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EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

EUR/GBP surrenders its recent gains from the previous session, trading around 0.8420 during Thursday’s Asian session. Traders are closely watching the Eurozone Retail Sales data set to be released later in the day.

The decline in the EUR/GBP pair is driven by growing speculation that the European Central Bank (ECB) might cut interest rates in September. If the ECB follows through, it would be the second rate cut since the bank shifted towards policy normalization in June.

In the Euro Area, the Producer Price Index (PPI) increased by 0.8% month-over-month in July, marking the largest rise since December 2022. This follows a revised 0.6% increase in June, significantly surpassing market expectations of 0.3%.

However, the Eurozone Services PMI dropped to 52.9 in August, down from 53.3 in the prior month, while the Composite PMI slipped to 51.0, missing forecasts and falling short of the previous reading of 51.2.

On the other hand, the British Pound (GBP) is gaining strength due to rising expectations that the Bank of England’s (BoE) rate-cutting cycle will proceed more slowly than that of the ECB. These expectations were fueled by Tuesday’s BRC Like-for-Like Retail Sales report, which showed a 0.8% year-on-year increase in August, up from 0.3% in July, marking the fastest growth in five months.

Additionally, positive UK macroeconomic data is boosting sentiment. A Purchasing Managers Index (PMI) survey revealed that business activity in August accelerated at its fastest pace since April.

On Wednesday, the S&P Global UK Composite PMI rose to 53.8 in August, up from 53.4 the previous month, and was revised higher from the preliminary estimate of 53.4. The Services PMI increased to 53.7, compared to 53.3 in July. Meanwhile, the Manufacturing PMI held steady at 52.5 in August, aligning with earlier estimates.

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WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

West Texas Intermediate (WTI) oil prices extended their losses for the second consecutive day, trading around $69.40 per barrel during the Asian session on Wednesday. This decline is attributed to the potential resolution of a political dispute that had halted Libyan oil exports, alongside concerns over slowing global demand growth.

According to Reuters, Libya’s two legislative bodies reached an agreement on Tuesday to jointly appoint a central bank governor, a move that could ease the conflict over control of the country’s oil revenue, which had fueled the recent dispute. If the agreement holds, it could lead to the return of over 500,000 barrels per day to the market.

Market sentiment was further dampened by data from the Institute for Supply Management (ISM), which indicated that U.S. manufacturing activity remains sluggish. Although there was a slight improvement in August from an eight-month low in July, the ISM Manufacturing PMI rose only to 47.2 from 46.8, falling short of market expectations of 47.5. This marks the 21st contraction in U.S. factory activity in the past 22 months.

China, the world’s largest crude importer, reported that its manufacturing activity fell to a six-month low in August, with factory gate prices dropping significantly. This has prompted Chinese policymakers to accelerate plans for additional stimulus aimed at supporting households.

Additionally, oil prices are facing pressure from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) as they plan to increase production in the upcoming quarter. Starting in October, eight OPEC+ members are set to raise production by a combined 180,000 barrels per day (bpd), adding further supply to the market.

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Gold Price Declines as Traders Await US PMI Data

Gold Price Declines as Traders Await US PMI Data

Gold Price Declines as Traders Await US PMI Data

The price of gold (XAU/USD) is under pressure, falling on Tuesday due to a stronger US Dollar (USD) and rising US Treasury bond yields. Despite this, expectations of a potential interest rate cut by the US Federal Reserve (Fed) in September may provide some support for gold, as lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Additionally, ongoing geopolitical tensions in the Middle East could increase demand for safe-haven assets such as gold.

Looking ahead, traders will focus on the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) set to be released on Tuesday. The highlight of the week will be the US Nonfarm Payrolls (NFP) report for August, which could influence the Fed’s decision on the pace of interest rate cuts and, consequently, impact gold prices in the short term.

Daily Market Overview: Gold Faces Selling Pressure Amid USD Strength

Gold prices are facing selling pressure as the USD rebounds. Protests erupted across Israel on Monday over the government’s inability to secure a ceasefire-for-hostages deal with Hamas, following the retrieval of six hostages’ bodies by Israeli soldiers in Gaza over the weekend, as reported by CNN.

In other economic data, China’s Caixin Manufacturing PMI rose to 50.4 in August from 49.8 in July, surpassing the market consensus of 50.0. The US ISM Manufacturing PMI for August is expected to improve to 47.5, up from 46.8 in July, while the Services PMI is projected to dip slightly to 51.1 from 51.4. The US economy is anticipated to add 163,000 jobs in August, with the unemployment rate expected to decrease slightly to 4.2%.

According to the CME FedWatch Tool, markets are now pricing in a nearly 69% probability of a 25 basis point (bps) rate cut by the Fed in September, with a 31% chance of a 50 bps reduction.

Technical Analysis: Long-Term Outlook for Gold Remains Positive

While gold prices are drifting lower on the day, the longer-term outlook remains positive. On the daily chart, gold is trading well above the key 100-day Exponential Moving Average (EMA), suggesting a constructive outlook. The 14-day Relative Strength Index (RSI) is also above the midline at around 55.70, indicating that the upward momentum is more likely to continue than reverse.

The key resistance for XAU/USD is in the $2,530-$2,540 range, which marks the upper boundary of a five-month ascending channel and aligns with the all-time high. A decisive break above this level could trigger a rally towards the $2,600 psychological mark.

On the downside, initial support lies at the August 22 low of $2,470. A break below this level could lead to further declines, with additional support at the August 15 low of $2,432 and the 100-day EMA at $2,372.

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Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

The Japanese Yen (JPY) has lost momentum against the US Dollar (USD), reversing some intraday gains after the release of the US Personal Consumption Expenditures (PCE) Index data for July. This data dampened expectations for a significant interest rate cut by the Federal Reserve (Fed) in September. The CME FedWatch Tool now shows that markets are fully pricing in at least a 25 basis point rate cut at the Fed’s upcoming meeting, though traders will be closely monitoring upcoming US employment data, including August’s Nonfarm Payrolls (NFP), for further clues on the Fed’s policy trajectory.

On Monday, data showed Japanese companies increased Capital Spending by 7.4% in the second quarter. Additionally, Japan’s Manufacturing PMI for August was revised upwards to 49.8 from an initial estimate of 49.5, suggesting a move towards stabilization in the sector. Recent Tokyo inflation data, which showed an increase, has bolstered the Bank of Japan’s (BoJ) hawkish stance, providing some support to the JPY and limiting gains in the USD/JPY pair.

Daily Market Movers: JPY Declines Despite Hawkish BoJ

The US Bureau of Economic Analysis reported that the headline PCE Price Index rose by 2.5% year-over-year in July, consistent with the previous month’s reading but below the expected 2.6%. The core PCE, excluding food and energy prices, also increased by 2.6% year-over-year, in line with the prior month’s data but slightly under the forecast of 2.7%. Meanwhile, Tokyo’s Consumer Price Index (CPI) climbed to 2.6% year-over-year in August, up from 2.2% in July, and the core CPI rose to 1.6% from 1.5%. However, Japan’s unemployment rate unexpectedly increased to 2.7% in July, the highest since August 2023, from 2.5% in June.

Atlanta Fed President Raphael Bostic, a notable hawk, recently suggested that it might be time for the Fed to consider rate cuts due to cooling inflation and a higher-than-expected unemployment rate. According to FXStreet’s FedTracker, which rates the tone of Fed officials’ speeches on a scale from 0 to 10, Kashkari’s recent remarks were rated as neutral, with a score of 5.6.

In the US, second-quarter GDP growth was reported at an annualized rate of 3.0%, surpassing expectations and the previous rate of 2.8%. Initial Jobless Claims dropped to 231,000 for the week ending August 23, slightly below expectations, signaling a robust labor market.

Japan’s Finance Minister, Shunichi Suzuki, noted that foreign exchange rates are influenced by a variety of factors, including monetary policies, interest rate differentials, geopolitical risks, and overall market sentiment. He emphasized the unpredictability of these factors’ impact on FX rates.

Technical Analysis: USD/JPY Holds Ground Around 146.00

USD/JPY is trading near the 146.00 mark. Technical analysis on the daily chart shows the pair remains above the downtrend line, indicating a reduced bearish outlook. However, the 14-day Relative Strength Index (RSI) is still below 50, suggesting that the bearish trend is not fully out of play.

For support, USD/JPY could test the nine-day Exponential Moving Average (EMA) around 145.53, followed by the downtrend line near 144.00. If it falls below this level, the pair might aim for the seven-month low of 141.69, set on August 5, with further support at 140.25. On the upside, breaking above the psychological level of 150.00 could lead the pair to test resistance around the 154.50 level.

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Gold Price

Gold Price Gains Momentum as Traders Await US GDP Data

Gold Price Gains Momentum as Traders Await US GDP Data

Gold prices (XAU/USD) are recovering on Thursday, bouncing back from weekly lows in the sub-$2,500 region per troy ounce. The potential for US interest rate cuts is boosting gold demand, as lower interest rates decrease the opportunity cost of holding non-yielding gold. Political uncertainty in the US, geopolitical tensions in the Middle East, and global economic concerns further support the precious metal’s upward movement.

However, renewed demand for the US Dollar (USD) could weigh on gold prices, as a stronger USD makes gold more expensive for international buyers. Investors are closely watching the second estimate of US Gross Domestic Product (GDP) for the second quarter (Q2) on Thursday for clues on the size and pace of potential Federal Reserve (Fed) rate cuts. Additionally, the US Personal Consumption Expenditures (PCE) Price Index data for July, due on Friday, will be a key focus.

Daily Digest Market Movers: Gold Price Holds Strong Amid Rising Rate Cut Expectations

Emerging markets, particularly China, India, and Turkey, are expected to continue driving demand for gold, according to John Reade, Chief Market Strategist at the World Gold Council. “US data has failed to give gold any further lift, so the temptation for traders to book some profit after a long run has been rising,” said Ole Hansen, head of commodities strategy at Saxo Bank A/S.

The second estimate for US Q2 GDP growth is expected to show a 2.8% increase. Meanwhile, the headline PCE Price Index is anticipated to rise by 2.6% year-over-year in July, up from 2.5% in June, with core PCE inflation projected to increase from 2.6% to 2.7% year-over-year. The rate futures markets have fully priced in a 25 basis point (bps) rate cut in September, with a 36.5% chance of a deeper cut, according to the CME FedWatch Tool. Traders are expecting a total of 100 bps in Fed easing this year.

Technical Analysis: Gold Price Shows Bullish Outlook Long-Term

Gold prices are trading positively on the day, remaining just below the five-month-old ascending channel’s upper boundary and the all-time high. The overall outlook remains bullish, with prices staying well above the key 100-day Exponential Moving Average (EMA) on the daily chart. The 14-day Relative Strength Index (RSI) is above the midline near 61.00, suggesting potential for further upside.

The confluence of the all-time high and the upper boundary of the trend channel in the $2,530-$2,535 range serves as a critical resistance level for gold. A break above this zone could lead to a rally toward the psychological $2,600 mark.

On the downside, immediate support for XAU/USD is at the $2,500 level. A decisive break below this support could trigger a significant sell-off toward $2,432, the low from August 15. The next major support is at $2,367, the 100-day EMA.

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Choppy Market Action Persists as Investors Await Next Catalyst

Forex Today: Choppy Market Action Persists as Investors Await Next Catalyst

Forex Today: Choppy Market Action Persists as Investors Await Next Catalyst

After hitting its lowest level in over a year near 100.50, the US Dollar Index (DXY) rebounded toward 101.00 during the European session on Wednesday. With no high-impact economic data releases scheduled for midweek, investors remain focused on central bank commentary and geopolitical developments.

A slight improvement in market risk sentiment made it challenging for the USD to maintain its strength against major currencies on Tuesday. As of early Wednesday, US stock index futures are trading virtually flat. Meanwhile, the yield on the 10-year US Treasury bond hovers slightly above 3.8%, fluctuating within a narrow range.

In early trading on Wednesday, data from Australia showed that the Consumer Price Index (CPI) rose 3.5% year-over-year in July, down from June’s 3.8% but slightly above market expectations of 3.4%. Following this release, AUD/USD initially surged to a new high for 2024 above 0.6810 but lost momentum, retreating below 0.6800.
Bank of Japan (BoJ) Deputy Governor Ryozo Himino commented on Wednesday that financial and capital markets remain unstable, emphasizing the need for careful monitoring by the Japanese central bank. Despite these comments, there was little immediate impact on the USD/JPY pair, which was trading positively around 144.50 at the time of writing.

EUR/USD saw gains on Tuesday, nearing the 1.1200 mark, but lost its upward momentum and traded lower near 1.1150 early Wednesday.

GBP/USD extended its rally, reaching its highest level since March 2022, climbing above 1.3260 on Tuesday. The pair entered a consolidation phase on Wednesday and was last seen trading just below 1.3240.

Gold registered modest gains for the second consecutive day on Tuesday. However, XAU/USD lost traction early Wednesday, pulling back below $2,510.

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EUR/USD Rises Above 1.1150 Amid Market Optimism

EUR/USD Rises Above 1.1150 Amid Market Optimism

EUR/USD Rises Above 1.1150 Amid Market Optimism

The EUR/USD pair has rebounded from its recent losses, trading around 1.1170 during Tuesday’s Asian session. This recovery is fueled by growing market optimism following comments from U.S. Air Force General C.Q. Brown, chairman of the Joint Chiefs of Staff, who told Reuters that fears of a wider conflict in the Middle East have eased after his three-day visit to the region.

While there was an exchange of fire between Israel and Lebanon’s Hezbollah, it did not lead to further escalation. However, Hamas has rejected new ceasefire conditions proposed by Israel in negotiations held in Egypt, insisting on adherence to terms set by U.S. President Joe Biden and the UN Security Council.

On the monetary policy front, San Francisco Federal Reserve President Mary Daly indicated in a Bloomberg TV interview that it might soon be time to cut interest rates, potentially starting with a quarter-point reduction. Daly mentioned that if inflation continues to decrease gradually and the job market maintains steady growth, a more regular policy adjustment would be appropriate.

For the euro, market participants are considering how expectations of future rate cuts by the Federal Reserve could affect European Central Bank (ECB) policies. Traders will closely watch the GfK Consumer Confidence Survey and GDP data due later in the day for further direction.

Last week, ECB Governing Council member Olli Rehn noted that the slowing inflation and the weak Eurozone economy make a case for reducing borrowing costs next month. According to Bloomberg, the sluggish growth outlook in Europe, especially in the manufacturing sector, supports the argument for a potential rate cut in September.

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Fears about economy are causing stock global markets to collapse

Fears about economy are causing stock global markets to collapse

The United Kingdom and Switzerland boosted interest rates on Thursday, a day after the Federal Reserve of the United States announced the highest rate hike since 1994 affected the global stock market. Policymakers are hiking interest rates in order to decrease demand and alleviate some of the pressures that are driving up consumer prices. Investors are concerned that the actions will cause a lasting slump in the global economy. After the US rate hike was announced, Ryan Sweet of Moody’s Analytics said, “The Federal Reserve will hike interest rates until policymakers break inflation, but the risk is that they also break the economy.”

The Nikkei 225 and Australia’s main stock market index were both down more than 2% on Friday; however Hong Kong and Shanghai stocks were higher. That occurred following a sell-off in the US on Thursday, with the S&P 500 dropping 3.2 percent and the tech-heavy NASDAQ dropping more than 4%. For the first time since January 2021, the Dow Jones Industrial Average fell more than 2.4 percent, falling below 30,000 points. Few businesses were spared, and corporations that rely on discretionary spending, such as Nike and airlines, were among the hardest hit. Energy businesses, which would potentially face a decline in demand if the economy slowed, were also hit hard.

Tesla’s stock dropped 8.5 percent after the company announced price hikes due to increased costs. The autopilot features of the electric vehicle are also being scrutinised by US road safety regulators. Spotify also dropped 7% a day after the streaming behemoth announced it was slowing recruiting in the wake of economic uncertainty, becoming the second major internet business to do so.

The FTSE 100 ended Thursday down more than 3% in the UK, where the Bank of England warned that inflation could reach 11% this year. After warning investors that inflationary pressures were impacting shopping behaviour, Asos, a British online apparel company, plummeted 32.5 percent. The Dax index in Germany sank more than 3%, while the Cac 40 in France fell 2.4 percent.

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Fed’s rate hike, the stock market in the United States rallied

Fed’s rate hike, the stock market in the United States rallied

Stocks in the United States jumped on Wednesday after the Federal Reserve approved its largest interest-rate hike since 1994, although the central bank hinted that such moves would be rare. The S&P 500 index increased 54.51 points, or 1.5 percent, to 3789.99, ending a five-day losing run. The Dow Jones Industrial Average increased by 303.70 points, or 1%, to 30668.53, while the NASDAQ Composite increased by 270.81 points, or 2.5 percent, to 11099.15.

The move is the Fed’s latest attempt to reduce inflation by tightening monetary policy. The Fed was widely expected to boost its short-term benchmark rate by 0.75 percentage point, as forecast by investors. Some had feared that, before of Wednesday’s interest-rate decision, the Fed might have to hike rates even faster.

Fed Chairman Jerome Powell said Wednesday’s decision was “an extraordinarily significant one” during a press conference following the announcement. He also stated that he expects the Fed to raise rates by 0.50 to 0.75 percentage points at its July meeting. Ultimately, the guidance the Fed gives about the direction of interest rates Wednesday is more important for markets than the size of the rate increase, said Dorian Carrell, a fund manager at Schroders. This year, uncertainty regarding monetary policy has been a major source of volatility.

On Monday, the S&P 500 entered bear market territory, or a decline of at least 20% from a prior high. “Markets are pricing in a Fed that wants to be ahead of the curve on inflation rather than behind it,” said Art Hogan, chief market analyst at National Securities. Mr. Hogan said that this helped raise stocks ahead of Wednesday’s rate announcement. Stocks were up across the board, with 10 of the S&P 500’s 11 sectors closing the day higher. Technology companies, which have been one of the market’s hardest hit this year, were among the best performers. Microsoft, Nvidia, Amazon.com, and Netflix all increased by 3% or more.

Areas of the market that are economically sensitive have also risen. The KBW NASDAQ Bank Index rose 1.6 percent on Wednesday, following a sell-off in bank stocks due to market concerns about a slowing economy. Energy stocks have fallen, marking a rare reversal for the year’s best-performing S&P 500 sector. The energy sector of the S&P 500 index declined by around 2.1 percent.

Meanwhile, government bonds in the United States recovered after falling in recent weeks in a selloff that pushed rates to their highest levels in almost a decade. The yield on 10-year Treasurys fell to 3.389 percent on Wednesday, down from 3.482 percent the day before. Rates for everything from mortgages to federal student loans to auto loans are influenced by yields, which fall as bond prices rise.

Ahead of the ECB’s ad hoc meeting on Wednesday to tackle instability in the region’s bond markets, European stocks and prices on peripheral government bonds in the eurozone soared. Under an existing bond-purchase programme, the ECB plans to buy more bonds from weaker eurozone governments. It charged ECB employees with speeding up the development of a new instrument that would reduce borrowing cost variations throughout the area, addressing financial imbalances that have long plagued the currency union.

Willem Sels, chief investment officer at HSBC Private Banking and Wealth Management, said, “They wanted to make sure financing circumstances don’t deteriorate too much.” The meeting, he claimed, showed that the ECB was ready to support markets sooner than investors had anticipated.

Shares of banks and insurers led the Stoxx Europe 600 index higher by 1.4 percent. As the price of government bonds declined, shares of Italian banks, who own a large portion of them, suffered. On Wednesday, Intesa Sanpaolo and UniCredit were among the best-performing banks in Europe. The Dow Jones Industrial Average was trading at 30669 in the afternoon on Wednesday. It was wrongly stated in an earlier version of this article that it traded at 20639. Furthermore, on Tuesday, Italy’s 10-year government bond yields finished at 4.111 percent. The yields settled at 4.067 percent in an earlier version of this story, which was inaccurate.

 

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Stocks fall further into a bear market ahead of major Fed comments

Stocks fall further into a bear market ahead of major Fed comments

Most stocks on Wall Street fell in their first trading day Tuesday after plunging into a bear market on fears that soaring inflation may force central banks to slam the brakes on the economy too forcefully. The S&P 500 index slid 14.15 points, or 0.4 percent, to 3,735.48 as investors awaited the Federal Reserve’s decision on interest rate hikes on Wednesday. After a couple of prominent corporations displayed financial fortitude with stronger profits and dividends to shareholders, it swung back and forth between losses and gains throughout the day.

The Dow Jones Industrial Average dropped 151.91 points to 30,364.83, or 0.5 percent. After bouncing between a loss of 0.7 percent and a gain of 1.1 percent, the NASDAQ composite increased 19.12, or 0.2 percent, to 10,828.35. Despite the swings, trading was calmer than it had been during Monday’s global sell-off, which drove the S&P 500 down 3.9 percent. In Tokyo and Paris, stocks sank more than 1%, but increased by the same amount in Shanghai. Even as Treasury yields rose to their highest levels in more than a decade, investors on Wall Street appeared to be less anxious.

“No one is going to take major positions today,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management, “before of what could be a rip-roaring day” with the Fed’s decision. The price of cryptocurrencies continued to fluctuate. They’ve been among the hardest affected in this year’s market sell-off, as the Federal Reserve and other central banks boost interest rates to combat inflation and forcefully turn off the “easy mode” that has kept markets afloat for years. According to CoinDesk, Bitcoin was down over 5% in afternoon trading and was trading at $22,201. It had already dropped over 70% from its all-time high of $68,990.90 achieved late last year.

However, economists believe the data will not prevent the Federal Reserve from raising its benchmark interest rate by a larger-than-usual amount on Wednesday. Investors are now anticipating the largest increase since 1994, a three-quarters of a percentage point increase, or three times the typical amount. Only a week ago, such a massive gain was considered a remote prospect, if at all. However, a market-beating report on consumer inflation on Friday appears to have forced the Fed into acting more aggressively. It showed that, instead of declining as expected, consumer price inflation worsened in May.

A major rate hike, Nixon added, “is really a split judgement in terms of the market as to whether it will be a good thing or a terrible thing.” “It certainly paves the way for more significant hikes in the future.” According to Tradeweb, Treasury yields continued to rise, with the two-year yield reaching its highest level since November 2007, before the financial crisis. During the day, the 10-year yield hit its highest level since April 2011. They also had a relatively dependable recession warning indicator blinking on and off in the bond market. The 10-year Treasury yield has risen above the two-year yield in afternoon trading, at 3.47 percent vs 3.41 percent. In the bond market, things usually look like this.

Some investors see the unique situation in which the two-year yield exceeds the 10-year yield as a sign that a recession is on the way in the next year or two. It’s known as a “inverted yield curve,” and it appeared briefly earlier today. Oracle stock rose 10.4% on Wall Street after the company reported better revenue and earnings for the most recent quarter than experts predicted. FedEx’s stock rose 14.4% after the company increased its dividend distribution by more than 50%. It was the first day of trading for US stocks since the S&P 500 finished Monday at a 21.8 percent loss from its early-year high. This put it in a bear market, which is defined as a decrease of 20% or more in value.

The Federal Reserve’s aim to contain inflation by raising interest rates is at the heart of the sell-off. The Fed is scrambling to bring prices under control, and one of its key tools is to raise interest rates. However, this is a harsh tool that could slow the economy too much and lead to a recession. “The attention on this week’s Fed decision is driving the true calm in today’s market,” said Greg Bassuk, CEO of AXS Investments. “Today’s calm is either the calm before the storm or the calm that will hopefully last for a long time.” Other central banks around the world have started raising rates as well, notably the Bank of England, and the European Central Bank has suggested it will do so next month.

Oil and food costs are skyrocketing as a result of the Ukraine conflict, driving inflation and sapping consumer spending, particularly in Europe. Meanwhile, COVID infections in China have prompted some harsh, business-slowing regulations that threaten to stifle the world’s second-largest economy and exacerbate clogged supply chains. The move toward higher rates has reversed the market’s extraordinary gain, which was fueled by significant central bank support after the pandemic struck in early 2020. From late March 2020 to the climax in January, the S&P 500 more than doubled. According to S&P Dow Jones Indices, it was the shortest bull market on record, dating back to 1929, and it followed the shortest bear market on record.

Investors are less inclined to pay high prices for hazardous assets when interest rates are higher. As a result, some of the biggest stars of the earlier low-rate era, such as bitcoin and high-growth technology companies, have taken the brunt of this year’s crash. In 2022, Netflix will be down by more than 70%.

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S&P 500 entered a bear market, global stocks dropped

S&P 500 entered a bear market, global stocks dropped

Stock futures increased, indicating that U.S. markets were on the verge of recovering from a meltdown that pushed the S&P 500 into a bear market on Monday, but Asian stocks remained under pressure. In Asia on Tuesday morning, S&P 500 futures were up 0.6 percent. The Dow Jones Industrial Average and the Nasdaq-100, which is centered on technology, both rose 0.5 percent and 0.8 percent, respectively.

Consumer inflation in the United States reached its highest level in more than four decades, according to data released late last week. This has fueled fears that the Federal Reserve will be forced to act quickly, and that the monetary tightening that follows will push the economy into recession. Following a two-day policy meeting, the Fed will announce its next interest rate decision on Wednesday. According to the CME FedWatch Tool, market pricing swung quickly on Monday, implying that a 0.75 percentage point increase was a near certainty. According to the programme, futures markets previously indicated a one-in-four possibility of such a significant gain.

Shorter-term Treasury yields surged above longer-term Treasury yields during Asian trading hours Tuesday, a phenomenon known as an inverted yield curve that has often preceded prior recessions. As bond prices decrease, yields climb. The yield on the 10-year note fell to 3.355 percent from 3.371 percent on Tuesday, after jumping to an 11-year peak on Monday. The yield on the two-year note, meanwhile, increased by 0.116 percentage point to 3.395 percent.

While several markets have been impacted by higher interest rates this year, the shares of money-losing companies that were once industry darlings and other speculative plays have been particularly hard hit. Higher interest rates on risk-free assets like government bonds tend to lower the appeal of riskier investments—and the perceived value of future cash flows—while increasing corporate borrowing costs. The S&P 500 has now down approximately 22% from its January high, while the NASDAQ Composite has dropped 33% from its November high.

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Concerns about Global Economy have caused the stock markets to fall

Concerns about Global Economy have caused the stock markets to fall

As a result of rising prices in the United States, Asian stock markets have plunged, raising fears that the Federal Reserve may tighten its monetary policy to combat inflation. At the same time, the US dollar rose to 135 yen for the first time in more than two decades. It comes as official numbers released on Friday revealed that US inflation touched a 40-year high last month. Investors’ anxieties over global economic development were heightened by a warning in Beijing about Covid-19 infections.

The Nikkei 225 index in Japan was down 2.7 percent on Monday, while the Hang Seng in Hong Kong was down 2.7 percent. The Australian stock market was closed for the public holiday commemorating the Queen’s birthday. Brent crude has dropped roughly $1.70 to just over $120 per barrel, bringing global oil prices down. Official data released on Friday indicated that prices rose more than predicted in the United States last month, with rising energy and food expenses pushing inflation to its highest level since 1981.

After dropping in April, the annual inflation rate climbed to 8.6% in May, according to the Labor Department. This dashed hopes that inflation had reached a nadir, and instead alerted investors to the possibility that the Federal Reserve would respond more forcefully to the problem. On Wednesday, the central bank is expected to issue its next policy pronouncement. It has an 80% likelihood of raising its main interest rate by half a percentage point, according to the markets.

The reforms occurred as the cost of living has risen, putting pressure on officials to address the issue. The rising cost of gasoline has become a big issue in the United States, with the price of gasoline averaging more than $5 per gallon for the first time on Saturday, according to the American Automobile Association. Investors are concerned, however, that the Fed and other major central banks would take extreme measures to curb increasing prices, such as raising interest rates too high and too quickly, causing a sudden economic slowdown.

Investors are also concerned about the spread of Covid-19 in China, following the announcement on Sunday by Beijing’s most populous district of Chaoyang that three rounds of mass testing would be conducted to control a “ferocious” outbreak – 166 confirmed cases so far – that began last week at a bar in a nightlife and shopping area. This has sparked fears of future lockdowns, which might stifle the city’s economic resurgence just as restrictions were being relaxed.

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Stocks drop as Wall Street prepares for inflation data

Stocks drop as Wall Street prepares for inflation data

Stocks in the United States fell sharply on Thursday, as Wall Street fretted about critical inflation data due out on Friday. The S&P 500 was down 2.4 percent, and the Dow Jones Industrial Average was down 1.9 percent, or 640 points. The NASDAQ Composite Index dropped by 2.8 percent. The majority of the losses occurred in the final hour of trading, as selling intensified as the session came to a close.

Investors are anticipating the release of the latest Consumer Price Index (CPI) from the Bureau of Labor Statistics on Friday in order to gain further insight into how aggressively the Federal Reserve will raise interest rates. Inflation is expected to have continued in May, according to the reading. According to consensus estimates, headline inflation would climb at an annual pace of 8.3 percent in May, matching April’s reading, and 5.9 percent excluding food and energy prices.

The sell-off was triggered by disappointing labour market statistics released before the market opened, as well as confirmation from the European Central Bank that it intends to hike interest rates next month. Last week, 229,000 people applied for unemployment benefits, the highest number since January and an indication that the labour market is becoming more stressed. Prior to the release of this data, all three main indexes were forecasting gains of more than 0.4 percent at the open.

Oil prices fell somewhat but remained above $120 per barrel, and the 10-year Treasury yield rose to 3.06 percent, just above the 3% level that the 10-year had surpassed earlier this week for the first time since early May. Investors are still looking for signs of how the economy is faring in the face of tighter financial conditions, as well as how aggressive the Federal Reserve rate hike cycle will grow before a possible stop.

Last Friday’s robust May employment numbers undoubtedly conveyed to policymakers that present labour market conditions can survive further monetary tightening. As it fights inflation, central bank policymakers have taken clues from the labour market on the rate hike pace, with policy geared at cooling labour demand just enough to keep the unemployment rate from rising too high.

In a morning note, FWDBONDS Chief Economist Christopher S. Rupkey noted, “The surge in initial jobless claims does fit with anecdotal information offered by CEOs that they are closely watching their head counts, which frequently covers up for their actions where they are discreetly throwing away pink slips.” “One thing is certain: joblessness will only rise as inflation raises costs for every company across the country, necessitating cost-cutting measures that will inevitably fall on the backs of workers.”

Shares of Tesla (TSLA) closed marginally down in other markets after the electric vehicle’s price gained as much as 3% in early trading following a UBS upgrade to Buy. The electric vehicle behemoth is also “best positioned to become one of the top three global auto manufactures by 2030,” according to the research.

 

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As volatile trading on Wall Street continues, stocks dip

As volatile trading on Wall Street continues, stocks dip

Investors were disheartened to see further evidence of inflation’s impact on businesses and another grim forecast for the global economy on Wall Street Wednesday, erasing most of their gains for the week. The losses come after a string of choppy trading days, with key indexes swinging back and forth between gains and losses by the hour. As investors strive to figure out how rising interest rates and inflation will affect the economy, volatility prevails.

The S&P 500 index dropped 44.91 points, or 1.1%, to 4,115.77. For the week, the benchmark index managed to maintain a small increase. It has now lost eight of the previous nine weeks. The NASDAQ slid 88.96 points, or 0.7 percent, to 12,086.27, while the Dow Jones Industrial Average fell 269.24 points, or 0.8 percent, to 32,910.90. The largest weights on the broader market were banks and industrial businesses. Union Pacific was down 3.1 percent and Wells Fargo was down 1.8 percent. Stocks in the technology sector have also dropped. Intel’s stock dropped 5.3 percent.

Stocks of smaller companies plummeted faster than the rest of the market. The Russell 2000 index dropped 28.56 points (1.5%) to 1,891.01. Bond yields have risen. The 10-year Treasury yield, which banks use to set mortgage and other loan rates, increased to 3.02 percent on Wednesday from 2.97 percent late Tuesday.

On Wall Street, the biggest issue is increasing inflation and whether the Federal Reserve’s decision to hike interest rates rapidly will help mitigate the damage or push the economy into recession. “What investors need to understand is that inflation numbers will take a long time to look good,” said Brian Levitt, global market strategist at Invesco. “What they need to pay attention to is whether it improves or deteriorates in relation to expectations.”

Businesses are still feeling the effects of inflation. Scotts Miracle-Gro, a lawn care products firm, fell 8.9% after reducing its profit prediction for the year because merchants aren’t restocking orders as quickly as projected. Consumers are shifting to either spending on services or focusing on basics rather than purchasing otherwise discretionary products such as electronics, according to retailers.

Russia’s invasion of Ukraine, which has increased pressure on oil and food prices since February, has only exacerbated the impact of inflation. Crude oil prices in the United States jumped 2.3 percent on Wednesday, bringing the year’s total to 63 percent, while wheat prices are up 39 percent in 2022. Following a series of lockdowns in Chinese cities dealing with COVID-19 cases, supply chains have tightened as well.

“It will be more difficult to see headline inflation come down as long as commodity prices remain elevated,” Levitt added. The Organization for Economic Cooperation and Development has lowered its economic growth prediction, following numerous other international organisations, like the World Bank, who expect inflation to have a long-term impact on economies around the world.

In testimony before the Senate Finance Committee on Tuesday, Treasury Secretary Janet Yellen said she expects inflation to stay high and that lowering it is a primary priority. At its meeting next week, the Federal Reserve is largely expected to raise its benchmark short-term interest rate by half a percentage point. That would be the second consecutive hike of more than double the regular amount, with a third expected in July.

The Fed’s goal is to reduce economic growth enough to mitigate the impact of inflation. Throughout most of the post-pandemic recovery, demand for commodities outpaced supplies and production capacity. However, investors are concerned that the Fed may raise rates too quickly, causing the US economy to enter a recession, especially given the current state of the economy. Wall Street is keeping a tight eye on economic statistics for signs that the Fed may be easing up on the scale of its rate hikes. The latest report on the consumer price index will be released by the US government on Friday, which will provide the next major update on inflation.

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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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China’s February New Bank Loans Decrease Beyond Expectations, Hitting Record Low Lending Growth

China’s February New Bank Loans Decrease Beyond Expectations, Hitting Record Low Lending Growth

In China, new bank lending in February experienced a sharper decline than anticipated from a record high in January, as the central bank continues efforts to stimulate the country’s sluggish economic growth and counter deflationary trends.

According to Reuters’ calculations based on People’s Bank of China data, Chinese banks issued 1.45 trillion yuan ($201.5 billion) in new yuan loans in February, a significant drop from January and below the expectations of analysts. Year-over-year growth of outstanding yuan loans slowed to a record low of 10.1%, compared to 10.4% in January, and fell short of the projected 10.2%.

The decrease in February’s lending was expected as Chinese banks typically issue more loans at the beginning of the year to attract high-quality customers and gain market share. Additionally, the Lunar New Year holiday, which occurred in February this year as opposed to late January in 2023, likely impacted lending activity.

Analysts had forecasted new yuan loans for February to decrease to 1.50 trillion yuan, down from 4.92 trillion yuan in the previous month and against 1.81 trillion yuan a year earlier.

ING analysts noted that aggregate financing and new loans were weaker than expected due to limited high-quality borrowing demand, indicating a modest immediate impact from the February cut in the required reserve ratio (RRR). Despite signals of further RRR cuts from the PBOC, a lack of high-quality borrowing demand might reduce the effectiveness of these measures in stimulating the economy.

In the first two months of 2024, Chinese banks made 6.37 trillion yuan in new yuan loans, according to central bank data. Household loans, mostly mortgages, contracted by 590.7 billion yuan in February, after an increase of 980.1 billion yuan in January. Corporate loans also decreased to 1.57 trillion yuan from 3.86 trillion yuan.

China’s economic growth target for 2024 is around 5%, a goal many analysts consider challenging without significant additional stimulus. Both consumer and corporate confidence have remained weak since a post-pandemic upsurge faded early in 2023.

PBOC Governor Pan Gongsheng stated there is still room for RRR cuts, following a substantial 50-basis point reduction effective from February 5. The central bank also announced a major cut in a key mortgage reference rate last month to support the property market and the overall economy.

Broad M2 money supply grew by 8.7% year-over-year, slightly below the 8.8% forecast but consistent with the pace in January.

Total social financing (TSF) growth, a broad measure of credit and liquidity in the economy, decelerated to 9.0% in February from a year earlier, down from 9.5% in January. With China setting the 2024 quota for local government special bond issuance at 3.9 trillion yuan and planning to issue 1 trillion yuan in special ultra-long-term treasury bonds, increased fiscal support is expected to boost government borrowing. However, weak private sector credit demand continues to pose significant challenges.

TSF, which includes various forms of financing beyond conventional bank lending, fell to 1.56 trillion yuan in February from 6.5 trillion yuan in January, falling short of the expected 2.22 trillion yuan.

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Major Currency Pairs Remain Stable Before Crucial US Economic Data Release

Major Currency Pairs Remain Stable Before Crucial US Economic Data Release

Throughout the latter half of the week, major currency pairs have been exhibiting fluctuations within narrow margins. Following a slight downturn on Wednesday, the US Dollar (USD) Index has maintained a subdued profile, hovering just below the 103.00 mark in Thursday’s European morning. Market participants are keenly awaiting the release of the US producer inflation and retail sales data for February, which are poised to offer fresh directional impetus.

Concurrently, the benchmark 10-year US Treasury bond yield has seen a resurgence, crossing back over the 4.2% threshold for the first time in more than a week. As of early Thursday, the yield steadies at around 4.2%, while US stock index futures exhibit a mixed performance, reflecting the volatility observed in Wednesday’s market.

This week, the US Dollar’s performance has varied across different major currencies. Notably, the Dollar recorded its strongest performance against the Japanese Yen. A recent report from Reuters highlighted that Japan’s largest industrial union, UA Zensen, announced record-high pay increases by 231 firms since 2013. In response, the USD/JPY pair has been oscillating within a tight range below the 148.00 level, closing almost unchanged on Wednesday.

The Australian Dollar (AUD/USD) experienced a modest upswing on Wednesday, breaking a two-day losing streak and remaining consolidated just above 0.6600 early Thursday.

Meanwhile, the Euro against the US Dollar (EUR/USD) gained some ground and ended Wednesday on a positive note. However, the pair began to retreat slightly after encountering resistance near 1.0950. In the absence of significant data releases from the Eurozone, the market’s focus will likely shift to any statements from European Central Bank (ECB) officials.

The British Pound (GBP/USD) is experiencing difficulty in establishing a clear direction, continuing its lateral movement around the 1.2800 mark in Thursday’s European trading session.

In the commodities sector, gold managed to recoup most of its losses from Tuesday during Wednesday’s session. However, it struggled to gain further upward momentum in the face of increasing US yields. At last observation, Gold (XAU/USD) was trading marginally lower, just below $2,170.

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

Australian Dollar Gains Support from Rising ASX 200 Despite Stronger US Dollar

Australian Dollar Gains Support from Rising ASX 200 Despite Stronger US Dollar

The Australian Dollar (AUD) is showing signs of consolidation, hinting at a potential recovery from its recent losses as of Wednesday. This comes amidst mixed market signals, including a positive performance from the S&P/ASX 200 Index and contrasting pressures from lower commodity prices.

For the second consecutive day, the S&P/ASX 200 Index has been on the rise, mirroring the overnight gains observed on Wall Street. This upward trend in the Australian stock market is a reflection of investor confidence and a generally positive economic outlook, which typically supports the strength of the national currency. However, the Australian Dollar faces countervailing pressures due to a decline in commodity prices. Australia, being a major exporter of natural resources, is particularly sensitive to fluctuations in these markets. Lower commodity prices can have a dampening effect on the AUD, as they may reduce the country’s trade revenue and economic prospects.

The current investor sentiment is cautiously optimistic, spurred by the release of encouraging Consumer Price Index (CPI) data from the United States (US). This optimism is, however, tempered by the recent performance of the AUD against the US Dollar (USD). On Tuesday, the AUD suffered losses against the USD, driven largely by a stronger-than-expected US CPI report. The report has diminished the likelihood of a near-term interest rate cut by the Federal Reserve (Fed), bolstering the Greenback. This strengthened USD poses potential challenges for the AUD/USD currency pair, as a robust US Dollar often means weaker performance for other major currencies.

Traders and investors are now likely to redirect their focus towards upcoming economic indicators from the US, particularly the Core Producer Price Index (PPI) and Retail Sales data, which are scheduled for release on Thursday. These data points are significant as they provide insights into the health of the US economy. The Core PPI offers a measure of the average changes in prices received by domestic producers for their output, excluding food and energy, which are more volatile. Retail Sales data, on the other hand, is a key indicator of consumer spending, which accounts for a substantial portion of overall economic activity in the US.

The outcomes of these reports could have significant implications for the Fed’s monetary policy decisions, and consequently, influence the AUD/USD exchange rate dynamics. As investors and market analysts anticipate these releases, there is an air of cautious observation in the market, with stakeholders keen to understand how these developments will shape the near-term trajectory of the Australian Dollar in relation to the US Dollar and the broader global economy.

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XRP Poised for Weekly Drop as Investors Pocket $370 Million in Profits

XRP Poised for Weekly Drop as Investors Pocket $370 Million in Profits

The price of XRP, a popular altcoin, experienced a downturn, reaching $0.62 on Friday. Despite this drop, it managed to stay above the crucial $0.60 mark, a psychologically significant level for traders and investors. This recent price movement has been primarily attributed to increased profit-taking activities among XRP holders. Heading towards the week’s close, XRP seems poised to end with a slight loss, marking a mild correction following its recent price surge. This shift in market behavior comes just ahead of a significant event – the anticipated March 22 deadline in the ongoing SEC vs. Ripple lawsuit, a key factor influencing the altcoin’s market dynamics.

Since the beginning of March 2024, XRP holders have reportedly cashed out profits amounting to around $370 million. This substantial withdrawal of profits is one of the primary drivers behind the recent price adjustments. On-chain data provided by Santiment has highlighted consistent profit-taking by XRP holders throughout the month, especially notable as the altcoin reached its monthly peak of $0.6685 on Tuesday.

Further analysis reveals an uptick in on-chain activity for XRP. Notable metrics showing this increase include a rise in Active Addresses and a surge in large transactions, specifically those valued at $100,000 or higher. Both these indicators have witnessed significant growth over the past week. Generally, such an increase in active addresses and high-value transactions can signal either bullish or bearish trends for an asset’s price. However, in the context of XRP, the spike in transactions following its recent price rally suggests that larger investors or ‘whales’ may be looking to capitalize on the higher rates to sell off their holdings and secure profits.

This pattern of whale behavior, coupled with the overarching climate of profit-taking among regular holders, paints a picture of a market in a state of flux. As XRP navigates through these changes, market watchers are closely monitoring the asset’s performance, particularly with the looming legal deadline in the SEC lawsuit which could have further implications for its price and investor sentiment.

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Currency Market Stabilizes Ahead of Powell Speech, Bitcoin Gains Momentum

Currency Market Stabilizes Ahead of Powell Speech, Bitcoin Gains Momentum

On Wednesday, the U.S. dollar remained stable as traders awaited Federal Reserve Chair Jerome Powell’s congressional testimony and upcoming key events, including a European Central Bank (ECB) rate decision and U.S. jobs data.

Bitcoin showed renewed momentum in the cryptocurrency market, though it did not surpass its recent record high achieved in a tumultuous overnight session.

The dollar’s movement was restricted, reflecting a slight decline after data revealed a minor slowdown in U.S. services industry growth last month. The upcoming February U.S. jobs report, due on Friday, is anticipated to significantly influence market expectations regarding interest rates, especially if employment figures exceed forecasts.

Powell’s testimony before Congress, focusing on the state of the U.S. economy, is expected to confirm the Fed’s intention to analyze more data before considering any rate cuts. The Fed chief might also discuss January’s strong core inflation, which analysts believe won’t alter the market’s expectation of a rate cut starting in June.

Currently, the market shows about a 60% likelihood of a June rate cut, as indicated by the CME FedWatch tool. The dollar index stood around 103.76, demonstrating its strength against six major currencies.

The euro remained stable at $1.0855, with the market anticipating the ECB’s rate decision. The bank is expected to maintain rates at 4% and provide updates on economic projections and hints about potential rate cuts.

Sterling was steady at $1.27050 ahead of the British budget announcement. Meanwhile, the Australian dollar recovered slightly, dismissing GDP data that showed only 0.2% growth in the fourth quarter and strengthened the case for rate cuts. It was last up 0.24% at $0.65195.

The New Zealand dollar also rose, gaining 0.16% to $0.60960, despite reaching a three-week low earlier. Conversely, the dollar fell 0.12% against the yen, settling at 149.86.

Attention is also focused on Bitcoin, which recently soared to a new high before sharply retreating. It was last up 4.11% at $65,921, fueled by investments in U.S. spot exchange-traded crypto products and anticipation of global interest rate reductions.

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Gold Price Climbs Steadily

Gold Price Stable Near High, Amid Fed Rate-Cut Speculation and Market Softness

Gold Price Stable Near High, Amid Fed Rate-Cut Speculation and Market Softness

During the early hours of Tuesday’s European trading session, the Gold price, measured in XAU/USD, maintained a steady range, reflecting a period of consolidation after its recent significant surge to a three-month high near the $2,120 mark, achieved the previous day. This stability in Gold’s price comes as traders display caution, choosing to wait for clearer indications regarding the Federal Reserve’s (Fed) future interest rate decisions before committing to new market positions. Consequently, all eyes are set on Fed Chair Jerome Powell’s two-day congressional testimony, which is slated to begin on Wednesday.

The week also brings a host of critical U.S. economic data releases coinciding with the start of a new month. Among these, the highly anticipated Nonfarm Payrolls (NFP) report, due for release on Friday, stands out as a key determinant of the U.S. Dollar’s (USD) trajectory and, by extension, its influence on the precious metal’s dynamics. The anticipation surrounding the Federal Reserve’s possible rate cuts starting in June has somewhat subdued USD bullish sentiment, indirectly bolstering support for the non-yielding Gold.

Adding to the mix is the slight weakening in global risk appetite, fueled by ongoing geopolitical tensions and growing concerns over an economic slowdown in China. These factors are contributing to the appeal of Gold, traditionally viewed as a safe-haven asset, under the XAU/USD symbol. Market participants are now keenly awaiting the U.S. ISM Services PMI data, which could offer short-term trading opportunities in the gold market.

Despite these varied influences, the fundamental landscape indicates a predominantly upward trajectory for Gold prices. The prevailing economic and geopolitical conditions suggest that any downward corrections in Gold’s price are likely to be short-lived and viewed as buying opportunities by investors. This perspective reinforces the notion that Gold remains a resilient and attractive investment amidst the current global economic uncertainties.

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Japanese Yen Dips Versus USD as BoJ Uncertainty Lingers; Tokyo CPI in Focus Tuesday

Japanese Yen Dips Versus USD as BoJ Uncertainty Lingers; Tokyo CPI in Focus Tuesday

The Japanese Yen (JPY) is experiencing renewed pressure after a slight recovery from its year-to-date low on Friday, as it enters the European trading session with a weaker stance against the US Dollar (USD). This development comes in the wake of remarks from the Bank of Japan (BoJ) Governor Kazuo Ueda, who emphasized on Friday that it was premature to declare a win over inflation concerns. This cautionary stance from the BoJ, coupled with signs of a technical recession in Japan, indicates a potential delay in the central bank’s shift towards tighter monetary policies. Such a delay is contributing to the diminishing strength of the JPY.

Amid these circumstances, there are reports suggesting that the Japanese government is contemplating officially declaring an end to the long-standing deflationary period. Market participants are also closely watching the potential impact of another significant wage increase in Japan. This increase could potentially initiate a wage-price spiral, compelling the BoJ to reconsider and possibly retract its current ultra-accommodative monetary policy. Despite these factors, a subdued tone in the equity markets is expected to moderate the losses for the JPY and restrain any significant appreciation of the USD/JPY pair, especially given the current muted demand for the USD.

Investors and traders are exhibiting caution, opting to refrain from making bold directional bets until the release of the Tokyo Consumer Price Index (CPI) report on Tuesday. This report is anticipated to provide valuable insights into Japan’s inflationary trends and could influence the monetary policy outlook of the BoJ. In addition to the Tokyo CPI, the global financial market is also bracing for a series of pivotal events later in the week. These include Federal Reserve Chair Jerome Powell’s congressional testimony on Wednesday and Thursday, as well as crucial US economic data releases at the beginning of the new month. Of particular interest will be the US Nonfarm Payrolls (NFP) report on Friday, a key indicator of the US labor market’s health.

The combination of these upcoming events and data releases will likely offer fresh perspectives on the Federal Reserve’s trajectory regarding interest rate adjustments. Such insights are expected to significantly impact the dynamics of the USD/JPY currency pair, as investors weigh the implications of monetary policy shifts in both the US and Japan.

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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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