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2022-07-15 09:12:47 Bitcoin: miners sell, markets buy

Bitcoin rose 4.9% on Thursday, ending at around $20,700, and retreated 200 at the start of trading on Friday. Ethereum has added 7.3% in the past 24 hours to $1190. Top altcoins gained between 1.7% (Cardano) and 7% (Solana).

According to CoinMarketCap, the total crypto market cap is up 3% overnight to $925B.

Bitcoin was in demand in the US session on Thursday amid a rebound in US stock indices. BTC rose above the $20,000 level and tested three-day highs around $20,900.

Bitcoin’s hash rate fell 27% to 159.41 EH/s due to a shutdown of miners in Texas. The figure was the lowest since February this year. Miners shut down equipment to save power due to the record heat wave. Open / Comment

2022-07-14 11:57:09 It is to be expected that the market will push the yen down until the Japanese authorities resort to real action rather than words. And the scale of the latter has to be sufficient. It might be an active intervention on the forex market, abandonment of Quantitative and Qualitative Easing, a combination of both, or a public refusal to defend the exchange rate.

Either way, the coming weeks and possibly months will bring increased volatility in the yen, which market participants should be prepared for Open / Comment

2022-07-14 11:56:12 Either way, the 140 area in USDJPY looks like a potential area of turbulence where more volatility is expected. In previous weeks we have heard more verbal interventions from the Bank of Japan and the Ministry of Finance, as well as their joint statement (a rare event).

The new lows in the yen this week and its more than 1.4% fall since the start of the day on Thursday make it necessary to keep events around the Japanese currency on the periphery of attention so as not to miss a possible spike in volatility in one direction or the other.

The yen’s weakening is a legitimate market trend linked to interest rate differential dynamics. But the speculation that the BoJ will not change policy by moving to higher interest rates and that the Ministry of Finance will not be burning through foreign currency for interventions is now embedded in the quotations. Open / Comment

2022-07-14 11:55:34 Yen is entering the turbulence territory

Yesterday’s US inflation data spurred market expectations that the Fed will raise rates by 100 points at the end of July, although about a month ago, Powell called a 75-point increase abnormal.

The revision in expectations for monetary policy of the US central bank again highlighted the contrast with Japanese monetary policy and triggered a new momentum of yen weakness.

The USDJPY is already up to 139.20 at the time of writing, the highest since September 1998. But even then, almost 24 years ago, it was a turbulence zone, where the pair spent less than three months, making a quick reversal in the backdrop of a flaring financial crisis in Russia. Even earlier, in 1990, the USDJPY spent about half a year above 140, but then the dip below was a recovery of the long-term downward trend. Open / Comment

2022-07-14 10:50:02 Bitcoin’s sudden resilience to inflation
#Bitcoin rose 1.1% on Wednesday, ending the day around $19.7K, and was back above $20K on Thursday morning. Ethereum has added 4.3% to $1100 in the past 24 hours. Top altcoins are adding from a modest 0.1% (Dogecoin) to a more notable 3.7% (Solana).

Total crypto market capitalisation, according to ConMarketCap, rose 2.6% overnight to $896bn.

US inflation data came out stronger than expected yesterday, which triggered an impulsive wave of dollar appreciation and a sell-off in risky assets, sending Bitcoin briefly below $19K. However, it is essential to note that the first cryptocurrency found buyers quite quickly on the decline to these levels and has already more than recovered its losses. This is a notable moment, as crypto has often taken on the role of a leading indicator of market sentiment in recent months. Open / Comment

2022-07-14 10:22:01 #WaveAnalysis

#WTI reversed from support level 92.93
• Likely to rise to resistance level 97.00

WTI recently reversed up from the strong support level 92.93 (former monthly low from March and April), standing near the 50% Fibonacci correction of the upward impulse from December.

The upward reversal from the support level 92.93 stopped the previous minor impulse waves (iii) and 3 – which belong to wave (C) from June.

Given the still oversold daily Stochastic, WTI can be expected to rise further toward the next resistance level 97.00.

Trade responsibly at fxpro.com Open / Comment

2022-07-14 10:10:35 #WaveAnalysis

#EURGBP reversed from support level 0.8425

• Likely to rise to resistance level 0.85000

EURGBP today recently reversed up with the daily Hammer from the key support level 0.8425 (which has been reversing the pair from May), intersecting with the lower daily Bollinger Band and the 61.8% Fibonacci correction of the upward impulse from April.

The upward reversal from the support level 0.8425 stopped the previous minor downward impulse wave 1.

EURGBP can be expected to rise further toward the next resistance level 0.85000 (former monthly low from June).

Trade responsibly at fxpro.com Open / Comment

2022-07-13 17:04:39 Open / Comment

2022-07-13 16:44:49 Meanwhile, equities got a knock, with the Nasdaq index losing around 2% today and 3.9% from pre-release levels. Bitcoin has fallen below $19,000, returning to the lows of early July.

However, there is a sense that markets have jumped over their heads in their expectations from the Fed. Oil and industrial metals prices have been falling for about a month. The core inflation index, which does not include food and energy, has slowed for the past three months to 5.9% from a peak of 6.5% in March, although the monthly growth rate remains above the long-term average.

It would not be surprising if the Fed, after the 75-point rate hike at the end of July, were to reassure the markets that it would proceed more measuredly so as not to overcool the economy. Open / Comment

2022-07-13 16:44:34 Markets too spooked by US inflation

US consumer inflation hit a 41-year high and beat forecasts, reaching 9.1% y/y in June against 8.6% a month earlier and expected an increase to 8.8%. The data above expectations triggered a jump in the dollar and renewed pressure on risk-sensitive assets.

Speculation among traders increased that the Fed will have to do more than what is already priced in to catch up and suppress inflation. After the report, markets priced in two more 75-point rate hikes, while Powell called June’s hike “extraordinary”.

The initial market reaction triggered a retest of euro-dollar parity, but the single currency has so far managed to find demand at these levels. The same is true for other key currencies, which are running near local extremes against the dollar but successfully holding their ground. Open / Comment