EUR/USD consolidates at three-week lows near 1.0800 Premium
EUR/USD bottomed at 1.0775, the lowest level since November 15, and then rebounded towards 1.0800. The US Dollar remains resilient in the market despite lower yields and mixed US data. On Wednesday, more job figures are due with the ADP report and Unit Labor Costs data, ahead of Friday's NFP.
GBP/USD holds to losses around 1.2600
GBP/USD dropped further on Tuesday, reaching a one-week low below 1.2600 amid a stronger US Dollar. The Greenback holds firm even as the US Treasury yield slides. More US jobs data is due on Wednesday with the ADP report.
Gold extends slide, more pressure seen under $2,010 Premium
Following Monday's decline, Gold struggled to stage a convincing rebound and retreated below $2,020 in the second half of the day on Tuesday. Although the benchmark 10-year US Treasury bond yield is down more than 1%, renewed USD strength doesn't allow XAU/USD to limit its losses.
Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX
Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders. The anticipation surrounding Spot Bitcoin ETF approvals is one of the key catalysts fueling the hype among BTC holders.
Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook
Nio (NIO) stock's initial 5% gain on Tuesday has transitioned to a 3% gain near $7.55. The Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago.
DEEPER DIVE
Three calls for commodity markets
Despite more recent weakness in the oil market, a tight balance in the second half of next year should see prices trade higher. Meanwhile, we expect Europe to end the 2023/24 winter with comfortable gas storage.
US could soon see 2% inflation
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”.
Annual outlook: Weathering the storm
Despite the 525 bps of rate hikes that the Federal Open Market Committee has implemented since March 2022, the U.S. economy generally remains resilient due, in large part, to continued strength in consumer spending.
FXS Signals
Technical Confluences Detector
XAU/USD extends slide, more pressure seen under $2,010 Premium
The recovery in Gold spot during the Asian session proved short-lived as it resumed its decline, despite mixed US economic data and a decrease in US Treasury yields. This indicates that bearish pressure on the yellow metal remains intact.
Data from the US revealed that the number of job openings on the last business day of October was 8.7 million, down from 9.35 million in September, falling below the market expectation of 9.3 million. The ISM Services PMI surpassed expectations, rising to 52.7 in November compared to the expected 52. These data points suggest a more balanced labor market. Initially, this triggered a retreat in the Greenback, but it resumed its upward movement even as Treasury yields turned downwards.
CRYPTOCURRENCIES
Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX
Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders.
There is a 25% probability of Solana flipping Ethereum: Santiago Santos
In a recent episode of the Empire podcast, Santiago Santos, former Partner at ParaFi Capital, shares his views on how Solana’s market capitalization could exceed Ethereum’s in the next market cycle.
Ripple transaction count exceeds 1.38 million, XRP price likely to extend gains
Ripple (XRP) remains a talking point among retail market participants that expect a settlement in the US Securities and Exchange Commission’s (SEC) lawsuit against the cross-border payment remittance firm.
Bitcoin price eyes $45,000 target ahead of BTC halving in April 2024
Bitcoin price crossed the $41,400 mark on Binance, in its ongoing uptrend, on December 5. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. There are more catalysts driving BTC price gains in the current cycle.
THE STOCK OF THE DAY
NIO shares advance 3% as electric SUV sales skyrocket
Nio (NIO) stock jumped more than 3% in Tuesday’s premarket after the Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago.
ECONOMIC CALENDAR
WEEKLY FORECAST
EUR/USD: Inflation eases, could employment data finally fit central banks' wishes? Premium
The EUR/USD pair started the week on a strong footing but lost momentum and is set to close the week in the red, well below the 1.0900 mark. Market participants mainly traded on sentiment, betting against the US Dollar.
GBP/USD: Pound Sterling remains ‘buy-the-dip’ trade Premium
The Pound Sterling extended its reigns over the United States Dollar (USD) this week, pushing GBP/USD to the highest level in three months above 1.2700. Traders brace for the US Nonfarm Payrolls (NFP) in the upcoming week, keeping the sentiment around GBP/USD underpinned.
Gold: XAU/USD looking at record highs and US jobs data Premium
Gold remains near record highs and achieved its highest monthly close ever in November. Global bond yields continue to decline as inflation further cools, supporting the upside in XAU/USD. With central banks expected to remain on hold, the focus will be US labor market data.
Analyzing potential $30k corrections ahead of BTC ETF approval
Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.
FX weekly — DXY and 14 currency pair levels and targets
EUR/AUD traded to 1.6303 target and a target first reported in August and September when EUR/AUD traded 1.7000's. EUR/NZD traded to 1.7508 lows from 1.8282. EUR/NZD achieved a 700 pip drop in 15 trade days while EUR/AUD trade duration was 15 weeks.
Week ahead – Nonfarm Payrolls enter the spotlight, RBA and BoC decide on policy
Investors looking to US NFPs for confirmation of their Fed rate cut bets. RBA could still signal that higher rates are possible. But BoC may confirm that interest rates have peaked in Canada. Japan’s Tokyo CPIs and employment numbers to impact BoJ speculation.
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