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USD/CAD Holds Near One-Week Low

USD/CAD Drops Below 1.3650 Amid Weaker US Dollar

USD/CAD Drops Below 1.3650 Amid Weaker US Dollar

The USD/CAD currency pair experienced a dip to 1.3645 during the early European trading hours on Monday, marking its lowest point in nearly three weeks. This decline was primarily driven by a weakening US Dollar (USD), which continues to be the dominant force influencing the pair, especially in the absence of significant economic data releases from Canada.

As traders turn their attention to the week’s key events, the spotlight intensifies on the Federal Open Market Committee (FOMC) meeting, scheduled to conclude on Wednesday. This meeting is crucial as it could provide insights into future monetary policy directions. Although no rate changes are anticipated at this meeting, the tone adopted by Fed Chair Jerome Powell and other committee members is expected to lean towards the hawkish side. Powell has previously emphasized the need for the central bank to be more confident that inflation is consistently trending towards its 2% target before considering any rate cuts.

The probability of a rate cut by the Federal Reserve has seen a noticeable shift in investor expectations. Last week, the likelihood of a rate reduction in July was pegged at 50%, but this has now dropped to 25%. By September, however, markets have priced in nearly a 60% chance of a rate cut, as per the CME FedWatch tool.

Recent inflation data from the US further complicates the economic landscape. The Personal Consumption Expenditures (PCE) Price Index, a key measure of inflation, rose to 2.7% year-over-year (YoY) in March, up from 2.5% in February and surpassing market expectations of 2.6%. The Core PCE, which is closely watched by the Fed, increased to 2.8% YoY, also above the consensus of 2.6%.On the Canadian side, the policy stance of the Bank of Canada (BoC) is under scrutiny. 

Despite a recent split among its governing council members regarding the timing of interest rate reductions, there is a broad expectation that the BoC might begin to lower rates as early as June or July. Such a move could potentially place downward pressure on the Canadian Dollar (CAD), although this might be somewhat mitigated by Canada’s inflation rate, which at 2.9% in March, sits comfortably within the BoC’s target range of 1-3%.

Adding to the complexities is the performance of crude oil prices, which traditionally influence the CAD due to Canada’s status as the largest crude oil exporter to the United States. A decline in crude oil prices has been exerting additional selling pressure on the CAD, further influencing the USD/CAD trading dynamics.

As the week progresses, market participants will closely monitor these developments, particularly the outcomes of the FOMC meeting and subsequent US employment data, to gauge potential directions for the USD/CAD pair.

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

EUR/JPY Rises Above 167.50 After BoJ Rate Decision

EUR/JPY Rises Above 167.50 After BoJ Rate Decision

The EUR/JPY currency pair soared to its highest level since 2008, reaching 167.20 during the Asian trading session on Friday. This significant rise is largely attributed to the depreciation of the Japanese Yen (JPY) following the Bank of Japan’s (BoJ) latest policy announcement.In its April meeting, the BoJ opted to maintain the key interest rate at 0%, aligning with market expectations. This decision came after a notable rate hike in March—the first since 2007—which marked the end of Japan’s negative interest rate policy initiated in 2016.

The BoJ also updated its economic forecasts, suggesting that inflation is expected to hover near its 2% target for the next three years. This outlook hints at the possibility of further rate increases later this year as the central bank remains committed to adjusting its monetary stance to sustain economic growth and price stability. 

Additionally, the BoJ reaffirmed its commitment to purchasing government bonds at a rate of approximately 6 trillion yen ($38.45 billion) per month, as set out in its March guidance.Following these developments, the JPY saw a decrease in demand compared to the Euro (EUR), as traders reacted to the central bank’s stance and the broader economic signals.

Simultaneously, data from Japan indicated a slowdown in inflationary pressures within Tokyo. April’s Consumer Price Index (CPI) for Tokyo showed a year-over-year increase of 1.8%, a decline from the previous 2.6% rise. The core CPI, excluding fresh food and energy, also increased by 1.8% year-over-year, falling short of the expected 2.7% and down from 2.9% in the prior period. 

These figures, representing a significant drop in inflation rates, also contributed to the weakening of the JPY as a traditionally safe-haven asset.Meanwhile, in Europe, discussions around monetary policy are also shaping market dynamics. European Central Bank (ECB) policymaker Joachim Nagel recently voiced support for a potential rate cut in June, although he clarified that such a move would not necessarily lead to a series of further cuts. Additionally, ECB official Fabio Panetta expressed that modest rate reductions could mitigate the risk of prolonged economic stagnation within the eurozone.

These contrasting monetary policies and economic indicators in Japan and Europe are pivotal in driving the EUR/JPY exchange rate, reflecting broader economic trends and central bank strategies in both regions. As such, investors and traders continue to monitor these developments closely, adjusting their strategies in response to shifts in central bank policies and macroeconomic data.

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AUD/JPY Rises on Strong Australian Consumer Inflation Data

AUD/JPY Rises on Strong Australian Consumer Inflation Data

The AUD/JPY currency pair continues its upward trajectory for the third consecutive day, recovering from initial losses earlier on Wednesday. This rally is supported by the release of unexpectedly strong Consumer Price Index (CPI) data by the Australian Bureau of Statistics (ABS), which significantly influences the Reserve Bank of Australia’s (RBA) monetary policy direction. The positive inflation figures have strengthened the Australian Dollar (AUD), boosting the AUD/JPY exchange rate.

The Australian Dollar’s rise is further propelled by a surge in risk appetite, reflected in the gains seen in the ASX 200 Index, particularly within the technology and healthcare sectors. This positive movement in Australian shares mirrors the upward trend on Wall Street, which has been buoyed by impressive corporate earnings reports that have generally uplifted market sentiment. Additionally, easing tensions in the Middle East have also contributed to the favorable market environment, creating a more robust appetite for riskier assets like the Australian Dollar.

On the other hand, the Japanese Yen (JPY) faces challenges amid a widening yield gap between Japan and other major economies. This disparity has prompted traders to engage in ‘carry trade’ activities, where they borrow yen at lower interest rates to invest in higher-yielding assets elsewhere. Despite the downward pressure on the Yen, there has been no intervention from Japanese authorities to shore up the currency. As the Bank of Japan (BoJ) begins its two-day policy meeting on Thursday, market participants speculate that Tokyo may delay any intervention in the currency market until at least the following week, as per insights from a Reuters report.

The AUD/JPY’s strength is a reflection of broader economic indicators and geopolitical developments, which continue to shape the dynamics between these two major currencies. As traders and investors keep a keen eye on the outcomes of the BoJ’s policy meeting and any potential moves by the Japanese authorities, the AUD/JPY cross remains a key barometer of shifting economic sentiments and policy decisions in the Asia-Pacific region. This scenario presents a complex interplay of economic data, central bank policies, and global market trends that drive the movements of these currencies on the forex market.

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USD/CHF Gains Momentum Above 0.8550 Ahead of FOMC Minutes

USD/CHF Rises Above 0.9100 on Hawkish Fed Comments

USD/CHF Rises Above 0.9100 on Hawkish Fed Comments

The USD/CHF currency pair exhibited strength on Monday morning during the early European trading hours, buoyed by a shift in market sentiment concerning the U.S. interest rate outlook. Market participants are now anticipating fewer rate cuts from the Federal Reserve (Fed) this year, with expectations consolidating around just one or two adjustments.

This week, financial markets are keenly awaiting the release of key U.S. economic indicators that could influence Fed policy decisions going forward. Notably, the preliminary U.S. Gross Domestic Product (GDP) figures for the first quarter (Q1) and the Personal Consumption Expenditures (PCE) Price Index will take center stage, providing fresh insights into the economic landscape.

Investors are recalibrating their interest rate forecasts in light of a resilient U.S. economy coupled with persistent inflation pressures. Despite inflation retreating from the peak levels seen during the pandemic, recent data suggest it remains above the Fed’s comfort zone. This has prompted several Fed officials to advocate for a cautious approach to monetary easing. They favor maintaining higher interest rates for an extended period than initially expected, a stance reinforced by a series of unexpectedly high inflation readings.

This “high-for-longer” interest rate scenario has been supportive for the U.S. dollar, lending upward momentum to the USD/CHF pair. The dollar’s ascent is further backed by remarks from key Fed figures. On Friday, Chicago Fed President Austan Goolsbee indicated a potential delay in rate cuts, citing a “stalled” progress in reducing inflation to desired levels. Similarly, Atlanta Fed President Raphael Bostic has suggested that rate cuts might not occur until the end of the year, aligning with a more conservative monetary policy approach.

Meanwhile, the Swiss economic outlook also remains in focus. Swiss National Bank (SNB) Chairman Thomas Jordan recently emphasized the importance of prioritizing price stability in monetary policy decisions. He highlighted challenges such as low economic growth and high debt levels in many countries, which could influence Switzerland’s financial strategy.

Additionally, geopolitical developments could impact the financial markets. Rising tensions in the Middle East, especially between Israel and Iran, are likely to increase demand for safe-haven assets such as the Swiss Franc. This could potentially limit the upward trajectory of the USD/CHF pair by bolstering the Franc’s appeal during times of uncertainty.

In summary, the USD/CHF pair is navigating a complex landscape shaped by shifting Fed expectations, critical economic releases, and international tensions, all of which could dictate its performance in the near term.

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NZD/USD

NZD/USD Stays Below 0.5900 Amid Risk-Off Mood, Rising US Dollar Demand

NZD/USD Stays Below 0.5900 Amid Risk-Off Mood, Rising US Dollar Demand

The NZD/USD currency pair faced downward pressure, trading around 0.5880 in the early European session on Friday. The pair’s decline was influenced by a risk-off sentiment fueled by escalating tensions between Israel and Iran, which boosted the US Dollar’s appeal as a safe-haven currency. Additionally, the US Dollar Index (DXY) saw an uptick, rising above 106.20 and nearing its highest level since November 2023.

Recent geopolitical developments have intensified concerns among investors. US officials disclosed that Israel had conducted military strikes against Iran and had informed the Biden administration of its plans to initiate these attacks within 24 to 48 hours from early Thursday.

Israeli authorities assured that the strikes would not target Iranian nuclear facilities, a detail confirmed by reports from CNN. These unfolding events in the Middle East are likely to increase market volatility as investors watch for potential impacts on global stability, which could further strengthen safe-haven currencies like the US Dollar.

Moreover, the possibility that the US Federal Reserve might postpone cuts to interest rates also lends support to the USD. Comments from several Fed officials highlighted ongoing high inflation in the US, suggesting that the central bank is looking for more decisive evidence of a downward inflation trajectory before making any moves to lower rates.

On the New Zealand side, economic data has shown a slight improvement, although challenges remain. Statistics New Zealand reported a decline in the country’s inflation, yet it continues to exceed the Reserve Bank of New Zealand’s (RBNZ) target range of 1 to 3%. This persistent high inflation might prompt the RBNZ to maintain elevated interest rates longer than some might anticipate, potentially supporting the NZD against further losses.

Investors are thus faced with a complex mix of factors: geopolitical risks enhancing the USD’s safe-haven status, tentative US monetary policy potentially delaying interest rate cuts, and New Zealand’s economic policy aimed at curbing inflation. These elements are crucial for market participants to consider as they evaluate the future movements of the NZD/USD pair amidst global financial uncertainty.

The situation remains fluid, with geopolitical tensions and economic indicators from both the US and New Zealand likely to drive significant market movements in the coming days. Investors will need to stay alert to the rapid developments in the Middle East and the economic updates from major central banks to navigate the volatile currency markets effectively.

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EUR/USD

EUR/USD Stays Above 1.0650 as US Dollar Faces Fresh Sell-Off

EUR/USD Stays Above 1.0650 as US Dollar Faces Fresh Sell-Off

The EUR/USD currency pair saw a modest increase, reaching 1.0672 in Thursday’s early Asian trading session. This rise was supported by a combination of renewed selling pressure on the US Dollar and a generally risk-acceptant market atmosphere. Key economic indicators set to be released later on Thursday include weekly Initial Jobless Claims, the Philadelphia Fed Manufacturing Index, the CB Leading Index, and Existing Home Sales. These data points are eagerly awaited by investors who are gauging the economic landscape.

Despite the upward movement of the EUR/USD, sentiments were tempered by comments from Federal Reserve Chairman Jerome Powell earlier in the week. Powell indicated that recent economic data do not provide much confidence that the Fed’s 2% inflation target will be met soon, suggesting a prolonged period of tight monetary policy which could strengthen the US Dollar in the short term. This hawkish outlook may limit the potential gains for the EUR/USD pair. Market predictions now reflect a nearly 71% expectation for a Fed rate cut in September, as per the CME FedWatch Tool.

Conversely, the European Central Bank (ECB) is showing signs of a more dovish policy stance. ECB policymaker Joachim Nagel hinted at a possible rate cut in June, although he acknowledged that inflation rates are still higher than desirable. Furthermore, ECB official Bostjan Vasle proposed that the deposit rate might be reduced to 3% by year’s end, down from the current record high of 4%, provided that the expected disinflation progresses. This potential easing in ECB policy could pressure the Euro and, by extension, the EUR/USD pair.

The differing directions in monetary policy between the Fed and ECB are primarily influencing the dynamics of the EUR/USD exchange. While the Fed’s cautious approach might bolster the US Dollar, the ECB’s potential rate cuts could weaken the Euro, creating a complex environment for the currency pair. Investors continue to watch these developments closely, as they could significantly impact the direction of EUR/USD moving forward. As the global economic scenario evolves, the interplay between these monetary policies will be crucial in shaping market movements.

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USD/CAD

USD/CAD Drops as US Dollar Weakens and Oil Prices Fall

USD/CAD Drops as US Dollar Weakens and Oil Prices Fall

The USD/CAD currency pair ended its five-day rally, settling at around 1.3820 during the Asian trading session on Wednesday. This shift was primarily due to a modest correction in the US Dollar (USD), which exerted downward pressure on the pair. Despite this, declining crude oil prices were seen as a potential threat to the Canadian Dollar (CAD), likely capping further losses in the USD/CAD pair.

Recent Canadian economic data has played a significant role in the forex dynamics. The latest inflation metrics could influence the Bank of Canada’s (BoC) monetary policy decisions, particularly the possibility of easing borrowing conditions at its upcoming June meeting. Notably, the core inflation rate, which is a critical indicator for the central bank, showed continued signs of moderation.

The Consumer Price Index (CPI) rose by 0.6% month-over-month in March, slightly below the anticipated 0.7%, but still above February’s 0.3% increase. Annually, CPI increased by 2.9%, marginally higher than the previous 2.8%. More critically, the year-over-year Core CPI, which excludes volatile items such as food and energy, increased by 2.0%, down from 2.1% in the prior measurement, indicating a potential easing of inflationary pressures. On a monthly basis, the Core CPI saw a 0.5% increase, significantly higher than the previous month’s 0.1% rise.

Meanwhile, in the United States, Federal Reserve (Fed) officials have maintained a hawkish tone which might support the USD in the short term. The US Dollar Index (DXY), after reaching a five-month peak at 106.51, experienced a slight retreat due to a decrease in US Treasury yields.

Fed Chairman Jerome Powell’s recent comments have underscored this perspective. During a speech on Tuesday, Powell acknowledged the robustness of the US economy but cautioned that progress towards the Fed’s 2% inflation target has been slower than expected this year. Powell’s statement indicated that more time and possibly more stringent monetary measures would be needed to stabilize inflation rates.

This hawkish outlook from the Fed contrasts with the potential dovish turn by the BoC, based on the Canadian inflation data. Such diverging paths could influence the USD/CAD pair significantly in the coming weeks. The interplay between US monetary policy and Canadian economic indicators will likely be a key driver of the pair’s movements as traders and investors recalibrate their expectations based on these developments.

In summary, while the USD/CAD has paused its recent uptrend due to a combination of factors including US Dollar corrections and weaker oil prices, the underlying economic indicators from both Canada and the United States will play crucial roles in determining its future direction. Investors should keep a close watch on upcoming economic releases and central bank statements to better navigate this volatile currency pair.

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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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In the idle markets, XAU/USD remains protective at $1,800

In the idle markets, XAU/USD remains protective at $1,800

As global markets battle for clear directions to extend the previous optimism, gold (XAU/USD) prices drop from intraday highs, being range-bound near $1,813-18. During a sluggish Asian session on Wednesday, the precious metal maintained its previous day’s fall from the 200-DMA.

The current Fed speak is more hawkish than previous ones, but reports about the EU’s oil ban on Russian imports, as well as China’s COVID restrictions, put optimists to the test. Despite this, traders remain optimistic due to stronger GDP data from Japan and the Euro zone, buoyant Retail Sales from the US, and the UK’s robust jobs report.

“The Fed should boost rates to 2.25 percent -2.5 percent neutral ranges ‘expeditiously,'” Fed policymaker Evans seems to have weighed on the market’s mood by raising fears of a fast rate hike. Fed Chair Jerome Powell and normally hawkish St Louis Fed President James Bullard argued for a 50 basis point rate hike on Tuesday, putting pressure on the dollar.

In terms of the report, initial Euro zone GDP for Q1 2022 increased past 5.0 percent YoY to 5.1 percent, as well as above 0.2 percent QoQ estimates to 0.3 percent. In April, however, US retail sales increased by 0.9 percent MoM, somewhat higher than the projected 0.7 percent but lower than the upwardly revised 1.4 percent gain (from 0.5 percent). Japan’s preliminary GDP figures for Q1 2022 climbed past -0.4 percent estimates to -0.2 percent QoQ, while Annualized GDP improved to -1.0 percent from -1.8 percent expected.

The Financial Times (FT) reports that China is diverting anti-poverty funds to COVID testing as the crisis worsens, adding to the market’s concerns about the European Commission’s (EC) decision to move away from Russian energy imports. In this environment, US 10-year Treasury rates increased by 0.5 basis points (bps) to 2.988 percent, while S&P 500 Futures struggle to find a clear direction despite Wall Street’s strong advances.

However, if the US Dollar Index, which is currently flat near 103.35, benefits from the latest cautious optimism, gold traders may see additional losses. The greenback gauge could be influenced by second-tier housing figures as well as qualitative factors such as corona virus and geopolitics.

Despite maintaining inside a $5.00 trading range recently, gold prices have maintained the prior day’s retreat from the 200-DMA. XAU/USD may return an annual horizontal support range between $1,790-85, given the bearish MACD signals and the metal’s failure to cross the major moving average, which was around $1,838 by press time.

However, the bears would need a clear downside break of the $1,800 level before trying for the yearlong support. A successful run-up over the 200-day moving average of $1,838, on the other hand, will not be an open welcome to gold buyers, as a downward sloping trend line from late April and multiple resistances from January 25, respectively around $1,845 and $1,855, will test bulls.

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Oil prices starting to fall as EU tries for Russia import ban

Oil prices starting to fall as EU tries for Russia import ban

Oil prices fell in early Asian trade on Tuesday as the European Union’s efforts to establish a ban on Russian oil imports, which would reduce global supply, were met with opposition from Hungary. At 0004 GMT, Brent crude prices were down 35 cents, or 0.3 percent, to $113.89 a barrel, while WTI crude futures were down 52 cents, or 0.5 percent, to $113.68 a barrel. Following Russia’s invasion of Ukraine, EU foreign ministers failed to persuade Budapest to reverse its veto on a proposed oil embargo against the country. All EU countries would have to agree on an embargo.

On the demand side, statistics from China indicated that the world’s second-largest country processed 11% less crude oil in April than a year ago, owing to stringent COVID-19 lockdowns, with daily output falling to its lowest level since March 2020 as refiners cut operations due to lower demand.

While Chinese demand falls, manufacturers in the United States ramp up production to refill supplies reduced by Russia’s war on Ukraine, which Moscow refers to as a “special military operation,” and the coronavirus outbreak. According to the US Energy Information Administration (EIA), oil output in the Permian Region in Texas and New Mexico, the country’s largest shale oil basin, is expected to grow 88,000 barrels per day (bpd) to a record 5.219 million bpd in June.

The Strategic Petroleum Reserve’s inventory decreased to 538 million barrels on Monday, the lowest level since 1987, according to figures released by the US Department of Energy.

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Gold is rising from three-month lows as bond rates in the United States fall

Gold is rising from three-month lows as bond rates in the United States fall

Lower U.S. Treasury rates maintained demand for zero-yield metal afloat above the important psychological support level of roughly $1,800 per ounce on Monday, lifting gold from a more than three-month low reached the previous session. As of 0227 GMT, spot gold was up 0.1 percent at $1,812.15 per ounce. Gold futures in the United States rose 0.1 percent to $1,809.80.

“With $1,800 being such a large round figure, it’s natural for it to give some amount of support as some (traders) try to be bold and buy a dip, while others close out lucrative shorts,” said Matt Simpson, senior market analyst at City Index. Gold prices fell more than 1% on Friday, hitting its lowest level since February 4 at $1,798.86 per ounce, before finishing at $1,811.15.

“However, things aren’t looking good for gold bugs right now. Even if we see a recovery from $1,800, the momentum is obviously pointing lower “Simpson explained. As investors sought shelter owing to concerns about global growth, the dollar began the week barely below a 20-year high against peers, making rival safe-haven gold less appealing to purchasers holding other currencies.

However, 10-year Treasury rates in the United States decreased, boosting demand for non-interest bearing gold. Before the Federal Reserve can fairly conclude that inflation has peaked, it must fall for “many months,” Cleveland Fed president Loretta Mester said Friday, adding that if the numbers do not improve, she would be willing to support a rate rise sooner than the September meeting.

Despite its reputation as an inflation hedge, bullion is vulnerable to rising short-term interest rates and bond yields in the United States, increasing the opportunity cost of keeping it. Silver fell 0.1 percent to $21.06 per ounce, platinum was constant at $938.46, while platinum increased 0.3 percent to $1,949.88.

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As oil stocks rise, Wall Street is turning away from big tech

As oil stocks rise, Wall Street is turning away from big tech

On Wall Street, big tech stocks were all the rage, with speculators buying them up to absurdly high levels. For example, the legendary quintuple of Facebook (now Meta), Amazon, Apple, Netflix, and Google (now Alphabet) took up about a fifth of the S&P 500 at one point—a surprising proportion given that the S&P 500 is often seen as a proxy for the US economy as a whole. Investors, on the other hand, avoided the oil and gas sector due to years of low shareholder returns, growing debt, and shrinking earnings.

The tables have now reversed, with the once-dominant NASDAQ plummeting and oil stocks emerging as the new FAANG: the Technology Select Sector SPDR ETF is down 24.3 percent year-to-date, while its energy counterpart, the Energy Select Sector SPDR ETF, is up 35.9%. Softbank, the embodiment of the excesses that powered the technology stock boom, announced a loss of roughly 1.71 trillion yen, or $13.2 billion, for the fiscal year ended in March on Thursday. The world’s largest technology investor suffered its greatest loss in its four decades of existence.

Energy investors, on the other hand, are ecstatic, since the black gold rush has fueled record profits. Energy equities presently account for only 4.4 percent of the S&P 500, compared to 28 percent for technology. “We’re not claiming that Energy is set to go back in-line with Tech as it did in the mid-2000s when commodities had a tremendous bull run following the Dot Com crisis,” Fowler adds, “but it’s certainly not impossible either.”

For the first time, the world’s most valuable firm is an energy company: Saudi Aramco, the world’s largest oil company, has surpassed Apple in market value, making the Saudi oil behemoth the most valuable company on the planet. This happened after the company’s stock rose 46.20 riyals, boosting its market worth to $2.464 trillion (9.24 trillion riyals), compared to $2.461 trillion for Apple. But the road back to the top for oil is not without bumps. The market is extremely volatile, and the sector’s near 10% drop on Monday indicates that there is a sizable group of short sellers betting against it.

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Gold drops as investors consider US Inflation data

Gold drops as investors consider US Inflation data

In Asia on Thursday morning, gold was down. Investors are analyzing the US consumer price index (CPI), which showed that inflation is still strong but has peaked in April, alleviating fears about the Federal Reserve raising interest rates more aggressively. By 11:12 p.m. ET, gold futures had fallen 0.01 percent to $1,853.58. (3:13 AM GMT). The dollar rose on Thursday morning, moving in the opposite direction of gold.

Inflation in the United States fell marginally in April, although it remained close to a 40-year high. The CPI increased 0.3 percent month over month in April, the lowest increase since August, according to the US Bureau of Labor Statistics, compared to a 1.2 percent increase in March, the highest increase since September 2005.

The Federal Reserve of the United States hiked its interest rate to 1% last week to combat inflation, the largest increase in 22 years. Investors are fearful that the Fed’s tighter policies would cause a recession. The 10-year US Treasury yield fell to 2.90 percent.

The Producer Price Index and first unemployment claims will be released later today in the United States. On the same day, San Francisco Fed President Mary Daly will speak. Silver has rose 0.1 percent against other precious metals. Palladium slipped 0.7 percent and platinum dropped 0.2 percent.

 

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Gold rates are approaching their lowest in three months, while silver prices are also down

Gold rates are approaching their lowest in three months, while silver prices are also down

Gold prices in plummeted to near three-month lows ahead of the release of monthly US inflation statistics, which experts believe would have an influence on the Federal Reserve’s monetary policy stance. Later in the day, at 6 p.m., the US inflation reading will be released. Gold prices on the MCX were down 0.3 percent to $50,421 per grams, while silver futures were down 0.5 percent to $60,310 per kg. Gold has been under pressure since early March, when the dollar rose against the backdrop of rising US Treasury rates, dampening investor excitement for the safe haven commodity.

The US Federal Reserve hiked its benchmark overnight lending rate by half a percentage point last week, but many analysts are questioning whether it has gone too far in tightening monetary policy. Gold is viewed as an inflation hedge and a safe haven in times of political and economic turmoil, but it is especially vulnerable to increasing short-term US interest rates, which boost the opportunity cost of keeping zero-yield metal.

Spot gold sank to a three-month low in international markets Wednesday, ahead of critical US inflation data. As the dollar index stayed near 20-year highs, spot gold was down 0.3 percent at $1,832.06 per ounce. For holders of foreign currencies, a rising dollar makes greenback-priced bullion less appealing. Spot silver declined 0.1 percent to $21.23 per ounce, while platinum rose 0.1 percent to $964.64 and palladium dropped 1.2 percent to $2,040.25.

“Despite some reprieve in the US dollar and US bond rates, gold and silver prices continued to fall. Tuesday’s morning session saw gold and silver rally a little, but they couldn’t hold on to their gains and slid below important support levels of $1840 for gold and $21.30 for silver. “Gold and silver prices plummeted on Tuesday after a member of the United States Federal Reserve stated aggressive interest rate rises may be implemented to combat inflation.

“The dollar was turbulent on Tuesday, swinging between minor gains as traders awaited the US Consumer Price Index data on Wednesday, which might give insight into the Federal Reserve’s future monetary policy path.” Investors have been in a risk-on attitude, with the yield on the benchmark US 10-year note easing down below the psychological barrier of 3%, after reaching its highest level since 2018 at 3.20 percent “On Monday, I ordered.”

“The support level for gold is $1822-1810, while the resistance level is $1850-1862. The support level for silver is $21.10-20.80, while the resistance level is $21.58-21.70. Silver has support at 60,140-59,750 and resistance at 61,150–61,510 in rupee terms, while gold has support at 50,330–50,110 and resistance at 50,880–51,050 “

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Crude Oil Prices May Fall Further Following Saudi Price Cut

Crude Oil Prices May Fall Further Following Saudi Price Cut

Following a significant overnight decrease, WTI crude oil prices were expected to fall further in Asia-Pacific trade. Bloomberg reported that the European Union is modifying its stance on a potential embargo on Russian oil, which appeared to trigger the most of the selling. Hungary’s objections were the major element preventing the EU from outright banning Russian oil.

Hungary’s Prime Minister, Viktor Orban, has cited security concerns over the ban, which has been in the works for weeks since Germany caved last month. Hungary continues to rely heavily on Russian energy products. The EU has granted exemptions to Hungary and Slovakia, but Mr. Orban has declared that his country would want a five-year exemption as well as cash to overhaul Hungary’s infrastructure.

Meanwhile, fears about the world economy are being fueled by rising prices and China’s economic downturn as a result of its Covid lockdowns. Central banks are undertaking strong moves to battle inflation, attempting to prevent high expectations from getting ingrained in the economy, which would only serve to exacerbate high inflation. Shanghai officials increased limits around the city last week, despite a decline in case numbers.

Saudi Aramco, the country’s state-owned oil company, announced a price cut for June. The increase reduces the premium paid by Asian purchasers from more than $9 per barrel to $4.40 per barrel. The premium paid by the majority of European customers will be cut as well next month. The action indicates that the big OPEC producer expects demand to fall, most likely as a result of the Covid outbreaks in China. Given the uncertainties surrounding China’s Covid issue as well as the current war in Ukraine, a greater pullout seems doubtful.

WTI CRUDE OIL TECHNICAL FORECAST

Prices fell below a significant trendline and the 50-day Simple Moving Average (SMA), indicating a breach below confluent support that has supported oil since December 2021. The 100 psychological level is currently being seen as the most immediate area for potential assistance. A dip below that would bring the 100-day SMA, which is now at 95, into focus.

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EUR/USD Price Forecast

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

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

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

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

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

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EUR/USD Eases Near

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Bank of Japan Stance

Japanese Yen Weakens Amid Dovish Bank of Japan Stance

Japanese Yen Weakens Amid Dovish Bank of Japan Stance

The Japanese Yen (JPY) continues to weaken against the US Dollar (USD) for the second consecutive day, largely due to dovish comments from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida on Wednesday. According to Reuters, Uchida stated, “We won’t raise rates when markets are unstable,” highlighting the BoJ’s cautious approach.

Deputy Governor Uchida also indicated that the BoJ’s interest rate policy may be adjusted if market volatility impacts economic forecasts, risk assessments, or projections. Given the recent market instability, he stressed the importance of closely monitoring the economic and price effects of their policies, adding, “We must maintain the current degree of monetary easing for the time being.”

Despite the JPY’s weakness, the USD/JPY pair’s upside may be capped as the US Dollar faces headwinds, with market participants increasingly expecting a significant rate cut by the Federal Reserve (Fed) starting in September. The CME FedWatch tool now shows a 67.5% probability of a 50-basis point (bps) rate cut by the Fed in September, up from 13.2% just a week ago.

Japanese Yen Weakens Following BoJ’s Uchida Remarks

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi commented on Tuesday that “wage increases are expected to extend to part-timers and small businesses by autumn, supported by strong Shunto results and minimum wage hikes.” However, Hayashi did not address current foreign exchange levels.

Japan’s Labor Cash Earnings data for June showed a 4.5% year-on-year increase in average income, exceeding both the previous 2.0% and the expected 2.3% figures. This marks the highest rise since January 1997 and reinforces the possibility of Japan moving towards a higher interest rate environment.

Meanwhile, US Federal Reserve officials have shared their views on the economic outlook. Federal Reserve Bank of San Francisco President Mary Daly expressed confidence on Monday that US inflation is moving towards the Fed’s 2% target. She noted, “Risks to the Fed’s mandates are becoming more balanced,” suggesting a potential openness to rate cuts in upcoming meetings.

Chicago Fed President Austan Goolsbee also remarked on Monday that the central bank is ready to act if economic or financial conditions deteriorate. He emphasized, “We’re forward-looking about it, and so if conditions collectively start deteriorating on any of those fronts, we’re going to address it,” as reported by Reuters.

The minutes from the BoJ’s June meeting revealed concerns among some members about rising import prices due to the Yen’s recent decline, which could increase inflationary pressures. One member warned that cost-push inflation could elevate underlying inflation if it leads to higher inflation expectations and wage growth.

In its Quarterly Outlook Report released on Thursday, the BoJ noted the potential for wages and inflation to exceed expectations, driven by heightened inflation expectations and a tight labor market.

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Gold Price Trades with Modest Losses

Gold Price Trades with Modest Losses Below $2,400, Downside Potential Appears Limited

Gold Price Trades with Modest Losses Below $2,400, Downside Potential Appears Limited

Gold (XAU/USD) is struggling to build on the previous day’s rebound from the 50-day Simple Moving Average (SMA) support around the $2,365-$2,364 region, a one-week low, attracting some intraday selling pressure on Tuesday. The dip is driven by renewed US Dollar (USD) strength, supported by rising US Treasury bond yields and a risk-on sentiment, which has pushed the safe-haven metal below the $2,400 mark.

However, expectations for more substantial interest rate cuts by the Federal Reserve (Fed) are likely to cap US bond yields and limit the Greenback’s gains. Additionally, geopolitical tensions from ongoing conflicts in the Middle East may further support Gold prices, keeping the downside limited. Given the lack of significant US economic data releases, caution is warranted before betting on an extended decline from last week’s near all-time highs.

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Gold Price Stabilizes Amid Firm Fed Rate

Gold Price Stabilizes Amid Firm Fed Rate-Cut Bets and Middle East Conflicts

Gold Price Stabilizes Amid Firm Fed Rate-Cut Bets and Middle East Conflicts

Gold (XAU/USD) has recovered to trade above $2,440 after dipping near $2,410 during Monday’s European session. The precious metal faced selling pressure as traders booked profits while it attempted to reclaim its all-time highs above $2,480. Despite this, the overall outlook for gold remains strong, supported by declining US bond yields.

The yield on 10-year US Treasury bonds has dropped to 3.67%, fueled by growing speculation that the Federal Reserve (Fed) will cut interest rates in September. Lower yields on interest-bearing assets reduce the opportunity cost of holding non-yielding assets like gold. Concurrently, the US Dollar Index (DXY), which measures the dollar’s value against six major currencies, has fallen to its March low near 102.60.

According to the CME Fed Watch tool, 30-day Federal Funds futures pricing suggests that traders see a 50-basis point (bp) rate cut in September as highly likely. The data also indicates that the Fed is expected to reduce its key borrowing rates by more than 100 bps over the course of this year.

Expectations for larger rate cuts have been driven by a series of weak economic reports from the United States, indicating a potential economic slowdown and raising concerns about the Fed’s ability to achieve a “soft landing”—curbing inflation without triggering a recession.

Deteriorating labor market conditions and a sharp decline in the manufacturing sector are key factors behind the increased expectations for significant rate cuts. The July Nonfarm Payrolls (NFP) report revealed a marked slowdown in labor demand, with the unemployment rate unexpectedly rising to its highest level since November 2021.

New payrolls came in at 114,000, well below the estimates of 175,000 and June’s figure of 179,000. The unemployment rate increased to 4.3%, surpassing expectations and the previous release of 4.1%. Meanwhile, manufacturing activity, as indicated by the ISM Manufacturing Purchasing Managers Index (PMI), contracted more rapidly, falling to 46.8 in July.

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Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

The Japanese Yen (JPY) ended its two-day winning streak on Monday, as the USD/JPY pair recovered its daily losses with the US Dollar (USD) gaining ground amid risk-off sentiment.

The Bank of Japan (BOJ) maintained its economic assessment for five of Japan’s nine regions in its latest ‘Sakura Report’. The assessment for two regions was raised, while it was lowered for another two regions. The BOJ also noted that wage hikes are spreading among smaller firms in many regions.

Despite the BOJ’s positive regional assessments, the US Dollar’s strength is largely driven by broader market conditions. The recent weaker-than-expected US employment growth data has influenced market sentiment. The US Nonfarm Payrolls (NFP) report for June showed job growth that exceeded market expectations, though the pace of growth was slower compared to May. Additionally, the Unemployment Rate increased in June. These factors have led to speculation that the Federal Reserve (Fed) may initiate interest rate cuts sooner rather than later.

According to the CME’s FedWatch Tool, rate markets are now pricing in a 70.7% probability of a rate cut in September, up from 64.1% just a week earlier. This dovish sentiment surrounding the Fed has impacted the USD, but the risk-off mood in the broader market has provided support for the greenback.

The market’s current focus is on the potential for the Fed to adjust its monetary policy in response to evolving economic conditions. Traders and investors are closely watching upcoming economic data releases and Fed communications for further signals. This uncertainty contributes to the fluctuating strength of the USD and its impact on currency pairs like USD/JPY.

In summary, the Japanese Yen’s recent weakness and the US Dollar’s gains are influenced by a combination of BOJ’s regional economic assessments and the Fed’s dovish outlook amid mixed economic data. The market’s anticipation of possible Fed rate cuts in the near future adds to the complexity of the current financial landscape. As traders continue to navigate these dynamics, the performance of the USD/JPY pair remains a key focal point.

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Australian Dollar Rises on Hawkish RBA Sentiment

Australian Dollar Rises on Hawkish RBA Sentiment

Australian Dollar Rises on Hawkish RBA Sentiment

The Australian Dollar (AUD) appreciated for the fourth consecutive day on Friday, driven by high inflation and expectations that the Reserve Bank of Australia (RBA) will delay potential rate cuts. The June Meeting Minutes from the RBA revealed that the board saw a stronger case for holding rates steady rather than hiking them. They emphasized the importance of remaining vigilant about upside risks to inflation, particularly in light of data suggesting potential increases in May’s Consumer Price Index (CPI).

Additionally, the AUD/USD pair gained support from a weaker US Dollar (USD). The Greenback has been struggling due to softer economic data from the United States, which has fueled speculation that the Federal Reserve (Fed) might reduce interest rates in 2024. However, the recovery in US Treasury yields could limit the downside for the US Dollar.

Market participants are closely watching the US employment reports, expected to be released on Friday. These reports are anticipated to show a slowdown in employment growth for June. Specifically, the US Nonfarm Payrolls (NFP) are projected to increase by 190,000 new jobs, down from the previous month’s 272,000. Additionally, US Average Hourly Earnings are expected to moderate slightly, with projections indicating a decrease to 3.9% year-over-year from the prior 4.1%.

The combined impact of these factors has created a favorable environment for the Australian Dollar. High domestic inflation and the RBA’s cautious approach to rate cuts suggest a stable or potentially stronger AUD in the near term. Meanwhile, the weakening USD, influenced by the possibility of future Fed rate cuts and mixed economic data, has further bolstered the AUD/USD pair.

As traders await the detailed US employment data, the market sentiment remains cautiously optimistic for the Australian Dollar. The interplay between the RBA’s policy stance and the US economic outlook will continue to be key drivers for the currency pair. Investors will be particularly attentive to any shifts in economic indicators or central bank communications that could influence future rate decisions and currency movements.

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Gold Price Hits Multi-Day High

Gold Price Hits Multi-Day High, Awaits FOMC Minutes for Direction

Gold Price Hits Multi-Day High, Awaits FOMC Minutes for Direction

Gold prices (XAU/USD) are seeing renewed buying interest during the Asian session on Wednesday, building on the previous day’s rebound from the $2,319-$2,318 support zone. Currently, the precious metal is positioned near the top end of its short-term trading range, which has held steady over the past week. Traders are watching for a sustained move beyond the 50-day Simple Moving Average (SMA) pivotal resistance before making further bullish bets.

Recent dovish remarks from Federal Reserve (Fed) Chair Jerome Powell have reaffirmed expectations that the US central bank might start cutting interest rates at its September meeting. This prospect, combined with concerns over global economic growth, ongoing geopolitical tensions, and political uncertainty in both the US and Europe, has provided support for gold prices.

Despite these favorable conditions, the upside for gold may be constrained as traders remain cautious, awaiting clearer signals regarding the Fed’s future policy decisions. The focus is now on the release of the FOMC meeting minutes, scheduled for later in the US session. These minutes are expected to significantly impact the US Dollar (USD) and, by extension, gold prices.

In the interim, traders will also monitor key US economic data, including the ADP report on private-sector employment and the ISM Services PMI. These reports could offer additional insights into the health of the US economy and influence market sentiment.

Given the current fundamental backdrop, the path of least resistance for XAU/USD appears to be upward. Any significant corrective decline is likely to be viewed as a buying opportunity. The market’s attention will remain fixed on the FOMC minutes for further direction, as they will provide crucial information on the Fed’s stance and potential actions.

In summary, gold prices are poised for potential gains, supported by dovish Fed expectations and global uncertainties. However, traders are likely to tread carefully, awaiting the FOMC minutes and key US economic data for more definitive cues. This cautious approach underscores the delicate balance between optimism for rate cuts and the need for concrete policy guidance.

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Australian Dollar Drops on Weak Manufacturing PMI

Australian Dollar Drops on Weak Manufacturing PMI

Australian Dollar Drops on Weak Manufacturing PMI

The Australian Dollar (AUD) may find some relief as the Caixin Manufacturing PMI from China increased to 51.8 in June, surpassing expectations of a decline to 51.2 from May’s 51.7. This unexpected boost in Chinese manufacturing activity is significant for Australia, given the close trade relationship between the two countries. Positive economic changes in China can have a favorable impact on the Australian market, potentially supporting the AUD.

Despite this positive news from China, the AUD faced pressure due to disappointing domestic data. Australia’s June manufacturing PMI contracted at its fastest rate since May 2020, indicating a significant slowdown in the sector. This contraction in manufacturing activity has dampened investor sentiment towards the AUD. Market participants are now eagerly awaiting the Reserve Bank of Australia’s (RBA) upcoming policy meeting minutes on Tuesday, hoping for insights into the central bank’s future monetary policy direction. Any indications of policy adjustments or economic outlook from the RBA could influence the AUD’s movement.

Meanwhile, the US Dollar (USD) has been depreciating due to rising expectations that the US Federal Reserve (Fed) will cut interest rates in 2024. According to the CME FedWatch Tool, the likelihood of a Fed rate cut by 25 basis points in December has increased to nearly 32.0%, up from 28.7% just a week earlier. This shift in expectations is driven by recent economic data suggesting a potential easing of monetary policy by the Fed to support economic growth. The prospect of lower interest rates in the US has weakened the USD, providing some support to the AUD.

In summary, the AUD’s performance is currently influenced by a mix of international and domestic factors. While positive Chinese economic data provides some support, the AUD is under pressure from weak domestic manufacturing data. The upcoming RBA policy meeting minutes will be closely watched for any signals on future monetary policy, which could impact the AUD. Additionally, the USD’s depreciation due to expectations of Fed rate cuts adds another layer of complexity to the AUD’s outlook. Traders will need to monitor these developments closely to navigate the fluctuating market conditions.

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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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