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Gold Price Pressured Near Daily Low Amid Trump-Driven USD Strength

Gold Price Pressured Near Daily Low Amid Trump-Driven USD Strength

Gold Price Pressured Near Daily Low Amid Trump-Driven USD Strength

Gold (XAU/USD) continues last week’s slide, facing additional selling pressure for a second day on Monday amid a robust US Dollar (USD) outlook. Optimism over US President-elect Donald Trump’s anticipated expansionary policies has bolstered the USD, pushing it near a four-month high reached last week, which in turn dampens demand for gold.

Trump’s proposal for a 10% tariff on all US imports is expected to drive inflation higher and constrain the Federal Reserve’s (Fed) ability to adopt aggressive easing measures. Elevated US Treasury bond yields have supported this outlook, prompting investors to move away from non-yielding assets like gold. However, a cautious market sentiment may help contain further losses for the safe-haven metal.

With key events on the horizon, including the latest US inflation data and speeches from prominent FOMC members like Fed Chair Jerome Powell, traders may adopt a wait-and-see approach. This caution could prevent a further extension of gold’s recent sharp pullback from the $2,800 mark, an all-time high set on October 31.

Gold Price Bears in Control as USD Holds Firm

Gold’s sharp weekly decline—the steepest in over five months—has been fueled by the USD rally and rising Treasury yields following Trump’s election victory. Enthusiasm surrounding the so-called “Trump trade” continues to boost the Greenback, exerting downward pressure on gold as equity markets remain upbeat.

Last week, the Fed cut its benchmark rate by 25 basis points, hinting at potential further easing. Despite this, Minneapolis Fed President Neel Kashkari emphasized the need for more evidence of inflation returning to the 2% target before considering further cuts. Expectations that Trump’s protectionist policies may amplify global trade tensions could also offer support to the safe-haven XAU/USD.

With upcoming US inflation, producer price, and retail sales reports, as well as key comments from Fed officials, investors may avoid large positions, awaiting new cues that will shape the USD’s direction and influence gold’s trajectory.

Technical Outlook: Gold Remains Near Multi-Week Low with Key Support Levels

Technically, further declines in gold may find support around $2,660, with the 50-day Simple Moving Average (SMA) positioned near $2,647-2,746. A break below last week’s low of $2,643 could trigger increased bearish sentiment, potentially accelerating the decline toward the October low of $2,605-2,602.

On the upside, a move above $2,700 could face strong resistance at the $2,718 level, with a further hurdle in the $2,740-2,745 supply zone. Sustained strength beyond this range could signal the end of the corrective phase, potentially driving gold toward $2,758-2,790 and challenging the record high set on October 31.

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Japanese Yen Stabilizes Against USD Amid Mixed Market Signals

Japanese Yen Stabilizes Against USD Amid Mixed Market Signals

Japanese Yen Stabilizes Against USD Amid Mixed Market Signals

The Japanese Yen (JPY) remains range-bound against the US Dollar (USD) on Friday, fluctuating between slight gains and losses in early European trading. Despite recent verbal intervention from Japanese authorities to support the JPY, skepticism around the Bank of Japan’s (BoJ) ability to implement further rate hikes limits the currency’s upward potential.

Optimism around potential growth and inflation from Trump’s economic policies also provides a tailwind for US Treasury yields, overshadowing the Federal Reserve’s dovish stance. This, combined with renewed buying interest in the USD, helps cushion the USD/JPY pair from further declines.

Yen Under Pressure Despite Intervention and Economic Data Weakness

On Friday, Japanese government data revealed a second consecutive month of declines in household spending, with a 1.3% drop in September, following a similar trend in inflation-adjusted wages. These economic headwinds may challenge the BoJ’s ability to pursue additional rate hikes.

Further impacting the Yen, Japanese officials reiterated their commitment to monitoring the foreign exchange market closely. Chief Cabinet Secretary Yoshimasa Hayashi emphasized a high level of urgency, while Vice Finance Minister Atsushi Mimura indicated the government’s readiness to counter excessive currency movements. Finance Minister Katsunobu Kato expressed concern over the potential impact of President-elect Donald Trump’s policies on Japan’s domestic economy.

Meanwhile, the USD/JPY pair rebounded above 154.00 following Trump’s election victory, prompting verbal intervention from Japan’s leadership. Quarterly data from the Ministry of Finance (MOF) revealed ¥5.53 trillion spent on currency interventions between June and July.

Technical Outlook: USD/JPY Maintains Bullish Bias Above Key Support Levels

Technically, the USD/JPY’s recent dip found support near the 152.70–152.65 level, a pivotal area that may now act as a buffer. A break below this could accelerate a correction towards the 152.00 mark, with further downside potentially reaching the 100-day Simple Moving Average (SMA) around 151.70–151.65. Continued selling pressure would signal that the pair’s strong recent uptrend has stalled, opening the door for deeper declines.

On the upside, resistance is expected around the 153.50 level, followed by a key supply zone near 153.85–153.90. A move back above 154.00 could position the pair to retest Thursday’s multi-month high around 154.70, with momentum potentially extending to the psychological 155.00 level and the 155.20 zone, which aligns with the July 30 swing high.

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Gold Price Sinks to Multi-Week Low as Trump Victory Spurs Sharp USD Rally

Gold Price Sinks to Multi-Week Low as Trump Victory Spurs Sharp USD Rally

Gold (XAU/USD) faces heavy selling pressure in Wednesday’s European session, dropping to the $2,700 level—its lowest in nearly three weeks. Republican candidate Donald Trump is leading the US presidential race, positioning him as the likely 47th president, which has sparked a strong US Dollar (USD) rally and triggered aggressive gold sell-offs.

Additionally, concerns over deficit spending and expectations of less aggressive easing from the Federal Reserve (Fed) are pushing US Treasury yields higher, making gold less attractive as a non-yielding asset. The risk-on sentiment, illustrated by a strong rally in US equity futures, further signals a downward bias for the safe-haven XAU/USD.

Daily Digest Market Movers: Gold Price Hit by Persistent USD Buying

The US Dollar surged to a four-month high as US election exit polls indicate momentum in favor of former President Donald Trump. The current electoral tally stands at 227 for Trump and 189 for Harris, with Trump leading in key swing states like Arizona, Georgia, Michigan, Pennsylvania, and Wisconsin. Fox News reports a Republican-controlled Senate, as Trump-endorsed candidate Bernie Moreno is projected to win in Ohio.

With Trump performing strongly, speculation over inflationary tariffs and deficit-spending has driven US Treasury yields higher. The benchmark 10-year Treasury yield spiked nearly 15 basis points, reaching 4.44%, its highest since early July. The reduced uncertainty surrounding the US election has intensified risk-on trading, adding pressure on safe-haven gold.

Geopolitical concerns, including Iran’s potential retaliation against Israel for an October 26 attack, have had limited impact on gold’s recent decline.

Technical Outlook: Gold Price Tests Key Support Levels

From a technical perspective, the $2,725-2,720 zone remains critical support; a drop below this could see gold accelerate toward sub-$2,700 levels, marking the lower edge of an ascending channel from late July. A decisive break below could lead to further declines toward the next key support at $2,675, and potentially to the $2,657-2,655 area.

Conversely, resistance has formed around $2,748-2,750. A sustained move above this could push gold toward the ascending channel resistance near $2,780-2,785, with $2,800 acting as a pivotal level. A strong breakout beyond $2,800 could signal a continuation of the previous uptrend.

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Australian Dollar Holds Gains Following Hawkish RBA Comments, Focus Shifts to US Election

Australian Dollar Holds Gains Following Hawkish RBA Comments, Focus Shifts to US Election

Australian Dollar Holds Gains Following Hawkish RBA Comments, Focus Shifts to US Election

The Australian Dollar (AUD) remains steady after gains from improved Purchasing Managers Index (PMI) data released on Tuesday. The Reserve Bank of Australia (RBA) held its Official Cash Rate (OCR) at 4.35% for an eighth consecutive pause in November, and it’s expected to maintain current rates following this policy decision.

RBA Governor Michele Bullock highlighted the importance of maintaining restrictive interest rates amid ongoing inflation risks. Although the labor market remains tight, wage growth is showing signs of moderation.

In Australia, Judo Bank’s Services PMI rose to 51.0 in October, exceeding the market consensus of 50.6, while the Composite PMI climbed to 50.2 from 49.8. China’s Caixin Services PMI also improved, rising to 52.0 in October from 50.3 in September, signaling a broader regional economic uplift.

As attention turns to the US presidential election, investors are closely monitoring its outcome. Former President Donald Trump and Vice President Kamala Harris made final campaign stops in Pennsylvania on Monday, both expressing confidence in an exceptionally close race. Opinion polls show a virtual tie, with the final results potentially delayed for days. Trump has hinted at contesting any unfavorable result, as he did in 2020.

The US Dollar (USD) remains under pressure amid election uncertainties, with a Des Moines Register/Mediacom poll showing Democratic nominee Kamala Harris leading Trump by a narrow margin in Iowa, 47% to 44%. Markets are also awaiting the US Federal Reserve’s (Fed) policy decision on Thursday, with expectations for a modest 25 basis point rate cut, backed by a 99.5% probability according to the CME FedWatch Tool.

Australian inflation indicators are mixed, with the TD-MI Inflation Gauge rising by 0.3% month-over-month in October, the highest since July. ANZ Australia Job Advertisements grew by 0.3% in October, a slowdown from September’s revised 2.3% gain. Despite weaker growth, job advertisements have risen for two consecutive months.

In other news, China’s Commerce Minister Wang Wentao met with Australia’s Trade Minister Don Farrell on Sunday to discuss enhancing bilateral trade and ensuring fair treatment for Chinese businesses in Australia.

In US employment data, the Bureau of Labor Statistics reported a modest 12,000 increase in October’s Nonfarm Payrolls, significantly below expectations of 113,000. However, the Unemployment Rate held steady at 4.1%, in line with forecasts.

Technical Analysis: AUD/USD Holds Below 0.6600 with Bearish Trend Indications

AUD/USD trades near 0.6590 on Tuesday, with technical indicators suggesting the bearish trend may be easing as it tests the nine-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) remains below 50, indicating the bearish sentiment persists.

On the resistance side, AUD/USD faces immediate resistance at the nine-day EMA at 0.6596, followed by the 14-day EMA at 0.6618. A break above these levels could see the pair aim for the psychological level of 0.6700.

On the downside, support lies near the three-month low of 0.6536, with further support at the key psychological level of 0.6500 if bearish pressure resumes.

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Australian Dollar Steady Amid RBA’s Restrictive Policy Outlook

Australian Dollar remains subdued as US Dollar inches higher ahead of US PCE Price Index

Australian Dollar remains subdued as US Dollar inches higher ahead of US PCE Price Index

The Australian Dollar lingered in that strange, somber limbo it often found itself in, steady yet subdued against the mighty Greenback as Thursday dawned over the global market. Beneath the surface, there was a story in each data point, and the numbers came in trickling like beads of dew.

In Australia, retail sales lifted only by a whisper, 0.1% in September—fragile and disappointing, falling far short of the golden 0.3% expected, and a pale echo of August’s more confident 0.7%. Yet the Reserve Bank of Australia’s hawkish stance lent the Aussie Dollar a quiet backbone, helping it hold its ground even in the face of the looming U.S. PCE Price Index.

Across the Pacific, the U.S. Dollar gathered momentum with an aura of steadfast resilience as markets weighed in on the uncertainty, the shadows of the upcoming U.S. presidential election casting a long reflection over the currency. Yet even the Greenback found headwinds as U.S. growth data came in, slower than last quarter, reminding investors of the delicate line between expectations and reality.

China’s PMI figures trickled in with cautious optimism—the Manufacturing PMI edged above fifty, a shy ascent to 50.1, modestly outperforming the expectation, while the Non-Manufacturing PMI held its stance with a gentle rise to 50.2. The ADP report from the U.S. cast a brighter hue, with job growth well beyond the forecasts—a glimmer of vibrancy in an otherwise cautious economy.

Technical analysts cast a wary eye on the charts; AUD/USD hovered, almost defiantly, near 0.6570. The bearish trend traced its course along a descending channel, while the 14-day RSI lingered just above thirty, hinting at sentiment as overcast as a gray autumn morning. If the pair ventured south, it might test 0.6510, even touching the hallowed psychological 0.6500. And if resistance came calling? The journey might meander up to 0.6580 or the elusive 0.6600, where, in whispers, a breakout toward 0.6608 could still glisten on the horizon like an ephemeral Gatsby green light.

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Japanese Yen Struggles as BoJ Decision Looms; US Data in Focus

Japanese Yen Struggles as BoJ Decision Looms; US Data in Focus

The Japanese Yen (JPY) edged higher against the US Dollar during the Asian session on Wednesday, but gains remain limited as the currency hovers near a three-month low. Concerns that Japanese authorities may intervene to support the Yen lend it some resilience; however, uncertainty over the Bank of Japan’s (BoJ) upcoming rate decision keeps JPY appreciation capped.

Market sentiment suggests the recent loss of parliamentary majority by Japan’s ruling coalition may hinder the BoJ’s ability to tighten policy. The Yen’s upward movement is further limited by a global risk-on environment and a resurgence in US Dollar (USD) demand, with traders awaiting the BoJ’s rate decision and critical US economic data releases this week for new market direction.

Market Movers: Yen’s Struggles Persist as Political and Economic Concerns Grow

Japan’s Economy Minister, Ryosei Akazawa, cautioned that a weak Yen could drive up prices via import costs, potentially squeezing household incomes if wages do not keep pace, which would dampen private consumption. Finance Minister Katsunobu Kato added that authorities are closely monitoring currency movements, increasing speculation of potential intervention.

Japan’s political uncertainty adds complexity to the BoJ’s policy path, restraining any significant gains for the Yen amid a favorable risk appetite. The USD remains steady after nearing highs seen since July 30, while the USD/JPY pair holds close to recent peaks despite limited downside in anticipation of central bank announcements.

The BoJ will announce its policy decision at the end of its two-day meeting on Thursday, while key US data releases may provide additional cues on the Federal Reserve’s rate outlook. Recent robust US data, including Tuesday’s Consumer Confidence Index jump to 108.7—a nine-month high—reflect optimism in the economy, offsetting weaker job openings in September.

Technical Outlook: Limited Downside for USD/JPY; Bulls Target a Break Beyond 154.00

From a technical standpoint, last week’s breakout above the 150.65 confluence, marking the 100-day Simple Moving Average (SMA) and the 50% Fibonacci retracement of the July-September decline, suggests potential for further gains. However, recent failures to consolidate beyond the 61.8% Fibonacci level raise caution. The Relative Strength Index (RSI) on the daily chart hovers near the overbought zone, suggesting a period of consolidation or slight pullback may be needed before additional upside.

Support levels emerge at 153.00, with further potential down to 152.40 and 152.00. Conversely, a breakout beyond the 154.00 threshold could push USD/JPY to test the 154.35-154.40 region, with the psychological 155.00 level in view, and potentially the July peak around 155.20.

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Japanese Yen Nears Multi-Month

Japanese Yen Faces Selling Pressure Amid Political and Economic Uncertainty

Japanese Yen Faces Selling Pressure Amid Political and Economic Uncertainty

The Japanese Yen (JPY) faces challenges to start the week as market participants digest the implications of Japan’s general election results. Meanwhile, the only data on the U.S. docket is the Federal Reserve Bank of Dallas’ Texas Manufacturing Business Index for October. Later in the day, the U.S. Treasury will auction 2-year and 5-year notes, events closely watched by investors for potential impact on yields and the USD.

In a surprising election outcome, Japan’s Liberal Democratic Party (LDP), in power since 1955, lost its majority for the first time in 15 years, heightening economic and political uncertainty. According to NHK, the ruling LDP and coalition partner Komeito secured only 215 out of 465 lower house seats, short of the 233 needed for a majority. The opposition Constitutional Democratic Party of Japan (CDPJ) gained significantly, winning 148 seats, up from 98.

Following this development, USD/JPY opened the week with a bullish gap, touching a near three-month high around 154.00 before trading slightly lower at 153.50, marking a 0.7% daily gain. Reflecting broader Yen weakness, EUR/JPY is up over 0.6% at 165.50, and GBP/JPY has climbed 0.7% to 198.70.

The U.S. Dollar Index (DXY) closed last week with a solid gain, rising more than 0.8% and edging higher toward 104.50 in early Monday trading, supported by positive U.S. stock index futures indicating an improved risk sentiment.

In other markets, EUR/USD extended its downtrend on Friday, marking a fourth consecutive week of losses. The pair holds steady near 1.0800 as the European session begins on Monday. GBP/USD remained in a consolidation phase around 1.2950 after losing recovery momentum on Friday.

Meanwhile, gold saw bullish momentum on Friday, climbing back from a dip below $2,720. XAU/USD remains range-bound early Monday, trading below $2,750 as it struggles to establish a clear directional move.

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Asian

Asian Markets and Currencies Tumble in Widespread Sell-off

Asian Markets and Currencies Tumble in Widespread Sell-off

Asian stocks and currencies faced a sharp downturn as weakening momentum in China’s economy compounded fears stirred by high US interest rates and escalating tensions in the Middle East. The MSCI Asia Pacific Index recorded its most significant drop since August, marking widespread losses across all major markets. This decline coincided with a broad sell-off in global markets, evidenced by falling futures for US and European equities and a more than 1% drop in the S&P 500 amid volatile trading fueled by strong US retail sales data.

A series of disappointing economic indicators from China highlighted concerns about the uneven nature of the country’s economic recovery. Although GDP and fixed asset investment figures exceeded expectations, retail sales and industrial production failed to meet forecasts, signaling potential weaknesses in the economic foundation. This patchy recovery has led to increased volatility in the financial markets, with significant implications for currency valuations.

The currency markets saw dramatic shifts, particularly among emerging market currencies which plunged to multi-year lows. The South Korean won and the Indonesian rupiah were notably affected, each falling to their lowest levels in years. Market analysts attributed part of this regional currency weakness to a surprising move by China to lower its yuan defense, which has put additional pressure on neighboring currencies.

Market analyst Tony Sycamore from IG Australia described the situation as a “perfect storm” created by consistent high US inflation data, potential missteps in Middle East policy, and overextended global equity positions. These factors have combined to unsettle bond markets and increase the risk of broader economic disruptions.

In the currency markets, the US dollar reached its highest point since November, driven by its status as a safe-haven amid rising geopolitical risks in the Middle East. This surge in the dollar has had a cascading effect across Asian markets, exacerbating financial instability in the region.The economic turmoil has forced interventions by central banks in several countries to stabilize their currencies. Indonesia’s central bank stepped in after the rupiah crossed 16,000 against the dollar, a threshold not seen since 2020. Similarly, the South Korean won dipped to its lowest since 2022, and the Indian rupee hit a record low against the dollar.

Amid these currency woes, commodity markets also reacted. Oil prices in Asia climbed, with West Texas Intermediate oil recovering to over $85 a barrel following geopolitical developments involving Iran and Israel. Meanwhile, gold prices remained stable, and US treasury yields saw fluctuations following a spike in yields the day before.

Overall, the Asian financial markets are navigating a period of significant uncertainty, influenced by internal economic data and external geopolitical and economic pressures.

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European Stock

European Stock Futures Rise, Gold Reaches New High

European Stock Futures Rise, Gold Reaches New High

European stock futures advanced on Friday, contrasting with declines in Asian markets, as global investors responded to a diverse set of influences ranging from U.S. inflation data to geopolitical tensions in the Middle East. Concurrently, gold prices soared to a new high, touching nearly $2,400 an ounce, while oil prices also saw an uptick, with Brent crude crossing the $90 per barrel mark, despite the overall weekly trajectory pointing towards a decline.

The financial landscape was marked by various pressures, including the aftermath of a deadly attack on an Iranian diplomatic site in Syria, raising concerns over potential regional escalations. These geopolitical developments, alongside enduring inflation concerns, have kept the global markets on edge.

European equity futures exhibited resilience, increasing by 0.7%, even as the broader MSCI Asia-Pacific stocks index dipped by 0.3%. The disparities in regional market performances underscore the complex interplay of global economic signals and local factors. Notably, Asian markets experienced mixed outcomes; Japanese stocks gained, propelled by a robust real estate sector, while stocks in Australia, South Korea, and Hong Kong faced declines.

The global currency scene remained tense, with the Japanese yen showing little change after previously slipping to its lowest level against the dollar since 1990, prompting the Japanese government to signal potential interventions. Similarly, the offshore Chinese yuan saw modest gains against the dollar, maintaining stability amid its central bank’s efforts to manage currency fluctuations against a generally strengthening dollar. In the United States, the focus shifted towards corporate earnings, with significant anticipation surrounding the performance of major banks such as JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc., which were slated to report their quarterly results. This comes against a backdrop of expectations set by Wall Street analysts, who projected a modest 3.8% growth in earnings per share among S&P 500 companies for the quarter. Particularly noteworthy is the anticipated 38% earnings increase among the tech giants, often referred to as the “Magnificent Seven,” which includes industry leaders like Apple Inc., Microsoft Corp., and Amazon.com Inc.

Despite recent market optimism fueled by better-than-expected corporate earnings, concerns about persistent inflation have led to adjustments in the expectations for U.S. Federal Reserve rate cuts. Swaps traders have notably reduced their bets on the extent of rate cuts in 2024 following higher-than-anticipated consumer price index readings. The U.S. producer price index, although slightly lower than expected, continued to indicate a heated economic environment, mitigating some fears of uncontrolled inflation but still painting a picture of an economy under pressure.

Investors and analysts alike are closely monitoring these developments, as the interplay between earnings performances, government policy responses, and ongoing geopolitical risks are set to define the market trajectory in the coming periods. The consensus among market strategists emphasizes the significant role that corporate earnings and economic data will play in shaping investor sentiment and market movements in an increasingly complex global financial landscape.

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NVidia

Nvidia Shares Decline Amid Intensifying Competition in AI Chip Market

Nvidia Shares Decline Amid Intensifying Competition in AI Chip Market

On Tuesday, Nvidia’s stock experienced a significant drop, declining by up to 5%, amid escalating competition in the artificial intelligence (AI) chip sector. This downturn in Nvidia’s market performance coincides with the unveiling of new, advanced AI chips by its competitors, signaling a more intense rivalry in this high-stakes market.

Intel, a key player in the industry, is stepping up its challenge against Nvidia. The tech giant introduced the Gaudi 3 AI chip, poised to be a formidable rival to Nvidia’s H100 AI chips. The H100 has been instrumental in Nvidia’s recent revenue and income boost. Intel claims that the Gaudi 3 AI accelerator surpasses Nvidia’s H100 in inference performance by 50% and offers a 40% improvement in power efficiency. Furthermore, Intel aims to disrupt the market with more competitive pricing for its AI chips, promising to offer them at significantly lower rates than Nvidia’s offerings.

The Gaudi 3’s capabilities in computation and energy efficiency are noteworthy, but its performance compared to Nvidia’s forthcoming Blackwell chip—the successor to the H100—remains to be seen. Nvidia announced the Blackwell chip last month, and it represents the next evolution in their AI chip technology.

Beyond Intel, Alphabet is also venturing into the AI chip arena. The company has been developing the Axion chip, a move that could reduce Google’s dependence on Nvidia. These in-house chips are designed to enhance Google’s big-data analytics capabilities. Despite views from some analysts who see Axion as a direct challenge to Nvidia, Google executives have indicated that their focus is more on expanding the market rather than just competition.

Alphabet’s Axion chips, based on CPU architecture, are engineered to manage a variety of AI-related tasks. This diversification in AI chip capabilities highlights the evolving nature of the market and the different approaches companies are taking.

Amid this heightened competition, Nvidia’s distinctive edge lies in its AI-related software. Experts in the field, like Big Technology founder Alex Kantrowitz, emphasize Nvidia’s strength in this domain. According to Kantrowitz, Nvidia’s software is highly sought after by developers for training and running AI models. This software superiority creates a significant advantage for Nvidia, as it fosters a dedicated developer community within its ecosystem. Despite Intel’s claims of superior chip performance, Nvidia’s stronghold in AI software remains a formidable barrier for competitors. This software-led approach is key to Nvidia’s continued dominance in the AI chip market, despite the rising challenges from other tech giants.

 

 

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Dow Jones Industrial Average Drops

Dow Jones Industrial Average Drops Below 39,000, Reversing Earlier Gains

Dow Jones Industrial Average Drops Below 39,000, Reversing Earlier Gains

As Tuesday’s trading session drew to a close, the Dow Jones Industrial Average (DJIA) experienced a shift back to negative territory, marking a notable development in the U.S. stock market. This change in trajectory for the DJIA was primarily influenced by the latest data indicating a slowdown in U.S. services activity. This information brought some degree of reassurance to investors, who had been growing increasingly anxious about the possibility of the Federal Reserve scaling back on its monetary easing measures, especially in light of recent robust macroeconomic figures from the U.S.

The pivotal data causing this shift was the U.S. ISM Services PMI for March, which came in at 51.4, down from February’s reading of 52.6 and contrary to market forecasts, which had anticipated a minor rise to 52.7. Furthermore, the Prices Paid sub-index, a critical measure of inflationary pressures within the service sector, also saw a decline, dropping to 53.4 from 58.6 in the preceding month. This figure is notably the lowest it’s been in several years, indicating a potential disinflationary trend in the economy.

The release of these figures significantly counterbalanced the effects of the strong ADP employment data and the more hawkish sentiments recently expressed by Federal Reserve Chair Jerome Powell and Atlanta Fed President Raphael Bostic.

Reacting to this news, all three primary Wall Street indexes witnessed an uplift. The NASDAQ led the gains, rising by 0.5% to reach 16,319. It was closely followed by the S&P 500, which saw a 0.3% increase to 5,223, and the Dow Jones, which, despite a modest 0.1% rise to 39,220, still lingered below the 40,000 peak achieved the previous week.

In terms of market sectors, Industrials emerged as the top performer with a 0.75% increase, closely followed by the Materials sector, which saw a 0.66% gain. In contrast, Consumer Staples and Utilities were the only sectors in the red, dropping by 0.95% and 0.1% respectively.

The mixed trends continued at the level of individual stocks. Intel (INTC) faced a notable 7% decline to $40.78, impacted by a report indicating a significant operating loss in its foundry business for 2023. Other stocks such as Procter & Gamble (PG) and Johnson & Johnson (JNJ) also experienced downturns, falling to $156.81 and $155.19 respectively.

On a more positive note, Caterpillar (CAT) saw an upward movement of 2.3% to $373.252, and Amazon (AMZN) also enjoyed gains, rising by 1.07% to $182.63. These movements in individual stocks reflect a broader landscape of varied performance across different sectors and companies on Wall Street.

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ASX 200

ASX 200 Stabilizes Near 7,880 After Retreating from Record Peaks

ASX 200 Stabilizes Near 7,880 After Retreating from Record Peaks

The ASX 200 Index, a benchmark for Australian equities, recently experienced a slight retreat to around 7,880 points after scaling new record highs earlier this week on Tuesday. This pullback reflects the market’s natural ebb and flow, particularly after significant gains. Despite this slight dip, the index has been buoyed by substantial contributions from various sectors, most notably materials, mining, and utilities. These industries have shown remarkable resilience and growth, reflecting the overall strength of the Australian economy.

A key factor influencing this trend is the impressive manufacturing performance in China, Australia’s leading trade partner. A private survey revealed that Chinese factory activity has expanded at its most rapid pace in over a year, fostering a more optimistic market sentiment. This positive news from China underscores the interconnectedness of global economies and the direct impact of international trade relations on domestic markets.

In this dynamic market environment, several companies have stood out with significant gains. West African Resources witnessed a notable surge of 5.00%, closing at 1.26. Newmont also showed strong performance, rising by 1.65% to 36.43. Similarly, Gold Road Resources enjoyed a gain of 4.87%, reaching 1.66. These companies exemplify the robust nature of the market, even amidst fluctuations.

On the flip side, there have been some notable declines. Orora experienced a sharp drop of 13.42% to 2.36, followed by Netwealth Group, which fell by 5.16% to 20.03. Megaport also saw its shares decrease by 4.60% to 14.30. These movements reflect the inherent volatility in the stock market and the variety of factors that can influence individual stock performances.

Focusing on the broader industry landscape, Macmahon Holdings has been making waves in the mining services sector. With a strong emphasis on the gold industry, the company has expanded its services to include mining support and civil infrastructure. This diversification strategy highlights the evolving nature of the mining industry and the need for companies to adapt to changing market conditions.

In the renewable energy sector, Genex Power recently revealed that Fortescue has not yet met the conditions precedent for the Bulli Creek Solar and Battery Project (BCP), one of Queensland’s largest renewable energy endeavors. Fortescue had entered into a 25-year solar power purchase agreement with Genex in October 2023, reflecting the growing trend of major corporations investing in sustainable energy solutions.

Finally, the Reserve Bank of Australia’s (RBA) decision during its March meeting to maintain the current cash rate until at least November reflects a cautious approach. With inflation rates higher than in other countries and a tight job market, the RBA’s stance seems prudent. This decision underscores the complex balancing act central banks face in managing monetary policy to foster economic stability and growth.

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ASX 200 Nears 7,900 Amid Improved Market Sentiment, Anticipating RBA Rate Cuts

ASX 200 Nears 7,900 Amid Improved Market Sentiment, Anticipating RBA Rate Cuts

The Australian Securities Exchange (ASX) 200 Index has marked a significant uptick, approaching the 7,900 mark with a 0.26% rise on Thursday. This growth propels the index to new record heights, reflecting a positive shift in market sentiment. Key to this upward trend are the latest Australian economic indicators, which suggest a potential easing in the Reserve Bank of Australia’s (RBA) monetary policy.

Contributing to the optimistic outlook are the subdued Consumer Inflation Expectations and Retail Sales figures emerging from Australia. These metrics have heightened anticipations that the RBA might lean towards more accommodative interest rate policies. Notably, the Australian Monthly Consumer Price Index, released on Wednesday, registered lower than expected, further fueling this sentiment and bolstering the stock market.

Data reveals that Australia’s consumer expectations for inflation over the coming year grew by 4.3% in March, a slight decrease from the previous 4.5% increase. Moreover, the seasonally adjusted Retail Sales saw a 0.3% month-over-month rise in February, falling short of the projected 0.4% and below the prior 1.1% increment.

The surge in the ASX 200 was particularly driven by robust performances in the mining sector, thanks to rising prices in key commodities like gold, iron ore, and lithium. Arcadium Lithium saw a remarkable increase of 10.20% to 4.43, Alumina jumped by 5.60% to 1.42, and Whitehaven Coal grew by 5.27% to 7.10. Conversely, some companies experienced dips, with Xero declining by 1.09% to 132.43, Audinate Group falling 0.75% to 21.24, and Tabcorp Holdings dropping 1.05% to 0.76.

In other market developments, Allup Silica is making strides with its Sparkler project in southern Western Australia. Bulk sample tests of high-purity silica have surpassed industry standards, positioning the company favorably for diverse high-purity applications, including in photovoltaics and advanced manufacturing sectors.

Elsewhere, Terra Uranium is expanding its exploration and development in Canada. The company recently finalized a letter of intent to acquire the Amer Lake uranium deposit in Nunavut, building on its previous acquisitions in Canada’s Athabasca Basin.

Furthermore, AIC Mines, a noted copper producer, reported a substantial 86% increase in ore reserves at its Jericho copper deposit, south of its Eloise high-grade underground copper mine in Queensland. The updated reserve estimate now stands at 3.2 million tonnes, with a grade of 1.9% copper and 0.4 grams per tonne of gold, totaling 61,100 tonnes of copper and 37,000 ounces of gold. This significant reserve upgrade positions AIC Mines strongly in the copper market.

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Amid a Soaring Stock Market, India’s Consumer Stocks Gain 18% but Still Underperform

Amid a Soaring Stock Market, India’s Consumer Stocks Gain 18% but Still Underperform

India’s booming economy is exhibiting a stark contrast between the ultra-wealthy and the middle class, a trend reflected in the stock market’s response to consumer and luxury goods. Despite impressive growth, consumer companies in sectors like toiletries and appliances are not keeping pace with broader market indices. This is attributed to modest income growth and fluctuating inflation impacting the demand for everyday items. On the other hand, luxury items are experiencing robust sales.

The country, Asia’s third-largest economy, is projected to grow by 7.6% in the current financial year. However, private consumption, a major component of the economy, is only expected to increase by 3%, marking the slowest rate in two decades, excluding the pandemic years. This period has also seen a significant widening of the wealth gap, with the top 1% holding more wealth than in the past sixty years, according to the World Inequality Lab.

Vineet Arora, managing director at NAV Capital, notes a substantial income shift towards the higher income brackets, fueling growth in premium products. Companies dealing in luxury cars, high-end electronics, and jewelry are flourishing, with their stock prices soaring. Titan Company, for example, saw a 44.3% increase in share price over the past year, while luxury watch retailer Ethos witnessed a 162% jump.

In contrast, the fast-moving consumer goods sector, as measured by the Nifty FMCG index, grew by just 18%, lagging behind the broader Nifty 50 index, which rose by 30%. Analysts anticipate this underperformance to continue for the next few quarters until economic growth becomes more inclusive.

Sustainable growth in the broader market hinges on enhanced rural demand and government initiatives. However, consumer segments dependent on lower-income groups are experiencing sluggish growth. According to Sonam Udasi of Tata Asset Management, about half of the 90 FMCG categories tracked by Kantar either saw no growth or a decline in 2023.

Hindustan Unilever, a major player in this space, reported a marginal profit increase and a decrease in sales due to intensified competition and stagnant demand in rural areas. This situation underscores the complex dynamics at play in India’s economy, where luxury thrives amidst a challenging landscape for everyday consumer goods.

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

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

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

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

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

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

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

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

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Gold Price Climbs Steadily

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

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

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

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

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

Trump’s Tariff Announcement Sparks Market Uncertainty

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

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

Fed Policymakers Express Caution Amid Economic Uncertainty

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

Several Fed officials have weighed in on economic policy:

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

What’s Next for Gold?

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

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Gold Price Rally Holds Strong, But Overbought Conditions Raise Caution

Gold Price Bulls Hold Firm, But Overbought Conditions Suggest Caution

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

 

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

Gold Bulls Retain Control Amid US-China Trade Tensions

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

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

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

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

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

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

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

US Tariff Delay Weighs on Oil Prices

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

OPEC+ Stands Firm on Production Policy

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

Key Technical Levels to Watch

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

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Gold Holds Below $2,800 Despite Intraday Recovery

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

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

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

Technical Outlook: Gold’s Uptrend Intact Despite Intraday Pullback

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

 

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

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

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

Market Drivers to Watch

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

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

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

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

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

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

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

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

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

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

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

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WTI Drops Toward

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

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

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

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

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

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

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EUR/USD Price Forecast

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

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

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

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

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

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EUR/USD Eases Near

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Crypto Market Slips Amid Speculation of Rate Cuts

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

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

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

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

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

Widespread Decline Across Crypto Categories

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

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

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

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US Dollar Index Climbs Above 100.50, Upside Potential

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

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

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

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

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

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

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BOJ Surprises with Removal of Forward Guidance

BOJ Surprises with Removal of Forward Guidance – UOB Group

BOJ Surprises with Removal of Forward Guidance – UOB Group

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

No Change in Monetary Policy as Expected

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

Unexpected Removal of Forward Guidance

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

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

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Bank of Japan Keeps Interest Rate

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

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

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

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

Market Reaction to BoJ’s Policy Announcement

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

What to Expect from the BoJ Interest Rate Decision

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

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

Inflation and Wage Growth: Key Factors for Future Rate Hikes

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

Political and Market Considerations

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

Market Expectations Moving Forward

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

Impact on USD/JPY

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

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Gold Price Approaches Weekly High Ahead

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

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

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

Market Overview

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

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

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

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

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

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

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

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

Outlook: Focus on US NFP Report

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

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Silver Price Forecast

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

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

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

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

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

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US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

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

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

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

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

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

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

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

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

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

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Cryptocurrency Move Back to Support the Pack to Level

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

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

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

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

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

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

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

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

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

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Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

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

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

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

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

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

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

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

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Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

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

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

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

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

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

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

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

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

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

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

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

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

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