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EUR-USD

EUR/USD Drops Near 1.0600 as Fed Rate Hike Expectations Grow

EUR/USD Drops Near 1.0600 as Fed Rate Hike Expectations Grow

EUR/USD has dropped to near 1.0610, marking its sixth consecutive session of decline, amid trading in the Asian markets on Tuesday. The strong US Dollar, buoyed by rising US Treasury yields and solid retail sales data, is applying pressure on the Euro.

The US Dollar Index (DXY) has risen to approximately 106.20. Current yields for 2-year and 10-year US Treasury bonds are 4.92% and 4.60%, respectively. These increases are partly due to escalating tensions in the Middle East, which have driven investors towards the safety of the US Dollar.

March’s US Retail Sales showed a 0.7% rise, surpassing the anticipated 0.3% and revising February’s figures from 0.6% to 0.9%. The Retail Sales Control Group also reported a significant increase of 1.1%, which was a jump from the prior 0.3%.

San Francisco Federal Reserve President Mary Daly commented on the economic outlook, noting that while inflation has somewhat subsided, the journey to stable prices is not over. Daly stressed the necessity for inflation to consistently approach the target before any policy adjustments are made. She also pointed out the robust growth of the economy and the strong labor market, even though inflation rates remain above desired levels.

Conversely, the Euro’s value is weakening due to cautious statements from European Central Bank (ECB) officials. ECB Governing Council member Gediminas Šimkus hinted at a more than 50% chance of over three interest rate cuts this year. Additionally, ECB Chief Economist Philip Lane indicated that domestic inflation has not improved as much as other inflation metrics. Despite this, Lane remains optimistic about reaching the inflation target by 2025.

These various economic indicators and policy statements from key central bank figures are shaping investor expectations and market dynamics, influencing the EUR/USD currency pair’s movements.

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NZD/USD

NZD/USD Holds Near 0.5950 as Business NZ PSI Enters Contraction

NZD/USD Holds Near 0.5950 as Business NZ PSI Enters Contraction

The NZD/USD has made a slight recovery from its five-month trough of 0.5927, observed on Monday, stabilizing around 0.5950 in the Asian trading session. This modest rebound occurs amidst a backdrop of economic concerns as New Zealand’s services sector reenters contraction territory. The Business NZ Performance of Services Index (PSI) for March distressingly fell to 47.5 from a previous 52.6, signaling a downturn in the sector.

Doug Steel, a Senior Economist at Bank of New Zealand (BNZ), commented on the implications of the latest PSI data. He noted that combining this weak service sector performance with the poor results from last week’s Manufacturing PMI points to a potential sharp contraction in GDP. Steel suggested that GDP could shrink by over 2% from last year, a forecast much gloomier than most analysts’ expectations.

Looking ahead, investors and market analysts are gearing up for a critical week of economic releases. Significant attention is centered on China, New Zealand’s principal trading partner, which will disclose several key economic figures on Tuesday. These include the Q1 GDP growth rate along with March’s Industrial Output and Retail Sales data. The anticipation around these releases is high as they could indicate shifts in regional economic dynamics.

Furthermore, domestic focus will soon turn to New Zealand’s own economic health with the upcoming release of Consumer Price Index (CPI) data on Wednesday. This inflation metric is crucial for gauging the country’s economic trajectory and potential monetary policy adjustments.

In the United States, the economic landscape appears robust by comparison. Recent data revealed a higher-than-expected rise in the Core Producer Price Index (PPI), with a year-over-year increase of 2.4% in March, surpassing the forecasted 2.3%. This indicates persistent inflationary pressures, which may lead the Federal Reserve to reconsider its monetary easing strategies.

Market watchers are also poised for the release of the US Retail Sales figures next Monday, which will provide further insights into consumer confidence and spending trends. Additionally, the financial community will closely follow a panel discussion featuring Lorie K. Logan, President of the Federal Reserve Bank of Kansas, at the upcoming BoJ-IMF conference.

These upcoming events underscore a week filled with pivotal economic data that could influence global financial markets and inform future monetary policy decisions in both New Zealand and abroad.

 

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USD-CHF

USD/CHF Rises Above 0.9100 Before US PPI Data

USD/CHF Rises Above 0.9100 Before US PPI Data

In the early European session on Thursday, the USD/CHF currency pair exhibited a bullish momentum, climbing to 0.9125, marking its highest level since October 2023. This upward trend in the pair is primarily attributed to the unexpectedly high U.S. inflation figures for March, which have led investors to revise their predictions regarding the Federal Reserve’s interest rate cuts, now leaning away from a reduction this year. This shift in investor sentiment has fortified the U.S. Dollar (USD), lending it considerable support.

The shift in expectations came after the release of the U.S. Consumer Price Index (CPI) data for March, which indicated a significant and unanticipated increase. This surge in inflation resulted in analysts pushing back their forecasts for the first rate cut, now expected in September instead of the previously anticipated June. Breaking down the numbers, the headline CPI witnessed a 0.4% month-over-month increase in March, while the annual CPI saw a 3.5% year-over-year jump. Even more telling was the Core CPI, which strips out the more volatile food and energy sectors; it rose 0.4% on a monthly basis and exhibited a substantial 3.8% increase from the previous year.

The minutes from the latest Federal Reserve meeting further underscored concerns about persistently high inflation. Federal Reserve officials expressed unease regarding inflation levels, which continued to exceed the Fed’s 2% target. This discomfort, coupled with the recent data, did little to boost confidence that inflation was on a trajectory towards this target. Consequently, the persistence of higher U.S. interest rates has been a significant factor propelling the USD upwards, which in turn has positively impacted the USD/CHF pair.

Concurrently, the geopolitical landscape, particularly in the Middle East, introduces a layer of uncertainty that could influence currency markets. The ongoing tensions and the precarious nature of ceasefire talks between Israel and Hamas add to this uncertainty. The recent statements by Israel’s Foreign Minister, Israel Kat, were a stark reminder of the volatile situation. He cautioned that Israel would respond firmly if Iran initiated an attack from its territory. This statement followed remarks by Iran’s supreme leader, who called for retribution against Israel for a perceived attack on an Iranian consulate in Syria the previous week.

Such geopolitical tensions typically result in an increased demand for safe-haven assets, with the Swiss Franc (CHF) often being a beneficiary of such shifts in investor preference. Therefore, while the USD gains strength from domestic economic factors, the CHF could see a boost from these international developments, making the USD/CHF pair one to watch closely in the current global context.

 

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RBA Holding Rates Steady

AUD/JPY Nears 99.90 Amid Expectations of RBA Holding Rates Steady

AUD/JPY Nears 99.90 Amid Expectations of RBA Holding Rates Steady

The Australian Dollar/Japanese Yen (AUD/JPY) exchange rate has shown a significant uptrend, reaching nearly 99.90 during Monday’s European trading session. This bullish trend in the currency pair is largely driven by the robust performance of the Australian Dollar, buoyed by positive developments in Australia’s domestic financial markets. A key contributor to this strength is the notable rise in the Australian Securities Exchange (ASX 200 Index), especially with a marked surge in the technology sector at the week’s onset.

Complementing the Australian Dollar’s rise is the uptick in Australia’s 10-year government bond yield, which has soared to approximately 4.1%, marking a new high in over a month. This increase mirrors the rally in U.S. bond yields, triggered by unexpectedly strong U.S. job data. Consequently, there’s growing speculation that the U.S. Federal Reserve may opt for a prolonged period of higher interest rates.

Investor sentiment is tilting away from the possibility of the Reserve Bank of Australia (RBA) implementing rate cuts anytime in 2024. This shift is underpinned by the recent positive economic indicators from the U.S., which hint at sustained higher borrowing costs in the world’s largest economy. Such expectations are lending support to the Australian Dollar, further propelling the AUD/JPY pair upward.

Despite these gains, the Australian Dollar faced some pressure last week due to stagnant Final Retail Sales and less-than-optimistic Trade Balance data. Market watchers remain vigilant regarding the trajectory of copper and oil prices, as any significant appreciation in these commodities could bolster the Australian Dollar further, positively influencing the AUD/JPY pair.

On the other side of the pairing, the Japanese Yen is experiencing downward pressure, with the Bank of Japan (BoJ) showing reticence towards any major policy tightening moves. Furthermore, easing geopolitical tensions, particularly in the Middle East, are reducing the traditional safe-haven appeal of the Yen. Notably, Israel’s recent decision to pull back additional troops from Southern Gaza, potentially in response to international pressures, has contributed to this de-escalation.

Adding to the mix, Bank of Japan Governor Kazuo Ueda’s recent remarks indicate a possible shift in the BoJ’s policy approach. Speaking about his tenure, which began about a year ago, Governor Ueda expressed an interest in simplifying and clarifying the central bank’s policy framework, contingent on favorable economic conditions. This potential policy shift, coupled with the global economic landscape, plays a pivotal role in shaping the dynamics of the AUD/JPY currency pair.

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EUR/USD Declines Toward

EUR/USD Declines Toward 1.0830 Amid Market Caution, Attention on US NFP Data

EUR/USD Declines Toward 1.0830 Amid Market Caution, Attention on US NFP Data

The Euro to Dollar exchange rate (EUR/USD) continues its downward trajectory that began on Thursday, approaching a value near 1.0830 during the Asian trading session on Friday. This movement reflects an increase in market caution, significantly influenced by escalating geopolitical tensions in the Middle East, which have bolstered the US Dollar (USD).

The current geopolitical climate has become more strained following Iran’s vow to retaliate against Israel’s recent attack on its embassy in Syria, an incident that resulted in the deaths of Iranian military personnel. Additionally, new reports suggesting heightened threats against Israeli embassies in the United States by Iran have further intensified market apprehensions.

On the economic front, the USD experienced some downward pressure due to less-than-robust employment data from the United States. Despite this, remarks from several Federal Reserve officials that were perceived as neutral seem to have curbed a steeper decline in the USD’s value.

In terms of specific data, US Initial Jobless Claims for the week ending March 29 increased to 221,000 from the previous week’s figure of 212,000, though it was still below market expectations of 214,000. US Challenger Job Cuts for March also showed an increase, reaching 90,309, which is above the previous figure of 84,638.On the other side of the Atlantic, the Eurozone’s economic indicators paint a mixed picture. The Eurostat Producer Price Index (PPI) for February showed a decrease of 1.0%, surpassing expectations and marking a more significant decline than in previous months. Furthermore, the year-over-year decline in the PPI also outstripped expectations, though by a smaller margin. 

The Eurozone’s Composite PMI also showed signs of improvement, indicating a slight expansion in economic activity. Interestingly, the latest inflation data from the Eurozone shows a sharper-than-expected decrease in the annual rate for March. This development fuels speculation about potential monetary policy actions by the European Central Bank (ECB), with some market participants anticipating a possible rate cut in June. As traders navigate these multifaceted economic and geopolitical landscapes, they keenly await upcoming data releases. Significant among these are Germany’s Factory Orders and Eurozone Retail Sales. 

From the United States, the market is particularly focused on the upcoming release of Average Hourly Earnings and Nonfarm Payrolls data, which are considered crucial indicators of the country’s economic health.

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USD/CAD Nears

USD/CAD Nears 1.3560, Drops Due to Rising Crude Oil Prices

USD/CAD Nears 1.3560, Drops Due to Rising Crude Oil Prices

The USD/CAD currency pair continues its downward trajectory for the second consecutive day, inching closer to 1.3560 in the Asian trading session on Wednesday. This negative movement is primarily influenced by the robust performance of Crude oil prices, which bolsters the Canadian Dollar (CAD), thereby exerting a downward force on the USD/CAD pair.

Crude oil prices, particularly Western Texas Intermediate (WTI), are hovering around $84.80, marking their highest point since October 2023. This surge in oil prices can be attributed to a combination of factors, including the weakening of the US Dollar and rising concerns over supply disruptions due to ongoing geopolitical uncertainties.

Furthermore, the US Dollar Index (DXY), which measures the strength of the US Dollar against a basket of major currencies, is facing a downward pressure, contributing to the weakening of the USD/CAD pair. This weakening of the DXY comes in the wake of dovish remarks from Federal Reserve (Fed) officials. Notably, Cleveland Fed President Loretta Mester expressed an expectation of potential rate cuts later in the year. Similarly, San Francisco Fed President Mary Daly suggested that three rate cuts in 2024 might be “reasonable,” though such a decision would depend on further convincing economic evidence.

In recent US economic news, data released on Tuesday highlighted some key figures. The US February JOLTS Job Openings report showed an increase to 8.756 million, up from the previous figure of 8.748 million, exceeding market expectations. Additionally, there was a notable rebound in Factory Orders, which rose by 1.4% month-on-month in February, following a 3.8% decline in the previous period.

Investors and market participants are now turning their attention to upcoming economic data releases. For Canada, the focus is on the Import and Export data due on Thursday, and the labor market data scheduled for release on Friday. In the United States, key data points include the ADP Employment Change and ISM Services PMI, both set for release on Wednesday. Moreover, the US economic outlook is set to gain further clarity with Federal Reserve Chairman Jerome Powell scheduled to speak at the Stanford Business, Government, and Society Forum in Stanford.

Overall, the combination of strong Crude oil prices, dovish statements from Fed officials, and upcoming economic data releases are key factors influencing the movement of the USD/CAD pair, with market participants closely monitoring these developments to gauge future trends.

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NZD/USD Nears 0.5980 Amid Fed's Powell Dovish

NZD/USD Nears 0.5980 Amid Fed’s Powell Dovish Remarks, Eyes on US ISM PMI

NZD/USD Nears 0.5980 Amid Fed’s Powell Dovish Remarks, Eyes on US ISM PMI

The NZD/USD currency pair has continued its upward trajectory for the second straight day, making notable gains during Monday’s Asian trading session and approaching the 0.5980 mark. This upward movement comes in the wake of dovish statements from Federal Reserve Chairman Jerome Powell last Friday. Powell’s comments, particularly regarding the recent Personal Consumption Expenditures Price Index (PCE) data from the United States, have been interpreted as aligning with the Fed’s openness to potential interest rate reductions this year.

Adding to this sentiment, Federal Reserve Board Governor Christopher Waller has expressed that there’s no urgency to implement rate cuts, given the persistent inflationary pressures. Similarly, San Francisco Fed President Mary C. Daly has underlined the Fed’s readiness to adjust rates as necessary based on evolving data, while also highlighting the strength of the US economy and downplaying the likelihood of an imminent downturn.

The US Dollar Index (DXY) has been facing headwinds, partly due to lower yields on US Treasury bonds. The DXY is currently hovering around 104.50, with yields on the 2-year and 10-year US bonds at 4.60% and 4.19%, respectively. Despite these challenges, Fed officials are still projecting three rate reductions within the year, with market anticipations leaning towards the first cut occurring at the Fed’s June meeting.

On the other side of the pairing, the New Zealand Dollar (NZD) is experiencing its own pressures, fueled by speculations that the Reserve Bank of New Zealand (RBNZ) might start reducing policy rates early next year. RBNZ Governor Adrian Orr has noted the central bank’s progress in reining in inflation to within its target range. Orr has also suggested that the peak in interest rates has likely been reached, paving the way for potential rate cuts.

Further boosting the Kiwi Dollar, recent data from China has shown encouraging signs. The Chinese Purchasing Managers Index (PMI) for March indicated that manufacturing activity in China expanded for the first time in six months. China’s Caixin Manufacturing PMI reported a figure of 51.1, slightly above expectations and the previous month’s figure of 50.9. Additionally, the National Bureau of Statistics (NBS) Manufacturing PMI in China rose to 50.8 in March from 49.1 previously, while the NBS Non-Manufacturing PMI climbed to 53.0 from 51.4.

Looking ahead, traders are likely to approach the market with caution as they await the release of the ISM Manufacturing PMI from the United States, scheduled for later in the North American session. Additionally, upcoming data releases, such as the Building Permits from Statistics New Zealand this Thursday, will be closely monitored for their potential impact on currency movements.

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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 Weakens as Hopes for BoJ Rate Hikes Fade, FOMC Minutes Awaited

Japanese Yen Weakens Amid Fading Hopes for BoJ Rate Hikes, FOMC Minutes in Focus

Japanese Yen Weakens Amid Fading Hopes for BoJ Rate Hikes, FOMC Minutes in Focus

The Japanese Yen (JPY) continued to drift lower against the US Dollar (USD) on Wednesday, approaching levels last seen in mid-August. Recent economic data from Japan revealed that real wages declined in August after two consecutive months of gains, while household spending also dropped. This raises concerns over the strength of private consumption and the sustainability of Japan’s economic recovery. Additionally, comments on monetary policy from Japan’s new Prime Minister have added to the uncertainty surrounding the Bank of Japan’s (BoJ) potential for future rate hikes, further weighing on the JPY.

Adding to the Yen’s weakness, reports of a possible ceasefire between Hezbollah and Israel have reduced demand for the safe-haven currency. Meanwhile, the US Dollar has gained strength, nearing its seven-week high, as markets reduce expectations for aggressive policy easing by the Federal Reserve (Fed). This has pushed the USD/JPY pair beyond the mid-148.00s during the European session.

Despite the current upward momentum for the USD/JPY pair, market participants remain cautious, as Japanese authorities may intervene to support the Yen. Additionally, the release of the Federal Open Market Committee (FOMC) meeting minutes later on Wednesday could influence the pair’s direction, depending on how the outlook for US monetary policy unfolds.

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Bitcoin and Crypto Market Decline Amid Powell’s Hints at Further Rate Cuts

Bitcoin and Crypto Market Continue Decline Despite Powell’s Hints at Rate Cuts

Bitcoin and Crypto Market Continue Decline Despite Powell’s Hints at Rate Cuts

The cryptocurrency market remained in a downtrend on Monday, despite Federal Reserve (Fed) Chair Jerome Powell hinting at possible further interest rate cuts later this year.

Crypto Market Slips Amid Speculation of Rate Cuts

Fed Chairman Jerome Powell indicated that while the recent 50 basis point (bps) interest rate cut reflects optimism about economic conditions, it does not guarantee that future cuts will be as large. Speaking at the National Association for Business Economics, Powell said, “Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course.”

He added that the US economy remains in good shape, emphasizing that the Fed’s primary goal is to maintain this stability. Powell also noted that the 50 bps rate cut signals confidence in a stronger labor market, which could lead to reduced inflation.

Powell suggested that more rate cuts could be on the horizon, contingent on future economic data. “As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks,” Powell stated.

Historically, lower interest rates have positively impacted the cryptocurrency market, particularly Bitcoin. During the 2017 crypto bull market and the surge in initial coin offerings (ICOs), interest rates hovered between 0.75% and 1.25%. However, when the Fed began raising rates in 2018, the crypto market experienced a correction.

Despite Powell’s remarks, the crypto market continued to slide, registering a 4.2% decline as of Monday. Major cryptocurrencies such as Bitcoin, Ethereum, and Solana fell by 3.5%, 2.3%, and 2.6%, respectively.

Widespread Decline Across Crypto Categories

The decline was not limited to major cryptocurrencies. Tokens in the artificial intelligence category, including NEAR, ICP, ASI, RENDER, and GRT, also saw losses in the past 24 hours. Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) experienced sharp declines of nearly 10%.

Despite the current downturn, some market observers believe Powell’s speech could trigger a bullish reversal. Black Swan Capitalist co-founder Vandell commented that Powell’s hint of rate cuts is “very positive for risk-on assets like crypto.” He explained that rate cuts could boost credit creation and global liquidity, potentially setting the stage for a major crypto rally. “The timing is unarguably by design,” Vandell remarked in an X post.

Other members of the crypto community have echoed this optimism, forecasting a potential price surge for Bitcoin as Powell opens the door for further rate cuts.

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US Dollar Index Climbs Above 100.50, Upside Potential

US Dollar Index Climbs Above 100.50, Upside Potential Appears Limited Ahead of US PCE Data

US Dollar Index Climbs Above 100.50, Upside Potential Appears Limited Ahead of US PCE Data

The US Dollar Index (DXY) rose to around 100.65 during Friday’s Asian trading session, but its upside momentum seems constrained due to expectations of further rate cuts from the Federal Reserve (Fed). The broader weakness in the US Dollar persists as the market anticipates lower borrowing costs ahead.

Last week, the Fed cut interest rates by 50 basis points (bps), with Chair Jerome Powell describing it as a “recalibration” to support the labor market while moving inflation closer to the Fed’s 2% target. Though more rate cuts are expected, Powell clarified that the Fed’s policy path is flexible, which could limit DXY’s upward movement in the near term. According to CME Group’s FedWatch Tool, markets are currently pricing in a 48.8% chance of another 50 bps cut and a 51.2% chance of a 25 bps cut.

Despite positive US economic data on Thursday, the US Dollar’s rally lost steam as focus shifted to the upcoming US inflation data, specifically the Personal Consumption Expenditures (PCE) Price Index, due later on Friday. Analysts forecast a 2.3% year-over-year rise in headline PCE for August and a 2.7% YoY increase in core PCE.
US Durable Goods Orders for August remained unchanged, beating the consensus expectation of a 2.6% decline. Additionally, the final estimate of US Gross Domestic Product (GDP) for the second quarter confirmed a 3.0% annual growth rate, as previously projected.

Fed officials maintain a dovish stance. Fed Governor Lisa Cook supported last week’s 50 bps rate cut, citing risks to employment, while Governor Adriana Kugler also advocated for more cuts if economic conditions warrant it. This dovish outlook continues to weigh on the US Dollar Index’s performance, limiting its potential gains.

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BOJ Surprises with Removal of Forward Guidance

BOJ Surprises with Removal of Forward Guidance – UOB Group

BOJ Surprises with Removal of Forward Guidance – UOB Group

The Bank of Japan (BOJ) kept its monetary policy unchanged but unexpectedly removed its forward guidance, surprising markets, according to UOB Group Senior Economist Alvin Liew.

No Change in Monetary Policy as Expected

“At its scheduled Monetary Policy Meeting (MPM) on Friday (September 20), the BOJ unanimously decided to maintain its current monetary policy guidelines for money market operations, which was in line with market expectations,” Liew noted.

Unexpected Removal of Forward Guidance

The surprise in the September MPM statement was the omission of any forward guidance on monetary policy, a stark difference from the July meeting. Despite this change, the BOJ’s positive outlook for the economy and its expectations for gradually rising inflation remained consistent with the July MPM.

“We anticipate that the BOJ will begin normalizing monetary policy in the fourth quarter of 2024, likely during the October MPM, with a 25-basis-point hike to 0.50%, which we expect to be the terminal rate. However, this outlook will depend on further changes in the Consumer Price Index (CPI) forecasts in future meetings,” Liew concluded.

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Bank of Japan Keeps Interest Rate

Bank of Japan Keeps Interest Rate Unchanged in September, As Expected

Bank of Japan Keeps Interest Rate Unchanged in September, As Expected

On Friday, the Bank of Japan (BoJ) announced that it would maintain its short-term interest rate target between 0.15% and 0.25%, following a two-day monetary policy review. This decision aligned with market expectations.

Back in July, the BoJ surprised markets by raising the policy rate by 15 basis points (bps) from 0%-0.1% to its current range of 0.15%-0.25%. The central bank also introduced a plan to taper its monthly purchases of Japanese government bonds (JGB) to approximately ¥3 trillion per month by the first quarter of 2026.

Market Reaction to BoJ’s Policy Announcement

Following the BoJ’s announcement, the USD/JPY pair saw an initial rise toward 143.00, but quickly retreated to 142.65, where it currently fluctuates. The pair is down 0.06% for the day at the time of writing.

What to Expect from the BoJ Interest Rate Decision

The BoJ’s decision to hold rates steady was largely anticipated by the market. While the central bank is expected to maintain its current stance for now, investors will be looking for any signals of when rates may rise again.

Money markets are currently pricing in a 25-basis point increase by the end of the year, which would bring the policy rate to 0.50% at the BoJ’s December meeting.

Inflation and Wage Growth: Key Factors for Future Rate Hikes

Japan’s inflation remains above the BoJ’s 2% target, and recent wage growth—1.1% year-over-year in June and 0.4% in July—suggests increased consumer spending. However, if inflation driven by cost pressures begins to weigh on spending, the central bank may face challenges in achieving demand-driven inflation, potentially delaying further rate hikes.

Political and Market Considerations

BoJ policymaker Naoki Tamura has argued that rates should be raised to at least 1% by the second half of the next fiscal year, while others, like Sanae Takaichi, a potential successor to Prime Minister Fumio Kishida, have cautioned against further hikes to avoid dampening consumer sentiment. Meanwhile, Governor Kazuo Ueda reiterated in August that the BoJ would raise rates if inflation continues to move toward the 2% target, though he acknowledged the potential for market volatility to affect the timing of such a decision.

Market Expectations Moving Forward

According to a Reuters poll, economists unanimously agreed that the BoJ would not raise rates at the September meeting, though most anticipate a hike by year-end. Analysts at Standard Chartered predict a 25 bps rate increase by December 2024 due to stronger-than-expected inflation, which has remained above the 2% target for 21 months.

Impact on USD/JPY

The Fed-BoJ policy divergence continues to dominate the USD/JPY outlook. With the US Federal Reserve recently cutting rates by 50 basis points and the potential for further easing, the yen may continue to gain against the dollar. Technical analysis suggests that a further decline in USD/JPY could bring the pair toward its 2024 low of 139.57, with deeper retracements potentially reaching the July 2023 low of 137.23 and the March 2023 low of 129.63.

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Gold Price Approaches Weekly High Ahead

Gold Price Nears Weekly High Ahead of US NFP Report, Remains Below $2,525 Resistance

Gold Price Nears Weekly High Ahead of US NFP Report, Remains Below $2,525 Resistance

Gold price (XAU/USD) is trading near its weekly high for the third consecutive day on Friday, ahead of the European session. Despite this upward trend, investors remain cautious as they await the US Nonfarm Payrolls (NFP) report before making any significant moves. Rising expectations of a larger interest rate cut by the Federal Reserve (Fed) in September are pressuring the US Dollar (USD), which is supporting gold, a non-yielding asset.

Market Overview

A series of mixed US employment reports this week have added to concerns about the health of the labor market, driving up demand for safe-haven assets like gold. Geopolitical tensions and a reduced appetite for riskier assets are also contributing to gold’s appeal. However, traders are holding off on fully committing to an extended rally until after the release of key US macroeconomic data.

Daily Market Movers: Gold Price Supported by Fed Rate-Cut Expectations, Lower Bond Yields, and Weaker USD

  • Thursday’s ADP report showed that the US private sector added only 99,000 jobs in August, the smallest increase since January 2021. This was well below the forecast of 145,000, with July’s figure also revised downward to 111,000 from the originally reported 122,000.
  • Job openings fell to a three-and-a-half-year low in July, according to Wednesday’s report, signaling a softening labor market.
  • While the ISM Services PMI for August rose slightly to 51.5, the Employment Index declined from 51.1 to 50.2, reinforcing concerns about a slowing economy.
  • US Initial Jobless Claims dropped to 227K, down from the previous week’s 232K, but the labor market is still showing signs of strain.
  • Comments from Fed officials, including San Francisco Fed President Mary Daly and Chicago Fed President Austan Goolsbee, support the case for rate cuts. Daly emphasized that the economy is slowing and inflation is falling, while Goolsbee suggested that labor and inflation trends justify easing policy.

Dovish Fed expectations are weighing on US Treasury yields and the USD, which in turn is bolstering gold prices. According to the CME Group’s FedWatch Tool, there is now a 40% chance of a 50-basis-point rate cut at the Fed’s September 17-18 meeting.

Technical Analysis: Gold Price Set for New Highs if $2,525 Barrier Is Cleared

From a technical standpoint, gold’s next immediate hurdle is the $2,524-$2,525 supply zone. A decisive break above this level could trigger further bullish momentum. Indicators on the daily chart remain positive and are not yet signaling overbought conditions, which suggests that the upward trend could continue.

Should gold clear the all-time high of $2,531-$2,532, first reached on August 20, it would confirm a strong bullish outlook and likely lead to more gains.

On the downside, the $2,500 psychological level is expected to offer immediate support. If breached, gold could drop toward the $2,471-$2,470 range. A break below this could open the door for deeper losses toward the 50-day Simple Moving Average (SMA) near $2,440, and potentially the $2,400 mark and 100-day SMA around $2,388.

Outlook: Focus on US NFP Report

The market’s attention is now firmly on the US Nonfarm Payrolls report, expected to show 160,000 job additions in August, with the unemployment rate ticking down to 4.2%. This data will be crucial in shaping expectations for the Fed’s next policy move, and it could play a pivotal role in determining the next direction for gold prices.

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Silver Price Forecast

Silver Price Forecast: XAG/USD Holds Below $28.50 as Traders Eye US PMI Data

Silver Price Forecast: XAG/USD Holds Below $28.50 as Traders Eye US PMI Data

Silver (XAG/USD) is trading with a mild bearish bias around $28.25 early Thursday during the Asian session. A modest recovery in the US Dollar (USD) is weighing on silver prices. However, speculation that the US Federal Reserve (Fed) may implement a deeper interest rate cut in its upcoming meeting this month is helping to limit silver’s losses.
The weaker US JOLTS report released on Wednesday has increased expectations for a 50 basis point (bps) rate cut by the Fed. According to the CME FedWatch tool, which gauges market sentiment regarding the Fed funds rate, there is now a 57% chance of a 25 bps rate cut and a 43% probability of a 50 bps cut at the Fed’s September meeting. The possibility of imminent rate cuts may help support silver prices in the near term, as lower rates make silver more affordable for buyers.

The upcoming US August Nonfarm Payrolls (NFP) report on Friday is expected to show an addition of 161,000 jobs. A weaker-than-expected result could put pressure on the US Dollar and lift silver prices, as silver is denominated in USD.

On the downside, concerns about China’s economic growth and demand may undermine silver prices. China, the world’s largest silver exporter, is facing growth pessimism. Analysts at Bank of America Global Research recently revised China’s 2024 GDP forecast down from 5.0% to 4.8%. Additionally, the weaker Chinese Caixin Services PMI, which dropped to 51.6 in August from 52.1 in July, is contributing to demand concerns for the white metal.

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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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