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EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

EUR/GBP Drops Near 0.8400 Ahead of Eurozone Retail Sales

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

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

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

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

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

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

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

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WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

WTI Breaks Below $69.50 Amid Potential Libyan Dispute Resolution

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

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

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

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

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

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Gold Price Declines as Traders Await US PMI Data

Gold Price Declines as Traders Await US PMI Data

Gold Price Declines as Traders Await US PMI Data

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

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

Daily Market Overview: Gold Faces Selling Pressure Amid USD Strength

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

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

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

Technical Analysis: Long-Term Outlook for Gold Remains Positive

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

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

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

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Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

Japanese Yen Pares Intraday Gains Despite Hawkish BoJ Stance

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

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

Daily Market Movers: JPY Declines Despite Hawkish BoJ

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

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

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

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

Technical Analysis: USD/JPY Holds Ground Around 146.00

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

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

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Gold Price

Gold Price Gains Momentum as Traders Await US GDP Data

Gold Price Gains Momentum as Traders Await US GDP Data

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

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

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

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

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

Technical Analysis: Gold Price Shows Bullish Outlook Long-Term

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

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

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

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Choppy Market Action Persists as Investors Await Next Catalyst

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

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

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

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

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

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

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

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

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EUR/USD Rises Above 1.1150 Amid Market Optimism

EUR/USD Rises Above 1.1150 Amid Market Optimism

EUR/USD Rises Above 1.1150 Amid Market Optimism

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

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

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

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

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

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

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

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

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

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

Key Developments Impacting Gold Prices

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

Technical Outlook: Resistance and Support Levels

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

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

Outlook for Gold

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

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Supermicro Stock Skyrockets 29% After Investigation Clears Fraud Allegations

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

Investigation Findings: No Fraud or Misconduct

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

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

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

Governance Overhaul and Next Steps

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

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

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

Stock Performance: Recovery in Progress

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

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

Investor Considerations

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

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

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

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

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

Key Market Highlights

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

Broad Declines Across Asia

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

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

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

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

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

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

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

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

Outlook

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Technical Outlook: Key Support and Resistance Levels for Gold

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

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

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

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

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

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

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

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

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

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

Technical Outlook: Gold Awaits Breakout for Bulls to Regain Control

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

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

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

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WTI Struggles Below $70 Amid Demand Concerns and USD Strength

WTI Struggles Below $70 Amid Demand Concerns and USD Strength

WTI Struggles Below $70 Amid Demand Concerns and USD Strength

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

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

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

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

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Gold is near a two-month low due to a stronger dollar & the possibility of a rate hike in U.S.A

Gold is near a two-month low due to a stronger dollar & the possibility of a rate hike in U.S.A

 

In Asia on Thursday morning, gold was down, hitting a two-month low. The yellow metal’s demand was harmed by a rising dollar and the prospect of a rate hike in the United States weakened investor confidence in the safe-have asset. Gold futures were up 0.56 percent to $1,878.10 at 12:57 a.m. ET (4:57 a.m. GMT) after falling to its lowest level since February 24 earlier in the day. On Thursday, the dollar, which generally goes in the opposite direction to gold, rose to a five-year high of 103.28. If it continues to rise above 103.82, it will reach levels not seen since late 2002.

Benchmark 10-year U.S. Treasury yields also rose, as investors awaited further information on the Fed’s “restrictive” stance to combat inflation. The Bank of Japan held its interest rate at -0.10 percent when it announced its policy decision earlier in the day, and the European Central Bank released its economic bulletin as well. With gold prices failing to rise despite Russia’s invasion of Ukraine on February 24 and rapid inflation, investors are likely to seek elsewhere, according to Lan, who added that China’s lockdowns in reaction to the recent COVID-19 breakouts had hampered demand.
According to the World Gold Council, global demand for gold increased to its highest level in over three years in the first quarter of 2022, driven by investors concerned about the Ukraine conflict and inflationary pressures. In other precious metals, silver fell 0.1 percent, platinum fell 0.4 percent to $914.17, while palladium increased 1.2 percent.

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Oil continue gains on Russia-Europe tension as hopes for Chinese support

Oil continue gains on Russia-Europe tension as hopes for Chinese support

 

Oil prices rose further in early Asian trade on Wednesday as geopolitical tensions remained high, with Russia warning of gas supply cuts to Poland and Bulgaria, while hopes of Chinese economic stimulus boosted the outlook for oil demand. Brent crude futures were up $1.27, or 1.2 percent, to $106.26 per barrel as of 0143 GMT. West Texas Intermediate crude futures in the United States rose $1.11, or 1.1 percent, to $102.81 per barrel.

In volatile trade, crude prices settled about 3% higher on Tuesday, as the market is torn between supply and demand concerns over Russian oil and gas disruptions, as well as a worsening global economic outlook. Russia’s Gazprom has informed Poland and Bulgaria that gas supplies will be cut off as of Wednesday, in a major escalation of Russia’s broader dispute with the West over its invasion of Ukraine, which Moscow refers to as a “military operation.” The news sent NYMEX ultra-low sulphur diesel futures up more than 9% on Tuesday, to a record close of $4.47 per gallon. “Oil is supported by the escalation of geopolitical tensions,” SPI Asset Management’s Stephen Innes wrote in a note.

“Cutting gas flows are not new news, but the timing of Russia plugging the gas flows at a time when stagflationary fears are running high again is.”The International Monetary Fund (IMF) warned on Tuesday that Asia faces a “stagflationary” outlook, citing the Ukraine conflict, a spike in commodity prices, and a slowdown in China as major uncertainties. China’s central bank announced on Tuesday that it will increase prudent monetary policy support for the country’s economy as Beijing rushes to contain a nascent COVID-19 outbreak in the capital and avoid the same crippling city-wide lockdown that has engulfed Shanghai for a month. Any stimulus would increase demand for oil.

Despite extended lockdowns in Asia’s largest aviation market, domestic flight demand in China has rebounded, pushing global airline capacity to its highest level in 2022 this week, according to travel data firm OAG. In terms of supply, the United States government will release data on crude inventories later on Wednesday. According to industry data released on Tuesday, crude and distillate stocks in the United States increased last week while gasoline inventories fell.

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On aggressive Fed comments, XAUUSD revives briefly from $1,900, but expects downside to $1,880

On aggressive Fed comments, XAUUSD revives briefly from $1,900, but expects downside to $1,880

After a massive negative move, gold (XAU/USD) is showing a dead cat bounce around approximately $1,900. After failing to hold above the round level support of $1,950.00 last week, the precious metal has seen a sharp sell-off. One thing to keep in mind is that market investors have discounted a big rate hike by the Federal Reserve (Fed) in May. In addition, the balance sheet reduction programme will begin sooner to hasten the economy’s liquidity contraction.

Aside from that, Fed policymakers are debating whether or not to return to neutral rates, implying that the remainder of the year would be marked by tight liquidity leakage and the lack of helicopter money, which will keep gold prices on the edge. As a result, rather than a massive rate hike announced for May, investors have begun deducting the uncertainty of the neutral rates from gold prices. The main mover this week will be US Core Personal Consumption Expenditure, which is predicted to come in at 4.9 percent, down from the previous reading of 5%.

The price of gold is climbing in Tokyo as the US dollar loses some of its momentum after a strong start to the week. The gold price, on the other hand, is still hovering around a four-week low set overnight. The price has increased by 0.11 percent to $1,900.21. XAU/USD has risen to a high of $1,903.83 from a low of $1,897.42. Soaring inflation in the US economy has contributed to the pessimism in gold prices. The US Consumer Price Index (CPI) has hit multi-decade highs, and the Federal Reserve has already raised interest rates by 50 basis points (bps) in response to the tight labour market (Fed). According to Fed Chair Jerome Powell’s presentation at the International Monetary Fund (IMF) meeting, a big rate hike is on the way, while investors will be more concerned about the status of balance sheet reduction. The need of the hour is to squeeze liquidity from the economy at a faster rate, and Fed policymakers are likely to use whatever means at their disposal.

The precious metal will most certainly dance to the beats of the US Consumer Confidence and Durable Goods Orders report, which is due on Tuesday. The preliminary reading for the monthly Durable Goods Orders is 1%, compared to -2.1 percent previously.

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As a result of the Shanghai lockdowns, oil prices are continuing to fall

As a result of the Shanghai lockdowns, oil prices are continuing to fall

 

Oil prices fell further on Monday, owing to concerns that continued COVID-19 lockdowns in Shanghai and expected rate hikes in the United States would stifle global economic development and fuel demand. At 0015 GMT, Brent crude prices were down $1.90, or 1.8 percent, to $104.75 a barrel, while WTI crude futures were down $1.89, or 1.9 percent, to $100.18 a barrel. Last week, demand concerns caused the benchmarks to drop nearly 5%.

“As China resumed lockdowns in Shanghai and investors anticipated for a succession of US rate hikes, bearish sentiment outweighed concerns about constrained global supply,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities. Investors are attempting to alter their positions ahead of the start of the summer driving season in the United States later in May, he said. “However, due to the risk of a potential European Union ban on Russian oil amid a deepening Ukraine crisis, oil prices are not projected to fall below $90 a barrel,” he said.

Shanghai authorities are erecting barriers outside residential buildings to combat a COVID-19 epidemic, generating further public outrage over a lockdown that has confined majority of the city’s 25 million inhabitants indoors.

When the Federal Reserve meets in May to approve the next in what is likely to be a succession of hikes this year, Chairman Jerome Powell has said that a half-point increase “will be on the table.”

 

On the supply side, U.S. energy companies added oil and natural gas rigs for the fifth week in a row, despite high prices and government pushing. Three individuals familiar with the port loading plan told Reuters on Friday that the Russia-Kazakh Caspian Pipeline Consortium (CPC) was restarting full exports from April 22 after over 30 days of disruptions due to maintenance to one of its key loading facilities.

Nonetheless, other analysts believe that the deepening crisis in Ukraine will increase pressure on the EU to impose sanctions on Russian oil, and that prices will rise later this year. Russia is Europe’s leading gas provider and, behind Saudi Arabia, the world’s second-largest oil exporter. Morgan Stanley increased its Brent pricing projection for the third quarter to $130 per barrel, noting a “larger shortfall” this year due to weaker supply from Russia and Iran, which is expected to balance short-term demand challenges.

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Gold is expected to fall for the first time in three weeks as rates and the currency rise

Gold is expected to fall for the first time in three weeks as rates and the currency rise

Gold prices remained flat on Friday, weighed down by the dollar’s resilience and the increase of US Treasury yields, putting bullion on track for its first weekly loss in three weeks. As of 0501 GMT, spot gold was unchanged at $1,952.17 per ounce. Gold futures in the United States were up 0.3 percent at $1,953.90.

“The outlook for gold remains restrained as rising rates certainly weigh, but we really don’t have much of a direction for gold until we break the trading range (between $1,930 and under $2,000) in a convincing fashion,” said Michael McCarthy, chief strategy officer at Tiger Brokers in Australia.

Benchmark Federal Reserve officials maintained a hawkish tone on tightening policy, supporting the idea that the US central bank will boost interest rates quickly to combat surging inflation. U.S. 10-year Treasury yields continued their rise. Gold is extremely sensitive to rising short-term interest rates in the United States, as well as higher returns, which raise the opportunity cost of keeping non-yielding bullion.

A rising dollar could put downward pressure on gold, but geopolitical uncertainty remains a support, and the gold price is locked in the middle of those two opposing currents, according to McCarthy. A stronger currency makes gold priced in US dollars less appealing to foreign buyers. This week, gold is down roughly 1.2 percent. On Monday, prices climbed to near $2,000 per ounce on safe-haven demand and growing inflation concerns, but have since fallen to a two-week low in the previous session.

In a note, Stephen Innes, managing partner at SPI Asset Management, said, “With stagflation shifting from a hypothetical tail risk to reality, investors globally are looking to gold as a keen portfolio diversifier. “Spot silver lost 0.4 percent to $24.54 per ounce, while platinum rose 0.1 percent to $968.79, indicating that both metals are set to lose ground this week. Palladium prices increased by 0.4 percent to $2,430.95.

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The allure of gold futures is dwindling as bond yields rise

The allure of gold futures is dwindling as bond yields rise

On Wednesday, gold futures dipped marginally as traders evaluated forecasts of tighter Fed monetary policy and higher yields. Gold futures in the United States fell 0.07 percent to $1,957 per ounce. Meanwhile, spot gold rose 0.3 percent, pulling back from a two-week low.

“We’re seeing higher yields, and we’re still hearing much more hawkish rhetoric from some Fed officials….” “This has taken some of the wind out of gold’s sails, triggering the corrective move that was probably due,” Craig Erlam, senior market analyst, said.
Gold prices sank 1.8 percent on Tuesday as hawkish statements from US central bank officials, particularly St. Louis Federal Reserve Bank President James Bullard, pushed the currency and 10-year Treasury yields to multi-year highs. On Wednesday, the 10-year Treasury Inflation-Protected Securities (TIPS) yield, or real yields, hit two-year highs, temporarily moving into positive territory for the second day in a row.

Rising U.S. interest rates and Treasury yields increase the opportunity cost of holding the non-yielding bullion while strengthening the greenback in which it is priced, making gold extremely vulnerable. The dollar was somewhat lower on the day than it had been the previous session, when it reached a more than two-year high.

According to Carlo Alberto De Casa, an external market analyst at Kinesis, $2,000 was a crucial level of resistance that stopped the rise in gold prices.”A huge majority of investors are also anticipating a 50 basis point rate hike by the Fed.” Gold got close to the crucial threshold of $2,000 per ounce on Monday, but has since been under pressure.

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EUR/USD Price Forecast

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

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

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

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

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

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EUR/USD Eases Near

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Japanese Yen Bears Show Resilience Despite Intervention Concerns

Yen Nears Multi-Decade Low, Targets 155.00 Before BoJ Meeting

Yen Nears Multi-Decade Low, Targets 155.00 Before BoJ Meeting

The Japanese Yen (JPY) is currently facing significant pressure against the U.S. Dollar (USD), lingering near a multi-decade trough as Monday’s European trading session gets underway. This downward trend in the Yen is being driven by a combination of factors including market speculation about the Bank of Japan’s (BoJ) future monetary tightening and a global geopolitical landscape that is somewhat less tense than feared, which diminishes the appeal of the Yen as a safe-haven asset.

The USD, on the other hand, has been climbing to its strongest levels since the early days of November, fueled by market expectations that the U.S. Federal Reserve might maintain elevated interest rates for an extended period. This anticipation acts as a supportive breeze for the USD/JPY currency pair, pushing the Dollar upwards against the Yen.

Contributing to the complexity of the situation are comments from BoJ Governor Kazuo Ueda, who recently adopted a hawkish tone, suggesting tighter monetary policy might be on the horizon. Additionally, Japanese Finance Minister Shunichi Suzuki issued warnings against excessive volatility in the currency markets, which could serve to temper further declines in the Yen.

Despite these interventions, the market is treading cautiously with the USD/JPY pair. Investors are wary of making bold moves before the BoJ’s critical policy announcement scheduled for Friday. The apprehension stems from potential shifts in policy that could significantly impact the pair’s dynamics.

Moreover, this week is loaded with crucial U.S. economic data releases that are likely to capture the market’s attention and influence currency valuations. Key among these are the Advance Q1 Gross Domestic Product (GDP) figures and the Personal Consumption Expenditures (PCE) Price Index, set to be released on Thursday and Friday, respectively. These indicators are essential for gauging the economic health of the U.S. and could provide new directions for the USD/JPY pair.

Investors and traders will be closely monitoring these developments to better understand the broader economic landscape and adjust their strategies accordingly. The outcomes of the U.S. data releases and the BoJ’s policy decision will be pivotal in determining the short-term trajectory of the USD/JPY pair. As such, the currency market is poised for a potentially volatile week, with significant implications for the Yen based on these economic and policy signals.

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Japan’s March Core Inflation Decelerates, Weak Yen Challenges BOJ Policy Decisions

Japan’s March Core Inflation Decelerates, Weak Yen Challenges BOJ Policy Decisions

In March, Japan witnessed a slowdown in core inflation and a significant index that tracks broader price trends dropped below 3 percent for the first time in more than a year, according to recent data. This development presents a new challenge for the Bank of Japan (BOJ) as it continues to navigate through complex economic conditions exacerbated by the weakening yen.

The national core consumer price index (CPI), which omits fresh food but includes energy costs, increased by 2.6 percent year-over-year in March, aligning with median market expectations. This rise represents a deceleration from February’s 2.8 percent increase, primarily due to slower growth in food prices, yet it remains above the BOJ’s target of 2 percent. Additionally, another critical measure that excludes both fresh food and energy saw its growth moderate to 2.9 percent from 3.2 percent in February, marking the first drop below 3 percent since November 2022. This metric is particularly significant to the BOJ as it reflects underlying inflation trends.

Financial markets are now speculating about the potential timing for the next interest rate hike by the BOJ, following its recent move to end negative interest rates. This was a notable shift from the ultra-loose monetary policy that Japan has maintained for over a decade. Amid these policy adjustments, the focus remains on whether inflation, particularly in services and wages, will continue to moderate. Masato Koike, an economist at Sompo Institute Plus, noted that while the slowdown in goods price inflation was anticipated, the yen’s depreciation and rising crude oil prices due to Middle Eastern tensions were not.

BOJ Governor Kazuo Ueda has indicated that further rate increases could be considered if the yen’s weakness significantly pressures inflation upwards. The central bank has emphasized that achieving a stable 2 percent inflation target along with robust wage growth are key goals for normalizing monetary policy.

Despite the largest wage increases in 33 years being implemented by Japanese firms this year, inflation-adjusted real wages have been declining for nearly two years. This wage trend, combined with a depreciating yen, is likely to strain household purchasing power further and suppress consumer spending.

An official from the internal affairs ministry highlighted that the effects of recent wage hikes have not yet impacted service prices significantly. The government has committed to monitoring these developments closely, reflecting the ongoing challenges in balancing economic growth with stable inflation.

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Australian Dollar Steady Amid RBA’s Restrictive Policy Outlook

Australian Dollar Nears Key Level as US Dollar Stays Weak

Australian Dollar Nears Key Level as US Dollar Stays Weak

The Australian Dollar (AUD) has continued its upward trajectory for the second day in a row on Thursday, finding support from a weakening US Dollar (USD). Despite this, mixed signals from recent Australian employment data have placed some downward pressure on the AUD/USD exchange rate.

On the domestic front, the AUD’s gains were propelled by a robust performance in the equity markets, with the ASX 200 Index climbing notably. This rise was largely driven by a surge in mining stocks, which benefited from an increase in metal prices. Such positive movements in the stock market reflect broader economic dynamics and investor sentiment within Australia.

Adding to the complexity of the economic landscape, a report from Westpac indicated that while the Reserve Bank of Australia (RBA) is not expected to increase interest rates further, it remains cautious. The central bank is seeking more solid assurance on the inflation outlook before it considers any potential rate cuts. This cautious stance by the RBA underscores the ongoing uncertainties surrounding Australia’s economic recovery and inflation dynamics.

In the United States, the Dollar Index (DXY) experienced a decline, largely due to lower US Treasury yields. This dip in the DXY was exacerbated by a renewal in selling pressure across the dollar and a prevailing risk-on mood in global financial markets. Such a scenario often leads investors to move away from the safe-haven USD in favor of more risky assets, thereby benefiting currencies like the AUD.

Moreover, investors are closely monitoring key economic releases scheduled for later in the day, including the US Initial Jobless Claims and Existing Home Sales data. These indicators are critical as they provide insights into the current state of the US economy and have the potential to influence market sentiment and the subsequent performance of the USD.

The interplay between Australian economic indicators and US monetary policy continues to be a significant driver for the AUD/USD pair. As the global economic environment remains filled with various uncertainties—from inflation rates to employment figures—the AUD’s position against the USD will likely be influenced by both domestic economic performances and broader international economic trends.

Overall, while the Australian Dollar enjoys support from favorable equity market trends and commodity prices, the mixed employment data and cautious monetary policy approach by the RBA add layers of complexity to its future trajectory. Similarly, the US Dollar’s movements will hinge on upcoming economic data and market sentiment, potentially impacting the AUD/USD exchange dynamics further.

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Japans

Japan’s Exports Rise for Fourth Straight Month on Strong China Demand

Japan’s Exports Rise for Fourth Straight Month on Strong China Demand

Japan’s exports rise for the fourth consecutive month, spurred by a weakening yen and robust demand from China, despite weaker domestic consumption. According to a report from the Finance Ministry, exports increased by 7.3% in March year-over-year, a slight slowdown from February’s 7.8% growth. Economists had anticipated a 7% rise. Conversely, imports declined by 4.9%, which was close to the expected 5.1% fall.

The depreciating yen, which averaged 149.45 against the dollar compared to 134.97 the previous year, inflated the nominal value of exports, though the actual volume of exports fell by 2.1%. This discrepancy highlights the significant role of the yen’s value in enhancing export figures, with Mizuho Research & Technologies’ senior economist Yayoi Sakanaka noting that much of the growth could be attributed to currency effects rather than actual increases in export volumes. Despite this, there is potential for continued export growth due to the ongoing depreciation of the yen.

Significant growth was recorded in the automotive and semiconductor industries, with increases of 7.1% and 11.3% respectively in March. Regionally, China featured prominently with a 12.6% rise in exports, up from 2.5% the previous month, which contributed to China’s 5.3% GDP growth in the first quarter. However, growth in exports to the US and Europe was more uneven, at 8.5% and 3% respectively, indicating variability in global demand.

The Japanese currency has remained weak, trading near 34-year lows, which has drawn criticism from financial authorities concerned about excessive volatility. This situation underscores the complex dynamics at play, where currency values are boosting export figures while also presenting challenges for economic stability.

Overall, while Japan’s export sector shows signs of robustness primarily due to favorable currency trends and strong demand from China, the mixed results across different regions and industries suggest a nuanced picture of Japan’s trade environment. This scenario indicates that while the export-driven boost to the economy is welcome, reliance on such factors may pose risks if not managed carefully.

 

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Japanese Yen

Japanese Yen Nears Record Low Against USD, Remains Vulnerable

Japanese Yen Nears Record Low Against USD, Remains Vulnerable

The Japanese Yen (JPY) is continuing to struggle against the US Dollar (USD), staying near a 34-year low during Tuesday’s Asian trading session. This persistent weakness is linked closely to expectations around interest rates set by the central banks of Japan and the United States.

The Bank of Japan (BoJ) has yet to signal any potential hikes in interest rates, creating a stark contrast with the US Federal Reserve (Fed), which is expected to maintain higher rates well into September, according to market predictions. This significant interest rate differential is proving detrimental to the Yen, as investors favor the higher returns offered by US assets.

Concerns are also mounting over the possibility of an intervention by Japanese authorities to stabilize their currency. Such measures are typically considered when a currency’s value deteriorates rapidly and disruptively, posing risks to economic stability.

Adding to the yen’s troubles are the ongoing geopolitical tensions in the Middle East, which have instilled a general sense of risk aversion in global markets. This environment typically benefits the dollar, seen as a safer investment, and further diminishes appetite for riskier assets like the yen.

Meanwhile, the dollar has surged to its strongest level since early November, propelled by a hawkish outlook from the Fed. Market participants are now keenly awaiting further US economic reports and speeches by Federal Open Market Committee (FOMC) members, including a scheduled appearance by Fed Chair Jerome Powell. These events are closely watched as they have the potential to influence short-term market movements significantly.

In this complex financial landscape, the dynamics between the yen and the dollar are particularly influenced by international monetary policies and global economic indicators. As Japan grapples with maintaining economic stability without raising interest rates, the Fed’s contrasting approach of potentially prolonged higher rates could keep the pressure on the yen.

Investors and traders are thus advised to monitor upcoming economic data from the US, such as employment figures and inflation rates, as well as any policy shifts signaled by Japan’s central bank. These factors could be crucial in determining the near-term trajectory of the USD/JPY currency pair and might offer speculative opportunities based on the evolving economic outlook.

As it stands, the broader consensus in the financial markets suggests a continued advantage for the dollar against the yen, barring any significant policy changes from the Bank of Japan or unexpected shifts in global risk sentiment.

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Australia Dollar

Australian Dollar Nears Key Level Before US Retail Sales Data

Australian Dollar Nears Key Level Before US Retail Sales Data

The Australian Dollar (AUD) saw a modest rebound on Monday, pulling away from its eight-week low of 0.6456 set last Friday. However, the AUD/USD pair faced resistance as traders gravitated towards the perceived safety of the US Dollar (USD) amid escalating tensions in the Middle East.

The rise in geopolitical unease followed a significant military engagement over the weekend, where Iran launched drones and missiles at Israeli military targets. According to reports from Reuters, Israel successfully intercepted most of these attacks. This incident has led to a spike in cautious sentiment among investors, potentially complicating the Australian Dollar’s recovery as market participants weigh the possibility of further military responses from Israel.

Domestically, the ASX 200 Index reflected these concerns, trending downwards as the situation could dampen investor enthusiasm affecting market stability in the region.

Simultaneously, the US Dollar saw varied movements. The US Dollar Index (DXY), which tracks the currency against a basket of other major currencies, edged lower despite an environment of falling US Treasury yields and a generally hawkish outlook from the Federal Reserve. This shift in the DXY comes amid reassessments by the Fed regarding its monetary policy direction, influenced by persistent high US inflation rates and positive economic indicators.

Looking forward, all eyes are on the upcoming US Retail Sales data expected to be released on Monday. This report is crucial as it provides insights into consumer confidence and spending patterns, which are key indicators of the country’s economic health. Additionally, remarks from Federal Reserve officials scheduled for the same day are highly anticipated. These comments, often referred to as ‘Fedspeak,’ could provide further clues about the central bank’s future monetary policy moves.

Market analysts suggest that the Australian Dollar’s near-term trajectory will likely hinge on these developments. If the US data points towards a robust economic outlook, the Fed might lean towards tightening monetary policy, which could strengthen the US Dollar further and apply additional pressure on the AUD/USD exchange rate.

In summary, while the Australian Dollar has managed to recover slightly from recent lows, its path forward remains fraught with geopolitical and economic uncertainties that could influence its performance against the US Dollar in the coming days.

 

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China's

China’s March CPI Inflation Eases to 0.1%, Below 0.4% Forecast

China’s March CPI Inflation Eases to 0.1%, Below 0.4% Forecast

In March, China’s Consumer Price Index (CPI) experienced a marginal year-over-year increase of 0.1%, a notable deceleration from the 0.7% growth observed in February. This rise fell short of market predictions, which had anticipated a 0.4% increase. The slowdown in CPI growth is a significant deviation from the market’s expectations and signals a potential easing in consumer price pressures in the world’s second-largest economy.

Furthermore, on a month-over-month basis, Chinese CPI inflation saw a downturn, registering a 1.0% decline in March as compared to February’s 1.0% rise. This decrease was considerably steeper than the expected 0.5% fall, indicating a pronounced monthly deflation in consumer prices. This sudden drop contrasts sharply with the previous month’s inflationary trend and could be indicative of various underlying economic factors, including changes in consumer spending, government policies, or global economic conditions.

In addition to the CPI data, China’s Producer Price Index (PPI), which measures the average change in prices from the perspective of producers, reported a year-over-year fall of 2.8% in March. This figure aligns with the previously reported 2.7% decline and met market forecasts of a 2.8% decrease for the month. The continued drop in PPI suggests a sustained decrease in prices at the producer level, which could have implications for the broader economy, including impacts on industrial profits and investment decisions.

The reaction of financial markets to this Chinese inflation data has been relatively muted. The Australian dollar (AUD), often sensitive to economic developments in China due to the significant trading relationship between the two countries, showed little change in response to the data. The AUD/USD pair saw a modest increase of 0.05%, trading near 0.6510 following the release of the inflation figures. This restrained reaction suggests that investors may have already priced in expectations of a slowdown in Chinese inflation or are focused on other global economic factors.

This latest inflation data from China is important as it provides insights into the country’s economic health amidst various global challenges. The lower-than-expected CPI and consistent decrease in PPI could reflect broader economic trends such as reduced consumer demand, government policies aimed at stabilizing prices, or external factors like global supply chain disruptions and geopolitical tensions. Additionally, these figures may influence monetary policy decisions by the People’s Bank of China and could have wider implications for global markets, especially considering China’s significant role in the global economy.

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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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