% and was lower than the previous figure of 4.5%. Despite this, year-on-year Industrial Production showed a more positive side, rising to 4.4% from the previous 3.5%, surpassing the consensus estimate of 2.7%. These mixed economic signals from China further contributed to the cautious mood on the trading floors.

As the trading week progressed, market players eagerly awaited upcoming data releases that could influence the market’s direction. Among these are Japan’s Trade Balance and National Core CPI YoY, which may provide insights into the health of the Japanese economy. However, the most significant event on their radar was the release of U.S. Retail Sales data for June, expected to increase by 0.5% compared to the previous month’s 0.3%. This data release could have substantial implications for USD dynamics and possibly hint at the trajectory of the ongoing rate hike cycle. Consequently, traders kept a close eye on the performance of assets like Gold, equities, and AUDUSD, which could be significantly influenced by these developments in the global financial markets.

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Market Optimism Rises as Asian Shares Rally and Dollar Slumps on Fed’s Potential End to Rate Hikes

Market Optimism Rises as Asian Shares Rally and Dollar Slumps on Fed’s Potential End to Rate Hikes

On Thursday, Asian shares and bonds enjoyed a rally, while the dollar faced significant losses. This shift in the market sentiment was fueled by lower-than-expected U.S. inflation figures, leading to the belief that the Federal Reserve may be nearing the end of its tightening cycle post-pandemic. In contrast, European stocks had a cautious start, with EUROSTOXX 50 futures holding steady, while S&P 500 and Nasdaq futures showed minimal movement.

Despite China reporting disappointing trade data, indicating a higher-than-anticipated decline in both exports and imports last month, Asian investors maintained their optimism. They wagered that this setback would prompt further stimulus measures. The MSCI’s broadest index of Asia-Pacific shares outside Japan surged by 1.8%, with Hong Kong’s Hang Seng index soaring 2.6% and Australia’s resource-heavy shares gaining 1.7%. Japan’s Nikkei also experienced a rise of 1.5%.

Chinese tech giants listed in Hong Kong witnessed a 3.5% rally after Premier Li Qiang encouraged their support in bolstering the slowing economy. This move adds to indications that the sector’s years-long crackdown has come to an end.

The latest U.S. consumer inflation report delivered more positive news than expected. The Consumer Price Index (CPI) showed a year-on-year increase of 3% in June, falling slightly short of the anticipated 3.1% gain. This figure is significantly lower than last year’s 9.1% for the same period. Furthermore, core inflation, which had concerned the Fed, displayed a sharper deceleration than anticipated.

However, futures still suggest a 94% probability of a quarter-point hike from the Fed later this month. Yet, the likelihood of an additional hike in September has decreased to 13.2%, down from the previous day’s 22.3%. Futures now indicate an earlier first rate cut in March next year and anticipate a total of 125 basis points in cuts by 2024.

Following last week’s sell-off, bonds rebounded, resulting in a decline in global yields. The U.S. dollar reached a new 15-month low, easing pressure on emerging market currencies and granting Asian policymakers greater flexibility to implement monetary policy adjustments.

Meanwhile, the euro reached a new 15-month high, and the Japanese yen strengthened against the dollar. Oil prices remained close to two-month highs, and gold prices remained stable.

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European Stock Futures Show Slight Increase; U.S. CPI Identified as Crucial Factor

European Stock Futures Show Slight Increase; U.S. CPI Identified as Crucial Factor

A slight uptick in European stock futures has been observed, with the U.S. Consumer Price Index (CPI) report playing a crucial role in the trend. As of 02:00 ET (06:00 GMT), Germany’s DAX futures contract traded 0.4% higher, while France’s CAC 40 futures saw an increase of 0.4%. The FTSE 100 futures contract in the U.K., however, remained largely unchanged.

The positivity is believed to stem from the strong close on Wall Street, where the Dow Jones Industrial Average gained over 300 points, or 0.9%. Investors are hopeful that the upcoming U.S. inflation report for June may influence the Federal Reserve to conclude its interest rate hikes earlier than anticipated.

Federal policymakers are expected to raise interest rates during their next meeting later this month, following a pause last month. However, investors are keenly awaiting the monthly consumer inflation report for insights into potential additional hikes. The headline annual figure for June is projected to have risen by 3.1%, down from May’s 4% rise. Meanwhile, the core rate is predicted to have dropped for a third consecutive month to 5%, from 5.3%.

Concerns about aggressive measures to curb inflation potentially leading to a recession in the world’s largest economy have been a significant factor impacting global markets.

In Europe, German inflation rose 6.4% annually in June, halting a steady decline since the beginning of the year. In contrast, Spanish inflation is expected to rise 1.9% year-on-year in June, falling short of the European Central Bank’s 2% target. This suggests that the central bank should contemplate concluding its rate-hiking cycle.

Oil prices have stabilized due to predictions of increased demand offsetting rising U.S. crude stockpiles. Major oil producers, including Saudi Arabia and Russia, have announced additional output cuts for August. A weakening U.S. dollar, which is suspected to be a result of the Federal Reserve nearing the end of its rate-hiking cycle, supports the oil market.

However, data from the American Petroleum Institute showed an unexpected growth of over 2 million barrels in U.S. crude stockpiles in the week leading up to July 7. Official numbers from the Energy Information Administration are yet to be released.

Gold futures rose 0.4% to $1,944.60/oz, and the EUR/USD exchange rate increased slightly, trading 0.2% higher at 1.1031.

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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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Japanese Yen Falls Amid Rising Trade Deficit, Stable US Dollar

Japanese Yen Falls Amid Rising Trade Deficit, Stable US Dollar

Japanese Yen Falls Amid Rising Trade Deficit, Stable US Dollar

The Japanese Yen (JPY) experienced a notable decline after Japan’s latest Merchandise Trade Balance data revealed a significant increase in the trade deficit for April. Released on Wednesday, the report indicated that the deficit had escalated to JPY 462.5 billion, a sharp reversal from the prior month’s surplus of JPY 387.0 billion. This figure notably surpassed market predictions, which had anticipated a deficit of around JPY 339.5 billion. As the Yen weakened, the cost of imports surged, overshadowing the benefits of increased exports.

In terms of trade specifics, Japan’s exports year-on-year (YoY) rose by 8.3%, reaching JPY 8,980.75 billion. This growth marked the fifth consecutive month of increases in exports, although the figures fell short of the expected 11.1% rise. Conversely, imports also saw a robust growth of 8.3%, the strongest in 14 months, climbing to JPY 9,443.26 billion—a level not seen in four months. This increase in imports effectively countered the previous month’s revised 5.1% decline.

The dynamics between exports and imports underscore the challenges facing Japan’s economy, particularly in managing its trade balance amid fluctuating currency values and global economic pressures. The weaker Yen has made imports more expensive, which in turn impacts the overall trade balance.

Simultaneously, the U.S. Dollar (USD) showed strength ahead of a significant disclosure from the Federal Reserve. Financial markets were eagerly anticipating the release of the Minutes from the Federal Open Market Committee (FOMC) meeting that took place on May 1, expected later on Wednesday. This anticipation, coupled with an uptick in U.S. Treasury yields, lent additional support to the Greenback. The interplay of these factors contributes to the broader narrative of global currency fluctuations, where central bank policies and economic reports play critical roles in influencing exchange rates and economic stability. As such, the FOMC minutes were closely watched for clues about future U.S. monetary policy moves, which could further impact the USD/JPY exchange rate and broader financial markets.

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Australian Dollar Firm on Improved Risk Appetite, Weak US Dollar

Australian Dollar Firm on Improved Risk Appetite, Weak US Dollar

Australian Dollar Firm on Improved Risk Appetite, Weak US Dollar

The Australian Dollar (AUD) extended its gains for the second consecutive session on Monday, buoyed by a weaker US Dollar (USD). However, these gains were somewhat tempered following an interest rate decision from China. The People’s Bank of China (PBOC) decided to keep the one-year and five-year Loan Prime Rates (LPR) steady at 3.45% and 3.95%, respectively.

Despite the initial support from a weaker USD, the Australian Dollar faces challenges ahead. One significant factor is the yield on Australia’s 10-year government bond, which is hovering around 4.2%, its lowest level in a month. This decline in bond yields comes after a softer domestic jobs report for the first quarter. Slowing wage growth has led markets to discount the likelihood of any imminent interest rate hikes by the Reserve Bank of Australia (RBA). Australia’s Wage Price Index (QoQ) increased by 0.8% in the first quarter, falling short of the market’s forecast of a 0.9% rise. This quarter’s increase is the smallest since late 2022, reflecting subdued wage growth and potential economic headwinds.

The situation is further complicated by the cautious stance of the US Federal Reserve (Fed) regarding inflation and the potential for rate cuts in 2024. On Friday, Federal Reserve Board of Governors member Michelle Bowman highlighted concerns about inflation progress, noting that the decline observed in the latter half of last year was temporary and that there has been no further significant progress on inflation this year. This cautious outlook from the Fed suggests that any expectations for rapid rate cuts in 2024 may need to be tempered.

Overall, the Australian Dollar’s recent performance has been influenced by a mix of external and domestic factors. The weaker USD provided initial support, but the PBOC’s decision to hold rates steady and the declining yield on Australian government bonds have introduced challenges. Additionally, the softer domestic jobs report and slowing wage growth have reduced the likelihood of near-term rate hikes by the RBA, which could weigh on the AUD going forward.

In this complex economic environment, the AUD/USD pair’s future movements will be closely watched by investors. Market participants will need to consider a range of factors, including domestic economic data, central bank policy decisions, and broader global economic trends. The interplay between these elements will be crucial in determining the Australian Dollar’s trajectory in the coming months.

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Australian Dollar Weakens as Aussie

Australian Dollar Weakens as Aussie 10-Year Yield Hits Monthly Low

Australian Dollar Weakens as Aussie 10-Year Yield Hits Monthly Low

The Australian Dollar (AUD) is currently undergoing a downturn for the second consecutive session, primarily influenced by mixed economic indicators from China, a significant trade partner for Australia. This downward trend follows mixed reactions to Australia’s own employment data, which were released on Thursday, highlighting inconsistencies in the labor market.

China’s economic data, released on Friday, played a pivotal role in shaping market sentiments, as any shift in the Chinese economy can have ripple effects on the Australian market due to their close trade ties. The ambiguous signals from China contributed to the growing uncertainty surrounding the Australian Dollar’s performance.

Compounding the Aussie Dollar’s struggles, the yield on Australia’s 10-year government bonds dipped to approximately 4.2%, the lowest level observed in a month. This reduction in bond yields primarily reflects market reactions to Australia’s recent jobs report, which unexpectedly showed a deceleration in wage growth during the first quarter of the year. The subdued wage growth has led investors to scale back expectations for any imminent interest rate increases by the Reserve Bank of Australia (RBA), as slower wage increases typically signal a lack of inflationary pressure, which in turn diminishes the urgency for rate hikes.

In contrast to the local downtrend, the US Dollar Index (DXY), which measures the performance of the US Dollar against a basket of six major currencies, has shown signs of recovery. After hitting a multi-week low of 104.08 on Thursday, the DXY has managed to rebound, reflecting a resilient dollar amidst ongoing global economic uncertainties. The Federal Reserve remains cautious, maintaining its vigilance on inflation dynamics and considering the scope for rate adjustments in 2024.

Investors are also closely monitoring upcoming statements from key US Federal Reserve officials, including Minneapolis Fed President Neel Kashkari and San Francisco Fed President Mary Daly. Their speeches are expected to provide further insights into the Fed’s current economic assessment and future policy directions. Such insights are crucial for market participants, as they gauge the potential impacts on currency valuations and international trading conditions.

This broader context of interconnected economic policies and data underscores the challenges facing the Australian Dollar. As global economic narratives evolve, the responses from central banks like the RBA and the Fed continue to play a critical role in shaping currency strengths and investment strategies across financial markets.

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Australian Dollar Strengthens Ahead of US CPI Release

Australian Dollar Strengthens Ahead of US CPI Release

Australian Dollar Strengthens Ahead of US CPI Release

The Australian Dollar (AUD) remains steady with a positive sentiment despite the lower-than-expected Wage Price Index (Q1) released on Wednesday by the Australian Bureau of Statistics. This index, which serves as an indicator of labor cost inflation, came in below expectations, yet the Aussie Dollar managed to appreciate, likely due to an improved risk appetite among investors.

One of the key factors contributing to the AUD’s resilience is the Australian Budget for 2024-25, which has returned to a deficit after recording a surplus of $9.3 billion in 2023-24. The Australian government has outlined several measures aimed at tackling headline inflation and alleviating cost of living pressures. These initiatives include substantial allocations to reduce energy bills and rent, along with efforts to lower income taxes. Such fiscal measures are designed to support households and businesses, thereby bolstering economic confidence and supporting the currency.

In the broader financial market, the US Dollar Index (DXY), which gauges the performance of the US Dollar (USD) against six major currencies, is experiencing continued losses for the second session. This decline comes as investors have digested the higher-than-expected US Producer Price Index (PPI) data for April while eagerly awaiting the Consumer Price Index (CPI) report scheduled for Wednesday. The CPI report is highly anticipated as it will provide further insights into the inflationary trends in the US and influence the Federal Reserve’s future monetary policy decisions.

Federal Reserve Chair Jerome Powell has recently shared his outlook on inflation and economic growth. He anticipates a continued decline in inflation, though he has expressed less confidence in the disinflation outlook compared to previous assessments. Powell also highlighted that Gross Domestic Product (GDP) growth is expected to reach 2% or higher, attributing this optimistic forecast to the strength of the labor market. This perspective suggests that while inflationary pressures may be easing, the robust labor market could support steady economic growth.

In summary, the Australian Dollar’s stability amid the lower-than-expected Wage Price Index reflects a broader positive sentiment driven by the Australian government’s fiscal policies aimed at addressing inflation and cost of living pressures. Meanwhile, the weakening US Dollar, as indicated by the DXY’s performance, is influenced by recent PPI data and anticipation of the upcoming CPI report. Federal Reserve Chair Powell’s comments on inflation and GDP growth add to the mixed sentiment in the market, as investors balance concerns over inflation with confidence in economic resilience. The interplay of these factors continues to shape the forex landscape, with the AUD maintaining its ground ahead of key economic data releases.

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New Zealand Food Prices Increase After Three Months of Stability

New Zealand Food Prices Increase After Three Months of Stability

New Zealand Food Prices Increase After Three Months of Stability

In April, New Zealand saw a 0.6% rise in food prices compared to the previous month, as reported by Stats NZ. This increase marked a shift after a period of price stability in the food sector.

The rise in grocery food prices was the primary driver of this overall increase, with notable price hikes in potato chips, chocolate blocks, and olive oil. These items saw higher costs due to various market factors that influenced pricing during the month.

Contrastingly, fruit and vegetable prices exhibited a decline, continuing a trend observed over the past three months. Notable decreases were recorded in the prices of kiwifruit, broccoli, and mandarins. This reduction in prices contributed to mitigating the overall rise in food costs.

James Mitchell, the consumer prices manager at Stats NZ, highlighted that while fruit and vegetable prices have been on a downward trajectory for three consecutive months, other food items, along with dining out at cafes and restaurants, have become more expensive. This mixed pattern reflects varying dynamics within the food sector.

On an annual basis, food prices experienced a modest increase of 0.8% in the 12 months leading up to April. This followed a similar trend from the previous year, which recorded a 0.7% rise. These figures are starkly lower than the 12.5% increase observed at the same time last year.

The relatively smaller annual increase in food prices can largely be attributed to the significant drop in fruit and vegetable prices, which fell by 13% compared to the previous year. This decline significantly influenced the overall food pricing landscape, despite price increases across other broad food categories.

Mitchell pointed out that the decrease in fruit and vegetable prices from the highs of 2023 had brought them closer to more typical levels for April. For instance, tomato prices were about $3.50 per kilogram cheaper than they were a year ago, and kūmara prices had more than halved since the beginning of 2024. These changes indicate a return to more regular pricing patterns following unusually high rates in the previous year.

Overall, the food pricing in New Zealand exhibits a complex interplay of increases in certain areas offset by decreases in others, particularly in the fruit and vegetable segment. This balancing act continues to shape the cost of living related to food consumption across the country.

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Australian Dollar Nears Key Level as US Consumer Sentiment Looms

Australian Dollar Nears Key Level as US Consumer Sentiment Looms

Australian Dollar Nears Key Level as US Consumer Sentiment Looms

The Australian Dollar (AUD) experienced a slight pullback on Friday, following a notable rally on Thursday. The uplift in the AUD was primarily driven by a weakening US Dollar (USD), which came under pressure after the release of disappointing US Initial Jobless Claims. These figures hinted at a potential shift towards a more dovish monetary policy approach by the Federal Reserve (Fed), countering the impact of the Reserve Bank of Australia’s (RBA) relatively less aggressive stance.

This dynamic unfolded despite the Australian inflation rate reporting a decrease to 3.6% in the first quarter from 4.1% in the prior quarter, marking the fifth consecutive quarter of moderation. Nonetheless, the figure still exceeded analyst expectations of 3.4%. The Monthly Consumer Price Index (CPI) for March further added to the complexity, escalating to 3.5% year-over-year, against forecasts of 3.4%. Despite these figures, the RBA has expressed that its efforts in curbing inflation have recently hit a plateau, leading to a cautious approach in its monetary policy by keeping options open for future adjustments.

Meanwhile, in the US, the Dollar Index (DXY), which tracks the performance of the USD against a basket of six major currencies, showed signs of recovery fueled by the anticipation that the Fed might sustain elevated interest rates for an extended period. However, the ongoing decline in US Treasury yields could exert additional downward pressure on the USD, potentially bolstering the AUD/USD currency pair.

The upcoming release of the preliminary Michigan Consumer Sentiment Index for May in the US is also closely watched. The index, which assesses consumer sentiment on personal finances, business conditions, and purchasing intentions, is expected to show a slight dip. Changes in consumer sentiment are critical as they can influence economic expectations and potentially affect currency movements.

Furthermore, the economic calendar also includes the Chinese Consumer Price Index (CPI) data, set for release on Saturday. As Australia maintains robust trade relations with China, any significant changes in Chinese inflation could resonate through the AUD, given the intertwined economic activities between the two nations.

Overall, the interplay of domestic inflationary trends, global economic data, and central bank policies continues to define the trajectory of the Australian Dollar. As investors and traders navigate through these variables, the focus remains on deciphering the broader implications of monetary policies and economic indicators on the future movements of the AUD.

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EUR/USD Dips to Near 1.0750 Following Hawkish Fed Comments

EUR/USD Dips to Near 1.0750 Following Hawkish Fed Comments

EUR/USD Dips to Near 1.0750 Following Hawkish Fed Comments

The EUR/USD currency pair continued its downward trajectory for the second consecutive session, trading around 1.0750 during Wednesday’s Asian session. The decline is primarily driven by the strengthening U.S. Dollar, fueled by anticipations that the Federal Reserve (Fed) may sustain elevated interest rates for an extended period. Despite this, recent softer U.S. labor market data has reignited speculation about potential interest rate cuts by the Fed in 2024.

On Tuesday, the U.S. Dollar gained further support following hawkish remarks by Minneapolis Fed President Neel Kashkari. As reported by Reuters, Kashkari emphasized that the most likely scenario involves maintaining current interest rates for the foreseeable future. He noted, however, that rate cuts could be considered if there is a resurgence of disinflation or a significant weakening in the job market. Kashkari also didn’t completely dismiss the possibility of future rate hikes, adding an element of uncertainty to the market.

Earlier in the week, Richmond Fed President Thomas Barkin commented on the impact of raising interest rates, as noted in a Bloomberg report. Barkin highlighted that while higher rates might constrain U.S. economic growth, they would help temper inflationary pressures, aligning them more closely with the Fed’s 2% inflation target.

On the European front, recent economic indicators have shown positive signs. March’s Retail Sales in the Eurozone increased by 0.8%, rebounding from a revised 0.3% decrease in February and surpassing the anticipated 0.6% rise. This marked the most significant monthly increase in retail activity since September 2022, reflecting resilience in the European consumer sector. Year-over-year, Retail Sales also turned positive, registering a 0.7% increase following a revised 0.5% decrease in February. This shift marks the first year-over-year growth in retail activity since September 2022, indicating a revival in consumer spending trends.

Meanwhile, the European Central Bank (ECB) is poised to start easing borrowing costs as early as June. Chief Economist Philip Lane of the ECB commented to Business Standard that recent data have reinforced his confidence that inflation is gradually approaching the ECB’s 2% target. While a consensus among ECB officials seems to lean towards easing measures in the coming month, ECB President Christine Lagarde has yet to signal any imminent rate cuts, leaving the market in anticipation of the ECB’s next moves.

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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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