Political turmoil, Bitcoin and the Dollar

Frank Walbaum

Important news for the day

Thu, 04th, 14:30 CET US Unemployment claims.

French politics

In France, much like South Korea, political turmoil continues as widespread protests and strikes persist over contentious government reforms. Public dissatisfaction with leadership decisions has fueled tensions, adding pressure to the administration amidst growing social unrest. The situation has been exacerbated by a lack of dialogue between the government and opposition groups, leading to a political deadlock. This ongoing unrest risks slowing economic recovery and undermining public trust in the nation's leadership.

Market talk

Risky assets remain in favour as general market momentum stays positive. The EUR and the GBP keep pushing to higher levels, whereas the AUD seemingly remains capped. Recent disappointing data might pave the way, here. Bitcoin had finally pushed beyond the USD 100k level with positive sentiment still in place. After such strong gains the odds of a bigger correction might be in play, soon. Similarly, XRP keeps pushing higher and might also offer some extended potential for a bigger correction.

Tendencies in the markets

Equities positive, USD mixed, cryptos positive, oil weaker, Silver positive, Gold sideways, JPY sideways.

Author

Frank Walbaum

AUD/USD consolidates above 0.7200 after hot Chinese CPI data

AUD/USD is extending its consolidative price action above 0.7200 during the Asian session on Wednesday, uninspired by hot Chinese CPI and PPI data. Meanwhile, rising RBA rate-hike bets act as a tailwind for the Aussie amid Yen-inspired US Dollar weakness. Traders await the release of US inflation figures later in the week for fresh impetus.

USD/JPY rises above 153.50 on renewed USD strength

USD/JPY shakes off the bearish pressure and trades above 153.50 in the American session on Wednesday. The US Dollar (USD) stages a rebound following the US Treasury buyback announcement and helps the pair gain traction. Nevertheless, solid Japanese data reinforce expectations that the BoJ will continue normalising monetary policy, lending further support to the Yen and capping the pair's upside for now.

Gold regains balance above $4,400

Gold rebounds on Wednesday, snapping a three-day losing streak and reclaiming the are beyond the key $4,400 mark per troy ounce. The precious metal’s bounce comes amid further selling pressure on the US Dollar and steady uncertainty on the geopolitical front.

XRP extends recovery as ETF inflows, futures interest stabilize

Ripple (XRP) ticks higher, trading at $1.42 on Wednesday while building on a recently confirmed support range between $1.30 and $1.35. The token also sits above major moving averages, reinforcing the bullish outlook. However, upside could remain capped unless the psychological barriers at $1.50 and $1.70 are cleared, paving the way for an extended recovery above $2.00.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.