The price of Bitcoin continued the freefall started more than a week ago. The decline started after the hard fork of Bitcoin Cash on Thursday 15 this month. This forking led to many cryptocurrencies’ investors to lose hope on the industry because of the dilution factor. As a result, the market valuation of Bitcoin has dropped to $64 billion. This is a sharp decline from the YTD valuation high of more than $300 billion. The total market capitalization of cryptocurrencies tracked by Coin Market Cap has dropped by more than $100 billion to $122 billion.
The price of crude oil dropped slightly after yesterday’s relief rally. The drop came after Donald Trump talked to the Wall Street Journal (WSJ) about his upcoming meetings at the G20. In the interview, he said that he was little optimistic about his meeting with China’s Xi. Traders were hopeful that the meeting will provide an opportunity for the two biggest economies to make a truce. Such a truce would help change the current business climate and improve the economic growth in the coming year. Analysts are banking on the weakness of the US stock market to force the US president to make a deal.
After dropping yesterday, the USD/JPY started another upward rally overnight. This was a continuation of a rally that started on November 20, when the pair reached 112.30. Overnight, the Bank of Japan released the corporate services index, which rose by 1.3%. This was higher than the consensus estimate of 1.2% and the previous month’s 1.1%. The index measures the change in the prices of services offered by companies such as consultancies. It is an important measure of inflation. Later today, its movement will likely be caused by the US consumer confidence data.
After falling yesterday, the EUR/USD pair was little moved overnight. The pair is trading at 1.1335, which is along the 20-day EMA. It is also close to the 50% Fibonacci Retracement level. The RSI has remained at 45, which is a neutral level. This means that the pair could move in either direction today depending on the US, France and Italy consumer confidence numbers.
USD/JPY
The USD/JPY pair resumed the upward trend and reached an intraday high of 113.53. Its price is along the 15-day EMA and above the 30-day EMA. The RSI has eased from yesterday’s high of 80 to the current 15. The pair will likely cross the resistance level of 113.65 and continue the upward trend. If it does, it will likely test the important resistance level of 114.
XTI/USD
The XTI/USD pair eased from yesterday’s rally and resumed the downward trend. This is a strong trend that started on October 3. The pair’s price is below the 30, 50, and 100-day EMAs as shown below. The RSI has moved from below 27 to the current 37, while the Bears power strength has eased a bit. The pair will likely continue the downward trend. If it does, it will likely move below 50. However, the coming OPEC and G20 meetings could reverse the downward trend.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.