Sentiment mixed agead of G7/Yellen speech

David Morrison Trade Nation

The major European stock indices turned lower in early trade this morning after a modestly firmer open. Traders were initially relaxed going into the open as US equities ended Friday little-moved. This was despite the US launching a missile attack on a Syrian airbase and after a surprisingly weak Non-Farm Payroll release. Over the weekend comments from Russia and Iran appeared to ratchet up tensions rather than calm them. Yet so far investors seem convinced that rising geopolitical tensions should have little negative effect on the global investment situation. In fact, the Japanese yen (which typically rallies on safe-haven demand when investor sentiment is unsettled) has fallen this morning. Not only that but precious metals, particularly silver, fell sharply on Friday evening and show no signs of recovering so far this morning.

As far as investors are concerned, nothing has changed to upset the ongoing bullish narrative. However, sentiment has a habit of changing rapidly and investors will be listening out for any unhelpful comments from today’s G7 meeting. Then later, US Federal Reserve Chair Janet Yellen is due to speak at the University of Michigan at 21:00 BST. Audience questions are expected.

Author

David Morrison

Trade Nation

Senior Market Analyst at Trade Nation since August 2019. David's role is to build value and growth through customer acquisition and retention via market commentaries, blogs and vlogs.

GBP/USD clings to gains; US CPI in focus

The British Pound holds onto two-day gains marginally at around 1.3500 against the US Dollar during the Asian trading session. The GBP/USD pair remains firm as the British Pound outperforms despite financial markets pricing out the possibility of an interest rate hike by the Bank of England in the near term.

EUR/USD flat lines near mid-1.1500s as traders await US CPI amid Iran uncertainty

The EUR/USD pair struggles to gain any meaningful traction, and holds steady around the 1.1545-1.1550 area during the Asian session. Traders seem hesitant to place aggressive bets and opt to wait for further developments surrounding the Middle East crisis and this week's release of the latest US inflation figures.

Gold stands firm above $4,400; inflation-driven Fed hike bets cap gains

Gold scales higher for the third consecutive day – also marking the fifth day of a positive move in the previous six – and climbs to its highest level since June 5, around the $4,435 area during the Asian session on Tuesday. Friday's weak US Nonfarm Payrolls report pointed to signs of a cooling labor market and forced investors to scale back their expectations for an immediate interest rate hike by the US Federal Reserve.

Bitcoin softens on institutional selling – CRV, ICP outperform

The broader cryptocurrency market shows mixed sentiment as Bitcoin (BTC) drops to $64,000 under institutional selling pressure. The Fear and Greed Index at 37, down from 40 the previous day, signals renewed bearish pressure. Meanwhile, Curve DAO (CRV) and Internet Computer (ICP) continue to extend their gains so far this week, emerging as top performers over the last 24 hours.

Dogecoin: Bullish divergence, whale accumulation support recovery hopes

Dogecoin shows early signs of a potential recovery, trading near $0.070 on Tuesday as bullish momentum divergence suggests selling pressure may be fading. In addition, whale accumulation and improving derivatives metrics suggest a bullish outlook, hinting at a potential recovery ahead.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.