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EUR/USD Drops Toward 1.1700 as US Dollar Strengthens

EUR/USD Drops Toward 1.1700 as US Dollar Strengthens; FOMC Minutes in Spotlight

The EUR/USD pair slid to around 1.1705 during Wednesday’s Asian session, weighed down by renewed strength in the US Dollar. The Euro came under pressure following fresh tariff threats from former US President Donald Trump, which unsettled global markets and added to investor caution. 

Trump reignited global trade concerns by proposing a 50% tariff on copper imports and hinted at possible duties on semiconductors and pharmaceuticals. While he mentioned that negotiations with both the European Union and China are progressing well, he also warned that a tariff notice to the EU could be issued within days. This uncertainty has dented risk sentiment, putting the Euro under additional stress. 

Attention now turns to the Federal Reserve’s meeting minutes, due later today. Market participants are hoping for more clarity on the Fed’s rate path, especially amid growing expectations of monetary easing. 

At its June meeting, the Fed held interest rates steady, maintaining the federal funds rate between 4.25% and 4.50%—a level unchanged since December. However, markets are now pricing in a total of 50 basis points in rate cuts by year-end, potentially beginning as early as October. 

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Australian Dollar Gains as Risk Sentiment Improves, RBA Decision in Focus

Australian Dollar Rises Amid Risk-On Sentiment, Focus Shifts to RBA Rate Decision

The Australian Dollar (AUD) continues its third straight session of gains against the US Dollar (USD) on Monday, following US President Donald Trump’s move to postpone the imposition of reciprocal tariffs. A weaker USD following disappointing US retail sales data has further supported the AUD/USD pair, reigniting speculation that the Federal Reserve (Fed) may cut interest rates later this year despite persistent inflation concerns.

Yet, the AUD’s gains could be capped before the Reserve Bank of Australia’s (RBA) policy announcement on Tuesday, as mounting speculation of a cut in interest rates deters sentiment. The RBA is widely expected to lower its Official Cash Rate (OCR) by 25 basis points (bps) to 4.10%, marking the first rate reduction in four years.

US Dollar Under Pressure Amid Lower Treasury Yields

The US Dollar Index (DXY) is down for the third consecutive session, bogged down by weaker US Treasury yields. At the time of writing, the DXY is trading around 106.70, with 2-year and 10-year Treasury bond yields at 4.26% and 4.47%, respectively.

Statistics released by the US Census Bureau on Friday indicated that US Retail Sales decreased 0.9% in January, a reversal from a revised 0.7% rise in December (earlier reported as 0.4%). The decrease was deeper than the market expectation of a 0.1% decline.

Conversely, Core PPI inflation in the US increased to 3.6% YoY in January, above expectations of 3.3%, though marginally less than the revised 3.7% (initially published as 3.5%). This has consolidated expectations that the Fed will push rate cuts until the second part of the year.

The US Consumer Price Index (CPI) rose 3.0% YoY in January, beating expectations of 2.9%, and core CPI (excluding food and energy) went up to 3.3% from 3.2%, beating expectations of 3.1%. On a month-on-month basis, headline inflation rose 0.5% in January compared to 0.4% in December, with core CPI rising to 0.4% from 0.2% in the same period.

Fed Officials Signal a Cautious Approach to Rate Cuts

In his semi-annual report to Congress, Fed Chair Jerome Powell stated that policymakers “do not need to be in a hurry” to cut interest rates, citing a strong labor market and robust economic growth. Powell also warned that Trump’s tariff policies could exert upward pressure on inflation, making it harder for the central bank to lower rates.

A Reuters poll of economists now indicates the Fed will wait until next quarter to cut rates, citing ongoing inflationary concerns. Although previously, some analysts anticipated a March rate cut; the majority now sees at least one rate cut by June, but opinions remain divided.

Federal Reserve Bank of Cleveland President Beth Hammack echoed this sentiment, saying that maintaining rates at current levels for a long time is probably the right thing to do. Hammack added that a patient strategy will enable the Fed to evaluate economic conditions before altering policy.

Australian Dollar Targets Upper Range Near 0.6400

The AUD/USD currency pair quotes at 0.6360 on Monday, with an uptrend in a rising channel formation. This is indicative of a bullish market inclination, which is also complemented by the 14-day Relative Strength Index (RSI) remaining above 50.

On the upside, the pair could test the upper boundary of the ascending channel at 0.6380, followed by the psychological level of 0.6400.

Major levels of support are the nine-day EMA at 0.6310, followed by the 14-day EMA at 0.6294. A fall below these levels may erode short-term momentum, possibly pulling the pair down to the lower boundary of the rising channel at 0.6270.

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Australian Dollar Declines as US Dollar Strengthens Ahead of Jobless Claims

Australian Dollar Declines as US Dollar Holds Gains Ahead of Jobless Claims

The Australian Dollar (AUD) fell against the US Dollar (USD) on Thursday as trade balance data came in below average than expected. Furthermore, risk-off sentiment, fueled by rising US-China trade tensions, weighs on the AUD/USD.

In December, Australia’s trade surplus fell to $5,085 million, falling short of the 7,000 million anticipated and down from $6,792 million the previous year. While exports increased by 1.1% month on month, this was a decrease from November’s 4.2% increase, while imports increased by 5.9% month on month, much more than the previous 1.4% gain.

US-China Trade Tensions Weigh on Australian Dollar

Investors are still focused on the current trade stagnation between the United States and China, Australia’s top trading partner. China replied to the United States’ new 10% tax, which went into force on Tuesday, causing global market concern. Regarding the situation, President Trump announced on Monday that he intends to engage with China within the next 24 hours. However, he cautioned that failure to achieve an agreement might result in “very, very substantial” tariffs.

Meanwhile, China’s Commerce Ministry imposed a 15% tax on US coal and liquefied natural gas (LNG) imports, as well as an additional 10% levy on crude oil, farm equipment, and some autos. As a countermeasure, China has implemented export limits on important minerals such as tungsten, tellurium, ruthenium, and molybdenum, citing national security concerns.

Amid escalating trade tensions, the Financial Times writes that Chinese firms are quickening preparations to relocate production overseas, mainly to the Middle East, in order to reduce tariff impacts. Some exporters are also considering passing on prices to US consumers or expanding into new markets.

US Dollar Holds Firm Amid Mixed Economic Data

The US Dollar Index (DXY), which tracks the greenback’s performance against a basket of six major currencies, remains stable near 107.50, putting further downward pressure on the AUD/USD. The dollar’s resiliency comes after a weaker-than-expected US Services PMI fell to 52.8 in January, below the market forecast of 54.3.

Investors now focus on Friday’s US Nonfarm Payrolls (NFP) data, a key economic indicator that could influence the Federal Reserve’s monetary policy stance.

The dollar fell on Wednesday, following a poor US Services PMI report. The ISM Services PMI fell to 52.8 in January from a revised 54.0 in December, missing the market forecast of 54.3. Looking ahead, traders are anticipating Friday’s US Nonfarm Payrolls (NFP) report, which could influence the Federal Reserve’s future policy moves.

Technical Outlook: AUD/USD Pulls Back From 0.6300, Eyes Key Support

The AUD/USD pair hovers near 0.6280 on Thursday, retreating from the 0.6300 level. However, sustained trading above the nine- and 14-day Exponential Moving Averages (EMAs) suggests short-term bullish momentum remains intact. The 14-day Relative Strength Index (RSI) is also holding above 50, reinforcing the bullish bias.

On the upside, the pair might target 0.6330, its seven-week high from January 24.

Immediate support comes from the nine-day EMA near 0.6254, followed by the 14-day EMA at 0.6249.

A breach below these levels might weaken the bullish structure, potentially sending the pair below 0.6087, its lowest level since April 2020, which was recorded on February 3.

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Australian Dollar Slips as US Tariffs on China Take Effect

Australian Dollar Slips as US Tariffs on China Take Effect

The Australian Dollar (AUD) falls for the seventh consecutive day as the US Dollar (USD) strengthens following President Donald Trump’s 10% tariff on Chinese imports. Market volatility remains high as investors monitor the continuing US-China trade talks. Trump signaled he may speak with Chinese officials within the next 24 hours, warning that if a deal isn’t reached, tariffs on China will be “very, very substantial.”

Trump also announced a 30-day tariff relief for Mexico and Canada after their nations agreed to send 10,000 troops to the US border to battle drug trafficking. This move follows the introduction of 25% tariffs on Mexican and Canadian goods just two days before.

Chinese Exporters Seek Alternatives

According to the Financial Times, Chinese manufacturers are speeding up plans to transfer production offshore in reaction to US tariffs. Some companies are considering relocating to regions such as the Middle East, while others are looking into passing costs on to US customers or entering new markets.

RBA Rate Cut Expectations Weigh on AUD

The AUD faces additional pressure amid growing expectations that the Reserve Bank of Australia (RBA) may cut rates in February. The RBA has maintained the Official Cash Rate (OCR) at 4.35% since November 2023, stressing that inflation must return to its 2%-3% target range before easing policy.

Analysts at Westpac continue to forecast 100 basis points of rate cuts in 2025, with the market pricing in a more conservative outlook. ANZ, CBA, Westpac, and National Australia Bank (NAB) all anticipate a 25-basis-point (bps) cut in February, with NAB recently revising its forecast forward from May.

US Dollar Strengthens Amid Economic Developments

The US Dollar Index (DXY) stabilizes around 108.70 after erasing gains from the previous session. Recent US economic data support the greenback, with ISM Manufacturing PMI rising to 50.9 in January from 49.3 in December, exceeding expectations of 49.8.

Inflation indicators remain in focus as the Fed’s preferred measure, the Personal Consumption Expenditures (PCE) Price Index, rose 0.3% MoM in December, up from 0.1% in November. Annual PCE inflation increased to 2.6%, while core PCE held steady at 2.8% YoY for the third straight month.

Jerome Powell, Chairman of the Federal Reserve, highlighted that further policy adjustments would be required if there was clear evidence of inflation advance or labor market weakness. Separately, Treasury Secretary Scott Bessent recently argued for new uniform taxes on US imports, beginning at 2.5% and progressively increasing—a departure from his previous stance that tariffs cause inflation.

Australian Dollar Technical Analysis

AUD/USD trades around 0.6210 on Tuesday, remaining within a descending channel pattern on the daily chart, signaling a bearish bias. However, the 14-day Relative Strength Index (RSI) is recovering toward the 50 level, suggesting weakening downside momentum. A breakout above the channel, combined with an RSI move above 50, could indicate a shift toward a bullish outlook.

On the downside, the pair may test the descending channel’s lower boundary near 0.6150. A break below this level could drive AUD/USD toward 0.6087, its lowest point since April 2020.

AUD/USD is currently testing its initial resistance, the nine-day Exponential Moving Average (EMA) of 0.6225, which aligns with the channel’s upper limit. A decisive move over this level could fuel bullish optimism.

 

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Japanese Yen Maintains Strong Bullish Momentum

Japanese Yen Maintains Strong Bullish Momentum; USD/JPY Struggles Below 154.50

The Japanese Yen (JPY) continues to strengthen in early European trading on Thursday, pushing USD/JPY further below 154.50 and closer to its one-month low from earlier this week. Market expectations that the Bank of Japan (BoJ) will hike interest rates again by year-end continue to support the JPY. Additionally, a fresh decline in US Treasury bond yields, narrowing the US-Japan yield differential, has further boosted demand for the lower-yielding Yen.

However, concerns over the potential economic impact of US President Donald Trump’s trade policies may limit aggressive JPY buying. Meanwhile, the Federal Reserve’s (Fed) hawkish pause on Wednesday has bolstered the US Dollar (USD), which could provide some support to the USD/JPY pair. Traders are now looking ahead to the European Central Bank (ECB) meeting, which may increase market volatility and drive further demand for the safe-haven Yen. Additionally, the Advance US Q4 GDP report could introduce short-term trading opportunities.

JPY Gains on Hawkish BoJ Sentiment Amid Market Uncertainty

  • Minutes from the BoJ’s December meeting, released Wednesday, indicated discussions on using neutral interest rate estimates to guide future rate hikes.
  • Former BoJ board member Makoto Sakurai stated on Tuesday that steady rate increases remain feasible due to rising wages, sustained inflation, and strong economic growth.
  • The Federal Reserve, as expected, held rates steady after its two-day meeting and signaled no immediate plans for rate cuts.
  • Fed Chair Jerome Powell emphasized a patient stance, stating there is no urgency to adjust policy and reaffirming that rates will stay elevated amid concerns over Trump’s trade policies, which could fuel inflation.
  • The 10-year US Treasury yield has struggled to sustain gains post-FOMC due to uncertainty surrounding the Trump administration’s economic policies.
  • Reports from Asahi newspaper indicate that Japan’s Prime Minister Shigeru Ishiba is finalizing plans for a February 7 meeting with US President Donald Trump in Washington.
  • The ECB’s policy decision later today is expected to introduce further volatility, alongside the Advance US Q4 GDP print.

USD/JPY at Risk of Retesting Monthly Lows Near 153.70

The USD/JPY pair faced renewed selling pressure near the 156.00 level, breaking below the key 155.00 psychological mark, confirming a multi-month ascending channel breakdown. Momentum indicators on the daily chart suggest continued downside movement, making a retest of the 153.70 region—a multi-week low touched on Monday—a strong possibility.

Key resistance levels for a rebound:

  • 155.00 round figure
  • 155.35-155.40 region
  • 156.00 psychological level

Any recovery attempt is likely to face selling pressure near these levels. A sustained break above 156.25 could trigger short-covering, potentially lifting USD/JPY toward 156.70-156.75, with further resistance at 157.00 and 157.60.

For now, the bias remains bearish, with further losses expected if the pair stays below 154.00. Traders will closely watch US data and global central bank policy updates for the next directional move.

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Gold Price Retreats from Multi-Month High Amid USD Recovery

Gold Price Retreats from Multi-Month High Amid USD Recovery

Gold price (XAU/USD) faces selling pressure at the beginning of the week, pulling back from its highest level since late October, near the $2,786 mark touched on Friday. The US Dollar (USD) has staged a modest recovery following its worst weekly performance since November 2023, which has weighed on the precious metal. However, the broader market dynamics remain supportive of a bullish outlook, suggesting potential dip-buying opportunities at lower price levels.

Market Sentiment Dampened by Trade Tensions and Fed Speculation

Risk sentiment has deteriorated due to US President Donald Trump’s recent decision to impose tariffs on all imports from Colombia, reigniting fears of a trade war. Additionally, expectations that the Federal Reserve (Fed) may cut interest rates twice by year-end, combined with a flight to safe-haven assets, have triggered a fresh decline in US Treasury bond yields. This decline could limit aggressive gains in the USD, potentially cushioning the downside for gold, a non-yielding asset.

Gold Under Pressure from USD Recovery, but Downside Remains Limited

The US Dollar Index (DXY), which tracks the USD against a basket of currencies, rose nearly 0.25% on Monday, driven by revived concerns over US trade policies. President Trump ordered 25% emergency tariffs on all Colombian imports following the country’s refusal to accept deported migrants from the US, with a threat to raise tariffs to 50% next week. Moreover, reports suggest that Trump’s advisors are considering imposing 25% tariffs on Mexico and Canada starting February 1.

In a recent update, the White House confirmed that Colombia has agreed to Trump’s demands, including the unrestricted acceptance of deported individuals. Meanwhile, Trump has reiterated his call for immediate interest rate cuts, fueling speculation of further easing by the Federal Reserve in 2025. The resulting decline in US Treasury yields may act as a headwind for the USD, potentially limiting the extent of gold’s pullback.

Traders Eye Economic Data for Further Clues

Market participants will turn their focus to key US economic data, including Durable Goods Orders, the Conference Board’s Consumer Confidence Index, and the Richmond Manufacturing Index, for fresh impetus during the US trading session.

Gold Price Outlook: Support and Resistance Levels

Gold’s recent decline may attract dip-buying near the $2,736 support zone, as the technical setup remains bullish. Any further slide below the $2,750-2,748 range could find solid support near $2,736, with additional key levels at $2,725-2,720. A break below $2,720 could trigger technical selling, pushing prices toward the $2,665-2,662 zone.

On the upside, a sustained move above the $2,772-2,773 resistance could open the door for a retest of the recent peak near $2,786. Further buying momentum beyond the $2,800 psychological level could signal a renewed bullish phase, extending the upward trend

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Gold Price Holds Defensive Below Multi-Month High Amid Risk-On Sentiment

Gold Price Remains Defensive Below Multi-Month High Amid Risk-On Sentiment

Gold price (XAU/USD) came under selling pressure during the Asian session on Thursday, retreating from the multi-month high of $2,763–$2,764 touched the previous day. This decline halts a three-day winning streak. The US Dollar (USD) gained some strength from its recovery off a monthly low, supported by a rebound in US Treasury bond yields, and the upbeat sentiment in equity markets further dampened demand for the safe-haven metal.

Signs of easing inflation in the US have fueled expectations that the Federal Reserve (Fed) might cut interest rates twice this year, creating a potential headwind for US bond yields and the USD. However, ongoing uncertainty surrounding President Donald Trump’s tariff plans, which could increase trade tensions and market volatility, may help limit the downside for gold prices. Traders may remain cautious and wait for sustained selling pressure to confirm that the one-month uptrend has ended.

Risk-On Mood and Modest USD Rebound Cap Gold Gains

The USD steadied above its recent lows amid recovering Treasury yields, adding pressure to gold prices. In addition, easing geopolitical tensions and a lack of concrete details regarding Trump’s tariff policies have maintained a risk-on sentiment, further undermining gold’s appeal.

While Trump’s proposed tariff policies are considered inflationary, which could prompt the Fed to maintain a hawkish stance, markets are still pricing in at least two Fed rate cuts this year. This outlook may limit the upside for US bond yields and the USD, potentially supporting gold in the near term.

Investors are eyeing Trump’s speech at the World Economic Forum for more clarity on tariffs, alongside the release of US Weekly Jobless Claims, which could influence XAU/USD prices. Upcoming central bank rate decisions, including the Bank of Japan’s meeting on Friday and next week’s announcements from the Fed and the European Central Bank, could inject volatility into the market and impact gold prices.

Gold Price Technical Analysis

Key Support Levels:

  • Immediate support is seen near the $2,725–$2,720 zone, a former resistance-turned-support level.
  • Further declines could target the $2,700 mark, with a decisive break paving the way for a move toward the $2,665–$2,662 region.
  • The $2,627–$2,622 confluence, which includes the 100-day EMA and a short-term ascending trendline, will act as a critical pivot point for short-term traders.

Key Resistance Levels:

  • The recent high near $2,763–$2,764 offers the first resistance level.
  • A break above this zone could see gold prices challenge the all-time high around $2,790, reached in October.
  • The $2,800 mark is the next significant resistance, and a break above it would signal a continuation of the well-established uptrend over the past month.

Outlook:

Gold prices remain influenced by risk sentiment, central bank policy expectations, and USD movements. While near-term bearish factors may limit gains, uncertainty around US tariff policies and inflation trends could provide support, making any dips near key technical levels potential opportunities for dip-buying. Traders will remain focused on upcoming economic data and central bank decisions for further direction.

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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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WTI Declines to $71.50 as Stronger US Dollar Pressures Oil Prices

WTI Declines to $71.50 as Stronger US Dollar Pressures Oil Prices

WTI Declines to $71.50 as Stronger US Dollar Pressures Oil Prices

West Texas Intermediate (WTI) crude oil is trading around $71.45 on Thursday, edging lower due to the rise in the US Dollar (USD) following Republican candidate Donald Trump’s win in the U.S. presidential election. The stronger USD has put downward pressure on USD-denominated commodities, including WTI.

The US Dollar Index (DXY), which tracks the dollar against a basket of major currencies, climbed to its highest level since July, reaching 105.44 before a slight retreat to 105.20. This robust dollar strength has contributed to the dip in oil prices, as it makes oil more expensive for holders of other currencies.

Despite this, Trump’s potential policies may create bullish conditions for oil in the longer term. With renewed sanctions on oil-producing countries like Iran and Venezuela on the table, global supply could tighten, potentially driving up WTI prices. As Goldman Sachs commodities analysts noted, “The impact of a potential second Trump term on oil prices is ambiguous, with some short-term downside risk to Iran oil supply … and thus upside price risk.”

Adding to market concerns, the Energy Information Administration (EIA) reported a larger-than-expected rise in U.S. crude inventories. Crude stockpiles increased by 2.149 million barrels for the week ending November 1, surpassing the expected rise of 1.8 million barrels and contrasting with the previous week’s decline of 0.515 million barrels. This increase in supply could put additional pressure on WTI in the near term.

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WTI Crude Stays Above $69 Amid Supply Worries Over Russia-Ukraine Conflict

WTI Drops Near $67.50 as Middle East Risk Premium Eases

WTI Drops Near $67.50 as Middle East Risk Premium Eases

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $67.55 on Tuesday, with prices falling as concerns over a major Middle Eastern conflict diminish. This decline follows Israel’s recent military strikes on Iran’s installations, which avoided oil or nuclear sites, signaling limited impact on global crude supply. Iran’s state media reported stable oil production, easing fears of significant supply disruptions.

WTI is also under pressure from a weakening demand outlook and China’s economic slowdown. Data from China’s National Bureau of Statistics over the weekend revealed a 27.1% year-over-year decline in industrial profits for September, marking the steepest drop since the pandemic. Additionally, the International Energy Agency (IEA) forecasts that oil demand growth will slow considerably in 2024 and 2025, largely due to a projected decrease in Chinese consumption.

Investors now await the upcoming US economic indicators, including Wednesday’s flash GDP data for Q3, which is projected to show a 3% expansion, and Friday’s Nonfarm Payrolls report. Strong results could strengthen the US Dollar, putting further downward pressure on USD-denominated WTI prices.

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WTI Oil Price Stays Around $77.30 Amid Potential

WTI Oil Rebounds to $71.50 Amid Rising Supply Concerns

WTI Oil Rebounds to $71.50 Amid Rising Supply Concerns

West Texas Intermediate (WTI) Oil has rebounded from recent losses, trading around $71.60 per barrel during Thursday’s Asian session. This recovery is largely driven by concerns over potential supply disruptions due to the ongoing conflict in the Middle East. Tensions in the region continue to influence investor sentiment, with fears of supply chain interruptions helping to buoy crude oil prices.

On Wednesday, Israeli strikes targeted southern Beirut, while US Secretary of State Antony Blinken toured the region, advocating for a ceasefire in Gaza and Lebanon. Meanwhile, Iran-backed Hezbollah intensified its attacks on Israel, deploying “precision missiles” and new drone types aimed at Israeli targets. According to Reuters, Hezbollah also claimed responsibility for striking an Israeli military factory near Tel Aviv.

Despite these geopolitical tensions, oil prices were under pressure earlier in the week following a larger-than-expected build in US crude oil inventories. The US Energy Information Administration (EIA) reported an increase of 5.474 million barrels in oil stockpiles, pushing total inventories to 426 million barrels for the week ending October 18. This was significantly higher than the anticipated rise of 0.7 million barrels and was attributed to increased imports and a surprise uptick in gasoline inventories after refineries resumed production post-maintenance.

At the same time, the US Dollar Index (DXY), which measures the greenback’s performance against six major currencies, surged to its highest level since late July, reaching 104.57 on Wednesday. The stronger USD tends to dampen demand for dollar-denominated commodities like oil, adding further pressure to prices.

Meanwhile, signs of economic resilience and rising inflation have lowered expectations of a substantial rate cut by the Federal Reserve in November. Higher interest rates could increase borrowing costs, potentially slowing the US economy—the world’s largest oil consumer—and reducing demand for oil.

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WTI Crude Oil Holds Modest Losses Above $70, Bearish Bias Persists

WTI Crude Oil Holds Modest Losses Above $70, Bearish Bias Persists

WTI Crude Oil Holds Modest Losses Above $70, Bearish Bias Persists

West Texas Intermediate (WTI) crude oil prices struggle to maintain momentum after a modest rebound from the $69.25 region, a two-week low. During Wednesday’s Asian session, WTI is trading around $70.25, down by 0.30% for the day, and appears vulnerable to further declines.

Despite concerns over potential escalation in the Middle East, reports that Israel will avoid striking Iranian nuclear and oil facilities have alleviated fears of a significant supply disruption. Additionally, China’s oil imports fell for the fifth consecutive month, raising concerns about weakening demand from the world’s largest oil importer. OPEC’s recent decision to lower its global oil demand growth forecast for 2024 and 2025 further reinforces the bearish outlook for crude prices.

At the same time, the US Dollar (USD) remains near its highest level since August 8, driven by expectations of a less aggressive policy easing by the Federal Reserve (Fed). The market anticipates a 25 basis point interest rate cut in November. A stronger dollar typically weighs on demand for USD-denominated commodities, supporting the view that WTI may extend its decline from the recent $78.00 high reached last week.

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WTI Crude Drops Near $74 After China Inflation Data Release

WTI Crude Drops Near $74 After China Inflation Data

WTI Crude Drops Near $74 After China Inflation Data

West Texas Intermediate (WTI) oil prices extended losses for a second consecutive session on Monday, falling to around $74.10 per barrel during Asian trading hours. The decline of over 1% comes in the wake of weaker-than-expected inflation data from China for September, which was released on Sunday.

China’s National Bureau of Statistics reported that the monthly Consumer Price Index (CPI) remained flat at 0% in September, down from a 0.4% rise in August. On an annual basis, inflation rose by only 0.4%, falling short of the 0.6% increase forecasted. Additionally, the Producer Price Index (PPI) dropped by 2.8% year-on-year, a steeper decline than the 1.8% fall in August, and worse than the expected 2.5% decrease.

Crude oil prices are also feeling the impact of uncertainty surrounding potential economic stimulus in China, as concerns grow about demand in the world’s largest oil-importing nation. However, following a briefing on Saturday by China’s Ministry of Finance, the National People’s Congress expressed some optimism. The ministry announced plans to issue special bonds to support bank recapitalization and stabilize the struggling real estate sector, though no concrete details were provided.

While weaker economic data in China is weighing on oil prices, the downside may be limited due to escalating tensions in the Middle East. On Friday, the US expanded sanctions on Iran’s petroleum and petrochemical sectors in response to an Iranian missile strike on Israel, according to Reuters.

Further intensifying the situation, Hezbollah claimed responsibility for a drone attack on north-central Israel on Sunday, killing at least four Israeli soldiers and injuring over 60 others, per CNN. This marks one of the bloodiest incidents in Israel since the conflict began last October, adding to the geopolitical risk premium that could support oil prices.

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Gold Price Holds Gains as USD Strength Limits Upside Ahead of US PPI Data

WTI Holds Steady Around $75, Poised for Second Consecutive Weekly Gain

WTI Holds Steady Around $75, Poised for Second Consecutive Weekly Gain

West Texas Intermediate (WTI) crude oil prices remain flat around the $75 per barrel mark during the Asian session on Friday, struggling to build on the previous day’s gains. Despite this pause, WTI is still on track to register its second straight weekly increase.

Concerns over a potential Israeli strike on Iranian oil infrastructure continue to elevate geopolitical risks, providing support to oil prices. Earlier this week, Israeli Defense Minister Yoav Gallant warned that any attack on Iran would be “lethal, precise, and surprising,” keeping a risk premium priced into the market. In addition, fears of supply disruptions from Hurricane Milton in the U.S. and an optimistic demand outlook contribute to oil’s resilience.

Investor sentiment has been buoyed by hopes that China’s extensive stimulus measures will help revive the world’s second-largest economy, boosting fuel demand in the largest oil-importing nation. Furthermore, expectations that the Federal Reserve (Fed) will continue to cut interest rates have sparked optimism that this will fuel economic growth and, in turn, increase demand for crude oil.

However, stronger-than-expected U.S. inflation data has raised concerns about how aggressively the Fed will lower rates, which limits oil’s upside potential. Additionally, the U.S. dollar’s recent rally—propelled by reduced expectations of aggressive Fed policy easing—acts as a headwind for crude oil, as a stronger dollar makes oil more expensive for holders of other currencies.

Despite these factors, WTI remains on course to log another weekly gain. However, caution is warranted after a sharp pullback from the $78 level earlier this week, which was a near two-month high. This suggests some uncertainty about whether the recovery from September’s year-to-date low will continue.

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WTI Rises Above $76.50 Amid Concerns Over Middle East Oil Production Disruptions

WTI Rises Above $76.50 Amid Concerns Over Middle East Oil Production Disruptions

WTI Rises Above $76.50 Amid Concerns Over Middle East Oil Production Disruptions

West Texas Intermediate (WTI), the US crude oil benchmark, is trading near $76.85 on Thursday, continuing its upward momentum as geopolitical tensions in the Middle East intensify. Concerns are growing that Israel may launch an attack on Iran’s oil infrastructure, escalating fears of supply disruptions.

The surge in oil prices follows speculation that Israel may target Iran’s oil industry in retaliation for a ballistic missile strike. Iran-backed Hezbollah also launched rockets toward Haifa, Israel’s third-largest city, on Monday. According to Reuters, Israel is expected to increase ground incursions into southern Lebanon on the first anniversary of the Gaza war, raising fears of a broader conflict in the region.

Analysts at Tudor, Pickering, Holt & Co. noted, “There is growing concern that the conflict may continue to escalate, not only putting Iran’s 3.4 million barrels per day of oil production at risk but also causing further disruptions to regional supply.”

While sluggish demand from China and disappointing global economic data have weighed on oil markets this year, investors are closely monitoring China’s response. After a week-long holiday, China’s top economic planning body is expected to announce new policy measures on Tuesday. Any lack of significant stimulus or a smaller-than-expected package could disappoint the markets and apply downward pressure on WTI prices.

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EUR/USD Falls Near 1.0800 Ahead of Key Eurozone and German GDP Data

EUR/USD Falls Near 1.0800 Ahead of Key Eurozone and German GDP Data

EUR/USD slipped on Wednesday, trading around 1.0810 in the Asian session after two days of gains. The Euro faces downward pressure amid expectations that the European Central Bank (ECB) may cut its Deposit Facility Rate again. Current market predictions indicate a nearly 50% probability of a 50 basis-point rate cut in the ECB’s December meeting.

Investors are awaiting preliminary GDP data from Germany and the Eurozone, alongside Germany’s Harmonized Index of Consumer Prices (HICP) report, scheduled for release on Wednesday. Attention will also turn to the preliminary U.S. Q3 GDP figures and October’s ADP Employment Change, set to release later that day.

ECB policymakers recently expressed mixed views on rate adjustments. Pierre Wunsch, Governor of the National Bank of Belgium, suggested there’s no urgent need for accelerated rate cuts, allowing room for more moderate measures. In contrast, Mario Centeno, Governor of the Bank of Portugal, views a 50 basis-point cut as a viable option for December.

EUR/USD’s decline also reflects the strengthening U.S. Dollar, bolstered by rising Treasury yields. The U.S. Dollar Index (DXY), which tracks the Dollar against six major currencies, is around 104.30, with 2-year and 10-year U.S. Treasury yields at 4.09% and 4.24%, respectively.

The pair could face additional pressure as the U.S. presidential election draws near. A recent Reuters/Ipsos poll showed a tight race, with Democratic candidate Vice President Kamala Harris holding a slim 1-point lead over Republican nominee Donald Trump, polling at 44% against Trump’s 43%.

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EUR/USD Slips Below 1.0550 Amid Awaited ECB Lagarde Speech and US PMI Data

EUR/USD Price Analysis: Holding Above 1.0800, Testing the Descending Channel’s Upper Boundary

EUR/USD Price Analysis: Holding Above 1.0800, Testing the Descending Channel’s Upper Boundary

The EUR/USD pair has eased back from its recent gains, trading near 1.0810 in the Asian session on Tuesday. On the daily chart, the pair is currently testing the upper boundary of the descending channel, hinting at a potential reinforcement of a bearish trend.

The 14-day Relative Strength Index (RSI), a key momentum indicator, is hovering slightly above 30. Should the RSI dip below this level, it would indicate an oversold state, suggesting a possible upward correction for the EUR/USD in the near term.

Further indicating bearish momentum, the nine-day Exponential Moving Average (EMA) remains below the 14-day EMA. This setup aligns with ongoing downward price pressure and reflects weaker short-term momentum.

On the downside, the pair finds immediate support near the psychologically significant 1.0800 level, aligning with the upper boundary of the descending channel. If the price reenters this channel, it could prompt a further decline toward the 1.0600 level.

A drop below 1.0600 could amplify selling pressure, potentially driving the pair down to the lower boundary of the descending channel around 1.0680.

For resistance, the EUR/USD pair faces an initial hurdle at the nine-day EMA around 1.0826, followed by the 14-day EMA at 1.0855. A breakout above these levels might see the pair move toward the 1.0900 mark.

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EUR/USD Eases Near

EUR/USD Steady Below 1.0800 Amid Speculation of a Less Dovish Fed Stance

EUR/USD Steady Below 1.0800 Amid Speculation of a Less Dovish Fed Stance

The EUR/USD pair remains stable around 1.0790 during Monday’s Asian trading hours, following previous session losses. However, it could face resistance from a strengthening U.S. Dollar (USD) as recent positive U.S. economic data fuels expectations for a potentially less dovish Federal Reserve (Fed) stance in November.

On Friday, the U.S. Michigan Consumer Sentiment Index showed an increase to 70.5 in October from 68.9, exceeding the forecast of 69.0. Meanwhile, Durable Goods Orders fell by 0.8% month-over-month in September—less than the anticipated 1.0% decline, suggesting resilient consumer demand.

Rising geopolitical tensions in the Middle East could be enhancing the safe-haven appeal of the USD. Over the weekend, Israel conducted a targeted attack on Iran’s missile and air defense sites, reportedly in coordination with Washington. The restrained action, however, was narrower in scope than many had anticipated.

The USD’s strength is also supported by political uncertainty as the U.S. approaches its presidential election. Recently, former President Donald Trump’s allies encountered multiple court losses in key battleground states, potentially impacting the November 5 election outcome.

In Europe, European Central Bank (ECB) Governing Council member Klaas Knot emphasized the need for “keeping all options open” to manage risks to growth and inflation. Knot noted, “Retaining full optionality would serve as a hedge against risks impacting the growth and inflation outlook,” adding that the ECB’s meeting-by-meeting, data-driven approach has proven effective thus far, according to Reuters.

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USD/CAD Holds Near One-Week Low

USD/CAD Nears Two-Month Highs at 1.3850 as Traders Turn Cautious Before US Election

USD/CAD Nears Two-Month Highs at 1.3850 as Traders Turn Cautious Before US Election

The USD/CAD pair holds steady with two consecutive days of gains, trading around 1.3850 in Friday’s Asian session. This level sits close to Thursday’s two-month high of 1.3868. The US Dollar’s strength underpins the pair’s resilience, fueled by growing expectations that the Federal Reserve may adopt a less aggressive stance on interest rate cuts.

Speculation surrounding the US presidential election in November is also boosting the Dollar, with former President Donald Trump gaining attention. His inflation-focused policies, including higher tariffs and tax cuts, are thought to be adding upward pressure on the Greenback.

During a rally in Las Vegas on Thursday, Trump emphasized his administration’s commitment to economic growth for all Americans, including African American, Hispanic, and Asian American communities, as reported by Reuters. Meanwhile, in Georgia, Vice President Kamala Harris held a rally with the support of prominent figures, including Bruce Springsteen, Tyler Perry, and former President Barack Obama, drawing thousands in the battleground state.

The Canadian Dollar (CAD), sensitive to commodity prices, is facing pressure as crude oil prices decline. Canada, the largest oil exporter to the US, is affected by West Texas Intermediate (WTI) crude’s drop, currently marking its third consecutive day of losses and trading around $70.20 per barrel.

Traders are watching for Canada’s Retail Sales data, due later in the North American session, and Bank of Canada (BoC) Governor Tiff Macklem’s speech at the IMF meeting, which could provide further insights into Canada’s economic outlook.

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

EUR/USD Rebounds from Multi-Month Low, Eyes 1.0800 Ahead of Flash PMIs

EUR/USD Rebounds from Multi-Month Low, Eyes 1.0800 Ahead of Flash PMIs

The EUR/USD pair is showing signs of recovery during Thursday’s Asian session, breaking a three-day losing streak that saw it hit its lowest level since early July, near the 1.0760 region. Spot prices have edged closer to the 1.0800 level in recent hours, buoyed by a slight pullback in the US Dollar (USD). However, bullish traders should exercise caution due to underlying market conditions.

A retreat in US Treasury yields from a three-month high has led to some profit-taking on the USD, following its recent rally to levels last seen in late July. Still, the expectation that the Federal Reserve (Fed) may implement only modest rate cuts, coupled with investor caution ahead of the November 5 US Presidential election, could provide support for the USD as a safe-haven currency. Additionally, dovish signals from the European Central Bank (ECB) are likely to limit any significant upward movement for the EUR/USD pair.

Eurozone inflation fell to 1.7% in September, dipping below the ECB’s 2% target for the first time since June 2021. This reinforces the ECB’s view that inflationary pressures are easing and supports the likelihood of further policy easing. On Wednesday, ECB official Mario Centeno noted that downside risks are prominent for both growth and inflation, hinting that a 50 basis point rate cut in December is under consideration. Similarly, ECB’s Bostjan Vasle highlighted data suggesting potential delays in the expected recovery in growth.

Given these factors, traders may be hesitant to make aggressive bullish moves on the euro, keeping any upside for the EUR/USD in check. The focus now shifts to the upcoming flash PMI releases from the Eurozone and the US, which could offer fresh insights into global economic health and shape market sentiment. In the meantime, movements in US bond yields will also play a key role in driving USD fluctuations. Despite the current uptick, the broader fundamental outlook suggests that the EUR/USD may face downward pressure.

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GBP/USD Tests 1.3000, Faces Challenges Amid BoE Dovish Outlook

GBP/USD Tests 1.3000, Faces Challenges Amid BoE Dovish Outlook

GBP/USD Tests 1.3000, Faces Challenges Amid BoE Dovish Outlook

The GBP/USD pair moved closer to the 1.3000 mark during Wednesday’s Asian session, though the British Pound (GBP) encountered resistance due to weaker UK economic data. Falling consumer and producer inflation, alongside disappointing labor market figures, have raised market expectations that the Bank of England (BoE) might cut interest rates by 25 basis points in November, with another quarter-point reduction anticipated in December.

On Tuesday, BoE Governor Andrew Bailey stressed the need for the central bank to improve oversight of the opaque non-banking financial sector. Speaking at a Bloomberg event in New York, Bailey stated, “We are nearing a shift from rule-making to surveillance” to better monitor financial activities outside traditional banking.

Additionally, BoE Deputy Governor Sarah Breeden is set to participate in a panel discussion on financial regulation hosted by the Institute of International Finance (IIF) in Washington on Wednesday.

Meanwhile, the US Dollar (USD) strengthened as US Treasury yields rose, driven by the growing likelihood of interest rate cuts by the Federal Reserve (Fed). The US Dollar Index (DXY), which measures the USD against six major currencies, is hovering near a two-month high at 104.20. Yields on 2-year and 10-year US Treasury bonds have also climbed, sitting at 4.05% and 4.23%, respectively.

In a recent post on social media platform X, Mary Daly, President of the Federal Reserve Bank of San Francisco, noted that the US economy is in a stronger position, with inflation cooling and the labor market stabilizing.

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EUR/USD Oscillates Above 1.0800, Bearish Risks Remain

EUR/USD Oscillates Above 1.0800, Bearish Risks Remain

EUR/USD Oscillates Above 1.0800, Bearish Risks Remain

The EUR/USD pair is currently in a bearish consolidation phase during Tuesday’s Asian session, fluctuating around the 1.0820 mark, just above its lowest level since early August, which was reached the day before. The short-term outlook remains skewed toward bearish sentiment, indicating that the pair may still trend lower.

On Monday, data showed that Germany, the Eurozone’s largest economy, experienced a drop in producer prices for the first time in seven months in September, with the annual deflation rate accelerating. This fueled expectations of additional monetary easing from the European Central Bank (ECB). ECB policymaker Gediminas Simkus hinted that further interest rate cuts could be necessary if inflation continues to fall, which could weigh on the Euro. Combined with a stronger US Dollar, this supports a bearish outlook for EUR/USD.

The US Dollar Index (DXY), which measures the USD against a basket of other currencies, is holding near its highest level since early August. This strength is bolstered by the belief that the Federal Reserve will implement modest interest rate cuts. Additionally, concerns over increased deficit spending after the November 5 US presidential election have driven US Treasury yields to a nearly three-month high. Ongoing geopolitical risks are also supporting the safe-haven dollar, adding to the downward pressure on EUR/USD.

With no significant economic data scheduled for release from the Eurozone on Tuesday, attention will shift to the US Richmond Manufacturing Index and a speech by Philadelphia Fed President Patrick Harker, which could impact USD price movements. Despite these events, the broader fundamentals suggest that any short-term recovery in EUR/USD could be viewed as a selling opportunity, with limited upside potential.

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Bank of Japan Stance

Japanese Yen Weakens Amid Dovish Bank of Japan Stance

Japanese Yen Weakens Amid Dovish Bank of Japan Stance

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

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

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

Japanese Yen Weakens Following BoJ’s Uchida Remarks

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

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

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

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

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

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

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Gold Price Trades with Modest Losses

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

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

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

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

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Gold Price Stabilizes Amid Firm Fed Rate

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

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

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

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

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

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

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

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

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Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

Yen Weakens as Dollar Gains Amid Risk-Off Sentiment

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

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

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

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

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

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

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Australian Dollar Rises on Hawkish RBA Sentiment

Australian Dollar Rises on Hawkish RBA Sentiment

Australian Dollar Rises on Hawkish RBA Sentiment

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

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

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

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

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

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Gold Price Hits Multi-Day High

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

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

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

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

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

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

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

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

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Australian Dollar Drops on Weak Manufacturing PMI

Australian Dollar Drops on Weak Manufacturing PMI

Australian Dollar Drops on Weak Manufacturing PMI

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

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

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

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

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US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

US Yields Boost Dollar, Weaken Yen

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

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

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

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

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

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

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

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

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

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Cryptocurrency Move Back to Support the Pack to Level

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

Cryptos Market: Bitcoin Shows Bullish Momentum Over Dollar Strength

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

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

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

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

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

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

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

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

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Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

Ethereum Rate Hits at Higher Level More Profitable Than Bitcoin Mining

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

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

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

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

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

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

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

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Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

Cryptocurrency Bitcoin Shows the Bullish Divergence on User Count

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

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

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

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

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

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

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

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

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

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

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

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

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