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USD/CAD Holds Near One-Week Low

USD/CAD Dips Below 1.3650 Ahead of US/Canada PMI Data

USD/CAD Dips Below 1.3650 Ahead of US/Canada PMI Data

The USD/CAD currency pair displayed a slight downward trend in early Monday trading in the European session, hovering around 1.3625. This movement was primarily driven by a weakening US Dollar following the latest US Personal Consumption Expenditures (PCE) Price Index data. Market focus now shifts to the upcoming release of the Canadian S&P Global Manufacturing PMI and the US ISM Manufacturing PMI for May, both set to be disclosed later in the day.

In the US, inflation rates stabilized in April, fueling speculation that the Federal Reserve might lower interest rates later this year, which could further impact the dollar’s strength. The Commerce Department reported that the PCE rose by 0.3% month-over-month in April, consistent with March’s figures. The Core PCE, which excludes the more volatile prices of food and energy, saw a slight increase of 0.2% month-over-month in April, down from 0.3% in March. Year-over-year, the core PCE price index held steady at a 2.8% increase for the third consecutive month. Following the inflation report, market expectations for a Fed rate cut in September have increased, now standing at nearly 53%, up from 49%.

On the Canadian side, the economy showed signs of weakness with its first-quarter GDP growth figures. The GDP expanded by an annualized rate of 1.7%, which not only fell short of the anticipated 2.2% growth but also did not meet the central bank’s projection of 2.8%. This disappointing data prompted the Bank of Canada (BoC) to cut interest rates last Wednesday. Additionally, the Canadian Dollar is under pressure due to falling crude oil prices, a critical factor given Canada’s status as the largest oil exporter to the United States.

These economic indicators from both nations are crucial as they provide insights into the possible future directions of their respective central banks regarding interest rates. As investors and traders await the manufacturing PMI readings from Canada and the US, these figures will likely influence the currency pair further, shaping market dynamics for the near term.

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USD/CAD Nears 1.3700 Before US PCE, Canada GDP Data

USD/CAD Nears 1.3700 Before US PCE, Canada GDP Data

The USD/CAD pair is seeing a rebound, trading near 1.3690 during Friday’s Asian session, after halting its recent downtrend. This comes as the US Dollar strengthens in anticipation of the release of the Core Personal Consumption Expenditures (PCE) Price Index, a key inflation measure favored by the Federal Reserve, set to be announced later today.

In the US, the GDP growth for the first quarter was revised down to 1.3% from an initial estimate of 1.6%, leading investors to speculate on the possibility of a more dovish approach by the Federal Reserve. This revision has introduced some uncertainty regarding potential rate cuts in September. Furthermore, the US reported an increase in Initial Jobless Claims for the week ending May 2, with figures rising to 219,000 from 216,000 the previous week, surpassing the anticipated 218,000.

The lower yields on US Treasury bonds could potentially restrain the US Dollar’s gains. The US Dollar Index (DXY), which tracks the dollar against a basket of six major currencies, is currently trading higher at around 104.80. Specific yield rates show the 2-year and 10-year Treasury yields at 4.92% and 4.54%, respectively.

Conversely, in Canada, diminishing prospects of a rate cut by the Bank of Canada (BoC) in June are evident, influenced by fresh data highlighting sustained price pressures. April saw a significant jump in producer prices by 1.5%, following a 0.9% increase in March, almost double the forecasted 0.8%. The likelihood of a 25-basis point cut at the BoC’s next meeting has decreased to 34% from 46% just a week earlier.

On the data front, Statistics Canada is scheduled to release its GDP figures for the first quarter. Analysts expect an annualized growth rate of 2.2%, marking an improvement from the 1.0% expansion seen in the previous quarter.

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Oil Price Surge May Limit Gains

USD/CAD Rises to 1.3650 Amid Decline in Oil Prices

USD/CAD Rises to 1.3650 Amid Decline in Oil Prices

The USD/CAD pair has edged higher for the second consecutive day, trading around 1.3650 during Asian hours on Wednesday. This upward movement is driven primarily by a growing sense of risk aversion among investors, which is bolstering demand for the US Dollar (USD) and, in turn, supporting the USD/CAD pair.

On Tuesday, risk sentiment soured following comments from Neel Kashkari, President of the Federal Reserve Bank of Minneapolis. Kashkari indicated that a rate hike might still be on the table, suggesting uncertainty about the disinflationary process and predicting only two rate cuts. This hawkish stance has increased speculation about potential future rate hikes, contributing to the appreciation of US Treasury yields and strengthening the Greenback.

The US Dollar Index (DXY), which measures the USD against six major currencies, was trading higher around 104.70. Concurrently, the yields on 2-year and 10-year US Treasury bonds stood at 4.96% and 4.54%, respectively, further supporting the USD. Additionally, recent economic data showed that the US Housing Price Index (MoM) for March underperformed, coming in at 0.1% compared to 1.2% in February and below the expected 0.5%. Market participants are now looking forward to remarks from New York Fed President John Williams and the release of the Fed’s Beige Book, which will provide insights into the current US economic situation based on a variety of sources.

On the Canadian front, the Canadian Dollar (CAD) faced pressure due to a downward correction in crude oil prices. As Canada is a major oil exporter to the United States, fluctuations in oil prices significantly impact the commodity-linked CAD. Despite this, Canada’s Industrial Product Price Index showed a 1.5% month-over-month increase in April, surpassing market forecasts of 0.6% and reaching a new eight-month high. This follows an upwardly revised 0.9% increase in March. Additionally, the Raw Materials Price Index rose by 5.5% month-over-month in April, up from a previous rise of 4.3% and above the expected increase of 3.2%.

In summary, the USD/CAD pair’s recent gains are underpinned by a combination of risk aversion favoring the US Dollar, hawkish signals from the Federal Reserve, and robust US Treasury yields. Meanwhile, the Canadian Dollar’s performance is hindered by lower oil prices, despite stronger-than-expected domestic industrial and raw materials price data. Market participants will closely monitor upcoming economic reports and speeches for further cues on the pair’s direction.

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USD/CHF Gains Momentum Above 0.8550 Ahead of FOMC Minutes

USD/CHF Remains Strong Above 0.9150 Amid Middle East Tensions

USD/CHF Remains Strong Above 0.9150 Amid Middle East Tensions

During the early European trading hours on Monday, the USD/CHF pair demonstrated strength, trading near the 0.9150 mark. This positive momentum comes as investors anticipate the US Federal Reserve’s (Fed) potential interest rate cuts starting from their September meeting. The prevailing expectation of easing monetary policy in the US has lent some support to the US Dollar (USD), contributing to the uplift of the pair. Attention is now turning towards a forthcoming speech by Swiss National Bank’s (SNB) Chairman Thomas Jordan on Tuesday, which is eagerly awaited for new directives. This is particularly significant as it precedes the release of Switzerland’s Gross Domestic Product (GDP) data for the first quarter.

Fed officials have maintained a hawkish stance, suggesting that borrowing costs might stay elevated for a longer period than initially expected. This position is reinforced by consecutive inflation readings that continue to surpass the Fed’s 2% target, underlining persistent inflationary pressures.

Recent robust economic indicators from the US have also fueled speculation that the Fed might postpone its anticipated easing cycle. After the release of stronger-than-expected economic data last Friday, the financial markets adjusted their expectations, with the likelihood of a September rate cut by the Fed falling to 53% from the previous 64%, as per the CME FedWatch tool. Notably, the US Durable Goods Orders for April saw a rise of 0.7% month-over-month, surpassing the market’s forecast of a 0.8% decline, as reported by the US Census Bureau. Additionally, the University of Michigan Consumer Sentiment Index for May recorded a slight increase to 69.1 from 67.4 in April, beating the anticipated 67.5, suggesting a more resilient consumer outlook than expected.

On the geopolitical front, tensions in the Middle East have escalated following recent developments reported by CNN. At least 35 Palestinians were killed and dozens injured due to Israeli air strikes on a displacement camp in Rafah on Sunday, as stated by the Ministry of Health in Gaza. These unfolding events are closely monitored by market participants, as any increase in regional tensions could trigger safe-haven flows. Such flows typically benefit the Swiss Franc (CHF), which is considered a safe-haven currency, potentially exerting downward pressure on the USD/CHF pair.

Investors and traders alike will keep a keen eye on both economic and geopolitical developments, as these factors are likely to play crucial roles in influencing the currency pair’s movements in the near term.

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USD/CAD Dips Below 1.3650 Ahead of FOMC Minutes

USD/CAD Dips Below 1.3650 Ahead of FOMC Minutes

USD/CAD Dips Below 1.3650 Ahead of FOMC Minutes

The USD/CAD currency pair declined to 1.3640 as the U.S. Dollar experienced a period of consolidation during the early European session on Wednesday. Despite softer Canadian Consumer Price Index (CPI) inflation figures, which might suggest an upcoming interest rate cut by the Bank of Canada (BoC), the pair continued its downward trajectory. Market participants are now looking forward to the release of the Federal Open Market Committee (FOMC) Minutes and a speech by Federal Reserve Governor Austan Goolsbee later today, which could provide further insights into future monetary policies.

On Tuesday, Statistics Canada released data showing a deceleration in inflation for April, with the annual CPI growth rate cooling to 2.7%, down from 2.9% in March, aligning with market predictions. The month-over-month increase in CPI also moderated, rising by 0.5% in April compared to 0.6% in the prior month. Notably, the BoC’s core CPI, which excludes the volatile components of the full index, increased by only 1.6% year-over-year in April, a reduction from the 2% rise observed in March.

This slowdown in inflation has fueled speculation among traders that the BoC could initiate a rate cut as early as its next meeting in June. The probability of a rate cut on June 5 surged to nearly 55%, up significantly from 39% before the inflation data was released. This shift in expectations is largely due to the easing inflation, suggesting less pressure on the BoC to maintain higher interest rates.

The trajectory of interest rate adjustments by the BoC, coupled with anticipated actions from the U.S. Federal Reserve, could place downward pressure on the Canadian Dollar (CAD) and potentially support the USD/CAD pair moving forward. Fed officials have expressed a cautious approach to adjusting policy rates, indicating a preference to wait for more conclusive data that confirms a sustained movement towards the Fed’s 2% inflation target. Atlanta Fed President Raphael Bostic emphasized the need for prudence in making the first-rate move to avoid triggering instability in inflation rates. Similarly, Fed Governor Christopher Waller pointed out the necessity of observing several more months of favorable inflation data before considering a reduction in borrowing costs.

As the market awaits the FOMC Minutes and Fed speeches, the future movements of USD/CAD will likely hinge on indications of both central banks’ strategies concerning interest rate paths, especially in light of the current economic data. The forthcoming Fed communications could either validate the market’s current expectations or introduce new dynamics influencing the currency pair.

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GBP/USD Nears 1.2700 on 2024 Fed Rate Cut Hopes

GBP/USD Nears 1.2700 on 2024 Fed Rate Cut Hopes

GBP/USD Nears 1.2700 on 2024 Fed Rate Cut Hopes

The GBP/USD pair extended its gains for the second consecutive session, trading around 1.2710 during Asian hours on Monday. This upward movement was largely supported by a weaker US Dollar (USD). April data indicated that US consumer inflation had slowed to 0.3%, which has raised expectations for potential Federal Reserve (Fed) rate cuts in 2024. Despite this, the Fed remains cautious about inflation and the prospect of reducing rates next year.

According to the CME FedWatch Tool, the likelihood of the Federal Reserve implementing a 25 basis-point rate cut in September has slightly increased to 49.0%, up from 48.6% a week ago. This potential easing of monetary policy by the central bank could weaken the US Dollar and provide support to the GBP/USD pair.

On Friday, Federal Reserve Board of Governors member Michelle Bowman noted that progress on inflation might not be as steady as hoped. Bowman highlighted that the decline in inflation seen in the latter half of last year was temporary and that there has been no further significant progress on inflation this year. Additionally, Richmond Fed President Thomas Barkin mentioned that while inflation is easing, it will “take more time” to reach the Fed’s 2% target.

In the United Kingdom (UK), investors are anticipating a potential 60 basis points (bps) interest rate cut by the Bank of England (BoE) in 2024, with the first cut expected in August. The upcoming UK Consumer Price Index (CPI) data for April, scheduled for release on Wednesday, is forecasted to show an annual rise of 2.7%, according to FactSet estimates. This data is expected to have a significant impact on the Pound Sterling (GBP).BoE Governor Andrew Bailey, speaking after the release of March’s CPI data, remarked, “Inflation in the UK will fall near its 2% target next month,” noting that inflation has been declining roughly in line with the BoE’s February forecast.

Overall, the GBP/USD pair’s recent gains are driven by a combination of weaker USD and market expectations for rate cuts from both the Fed and BoE in the near future. However, the future movements of this currency pair will heavily depend on upcoming economic data releases and central bank policy decisions.

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USD/JPY Nears 156.00 Amid Unchanged BoJ Bond Purchases

USD/JPY Nears 156.00 Amid Unchanged BoJ Bond Purchases

USD/JPY Nears 156.00 Amid Unchanged BoJ Bond Purchases

During the Asian trading session on Friday, the USD/JPY pair climbed to a high of 155.90 as the Japanese Yen faced increased downward pressure. This market movement coincided with the Bank of Japan’s (BoJ) decision to maintain its current level of bond purchases, diverging from market expectations that had anticipated a possible reduction in debt buying earlier in the week.

Market participants are now closely watching the BoJ’s next steps, with speculation mounting that the central bank may opt to taper its bond-buying program at the upcoming June policy meeting. BoJ Governor Kazuo Ueda further solidified this perspective by clarifying in recent statements that the central bank has no immediate plans to offload its holdings of exchange-traded funds (ETFs).

Amidst these developments, Toshitaka Sekine, a former chief economist at the BoJ, shared insights in a Bloomberg interview that suggest the potential for more aggressive monetary policy adjustments. According to Sekine, the BoJ might increase its benchmark interest rate as many as three times before the year’s end. He pointed out that the next rate hike could come as soon as June, noting that there is considerable scope to modify the current “excessively” accommodative policy settings.

Meanwhile, the US Dollar has shown resilience as reflected in the US Dollar Index (DXY), which measures the strength of the USD against a basket of six major currencies. The index was observed trading around 104.60, having recovered from a multi-week trough of 104.08 on Thursday. This rebound comes amidst a backdrop of ongoing caution from the Federal Reserve regarding inflation dynamics and the potential timing of future rate cuts, possibly extending into 2024.

Key comments from Federal Reserve officials underscore the prevailing economic sentiment. Atlanta Fed President Raphael Bostic emphasized the necessity of patience with interest rates during a speech in Jacksonville, highlighting persistent pricing pressures within the U.S. economy. Similarly, Cleveland Fed President Loretta Mester remarked that it might take longer than previously expected to determine a clear inflation trajectory with confidence. These statements suggest a consensus among some Fed policymakers that the current restrictive monetary stance should be sustained longer to ensure inflation targets are met securely.

These intertwined dynamics between U.S. monetary policy and developments within the Bank of Japan are likely to keep investors on edge as they navigate through an environment filled with policy uncertainties and their implications for global currency markets.

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Gold Price Consolidates Below $2,750 Amid Mixed Market Signals

Gold Price Consolidates Below $2,750 Amid Mixed Market Signals

Gold prices (XAU/USD) continue to trade within a narrow range near the $2,740 level during early European trading on Tuesday. The market remains influenced by conflicting factors, leaving traders hesitant to make strong directional moves.

US President Donald Trump’s renewed trade tariff threats have sparked inflationary concerns, driving a modest rebound in US Treasury bond yields. This, in turn, supports a recovery in the US Dollar (USD) from its recent one-month low, creating downward pressure on gold prices.

However, fears of potential economic disruptions from Trump’s trade policies are providing support for the safe-haven asset, helping limit its downside. Market participants are also exercising caution ahead of the upcoming two-day Federal Open Market Committee (FOMC) meeting, while US macroeconomic data due later in the day could further influence market sentiment.

Key Developments Impacting Gold Prices

  1. Trade Tariff Concerns:
    President Trump recently announced emergency tariffs of 25% on Colombian imports, though implementation was delayed following an agreement on the acceptance of illegal migrants returned from the US. Trump also signaled impending tariffs on pharmaceuticals, computer chips, aluminum, copper, and potentially steel. These moves have heightened fears of inflation and pushed US Treasury bond yields higher, bolstering the USD and weighing on gold.
  2. Monetary Policy Speculation:
    Despite Trump’s tariff announcements, markets are pricing in two potential 25-basis-point interest rate cuts by the Federal Reserve this year. This expectation could cap bond yields and limit USD gains, offering some support to gold prices.
  3. Data and Events to Watch:
    Later on Tuesday, US economic data such as Durable Goods Orders, the Conference Board’s Consumer Confidence Index, and the Richmond Manufacturing Index may provide additional trading cues. The spotlight will then shift to Wednesday’s FOMC decision, which could significantly impact USD dynamics and set the tone for gold’s next directional move.

Technical Outlook: Resistance and Support Levels

Gold prices showed resilience on Monday, holding above the 23.6% Fibonacci retracement level of the December-January uptrend. Daily chart oscillators remain in positive territory, reinforcing the case for an upward bias.

  • Support Levels:
    Immediate support lies near $2,730, followed by the $2,725-2,750 zone. A break below these levels could push prices toward the 38.2% Fibonacci retracement level near $2,707-2,705, and further to the 50% level around $2,684.
  • Resistance Levels:
    The nearest resistance is at $2,755-2,757, with further hurdles at $2,772-2,773 and $2,786. A decisive break above $2,800 would signal renewed bullish momentum, potentially leading to a test of the all-time high near $2,790 and further gains.

Outlook for Gold

Gold prices remain range-bound as traders weigh opposing forces of inflationary concerns and safe-haven demand. A move above $2,755-2,757 is necessary for bulls to regain control in the short term, while a break below $2,730 would signal deeper corrections. With critical economic data and the FOMC decision on the horizon, gold’s next big move may hinge on shifting market dynamics in the coming days.

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Supermicro Stock Skyrockets 29% After Investigation Clears Fraud Allegations

Super Micro Computer (NASDAQ: SMCI), popularly known as Supermicro, saw its stock price soar by 29% on Monday, closing around $42 per share. This significant jump follows the conclusion of a governance investigation that found no evidence of fraud or misconduct, boosting investor confidence.

Investigation Findings: No Fraud or Misconduct

The investigation, initiated by a special committee in August, addressed concerns raised by Ernst & Young (EY), Supermicro’s former auditor, regarding governance, sales practices, and financial reporting. Key findings include:

  1. Management Integrity: The committee found no substantial concerns regarding the integrity of Supermicro’s senior management, audit committee, or financial reporting practices.
  2. Audit Independence: The audit committee demonstrated appropriate independence and oversight during financial reporting.
  3. Rehiring Practices: The company’s decision to rehire certain employees was deemed consistent with a commitment to legal compliance and accurate financial reporting.

EY’s concerns were ultimately found unsupported, with the committee emphasizing the accuracy of interim and final findings.

Governance Overhaul and Next Steps

To strengthen its governance, Supermicro has embraced the committee’s recommendations, including:

  • Leadership Appointments: Hiring a new Chief Financial Officer (CFO), appointing Kenneth Cheung as Chief Accounting Officer, and recruiting a Chief Compliance Officer and General Counsel.
  • Enhanced Oversight: Improving internal accounting and compliance systems, with better training, monitoring, and oversight practices.

The company has also filed a compliance plan with Nasdaq to catch up on overdue financial reports, ensuring continued listing.

Stock Performance: Recovery in Progress

Supermicro’s stock had plummeted by 85% in mid-November, hitting $17 per share, following its October 10-for-1 stock split and governance concerns. However, confidence rebounded after the investigation’s positive findings. Since November 15, the stock has surged back to $42, marking a 48% year-to-date increase.

With a price-to-earnings (P/E) ratio dropping from 79 in March to 16, Supermicro’s valuation is now drawing comparisons to AI-driven market leaders like NVIDIA. Its focus on AI-enabled servers for high-performance computing positions it as a key player in the tech sector.

Investor Considerations

While the governance investigation cleared Supermicro of fraud, investors are advised to exercise caution until the company releases its delayed financial reports. These filings will provide deeper insights into its financial health and help solidify its recovery. For now, Supermicro’s low valuation and strong earnings potential make it a compelling, albeit cautious, investment opportunity.

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

Asian Stocks Drop Amid Geopolitical Tensions; Nikkei Slides on Strong Inflation Data

Asian Stocks Drop Amid Geopolitical Tensions; Nikkei Slides on Strong Inflation Data

Asian equities fell on Friday as geopolitical concerns and strong economic data from Japan weighed on sentiment. The escalation of the Russia-Ukraine conflict further dampened risk appetite, while China’s tech sector provided a rare bright spot amid easing regulatory fears.

Key Market Highlights

Geopolitical Tensions Weigh on Markets
Russia intensified its attacks on Ukraine, targeting energy infrastructure and escalating the conflict. President Vladimir Putin issued threats to strike decision-making centers in Kyiv with ballistic missiles, exacerbating global geopolitical uncertainty.

Broad Declines Across Asia

  • Thailand’s SET Index: Dropped 0.2%.
  • Indonesia’s Jakarta Composite: Declined 0.8%.
  • South Korea’s KOSPI: Fell nearly 2%, driven by a 1.8% drop in Samsung Electronics and a 0.7% decline in SK Hynix. Concerns over slowing economic growth deepened after data showed declines in industrial output, retail sales, and facility investment in October.
  • Australia’s ASX 200: Edged 0.3% lower.
  • Malaysia’s KLCI: Dipped 0.2%.

Japan’s Nikkei Slips Amid Yen Strength
Japan’s Nikkei 225 fell 0.5%, and the TOPIX index declined 0.3% as the yen strengthened to a one-month high against the U.S. dollar. Strong inflation data from Tokyo fueled speculation of a Bank of Japan (BOJ) rate hike in December.

  • Tokyo’s core consumer prices exceeded expectations in November, highlighting persistent inflationary pressures.
  • BOJ Governor Kazuo Ueda signaled plans to tighten monetary policy further, supported by a “virtuous cycle” of rising wages and steady inflation.

Chinese Tech Stocks Buck the Trend
Contrary to broader declines, Chinese equities rallied:

  • Shanghai Shenzhen CSI 300: Rose 1.6%.
  • Shanghai Composite: Gained 1.4%.
  • Hang Seng Index: Jumped 1.3%.

Reports suggested that the U.S. may impose less severe sanctions on China’s semiconductor industry than initially feared.

  • Semiconductor Manufacturing International Corp (SMIC) surged over 4%.
  • Hua Hong Semiconductor climbed 3.7%.

Investors are optimistic about Beijing’s recent stimulus measures, and a Reuters poll anticipates modest growth in China’s manufacturing Purchasing Managers’ Index for November, due Saturday.

Outlook

The Asia-Pacific region remains under pressure from geopolitical risks and mixed economic signals. Japan’s inflation dynamics could shift BOJ policy, while China’s tech rally might offer temporary relief amid broader concerns of an economic slowdown.

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WTI Steady at $69 Amid Geopolitical Risks and US Crude Inventory Build

WTI Steadies Near $69.00 Amid Mixed Signals from Geopolitical Risks and US Crude Inventory Build

WTI Steadies Near $69.00 Amid Mixed Signals from Geopolitical Risks and US Crude Inventory Build

West Texas Intermediate (WTI), the US benchmark for crude oil, is trading near $68.95 during Thursday’s session, maintaining a steady stance amid conflicting market drivers. A modest build in US crude inventories and weak Chinese demand weigh on prices, while escalating geopolitical tensions between Russia and Ukraine offer potential support.

US Crude Inventory Build Weighs on Prices
The Energy Information Administration (EIA) reported an increase of 0.545 million barrels in US crude stockpiles for the week ending November 15, slightly above market expectations of a 0.400 million barrel rise but significantly lower than the previous week’s 2.089 million barrel build. The smaller-than-expected inventory increase adds mild pressure to oil prices.

Weak Chinese Demand Adds Downside Pressure
China’s demand for crude oil continues to show weakness, dampening the outlook for global consumption. In October, China’s crude oil demand fell by 5.4% year-on-year. The International Energy Agency (IEA) projects demand growth in China to reach just 140,000 barrels per day (bpd) for 2024, a sharp decline compared to the 1.4 million bpd growth seen in 2023.

Geopolitical Risks Provide Support
Heightened geopolitical tensions involving major oil producers Russia and Ukraine are keeping supply-side concerns alive. This week, Russia accused Ukraine of targeting a facility in the Bryansk region with ATACMS missiles, prompting Russian President Vladimir Putin to lower the threshold for a potential nuclear response. Such risks could disrupt oil supplies, offering a counterbalance to bearish demand factors.

John Kilduff, a partner at Again Capital, highlighted, “These risks to supply are definitely keeping the support here and offsetting to a degree concerns around the global demand outlook.”

Outlook
WTI prices remain at the mercy of mixed signals, with inventory builds and sluggish Chinese demand capping gains while geopolitical risks lend underlying support. Traders will look toward further updates on geopolitical developments and upcoming economic data to gauge the balance between supply and demand factors in the oil market.

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Gold Prices Under Pressure as Stronger USD Weighs Ahead of Fed Decision

Gold Prices Remain Under Pressure as Stronger USD Weighs Ahead of Fed Decision

Gold Prices Remain Under Pressure as Stronger USD Weighs Ahead of Fed Decision

Gold (XAU/USD) continues to trade lower for the second consecutive session on Thursday, impacted by a stronger U.S. Dollar following former President Donald Trump’s victory in the recent U.S. election. The dollar-denominated precious metal is seeing diminished safe-haven appeal as market optimism increases, supported by clearer political outcomes.

Investor focus is now on the upcoming U.S. Federal Reserve decision, with markets largely anticipating a 25 basis-point rate cut. If realized, this could offer some support for Gold, as lower interest rates tend to reduce the opportunity cost of holding non-yielding assets like precious metals. The CME FedWatch Tool currently indicates a 98.1% likelihood of this modest rate reduction.

Market Dynamics: Gold Struggles Amid Higher Yields and “Trump Trades”

Non-yielding Gold faces additional pressure from surging U.S. Treasury yields, with the 2-year and 10-year bond yields hitting 4.31% and 4.47%, respectively, their highest levels since July. Furthermore, the prospect of increased inflation due to Trump’s policy stance, which includes higher trade tariffs and fiscal spending, could prompt some investors to seek Gold as a long-term inflation hedge.

Trump’s proposed economic policies—such as imposing tariffs, expanding the fiscal deficit, and cutting taxes—might conflict with the Federal Reserve’s inflation control goals, likely resulting in a slower pace of monetary easing.

Gold prices have been relatively unaffected by ongoing geopolitical tensions, including Iran’s warning of potential retaliation against Israel’s recent actions.

Additionally, mixed U.S. economic data from this week’s ISM and PMI releases reflect a resilient services sector. The ISM Services PMI rose to 56.0 in October from 54.9 in September, exceeding forecasts, while the S&P Global Services PMI reported a slight dip, coming in at 55.0.

Technical Outlook: Key Support and Resistance Levels for Gold

Gold currently trades near $2,650 per ounce, with technical indicators suggesting a continuation of bearish momentum. On the daily chart, Gold remains below the nine- and 14-day Exponential Moving Averages (EMAs), and the 14-day Relative Strength Index (RSI) remains under 50, both indicating a bearish trend.

On the downside, the next support level sits around $2,603.53, representing a three-week low. A break below this level could push Gold toward the critical $2,500 mark.

Conversely, immediate resistance is found near the psychological level of $2,700, with further resistance at the nine-day EMA of $2,711.40. A breakout above this zone could position Gold to retest its recent high of $2,790.11 reached on October 31.

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Gold Price Holds Steady Near Record High, Awaits US Macro Data for Direction

Gold Price Holds Steady Near Record High, Awaits US Macro Data for Direction

Gold price (XAU/USD) remains robust as it approaches the European session on Tuesday, trading just above the $2,750 mark and close to last week’s all-time high. Geopolitical risks and political uncertainties in the US continue to boost demand for the safe-haven metal. Additionally, lower US Treasury yields and cautious market sentiment lend further support to gold.

At the same time, expectations for smaller Federal Reserve (Fed) rate cuts are expected to support US bond yields, which could help the US Dollar (USD) recover some of the previous session’s losses. This, in turn, tempers new bullish momentum in non-yielding gold as investors await key US economic data releases this week, likely to influence the Fed’s rate outlook and provide new direction for XAU/USD.

Market Movers: Gold Supported by Mixed Factors, USD Buying Limits Gains

The retreat in US Treasury yields led to an intraday pullback in the USD from recent highs, encouraging some dip-buying near $2,725 early this week. Recent positive US data dampened expectations for substantial Fed rate cuts, potentially bolstering bond yields amid concerns about deficit spending after the November 5 election. With the US election drawing near, markets face additional uncertainty as Vice President Kamala Harris and Republican candidate Donald Trump engage in a close race for the presidency. Moreover, heightened tensions in the Middle East have added to market caution, with the US warning Iran of potential consequences if it continues retaliatory strikes.

In the broader market, China reported an 11.18% decline in gold consumption year-over-year for the first three quarters, citing high prices as a dampening factor on jewelry demand. Investors now eye the upcoming US Consumer Confidence Index and Job Openings and Labor Turnover Survey (JOLTS) for insight into the Fed’s rate plans and USD dynamics, likely to affect short-term gold price movements.

Technical Outlook: Gold Awaits Breakout for Bulls to Regain Control

On the technical front, a sustained move above the $2,750 resistance could trigger further buying interest, pushing gold prices past the all-time high around $2,759 and towards the four-month-old ascending trend-line resistance at $2,770–2,775. A continued rally could eventually target the psychological $2,800 level.

However, the Relative Strength Index (RSI) on the daily chart is approaching overbought levels, signaling potential caution for bulls. A short-term consolidation or minor pullback could provide a better entry for additional upside.

If a corrective decline occurs, support could emerge near the $2,725 level, followed by $2,715—the lower boundary of a recent trading range. A decisive break below this range might prompt technical selling, potentially leading gold prices below $2,700 and toward the $2,675 and $2,657–2,655 support areas.

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WTI Struggles Below $70 Amid Demand Concerns and USD Strength

WTI Struggles Below $70 Amid Demand Concerns and USD Strength

WTI Struggles Below $70 Amid Demand Concerns and USD Strength

West Texas Intermediate (WTI) crude oil prices are hovering just below the $70.00 mark during Tuesday’s Asian session, remaining in a tight range around $69.70-$69.75. The commodity has struggled to build on the previous day’s modest gains and stays near the three-week low it touched last Friday. WTI seems vulnerable to continuing its recent downtrend, which has persisted for over two weeks.

The brief positive reaction to the People’s Bank of China’s (PBOC) interest rate cut on Monday was short-lived, as concerns about slowing demand, particularly from China, continued to weigh on oil prices. Both OPEC and the International Energy Agency (IEA) reduced their global demand forecasts last month due to economic challenges in China, the world’s largest oil importer. IEA chief Fatih Birol further fueled these concerns, warning that China’s economic weakness could dampen global oil demand for years to come.

Adding to WTI’s challenges, the US Dollar (USD) has surged to its highest level since early August, driven by expectations of more cautious monetary easing from the Federal Reserve (Fed). A stronger USD tends to weigh on oil prices by making crude more expensive for holders of other currencies.

However, the potential for further escalation in the Middle East conflict, which could disrupt oil supplies from the region, provides some support to WTI prices. This geopolitical risk cautions against overly bearish positions, despite the recent sharp drop from the nearly two-month high of $78.00 reached on October 8.

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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 Nears 1.0550 as Safe-Haven Demand Limits Gains

EUR/USD Nears 1.0550 but Faces Pressure Amid Safe-Haven Demand

EUR/USD Nears 1.0550 but Faces Pressure Amid Safe-Haven Demand

The EUR/USD pair has edged higher, trading around 1.0550 during Thursday’s Asian session, following losses in the previous session. However, upside momentum remains limited as safe-haven flows gain strength due to escalating geopolitical tensions between Russia and Ukraine.

According to Reuters, Ukraine deployed British Storm Shadow cruise missiles in a strike against Russia on Wednesday, escalating the conflict and drawing warnings from Moscow. Russian officials have cautioned that using Western weapons to target Russian territory far from the border could significantly heighten the scale of the conflict.

On the monetary policy front, European Central Bank (ECB) Governing Council member Yannis Stournaras noted that the Eurozone is approaching its 2% inflation target. Speaking to Bloomberg, Stournaras emphasized the importance of ensuring policymakers sustain progress toward this goal. Meanwhile, the EU Financial Stability Review highlighted growing vulnerabilities due to geopolitical tensions, policy uncertainties, and global trade disputes, which increase the risk of economic shocks.

Since June, the ECB has enacted three rate cuts to address slowing growth, as inflation edges closer to target levels. However, weaker economic prospects have led to downward revisions in growth forecasts. Markets are pricing in a 25-basis-point rate cut next month, with lower odds of a more aggressive reduction.

In contrast, the US Dollar (USD) has gained support from cautious tones expressed by Federal Reserve (Fed) officials. Boston Fed President Susan Collins advocated for a measured approach to interest rate adjustments to avoid policy missteps. Similarly, Fed Governor Michelle Bowman emphasized that inflation remains persistently high and urged careful consideration in future policy moves.

The EUR/USD pair remains caught between diverging monetary policy expectations and the heightened influence of geopolitical risks.

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USD/CAD Holds Near One-Week Low

USD/CAD Holds Near One-Week Low, Trades Range-Bound Above Mid-1.3900s

USD/CAD Holds Near One-Week Low, Trades Range-Bound Above Mid-1.3900s

The USD/CAD pair has found support near the mid-1.3900s, marking a one-week low during Wednesday’s Asian session. However, the pair struggles to gain upward momentum, pausing this week’s pullback from its highest level since May 2020. Mixed fundamental signals keep bullish traders cautious.

Canadian Inflation and BoC Outlook
Canada’s annual inflation rate rose more than expected to 2.0% in October, prompting a recalibration of market expectations for a significant rate cut by the Bank of Canada (BoC) in December. This has provided some support for the Canadian Dollar (CAD), offsetting pressure on the USD/CAD pair. However, subdued crude oil prices continue to cap the Loonie’s gains, limiting its appreciation.

Crude Oil Dynamics
While fears of supply disruptions due to the Russia-Ukraine conflict persist, crude oil prices remain constrained by signs of increased U.S. stockpiles. The American Petroleum Institute (API) reported a larger-than-expected build of 4.75 million barrels in U.S. inventories last week, indicating ample supply and dampening oil’s recent recovery from a two-month low.

U.S. Dollar and Treasury Yields
On the U.S. side, a resurgence in dip-buying for the U.S. Dollar (USD) offers support to the USD/CAD pair. Expectations that U.S. fiscal policies under President-elect Donald Trump could stimulate economic growth and fuel inflation have bolstered U.S. Treasury yields, enhancing USD demand. This dynamic limits the pair’s downside potential.

Upcoming Market Catalysts
Looking ahead, market participants will closely monitor speeches by Federal Open Market Committee (FOMC) members for insights into the Federal Reserve’s rate trajectory. Additionally, the U.S. Energy Information Administration (EIA) will release official crude oil inventory data, which could impact oil prices and generate near-term trading opportunities for the USD/CAD pair.

In the absence of clear directional drivers, the USD/CAD pair is likely to remain range-bound in the short term, with traders focusing on incoming data and policy signals for further cues.

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EUR/USD Holds Near 1.0600 as US Dollar Weakens on Profit-Taking

EUR/USD Hovers Near 1.0600 as US Dollar Retreats on Profit-Taking

EUR/USD Hovers Near 1.0600 as US Dollar Retreats on Profit-Taking

The EUR/USD pair remains steady with a positive bias around the 1.0600 mark during Tuesday’s Asian session. The pair’s upward momentum appears supported by a softer US Dollar (USD), which is undergoing profit-taking after its recent rally.

Despite the USD’s pullback, its downside remains limited due to hawkish comments from Federal Reserve (Fed) Chair Jerome Powell. Powell emphasized the economy’s resilience, a robust labor market, and persistent inflation pressures, cautioning that the Fed sees no urgency to cut interest rates. Market participants are now awaiting further insights from Fed officials later this week regarding the future direction of monetary policy.

The USD could also regain strength as investors expect the incoming Trump administration to implement tax cuts and higher tariffs—policies that may drive inflation, potentially slowing the pace of Fed rate cuts.

On the European side, European Central Bank (ECB) President Christine Lagarde highlighted structural challenges in the region. Speaking on Monday, Lagarde called for a consolidation of resources in areas such as defense and climate, citing stagnating productivity growth and increasing global fragmentation into competitive blocs. She noted that Europe lags behind the US and China in innovation and productivity, with barriers such as a fragmented digital market and insufficient venture capital hindering technological progress.

Looking ahead, traders are focused on key economic data. The Eurozone’s October Harmonized Index of Consumer Prices (HICP) is due for release on Tuesday, followed by US Building Permits and Housing Starts data during the North American session. These reports could provide further direction for EUR/USD in the near term.

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EUR/USD Holds Steady Ahead of ECB Lagarde’s Speech

EUR/USD Holds Steady Ahead of ECB Lagarde’s Speech

EUR/USD Holds Steady Ahead of ECB Lagarde’s Speech

The EUR/USD pair remains stable, trading slightly above the psychological support level of 1.0500 at the start of the week. The currency pair consolidates as the US Dollar (USD) rally pauses after hitting a fresh annual high. The US Dollar Index (DXY), which measures the Greenback against six major currencies, is seeking fresh catalysts to sustain its upward momentum above the key resistance level of 107.00.

Analyst Outlook on the USD

Capital Economics analysts noted, “While a period of consolidation looks likely in the near term, we have revised up our forecasts for the US Dollar and now project a further 5% appreciation by the end of 2025.” They attribute this outlook to expectations that President-elect Donald Trump will advance his proposed tariff policies and that the U.S. economy will continue to outperform its major counterparts.

Policy Uncertainty and Fed Perspective

Investors are closely monitoring how Trump’s policy agenda might influence the Federal Reserve’s monetary decisions, particularly for the December meeting and beyond. However, Fed officials have refrained from speculating on the economic implications of these policies. Speaking at an event hosted by the Federal Reserve Bank of Dallas, Fed Chair Jerome Powell remarked, “It’s too early to reach judgments here. We don’t really know what policies will be put in place.”

On the interest rate outlook, Powell stated that the economy is not signaling an urgent need for aggressive rate cuts. He reiterated that inflation is moving sustainably toward the Fed’s 2% target, aligning with their neutral rate goals.

Key Data to Watch This Week

Market participants will focus on the preliminary S&P Global Purchasing Managers Index (PMI) data for November, set to be released on Thursday. This report will provide insights into the current state of private business activity and gauge the impact of Trump’s election victory on business sentiment.

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EUR/USD Nears 1.0550 After Rebounding from Yearly Lows

EUR/USD Nears 1.0550 After Rebounding from Yearly Lows

EUR/USD Nears 1.0550 After Rebounding from Yearly Lows

The EUR/USD pair has broken its five-day losing streak, trading close to 1.0540 during the Asian session on Friday. This recovery appears to stem from a pullback in the US Dollar (USD) following recent remarks by Federal Reserve Chair Jerome Powell. Powell noted that the US economy has shown “remarkable resilience,” providing the Fed with the flexibility to gradually reduce interest rates.

In October, the US Producer Price Index (PPI) increased by 2.4% year-over-year, up from a revised 1.9% in September (initially 1.8%) and slightly above market expectations of 2.3%. Core PPI, which excludes food and energy, also rose by 3.1% YoY, modestly surpassing the anticipated 3.0%.

The US Dollar Index (DXY), which measures the USD against six major currencies, has slipped from its yearly peak of 107.06 reached on Thursday, partly due to a slowdown in risk trades. At present, the DXY is around 106.80.

On the European front, European Central Bank (ECB) board member Isabel Schnabel emphasized on Thursday that interest rate changes should remain the ECB’s primary policy instrument, with bond purchases and forward guidance used more selectively.

Minutes from the ECB’s October Monetary Policy Meeting reveal a growing openness to potential rate cuts. However, ECB officials remain cautious about inflationary pressures within the Eurozone, particularly due to strong wage growth and lagging labor productivity. The ECB underscored the importance of further data before making any policy adjustments.

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EUR/USD Approaches Yearly Lows Near 1.0550 Ahead of Eurozone

EUR/USD Approaches Yearly Lows Near 1.0550 Ahead of Eurozone Q3 GDP and US PPI Reports

EUR/USD Approaches Yearly Lows Near 1.0550 Ahead of Eurozone Q3 GDP and US PPI Reports

EUR/USD continues its downward trend for the fifth consecutive day, trading near 1.0550 during Thursday’s Asian session, hitting new yearly lows. The pair’s decline is primarily driven by the strengthening US Dollar (USD), fueled by “Trump trades.”

Investors are now awaiting Thursday’s release of the Eurozone’s Gross Domestic Product (GDP) data for the third quarter. The quarter-over-quarter GDP is expected to confirm a preliminary growth rate of 0.4%, while year-over-year growth is projected at a modest 0.9%, reflecting the region’s subdued economic activity.

Attention will also turn to European Central Bank (ECB) President Christine Lagarde, who is scheduled to speak at the Choiseul Sovereignty Awards 2024 ceremony in Paris. Across the Atlantic, Fed Chair Jerome Powell will participate in a panel discussion titled “Global Perspectives,” hosted by the Federal Reserve Bank of Dallas.

The US Dollar Index (DXY), which measures the USD against six major peers, holds steady around 106.60, its highest level since November 2023, bolstered by rising US Treasury yields. Currently, the 2-year and 10-year US Treasury yields stand at 4.31% and 4.47%, respectively.

In recent data, the US Consumer Price Index (CPI) rose by 2.6% year-over-year in October, aligning with market expectations after a 2.4% increase in the prior month. Monthly CPI remained steady at 0.2% as forecasted, while core CPI, excluding volatile food and energy prices, met expectations, holding at 0.3% MoM and 3.3% on an annual basis.

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EUR/USD Drops Near 1.0600 Ahead of US Inflation Data

EUR/USD Drops Near 1.0600 Ahead of US Inflation Data

EUR/USD Drops Near 1.0600 Ahead of US Inflation Data

The EUR/USD pair continues its downward trajectory on Wednesday, hovering just above the 1.0600 mark during Asian trading. This marks the fourth consecutive day of losses for the Euro, with downward momentum driven largely by a strengthening US Dollar (USD).

The recent pressure on the EUR/USD is primarily due to the resilience of the USD. Anticipation around US fiscal policies proposed by President-elect Donald Trump—such as increased government spending and incentives for investment—could boost economic activity and labor demand. However, this economic growth may also heighten inflation risks.

On Tuesday, Minneapolis Fed President Neel Kashkari expressed confidence in the Federal Reserve’s efforts to combat transitory inflation. However, he noted that it is still too soon to declare complete success and indicated that the Fed would wait for more clarity on Trump’s policies before estimating their economic impact.

Market participants are now looking to Wednesday’s US inflation data for additional direction on policy. The headline Consumer Price Index (CPI) is projected to increase by 2.6% year-over-year in October, while the core CPI is expected to rise by 3.3%.

Attention will then shift to the EU’s Gross Domestic Product (GDP) report on Thursday, where third-quarter GDP growth is expected to confirm a preliminary estimate of 0.4% QoQ. The year-over-year GDP growth forecast is a modest 0.9% for Q3, underscoring weak economic performance in the region.

A recent study from the London School of Economics and Political Science suggests that implementing a 10% tariff on all imported goods, as Trump has advocated, could reduce the EU’s GDP by 0.1%. This potential slowdown may add further pressure on the Euro relative to the USD.

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Japanese Yen Bears Show Resilience Despite Intervention Concerns

Japanese Yen Bears Show Resilience Despite Intervention Concerns

Japanese Yen Bears Show Resilience Despite Intervention Concerns

The Japanese Yen (JPY) has clawed back much of its earlier losses against the US Dollar (USD), with the USD/JPY pair stabilizing in the mid-154.00s as the European session begins on Monday. Fears of intervention by Japanese authorities to bolster the Yen, combined with heightened geopolitical tensions, have lent some support to the safe-haven currency. Additionally, a modest dip in the US Dollar further limits the upside potential for the pair.

Key Drivers of JPY Performance
Despite its recovery, the JPY’s appreciation remains constrained by uncertainty surrounding the Bank of Japan’s (BoJ) rate hike timeline. Expectations of inflationary policies under US President-elect Donald Trump and elevated US Treasury yields provide additional support for USD strength, capping the JPY’s gains.

Mixed Signals for Traders
Japanese Yen traders are adopting a cautious stance amid a blend of contradictory factors:

  • Bank of Japan Outlook: Governor Kazuo Ueda reiterated on Monday that rate hikes depend on economic and financial conditions, noting Japan’s moderate recovery but acknowledging weak areas.
  • Government Vigilance: Finance Minister Katsunobu Kato emphasized high scrutiny of the FX market, warning of action against excessive volatility.
  • Geopolitical Risks: US President Joe Biden’s authorization for Ukraine to use long-range missiles against Russia adds to global uncertainty, potentially boosting demand for safe-haven assets like the JPY.

US Dollar Fundamentals
The US Dollar remains under pressure following a post-election rally but avoids significant depreciation due to strong fundamentals:

  • Inflation Concerns: Investors anticipate that Trump’s policies could sustain inflation, limiting the Fed’s scope for rate cuts.
  • Fed Outlook: Recent comments from Fed Chair Jerome Powell and other officials suggest a measured approach to monetary policy, with Powell emphasizing steady growth and a strong job market as reasons to avoid rushing rate cuts.
  • Economic Data: Better-than-expected US Retail Sales data for October (0.4% vs. 0.3% expected) highlights the economy’s resilience, further supporting the USD.

Technical Analysis: USD/JPY
The USD/JPY pair exhibits bullish resilience, bouncing back above the 154.00 level at the start of the week.

  • Upside Targets: A break above the psychological resistance at 155.00 could drive the pair toward the 155.70 intermediate resistance and eventually the 156.00 level.
  • Downside Risks: Immediate support lies at 153.85, with further declines potentially targeting 153.25 and 153.00. A decisive break below 152.70 could expose the 200-day Simple Moving Average (SMA) near 151.85.

Market Focus This Week
Investors will monitor BoJ Governor Ueda’s press conference for indications of a potential December rate hike. The announcement could spark volatility and influence JPY demand. Additionally, developments in geopolitical tensions and US inflation dynamics will remain key drivers of the USD/JPY pair.

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

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

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

The Australian Dollar (AUD) remains under pressure against the US Dollar (USD) following Thursday’s economic data releases. Australia’s Consumer Inflation Expectations fell to 3.8% in November, down from 4.0% in October, marking the lowest level since October 2021.

Australia’s Unemployment Rate, seasonally adjusted, held steady at 4.1% in October for the third consecutive month, meeting market expectations. However, Employment Change disappointed, with only 15.9K new jobs added in October, below the forecasted 25.0K.

Reserve Bank of Australia (RBA) Governor Michele Bullock stated on Thursday that current interest rates are sufficiently restrictive and will stay at this level until the central bank gains more clarity on inflation trends. Bullock highlighted the uncertainty surrounding potential US Federal Reserve actions and indicated that the RBA will proceed cautiously.

The US Dollar Index (DXY), which tracks the USD against six major currencies, remains strong around 106.60, its highest level since November 2023. This rally in the Greenback has been fueled by “Trump trades” and the recent US Consumer Price Index (CPI) data. Donald Trump’s recent election victory has raised expectations of potentially inflationary trade policies and tariffs, providing further support for the US Dollar.

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US CPI Inflation Data Expected to Rebound in

US CPI Inflation Data Expected to Rebound in October as Markets Assess Trump Victory Impact

US CPI Inflation Data Expected to Rebound in October as Markets Assess Trump Victory Impact

The Bureau of Labor Statistics (BLS) is set to release the United States (US) Consumer Price Index (CPI) data for October on Wednesday at 13:30 GMT, with significant market interest expected. The US Dollar (USD) is likely to experience high volatility from this inflation report, which could play a crucial role in shaping the Federal Reserve’s (Fed) interest rate expectations for the coming months.

What to Expect from the October CPI Report?

Inflation in the US, as measured by the CPI, is forecast to rise at an annual rate of 2.6% for October, slightly above September’s 2.4% increase. The core annual CPI inflation rate, which excludes food and energy prices, is expected to hold steady at 3.3%. Monthly, the CPI and core CPI are projected to grow by 0.2% and 0.3%, respectively.

TD Securities analysts suggest that “inflation readings should remain somewhat firmer than the Fed would prefer,” noting that headline CPI could rise by 0.29% month-on-month, while core inflation might see a firmer 0.32% increase. They expect the annual headline CPI rate to edge up to 2.6% and core inflation to remain at 3.3%.

Following its November policy meeting, Fed Chair Jerome Powell indicated that the central bank remains committed to a gradual path of monetary easing, affirming that US presidential election outcomes would not affect Fed policy decisions in the short term. Powell underscored the Fed’s independence from the new administration, adding that he would not resign if asked by President-elect Donald Trump.

Impact on EUR/USD

The upcoming CPI report is crucial for EUR/USD traders, as US fiscal policies under Trump, including potential tax cuts, tariffs, and immigration changes, could add upward pressure on inflation. Although these effects would likely emerge in the medium to long term, the October CPI data will be watched closely as an indicator of near-term Fed actions. According to the CME Group’s FedWatch Tool, market sentiment currently shows a 67% probability of a 25-basis-point Fed rate cut in December, down from 80% earlier in the month.

Recent labor data, including a Nonfarm Payrolls (NFP) increase of 12,000 jobs in October and a steady 4.1% unemployment rate, have painted a mixed picture. Wage inflation, measured by Average Hourly Earnings, rose to 4% year-over-year in October, up from 3.9% in September.

A significant downside surprise in annual CPI or core inflation could reinforce expectations of a December rate cut and lead to a USD sell-off. However, hotter-than-expected CPI data could prompt Fed hawks to push back against a rate cut.

Technical Outlook for EUR/USD

Dhwani Mehta, FXStreet’s Asian Session Lead Analyst, provides a technical outlook, noting that EUR/USD’s near-term technical indicators suggest potential buyer exhaustion. With the Relative Strength Index (RSI) approaching oversold territory at 30, EUR/USD may encounter demand around the 1.0550 level, followed by a test of the 1.0517 low from November 1, 2023, if selling persists. A break below 1.0500 could signal further declines. Conversely, if buyers regain control and push past the November 11 high of 1.0728, the 21-day Simple Moving Average (SMA) at 1.0810 becomes the next target.

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Japanese Yen Lingers Near Daily Lows

Japanese Yen Lingers Near Daily Lows Around Mid-153.00s vs. USD Amid BoJ Uncertainty

Japanese Yen Lingers Near Daily Lows Around Mid-153.00s vs. USD Amid BoJ Uncertainty

The Japanese Yen (JPY) faces selling pressure at the start of the week as the Bank of Japan (BoJ) released a Summary of Opinions from its October meeting, revealing a lack of consensus among policymakers on the timing of potential rate hikes. This division, coupled with political uncertainty in Japan, casts doubt on the BoJ’s capacity to continue tightening its monetary policy, leaving the JPY subdued against the US Dollar (USD) as the European session approaches. Additionally, concerns that US President-elect Donald Trump could reintroduce protectionist trade measures against Japan weigh further on the Yen.

However, recent verbal interventions by Japanese authorities, along with a generally cautious market sentiment, may help cap further losses for the safe-haven JPY. Investors might also adopt a wait-and-see approach ahead of key macroeconomic events this week, including the US consumer inflation data and Japan’s preliminary Q3 GDP report. Additionally, remarks from Federal Reserve (Fed) Chair Jerome Powell could add momentum to the USD/JPY pair. Meanwhile, market expectations that Trump’s policies will drive inflation higher—limiting the Fed’s flexibility for policy easing—continue to support the USD.

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US Dollar Price Forecast: Holds Steady Around 104.50, Above Key Moving Averages

US Dollar Price Forecast: Holds Steady Around 104.50, Above Key Moving Averages

The US Dollar Index (DXY) remains steady around 104.50 during European trading on Friday, extending its daily gains. Analysis of the daily chart suggests a continued bullish trend, with the DXY moving within an ascending channel.

The 14-day Relative Strength Index (RSI) remains above 50, supporting the bullish sentiment. Additionally, the nine-day Exponential Moving Average (EMA) sits above the 14-day EMA, signaling upward momentum in the short term.

On the upside, resistance could push the DXY toward the recent four-month high of 105.45, reached on November 6. A decisive break above this level may strengthen market sentiment and propel the DXY toward the psychological mark of 106.00, which aligns with the upper boundary of the ascending channel.

On the downside, immediate support is at the nine-day EMA around 104.25, followed by the 14-day EMA at 104.09. A break below this level may introduce downward pressure, potentially driving the DXY toward the lower boundary of the ascending channel at 103.70.

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Japanese Yen Hovers Near Daily Low Against USD, US Election Concerns Lend Support

Japanese Yen Hovers Near Daily Low Against USD, US Election Concerns Lend Support

Japanese Yen Hovers Near Daily Low Against USD, US Election Concerns Lend Support

The Japanese Yen (JPY) holds steady, drifting further from a one-week low against the US Dollar (USD) touched on Monday, as expectations rise that Japan’s political landscape may complicate future rate hikes by the Bank of Japan (BoJ). However, BoJ Governor Kazuo Ueda’s recent comments at last week’s press conference leave open the possibility of a rate hike at the upcoming BoJ policy meeting in December. Additionally, market caution around the closely contested US presidential election and global geopolitical tensions lend support to the safe-haven JPY.

The narrowing interest rate differential between the US and Japan has also helped limit JPY losses. Coupled with subdued USD price action, this has prevented the USD/JPY pair from advancing significantly beyond the mid-152.00s. Investor sentiment now leans toward expectations that the Federal Reserve (Fed) will implement an interest rate cut later this week. Moreover, the unwinding of “Trump trade” positions has driven US Treasury yields lower, keeping USD bulls cautious.

This dynamic suggests that investors should exercise caution before positioning for any significant intraday appreciation in the USD/JPY pair, as market risks and political uncertainties continue to impact the currency’s movement.

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Gold Price Climbs Steadily

Gold price trades with mild negative bias near record high amid modest USD uptick

Gold price trades with mild negative bias near record high amid modest USD uptick

As Thursday dawned upon the trading halls, gold—the venerable “yellow metal”—suffered a modest dip during the early hours of the Asian session, like a nobleman impeded by the ever-looming shadow of the sturdy US Dollar. This glimmering asset, dear to traders and watchful investors alike, found itself tethered, held back by the Dollar’s fresh vigor and the shrewd murmurs of a cautious marketplace. For as the Dollar gathered strength, demand for Dollar-denominated commodities grew fickle and, like the dimming glow of a taper in a fog-laden alley, gold’s price wavered just shy of its coveted heights.

A storm brewed overhead, one of fiscal deficit concerns and rising Treasury yields, which played their part in holding gold’s trajectory in check. The Federal Reserve, casting its shadow of smaller rate cuts, offered little hope for upward momentum in this unyielding metal. The daily chart bore signs of overbought conditions, nudging cautious traders to step back, watching keenly from the sidelines, hesitant to press forward aggressively.

Yet there lingered a faint glimmer, a hint of resilience amid these headwinds. The marketplace was steeped in trepidation over the November 5 election and unsettling tensions in the Middle East. The safe-haven allure of gold, much like an old friend in troubled times, stood firm, offering traders a semblance of comfort amidst the uncertainties. And so, they waited—peering anxiously at the coming release of the US Personal Consumption Expenditure Price Index and the venerable Nonfarm Payrolls report, both heralded as messengers of the Fed’s next move and, perhaps, the next chapter for gold in this ever-turning tale.

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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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