EUR/USD is trading below 1.1000, losing its upside traction in the European session on Wednesday. The pair is holding steady, as the US Dollar finds its feet despite a sell-off in the US Treasury bond yields. Traders stay cautious ahead of the German inflation and US GDP data.
GBP/USD is falling back below 1.2700, extending its retreat from multi-month highs in European trading on Monday. The pair fails to find any inspiration from BoE Governor Bailey's hawkish comments, as the US Dollar looks to stabilize ahead of top-tier economic data and Fedspeak.
Gold price (XAU/USD) advanced to a near seven-month peak, around the $2,052 area on Wednesday, albeit trims a part of its intraday gains heading into the European session.
Bitcoin worth $1 billion has been withdrawn from exchanges in the last two weeks. The SEC asked for public feedback on Franklin Templeton’s Spot Bitcoin ETF, fueling anticipation of approval.
The Federal Statistical Office of Germany (Destatis) will release inflation data on Wednesday at 13:00 GMT. The annual German Consumer Price Index (CPI) is expected to rise 3.5% in November, down from the 3.8% increase reported in October.
Global economic growth is weakening and the cycle of interest rate hikes is at or about to peak in the Eurozone and the USA. We consider US government bonds to be attractively valued. In global equity markets, we expect only slight growth with increased volatility.
At the recent FOMC press conference, Fed Powell said that the economy has “been able to achieve pretty significant progress on inflation without seeing the kind of increase in unemployment that has been very typical of rate hiking cycles like this one”.
Despite the 525 bps of rate hikes that the Federal Open Market Committee (FOMC) has implemented since March 2022, the U.S. economy generally remains resilient due, in large part, to continued strength in consumer spending. Meanwhile, inflation has receded.
Gold price is flirting with a fresh six-month high of $2,052 reached earlier in the Asian session on Wednesday, extending its winning streak into the fifth straight day.
In the absence of top-tier US economic data so far this week, Gold price remained at the mercy of the Fedspeak and risk sentiment, which intensified the bearish momentum in the USD and US Treasury bond yields across the curve.
Gold price remains poised for further upside. However, a correction cannot be ruled out before a fresh advance kicks in.
The 14-day Relative Strength Index (RSI) indicator has entered into the overbought territory, justifying chances of a potential pullback in Gold price.
In such a case, immediate support is seen at the mid-September highs of 2,022, which was earlier an important resistance.
Solana price trading at $58 is presently attempting to breach through the resistance level marked at $59. A rally is possible, given that SOL is witnessing a resurgence in bullishness. Month to date, Solana has witnessed inflows worth $40.2 million.
THORChain (RUNE) price is pumping hard, recording a 15% addition to its market value on the day, alongside a 50% rise in trading volume. When price and trading volume rise in tandem, it often points to the asset gaining attention and therefore interest among buyers.
Solana was known as the “Ethereum killer” when it skyrocketed back in 2021; however, it did not manage to kill the DeFi home in any way. Similarly, many altcoins have since emerged that have been denoted as Solana killers, but hardly anyone has managed to do that.
Chainlink (LINK) v0.2 migration has gone live, with the upgrade introducing a staking platform that ensures stakers enjoy greater flexibility. It also delivers improved security guarantees, a modular architecture, and a dynamic rewards mechanism.
MULN stock loses another 7% on Tuesday, down 39% over past month. Mullen Automotive filed response with the Customs & Border Protection agency. Mullen ONE appears to be in the running for a federal contract alongside Rapid Response Defense Systems.
EUR/USD held ground in an uneventful week, ending it as it had started, at around the 1.0900 mark. The Thanksgiving holiday and a scarce macroeconomic calendar kept the pair within a limited range, although some encouraging data maintained the sentiment upbeat.
The Pound Sterling gathered further strength against the US Dollar this week, as GBP/USD renewed a two-month high just shy of the 1.2600 level. The pair remains exposed to further upside risks, in the face of a bullish technical setup on the daily chart, heading into a relatively data-light week.
Gold tested $2,000 for the second time this month but found it difficult to stabilize above this key level due to a lack of fundamental drivers and thin trading volumes in the second half of the week. XAU/USD’s stabilization above $2,000 could depend on a steady decline in the US Treasury bond yields.
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.
EUR/USD's 1.0961 target as reported September when EUR bottomed at 1.0400's achieved Tuesday as EUR/USD traded 1.0964. The trade +500 pips. GBP/USD target at 1.2661 reported September at GBP 1.2000's bottom traded to 1.2615 for +600 pips. Total +1100 pips.
Oil’s fortunes hinge on OPEC+ meeting outcome on Thursday. Eurozone flash inflation and US core PCE also due on Thursday. RBNZ to likely hold rates on Wednesday. Loonie faces GDP and employment tests in addition to OPEC+ decision.
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