The Markets Are Getting Ready for NFP. Volatility on the Rise. Macroeconomic conditions continue to improve and the Fed is getting ready to slow the pace of the interest rate hikes, allowing risk assets to take a breath of fresh air. In a recent appearance, Fed Chair Jerome Powell hinted that the Federal Reserve will […]
Weekly Round-Up: Inflation, Non-Farm Payrolls, and More. The greenback is trading at multi-month lows, weighted by speculation that the Fed is preparing to slow the pace of its rate hikes, as shown by last week’s FOMC minutes release. After an initial climb above the resistance at 1.0350, the market exhibited range-bound conditions and started to […]
Bitcoin Continues the Grind. Where Are the Bulls? Earlier in the week, major cryptocurrencies and altcoins surged as the FOMC minutes revealed that the pace of rate increases is about to slow down. The document revealed that “slowing in the pace of increase would likely soon be appropriate”. As soon as risk assets caught wind […]
Dollar Boosted by Safe-Haven Demand. As inflation in the U.S. seemed to cool off, the greenback retreated and allowed its major counterparts to rally, weakening the long-term downtrend. Increased demand for safe-haven assets may put an end to the said rallies, as Covid-related fears emerge from China. The rising numbers of Covid cases in China […]
Fresh Breakout or the Downtrend’s Swan Song? Approximately 1 year ago, El Salvador decided to make Bitcoin legal tender but the value of the country’s holdings has dwindled ever since. Following the demise of the FTX exchange, Bitcoin dropped below $16K for the first time since November 2020; roughly one week later, it is trading […]
Euro Bulls Run Into Heavy Resistance The U.S. CPI finally dropped below expectations last week and the US Dollar was quick to answer, allowing most of its counterparts to gain control. On Thursday the US Dollar Index (DXY) dropped from a high of 110.99 to a daily low of 107.71 and Friday it reached a […]
CPI Below Forecast. Is the Fed’s Plan Working? Bitcoin traded below $16,000 for the first time since November 2020, following the demise of the FTX exchange and its native FTT token. The drop started Tuesday, November 8, after Binance announced that it will acquire FTX, to address a “liquidity crunch”. In an interesting turn […]
EUR/USD Below Parity Again but Bottoming Signs Are in Place Last week the Fed added another 75 bps to the interest rate and Chairman Powell suggested that the tight monetary policy will continue for some time. The Non-Farm Payrolls report showed mixed data: the economy added 261K new jobs but the unemployment rate rose from […]
Crypto Is Not Scared by Powell. Altcoins Surge. As widely expected, the Fed decided to add 75 bps to the interest rate, while Chair Powell emphasized the continued need for a tight monetary policy. This suggests that the pace of the rate hikes will not slow down, at least for the next FOMC meeting. EUR/USD […]
EUR/USD Edges Higher Following ECB Rate Hike Central banks are pumping percentage points into their respective interest rates and it looks like they are not going to stop until deflationary signs emerge. Last week the ECB added 75 bps to the interest rate, bringing it up to 2.00%, while the US Dollar is gearing up […]