Yesterday’s Market WrapYesterday we came from a bank holiday in the US, and a bearish period in the US since last Thursday after softer inflation read
Yesterday’s Market Wrap
Yesterday we came from a bank holiday in the US, and a bearish period in the US since last Thursday after softer inflation readings from the US. Risk sentiment was positive for several days as a result, although it started turning softer early yesterday after weaker services numbers from Europe and particularly from China, where Caixin services posted a considerable slowdown.
We also heard rumours about another monetary easing from the Chinese central banks PBOC, which sent risk assets lower. The FOMC minutes from the FED’s last meeting when they held rates unchanged had several members using for a hike, while a 25 bps hike for this month is a done deal. So, at the end of the day, the USD ended up looking bullish while everything else was retreating.
Today’s Market Expectations
Today we have several employment reports from the US, which will show the shape of the labour market. It starts with the ADP Non-Farm Employment Change which is expected to show a cool off to 226K in June from 278K in May.
Yesterday the volatility returned but it wasn’t enough for us to pull several trades, some of which we had opened from last week. At the end of the day we finished with three winning forex signals and two losing ones, most of which were USD/JPY trades. The Unemployment Claims are expected to show an increase while the JOLTS Job Openings are expected to fall below 10 million. US ISM services are also on the calendar, so the FED is watching.
GOLD Fails at MAs Again
Gold has been experiencing a bearish trend since early May, despite the decline in the value of the US dollar. This indicates a decrease in demand for the precious metal. Last week, on Wednesday, the price of gold fell below $1,900 but swiftly reversed its downward movement after the release of weak economic data from the US and the formation of a doji candlestick at the bottom. Earlier this week, the price rose above $1,930 but later reversed lower after buyers failed to break the 100 SMA.
XAU/USD – 240 minute chart
MAs Keeping USD/JPY Supported
Cryptocurrency Update
Will the 50 SMA Hold for BITCOIN?
BTC/USD – 240 minute chart
The Previous Highs Might Turn Into Support for ETHEREUM
By the middle of last month there was a notable surge in cryptocurrencies, with the ETH/USD pair rising above the $1,900 level. However, it failed to reach our predetermined take-profit target and subsequently began to retreat lower. Following a period of consolidation, the price started to decline. Initially, the 50-day Simple Moving Average (SMA) provided support, but it was eventually broken. Fortunately, the decline was halted by the 200-day SMA, acting as a support level.
ETH/USD – Daily chart
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