Yesterday’s Market Wrap
Yesterday we had the US CPI (Consumer Price Index) inflation report which had a soft impact on the market. While core inflation, which excludes volatile food and energy prices, continues to rise, reaching 5.3% in May, the overall CPI report did not meet expectations falling to 4.0% in May from 4.9% in April. As a result, the US dollar (USD) weakened against most major currencies, but it strengthened around 100 pips against the Japanese yen (JPY).
This mixed reaction in the currency market reflects the uncertainty surrounding today’s decision by the Federal Reserve (FED). Market participants are unsure about the FED’s next steps, which creates a complex interplay of factors influencing the movement of the US dollar and other financial instruments.
Today’s Market Expectations
Earlier this morning the UK GDP report for April showed a return to growth after the economy contracted in the previous two months. Later in the US session we will have the last piece of data before the FOMC rate decision in the evening. The US producer headline PPI inflation is expected to cool off by -0.1%, but core PPI is expected to increase by 0.2%. Toward the end of the US session the FED will announce their decision, with expectations for a pause at 5.25% but they might hint at further hikes in the upcoming meetings, so we will have to follow the statement.
Yesterday the price action was slow in most forex pairs, apart from the JPYU and the GBP which saw some decent action. Gold tumbled lower once again, which triggered our take profit target in this asset and overall we had fpour winning signals in total without a losing trade.
GOLD Returning Back Down
XAU/USD – H4 chart
Buying AUD/USD at the 50 SMA
Cryptocurrency Update
BITCOIN Stagnating
BTC/USD – Daily chart
The 100 SMA Breaks in ETHEREUM
In recent weeks, the selling pressure for Ethereum has increased, resulting in a decline in its price over the past few days. It appears that the correction reached its completion point, as the 100-period Simple Moving Average (SMA) represented by the green line was holding as support for ETH/USD, but it was broken on Saturday and now sellers seem in control.
ETH/USD – Daily chart
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