#MarketNews
THE US STOCK MARKET IS IN A VULNERABLE POSITION
The daily chart of futures for the S&P 500 index shows that the price has risen above the upper line (1) of the bearish channel and has been trying to gain a foothold there for several days.
However, in the past (in this version of the channel construction), there were several false bullish breakouts, when the price could not keep the progress made and fell back into the channel. How will it be this time?
Notorious Wall Street bear Michael Burry (the movie "The Big Short” is based on his story) tweeted yesterday: "You have no idea how short I am."
That is, he believes in a pessimistic scenario.
A Conference Board survey of CEOs of large companies showed that 85% of respondents believe in a moderate recession in the US over the next 12 months. 68% believe in a deep recession in Europe.
JPMorgan advises to cut longs in stocks as the risk of recession in the US has not gone away. And the Fed is hinting that it is impossible to beat inflation without a recession.
Yesterday's news about industrial production in the US gave a signal that increased the likelihood of a recession — it unexpectedly declined. The capacity utilization is also falling.
Given the above, the resistance of 4000 for futures on the S&P 500 index acquires not only a psychological, but also a fundamental basis. So far, it has not been broken through, and this may be a sign that heralds a new bearish reversal.
To take advantage of trends in the stock markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
THE US STOCK MARKET IS IN A VULNERABLE POSITION
The daily chart of futures for the S&P 500 index shows that the price has risen above the upper line (1) of the bearish channel and has been trying to gain a foothold there for several days.
However, in the past (in this version of the channel construction), there were several false bullish breakouts, when the price could not keep the progress made and fell back into the channel. How will it be this time?
Notorious Wall Street bear Michael Burry (the movie "The Big Short” is based on his story) tweeted yesterday: "You have no idea how short I am."
That is, he believes in a pessimistic scenario.
A Conference Board survey of CEOs of large companies showed that 85% of respondents believe in a moderate recession in the US over the next 12 months. 68% believe in a deep recession in Europe.
JPMorgan advises to cut longs in stocks as the risk of recession in the US has not gone away. And the Fed is hinting that it is impossible to beat inflation without a recession.
Yesterday's news about industrial production in the US gave a signal that increased the likelihood of a recession — it unexpectedly declined. The capacity utilization is also falling.
Given the above, the resistance of 4000 for futures on the S&P 500 index acquires not only a psychological, but also a fundamental basis. So far, it has not been broken through, and this may be a sign that heralds a new bearish reversal.
To take advantage of trends in the stock markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews
BABA SHARES ON THE RISE DESPITE MIXED REPORT
According to the latest report, Alibaba's revenue was below expectations. But earnings per share increased and amounted to $1.82 ($1.65 was expected).
As a result, the price of BABA rose and overcame the psychological level of $80. In general, Chinese stocks seem to be gaining attractiveness again on the back of positive talks from Xi and Biden, as well as the announced visit of Sullivan to Beijing in January 2023.
Also note that BABA shares have found support where (1) it was active back in 2015-2016. It is possible that from this level the stock price may enter a stable growing trend.
According to the average forecast (2) of Wall Street analysts, the price of BABA could reach $133.29 in a year.
To take advantage of trends in the stock markets of different countries, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
BABA SHARES ON THE RISE DESPITE MIXED REPORT
According to the latest report, Alibaba's revenue was below expectations. But earnings per share increased and amounted to $1.82 ($1.65 was expected).
As a result, the price of BABA rose and overcame the psychological level of $80. In general, Chinese stocks seem to be gaining attractiveness again on the back of positive talks from Xi and Biden, as well as the announced visit of Sullivan to Beijing in January 2023.
Also note that BABA shares have found support where (1) it was active back in 2015-2016. It is possible that from this level the stock price may enter a stable growing trend.
According to the average forecast (2) of Wall Street analysts, the price of BABA could reach $133.29 in a year.
To take advantage of trends in the stock markets of different countries, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Cryptocurrency
BUKELE DECIDES TO BUY BITCOIN A DAY. IS IT REASONABLE?
The President of El Salvador (the country that has allowed the circulation of bitcoin as an official means of payment) Nayib Bukele said that he would buy 1 bitcoin for the state treasury every day.
How reasonable is this? In terms of investment, there are 2 strategies:
→ accumulate cash, and buy an asset large on downturns;
→ gradually and evenly accumulate an asset.
Each of the strategies has its drawbacks. But Bukele went the second way. Analysis on the Dow Jones stock market index shows that gradually investing in the shares of successful companies, over the long term, the result is no worse than if you buy big near the bottom.
The main thing is that bitcoin should turn out to be the same stable growing asset as the Dow Jones stock index (up +14,000% since 1950). Pay attention to the chart. At the end of 2013, 2017, 2021, there was a hype associated with the rise in the price of bitcoin, and its opponents argued that the cryptocurrency is a bubble.
In 2015 and 2019, opponents argued that the cryptocurrency market was dead. Similar depressive moods are on the rise now, and they may continue into 2023. However, let's say if in 2024-2025 we see a new rally that reaches the upper line of the trajectory indicated on the chart, then this will mean a six-figure price of bitcoins. A reason for celebrations in El Salvador.
To invest in cryptocurrencies without the risk of losing money from bankruptcy and hacking of crypto exchanges, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
BUKELE DECIDES TO BUY BITCOIN A DAY. IS IT REASONABLE?
The President of El Salvador (the country that has allowed the circulation of bitcoin as an official means of payment) Nayib Bukele said that he would buy 1 bitcoin for the state treasury every day.
How reasonable is this? In terms of investment, there are 2 strategies:
→ accumulate cash, and buy an asset large on downturns;
→ gradually and evenly accumulate an asset.
Each of the strategies has its drawbacks. But Bukele went the second way. Analysis on the Dow Jones stock market index shows that gradually investing in the shares of successful companies, over the long term, the result is no worse than if you buy big near the bottom.
The main thing is that bitcoin should turn out to be the same stable growing asset as the Dow Jones stock index (up +14,000% since 1950). Pay attention to the chart. At the end of 2013, 2017, 2021, there was a hype associated with the rise in the price of bitcoin, and its opponents argued that the cryptocurrency is a bubble.
In 2015 and 2019, opponents argued that the cryptocurrency market was dead. Similar depressive moods are on the rise now, and they may continue into 2023. However, let's say if in 2024-2025 we see a new rally that reaches the upper line of the trajectory indicated on the chart, then this will mean a six-figure price of bitcoins. A reason for celebrations in El Salvador.
To invest in cryptocurrencies without the risk of losing money from bankruptcy and hacking of crypto exchanges, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
Watch FXOpen's November 14 - 18 Weekly Market Wrap Video
On FXOpen Market News,
FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports. You can also find text versions of the news reports at our Internet resources.
https://youtu.be/CVtasE8dM4Q
On FXOpen Market News,
FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports. You can also find text versions of the news reports at our Internet resources.
https://youtu.be/CVtasE8dM4Q
YouTube
FXOpen Weekly Market Wrap With Gary Thomson: US RECESSION, EUR/USD, GBPUSD, INFLATION IN UK
Watch FXOpen's November 14 - 18 Weekly Market Wrap Video
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- US may avoid recession whereas Europe may plunge deeper
- EUR/USD rallies…
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- US may avoid recession whereas Europe may plunge deeper
- EUR/USD rallies…
Trading Hours Schedule for 2022 Thanksgiving Day
Dear Traders,
Please be aware of the trading schedule changes for the 2022 Thanksgiving Day, November 24-25
Please consider this information when planning your trading
https://fxopen.com/en/news/trading-hours-schedule-for-2022-thanksgiving-day/
Dear Traders,
Please be aware of the trading schedule changes for the 2022 Thanksgiving Day, November 24-25
Please consider this information when planning your trading
https://fxopen.com/en/news/trading-hours-schedule-for-2022-thanksgiving-day/
#MarketNews
WHAT TO INVEST IN IN A BEAR MARKET
Despite the rally that began in October, the stock market looks bearish as the S&P-500 has lost about 16% since the start of the year.
Businessinsider collected the opinions of star billionaires:
→ Jeff Bezos: The economy is slowing down, there are layoffs in many sectors. If we are not in a recession right now, we are likely to be in one very soon.
→ Elon Musk: The economic outlook looks rather bleak. Probably, we are waiting for 1-2 years of a serious recession.
→ Charlie Munger: The Fed is ready to go into a slight recession to prevent runaway inflation.
What to invest in during the bear market, in anticipation of a recession? Let’s pay attention to the shares of the sector, where stable demand remains. By the way, the other day it became known that the Bridgewater fund increased its positions in the shares of the health care company Johnson & Johnson, as well as the shares of consumer goods manufacturers.
To invest in the XLP fund, which reflects the dynamics of the shares of the main consumer goods sector (for example, Coca Cola), consider enlisting the services of a reliable broker like FXOpen. As the chart shows, the XLP is stronger than the broad S&P-500.
Happy investments and have a great week!
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
WHAT TO INVEST IN IN A BEAR MARKET
Despite the rally that began in October, the stock market looks bearish as the S&P-500 has lost about 16% since the start of the year.
Businessinsider collected the opinions of star billionaires:
→ Jeff Bezos: The economy is slowing down, there are layoffs in many sectors. If we are not in a recession right now, we are likely to be in one very soon.
→ Elon Musk: The economic outlook looks rather bleak. Probably, we are waiting for 1-2 years of a serious recession.
→ Charlie Munger: The Fed is ready to go into a slight recession to prevent runaway inflation.
What to invest in during the bear market, in anticipation of a recession? Let’s pay attention to the shares of the sector, where stable demand remains. By the way, the other day it became known that the Bridgewater fund increased its positions in the shares of the health care company Johnson & Johnson, as well as the shares of consumer goods manufacturers.
To invest in the XLP fund, which reflects the dynamics of the shares of the main consumer goods sector (for example, Coca Cola), consider enlisting the services of a reliable broker like FXOpen. As the chart shows, the XLP is stronger than the broad S&P-500.
Happy investments and have a great week!
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Cryptocurrency
CRYPTO FUND GRAYSCALE COULD BE THE NEXT BIG BANKRUPT
It all started with a report on the CoinDesk website that revealed the presence of billions of dollars of illiquid FTT tokens on the balance sheet of Alameda, a fund that is closely associated with the FTX exchange.
The founder of Binance sold $500 million worth of FTT tokens and justified this decision with risk management reasons. At the time, it was not clear whether Alameda's problems would affect FTX in any way, but investors immediately panicked about the stability of the exchange, which led to a liquidity crisis and the bankruptcy of FTX and Alameda.
Alameda Research was one of the biggest hedge funds. According to the bankruptcy filing, its assets at the end of September amounted to $13.46 billion. This is about the same as the assets managed by Bill Ackman, Paul Tudor Jones or Jeffrey Talpins.
It is known that the FTX crypto exchange owes more than $3 billion to the largest creditors.
Against the backdrop of the collapse of FTX, crypto exchanges rushed to prove their worth. Binance reported that its internal stabilization fund SAFU was increased to 1 billion.
Although according to Bank of America, evidence of reserves from crypto exchanges has too many flaws to inspire confidence.
But not all crypto giants are looking to prove their resilience. For example, the Grayscale fund (assets reached $50 billion in 2021) refuses to provide evidence of the presence of reserves, since, in its opinion, this harms the security of its clients.
As a result, rumors even spread that Grayscale may become the next bankrupt after FTX. Then BTCUSD broke through the support around $18k. It is reasonable to assume that the community is afraid of new drops in the price of bitcoin and therefore react with alarm to such news.
In the meantime, BTCUSD is dropping towards support at 15800. In the event of a bearish breakdown, it could start to act as resistance, as it did (1) at 18100.
To take advantage of the rise and fall of crypto prices, consider enlisting the services of a reliable broker like FXOpen whose clients are not exposed to the risks of hacks and bankruptcies of crypto exchanges.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
CRYPTO FUND GRAYSCALE COULD BE THE NEXT BIG BANKRUPT
It all started with a report on the CoinDesk website that revealed the presence of billions of dollars of illiquid FTT tokens on the balance sheet of Alameda, a fund that is closely associated with the FTX exchange.
The founder of Binance sold $500 million worth of FTT tokens and justified this decision with risk management reasons. At the time, it was not clear whether Alameda's problems would affect FTX in any way, but investors immediately panicked about the stability of the exchange, which led to a liquidity crisis and the bankruptcy of FTX and Alameda.
Alameda Research was one of the biggest hedge funds. According to the bankruptcy filing, its assets at the end of September amounted to $13.46 billion. This is about the same as the assets managed by Bill Ackman, Paul Tudor Jones or Jeffrey Talpins.
It is known that the FTX crypto exchange owes more than $3 billion to the largest creditors.
Against the backdrop of the collapse of FTX, crypto exchanges rushed to prove their worth. Binance reported that its internal stabilization fund SAFU was increased to 1 billion.
Although according to Bank of America, evidence of reserves from crypto exchanges has too many flaws to inspire confidence.
But not all crypto giants are looking to prove their resilience. For example, the Grayscale fund (assets reached $50 billion in 2021) refuses to provide evidence of the presence of reserves, since, in its opinion, this harms the security of its clients.
As a result, rumors even spread that Grayscale may become the next bankrupt after FTX. Then BTCUSD broke through the support around $18k. It is reasonable to assume that the community is afraid of new drops in the price of bitcoin and therefore react with alarm to such news.
In the meantime, BTCUSD is dropping towards support at 15800. In the event of a bearish breakdown, it could start to act as resistance, as it did (1) at 18100.
To take advantage of the rise and fall of crypto prices, consider enlisting the services of a reliable broker like FXOpen whose clients are not exposed to the risks of hacks and bankruptcies of crypto exchanges.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
😱1
#MarketNews
COVID OUTBREAK IN CHINA, OIL FINDS SUPPORT
China reported 26,824 new cases on Sunday, approaching the country's daily peak in April. On Monday, Beijing authorities said they were taking measures to combat the virus in the capital, closing businesses and schools in hard-hit areas and tightening entry rules into the city.
Guangzhou (with a population of nearly 19 million)’s Baiyun, its most populous area, has been placed under a five-day lockdown. The work of public catering outlets, nightclubs and theaters has also been suspended.
Against the backdrop of concerns about the impact of COVID on the second economy in the world, the dollar index is strengthening. Also, the spread of COVID causes a decrease in oil prices. We assumed a bearish breakout of the support line (1) in our November 9 post, since then the price has declined by about 10%.
However, there was a powerful bullish reversal last night. From a technical point of view, this is justified by touching the median line (2) of the current downstream channel. Demand has shown its strength (as one might expect), and this should slow down the decline in oil prices.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
COVID OUTBREAK IN CHINA, OIL FINDS SUPPORT
China reported 26,824 new cases on Sunday, approaching the country's daily peak in April. On Monday, Beijing authorities said they were taking measures to combat the virus in the capital, closing businesses and schools in hard-hit areas and tightening entry rules into the city.
Guangzhou (with a population of nearly 19 million)’s Baiyun, its most populous area, has been placed under a five-day lockdown. The work of public catering outlets, nightclubs and theaters has also been suspended.
Against the backdrop of concerns about the impact of COVID on the second economy in the world, the dollar index is strengthening. Also, the spread of COVID causes a decrease in oil prices. We assumed a bearish breakout of the support line (1) in our November 9 post, since then the price has declined by about 10%.
However, there was a powerful bullish reversal last night. From a technical point of view, this is justified by touching the median line (2) of the current downstream channel. Demand has shown its strength (as one might expect), and this should slow down the decline in oil prices.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Cryptocurrency
BITCOIN HITS NEW YEAR LOW AMID RUMORS OF ANOTHER HIGH-PROFILE BANKRUPTCY
What will be the next high-profile bankruptcy after FTX?
Various versions pointed to the Crypto.com exchange, the Grayscale fund. A new “candidate” that has become known is Genesis Global Trading. It is a cryptocurrency trading, lending and custody platform aimed at institutional clients and high net worth individuals. By the way, Genesis, like Grayscale, belongs to the Digital Currency Group, whose assets for the fall of 2021 were estimated at $50 billion.
According to media reports, Genesis is experiencing liquidity problems due to the massive withdrawal of funds by customers agitated by the collapse of FTX. Genesis Global Trading is known for:
→ giving loans to the bankrupt Alameda fund secured by the FTT token;
→ warning of possible bankruptcy, hired investment bank Moelis & Company to study this scenario;
→ contacting Binance and Apollo Capital for funding.
Against the backdrop of news about the problems with Genesis, the bitcoin rate fell on Tuesday to the level of 15,500 per coin, a new low for 2022. Will the minimum be the last one this year?
So far, the BTCUSD market is moving in a pronounced bearish channel. It is possible that the price of bitcoin will reach its lower limit (1), especially if the rumors about the bankruptcy of Genesis become a reality.
To take advantage of the rise and fall of cryptocurrencies, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
BITCOIN HITS NEW YEAR LOW AMID RUMORS OF ANOTHER HIGH-PROFILE BANKRUPTCY
What will be the next high-profile bankruptcy after FTX?
Various versions pointed to the Crypto.com exchange, the Grayscale fund. A new “candidate” that has become known is Genesis Global Trading. It is a cryptocurrency trading, lending and custody platform aimed at institutional clients and high net worth individuals. By the way, Genesis, like Grayscale, belongs to the Digital Currency Group, whose assets for the fall of 2021 were estimated at $50 billion.
According to media reports, Genesis is experiencing liquidity problems due to the massive withdrawal of funds by customers agitated by the collapse of FTX. Genesis Global Trading is known for:
→ giving loans to the bankrupt Alameda fund secured by the FTT token;
→ warning of possible bankruptcy, hired investment bank Moelis & Company to study this scenario;
→ contacting Binance and Apollo Capital for funding.
Against the backdrop of news about the problems with Genesis, the bitcoin rate fell on Tuesday to the level of 15,500 per coin, a new low for 2022. Will the minimum be the last one this year?
So far, the BTCUSD market is moving in a pronounced bearish channel. It is possible that the price of bitcoin will reach its lower limit (1), especially if the rumors about the bankruptcy of Genesis become a reality.
To take advantage of the rise and fall of cryptocurrencies, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
#MarketNews
NZD AT 3-MONTH HIGHS
The Reserve Bank of New Zealand raised interest rates by 75 basis points to 4.25% on Wednesday morning. This is almost a 14-year high.
The bank noted that a further increase is likely as attempts are made to contain stubbornly high inflation. The interest rate is expected to peak at 5.5% in September 2023.
The New Zealand dollar jumped to a three-month high near the 0.6200 resistance level. Will NZDUSD continue to rise?
In the event of a bullish breakout of the 0.62 resistance, NZD could almost immediately face new resistance from the (1) upper line of the descending channel. Considering that the increase was about 10% for the month, the momentum may already be exhausted. In such situations, it makes sense to track the formation of divergences on the chart.
Note that today, an update from the Fed is expected.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
NZD AT 3-MONTH HIGHS
The Reserve Bank of New Zealand raised interest rates by 75 basis points to 4.25% on Wednesday morning. This is almost a 14-year high.
The bank noted that a further increase is likely as attempts are made to contain stubbornly high inflation. The interest rate is expected to peak at 5.5% in September 2023.
The New Zealand dollar jumped to a three-month high near the 0.6200 resistance level. Will NZDUSD continue to rise?
In the event of a bullish breakout of the 0.62 resistance, NZD could almost immediately face new resistance from the (1) upper line of the descending channel. Considering that the increase was about 10% for the month, the momentum may already be exhausted. In such situations, it makes sense to track the formation of divergences on the chart.
Note that today, an update from the Fed is expected.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Gold
WHY IS GOLD GOING UP?
Yesterday, the minutes of the Fed meeting were published, which gave grounds to assume the easing of monetary policy. As a result, the dollar index fell in price, shares rose in value, as well as gold.
Speaking of gold, it is worth noting that:
- The media reports that China is the most active in buying gold in 50 years, perhaps in order to reduce dependence on the US dollar;
- according to COT reports, hedge funds are predominantly long positions in gold, although previously they were shorts.
The chart shows that the price tested (1) the former $1720 resistance level yesterday. This indicates the presence of demand, and therefore, the likelihood of a rise in price of gold to $ 1,800 per ounce is growing.
Today is a federal holiday in the US, which means that today and tomorrow activity in the financial markets will be below average.
To take advantage of trends in the markets of gold, stocks and other financial assets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
WHY IS GOLD GOING UP?
Yesterday, the minutes of the Fed meeting were published, which gave grounds to assume the easing of monetary policy. As a result, the dollar index fell in price, shares rose in value, as well as gold.
Speaking of gold, it is worth noting that:
- The media reports that China is the most active in buying gold in 50 years, perhaps in order to reduce dependence on the US dollar;
- according to COT reports, hedge funds are predominantly long positions in gold, although previously they were shorts.
The chart shows that the price tested (1) the former $1720 resistance level yesterday. This indicates the presence of demand, and therefore, the likelihood of a rise in price of gold to $ 1,800 per ounce is growing.
Today is a federal holiday in the US, which means that today and tomorrow activity in the financial markets will be below average.
To take advantage of trends in the markets of gold, stocks and other financial assets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews
TOKYO INFLATION HIGHEST SINCE 1982
Inflation in Tokyo has surpassed forecasts. Prices rose 3.6% in November, with food among the main drivers.
The continued rise in core inflation casts doubt on BoJ Governor Haruhiko Kuroda's view that current cost-push inflation is temporary and that continued stimulus is needed to keep the economy stable. However, economists generally agree with Kuroda that Japan's inflation will ease in 2023, although opinions differ on the scale.
This means that the Bank of Japan is likely to stick to its floor interest rates until April 2023, when Kuroda's powers end. Recall, the Bank of Japan maintains ultra low interest rates, while the Fed and the ECB and others are constantly raising them.
This led to a significant weakening of the yen in 2022. USDJPY even surpassed the 150 level in October. However, the weakening of the dollar index in November caused USDJPY to drop to the 140 area. Testing (1) of the 142 level indicates the presence of supply in the market, which so far has support from the line (2) of the long-term trend. It is likely that in the coming days we will see consolidation and fluctuations in the rate between the level of 142 and the line (2) after a period of November volatility.
To take advantage of trends in the currency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
TOKYO INFLATION HIGHEST SINCE 1982
Inflation in Tokyo has surpassed forecasts. Prices rose 3.6% in November, with food among the main drivers.
The continued rise in core inflation casts doubt on BoJ Governor Haruhiko Kuroda's view that current cost-push inflation is temporary and that continued stimulus is needed to keep the economy stable. However, economists generally agree with Kuroda that Japan's inflation will ease in 2023, although opinions differ on the scale.
This means that the Bank of Japan is likely to stick to its floor interest rates until April 2023, when Kuroda's powers end. Recall, the Bank of Japan maintains ultra low interest rates, while the Fed and the ECB and others are constantly raising them.
This led to a significant weakening of the yen in 2022. USDJPY even surpassed the 150 level in October. However, the weakening of the dollar index in November caused USDJPY to drop to the 140 area. Testing (1) of the 142 level indicates the presence of supply in the market, which so far has support from the line (2) of the long-term trend. It is likely that in the coming days we will see consolidation and fluctuations in the rate between the level of 142 and the line (2) after a period of November volatility.
To take advantage of trends in the currency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
👍2
#MarketNews #Cryptocurrency
MAIN NEWS OF CRYPTO WORLD
→ Next Wednesday, Sam Benkman-Fried will speak at the DealBook conference in New York, where speeches are also expected from Zelensky, Zuckerberg, Yellen, as well as the CEOs of Amazon and Tiktok.
→ Yesterday, the Belgian Financial Regulatory Authority (FSMA) confirmed its position that bitcoin (BTC), Ether (ETH) and other cryptocurrencies issued solely with computer code are not securities, as they do not have an issuer. The regional document does not have much legal force. They are waiting for the European Crypto Asset Market Regulation (MiCA) to come into force — the high-profile event could happen in 2024.
→ A project of a national crypto exchange is being developed in Russia. In mid-November, MPs discussed the required changes to the law “On Digital Financial Assets” for this.
Meanwhile, the cryptocurrency market is gradually coming back to balance after the sensational crash of FTX. The price of bitcoin is above the (1) support level of 15800, which has already demonstrated its strength three times. However, it will take far more drivers than a local support line to reverse a global downtrend. Note that in case of its bearish breakdown, BTCUSD may drop to the lower line (2) of the trend channel.
To take advantage of trends in the cryptocurrency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
MAIN NEWS OF CRYPTO WORLD
→ Next Wednesday, Sam Benkman-Fried will speak at the DealBook conference in New York, where speeches are also expected from Zelensky, Zuckerberg, Yellen, as well as the CEOs of Amazon and Tiktok.
→ Yesterday, the Belgian Financial Regulatory Authority (FSMA) confirmed its position that bitcoin (BTC), Ether (ETH) and other cryptocurrencies issued solely with computer code are not securities, as they do not have an issuer. The regional document does not have much legal force. They are waiting for the European Crypto Asset Market Regulation (MiCA) to come into force — the high-profile event could happen in 2024.
→ A project of a national crypto exchange is being developed in Russia. In mid-November, MPs discussed the required changes to the law “On Digital Financial Assets” for this.
Meanwhile, the cryptocurrency market is gradually coming back to balance after the sensational crash of FTX. The price of bitcoin is above the (1) support level of 15800, which has already demonstrated its strength three times. However, it will take far more drivers than a local support line to reverse a global downtrend. Note that in case of its bearish breakdown, BTCUSD may drop to the lower line (2) of the trend channel.
To take advantage of trends in the cryptocurrency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
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Watch FXOpen's November 21 - 25 Weekly Market Wrap Video
On FXOpen Market News, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports. You can also find text versions of the news reports at our Internet resources.
https://www.youtube.com/watch?v=vjQPFMmQIX4
On FXOpen Market News, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports. You can also find text versions of the news reports at our Internet resources.
https://www.youtube.com/watch?v=vjQPFMmQIX4
YouTube
FXOpen Weekly Market Wrap With Gary Thomson: GOLD, NZD/USD, COVID, BITCOIN
Watch FXOpen's November 21 - 25 Weekly Market Wrap Video
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- Why is gold going up?
- NZD at 3-month highs
- COVID outbreak in China…
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- Why is gold going up?
- NZD at 3-month highs
- COVID outbreak in China…
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#MarketNews
HOW ENERGY MARKETS ARE REACTING TO THE COVID SURGE IN CHINA
In China, an increase in the number of cases of Covid is recorded, with about 40 thousand new cases a day.
At the same time, protests against the zero-Covid policy are rocking the country, moreover, there are anti-government calls and demands for Xi to step down. The dissatisfaction of the Chinese increases against the backdrop of falling prices for real estate — a traditional tool for investing in China.
How might the situation in China affect the financial markets? The decline in oil could be a response to concerns about the spread of Covid in China. Since the opening of markets on Monday, the price of oil has fallen by about 3%.
Interestingly, the price of natural gas shows no similar signs of weakness. The attached chart displays the cost of oil relative to the cost of natural gas. Over the past 10 days, it has fallen by 25%! This indicates the stability of the gas market on the eve of the beginning of winter and leaves ground for reflection on the opening of long positions.
To take advantage of trends in the energy markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
HOW ENERGY MARKETS ARE REACTING TO THE COVID SURGE IN CHINA
In China, an increase in the number of cases of Covid is recorded, with about 40 thousand new cases a day.
At the same time, protests against the zero-Covid policy are rocking the country, moreover, there are anti-government calls and demands for Xi to step down. The dissatisfaction of the Chinese increases against the backdrop of falling prices for real estate — a traditional tool for investing in China.
How might the situation in China affect the financial markets? The decline in oil could be a response to concerns about the spread of Covid in China. Since the opening of markets on Monday, the price of oil has fallen by about 3%.
Interestingly, the price of natural gas shows no similar signs of weakness. The attached chart displays the cost of oil relative to the cost of natural gas. Over the past 10 days, it has fallen by 25%! This indicates the stability of the gas market on the eve of the beginning of winter and leaves ground for reflection on the opening of long positions.
To take advantage of trends in the energy markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Cryptocurrency
REASONS BEHIND LITECOIN’S GROWTH
The LTCUSD rate is showing more bullish dynamics than other cryptocurrencies.
Since October 20th, the cost of LTC has grown by more than 40%, while the total capitalization of the TOTAL cryptocurrency market has decreased by about 17% amid the collapse of the FTX exchange.
Among the main reasons behind the surge in LTC value is the upcoming halving, which usually results in a bullish rally.
LTC has also been praised by Michael Saylor for being a bitcoin-like "digital commodity".
Would it be sensible to buy Litecoin now? An affirmative answer will require too many arguments, because judging by the indicators, the LTCUSD market looks very overbought so far. Perhaps the global bear market will be able to “pay off” all the local positives, and then a “dump after pump” pattern will form on the litecoin chart.
Control your emotions and risks.
To take advantage of the rise and fall in the value of cryptocurrencies, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
REASONS BEHIND LITECOIN’S GROWTH
The LTCUSD rate is showing more bullish dynamics than other cryptocurrencies.
Since October 20th, the cost of LTC has grown by more than 40%, while the total capitalization of the TOTAL cryptocurrency market has decreased by about 17% amid the collapse of the FTX exchange.
Among the main reasons behind the surge in LTC value is the upcoming halving, which usually results in a bullish rally.
LTC has also been praised by Michael Saylor for being a bitcoin-like "digital commodity".
Would it be sensible to buy Litecoin now? An affirmative answer will require too many arguments, because judging by the indicators, the LTCUSD market looks very overbought so far. Perhaps the global bear market will be able to “pay off” all the local positives, and then a “dump after pump” pattern will form on the litecoin chart.
Control your emotions and risks.
To take advantage of the rise and fall in the value of cryptocurrencies, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
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#MarketNews
ELON MUSK VS APPLE
On his (in every sense) Twitter, Elon said, addressing Tim Cook: “Apple has basically stopped advertising on Twitter. Do they hate free speech in America?"
Elon also accused Apple of censorship, saying Apple is threatening to remove Twitter from the AppStore.
And then he added an exposé tweet: "Did you know Apple puts a secret 30% tax on everything you buy through their App Store?"
It looks like a declaration of war between Elon and Apple.
Meanwhile, AAPL shares are falling, having failed to gain a foothold above the $150 level. But this is not due to Musk's tweets, but due to problems with factories in China — the spread of Covid threatens the production of iPhones.
The chart shows that the $135 level is an important support for AAPL stock. According to TipRanks, Wall Street's median opinion is that AAPL's share price will be $180 a year from now.
To take advantage of trends in the stock markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
ELON MUSK VS APPLE
On his (in every sense) Twitter, Elon said, addressing Tim Cook: “Apple has basically stopped advertising on Twitter. Do they hate free speech in America?"
Elon also accused Apple of censorship, saying Apple is threatening to remove Twitter from the AppStore.
And then he added an exposé tweet: "Did you know Apple puts a secret 30% tax on everything you buy through their App Store?"
It looks like a declaration of war between Elon and Apple.
Meanwhile, AAPL shares are falling, having failed to gain a foothold above the $150 level. But this is not due to Musk's tweets, but due to problems with factories in China — the spread of Covid threatens the production of iPhones.
The chart shows that the $135 level is an important support for AAPL stock. According to TipRanks, Wall Street's median opinion is that AAPL's share price will be $180 a year from now.
To take advantage of trends in the stock markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews
IT’S AN IMPORTNANT WEDNESDAY, AND HERE’S WHY
You may have been a little bored due to the reduced volatility associated, among other things, with the holiday last week in the US. Today will not let traders relax, there will be three important events:
1→ Statement by Fed Chairman Powell. For now, the Fed is expected to ease its pace of credit tightening as inflation appears to have stabilized.
2→ Publication of US GDP data.
3→ Publication of non-agricultural US employment data.
On Wednesday morning, the dollar index futures stabilized near the lower boundary (1) of the rising channel. The fact that the mid-September decline slowed down at this line confirms its validity. But today's events are quite likely to give strength to the momentum, which will be able to break through the support (1).
To control risks and take advantage of fluctuations in the currency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
IT’S AN IMPORTNANT WEDNESDAY, AND HERE’S WHY
You may have been a little bored due to the reduced volatility associated, among other things, with the holiday last week in the US. Today will not let traders relax, there will be three important events:
1→ Statement by Fed Chairman Powell. For now, the Fed is expected to ease its pace of credit tightening as inflation appears to have stabilized.
2→ Publication of US GDP data.
3→ Publication of non-agricultural US employment data.
On Wednesday morning, the dollar index futures stabilized near the lower boundary (1) of the rising channel. The fact that the mid-September decline slowed down at this line confirms its validity. But today's events are quite likely to give strength to the momentum, which will be able to break through the support (1).
To control risks and take advantage of fluctuations in the currency markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
#MarketNews #Cryptocurrency
BRAZIL TO LEGALIZE CRYPTOCURRENCIES
No, bitcoin will not become legal tender like in El Salvador. The Chamber of Deputies of Brazil has approved a regulatory framework that legalizes the use of cryptocurrencies as a means of payment in the country.
For the law to enter into force, only the signature of the President of the Republic is required, then payments in cryptocurrencies for goods and services will receive legal status.
In addition, the adopted regulatory framework establishes the rules for the operation of cryptocurrency exchange platforms, as well as services for the storage and management of cryptocurrencies.
Against the backdrop of this positive news, the rate of bitcoin (and other cryptocurrencies) received a noticeable bullish impulse, the price of the coin exceeded the psychological mark of 17k, but could not stay there.
Also note the following bullish patterns on the chart:
→ BC rollback was about 50% of the AB impulse;
→ the 16300 level works as support again (as the arrows show).
It seems that cautious optimism is returning to the market after the shocking news about the collapse of FTX.
To take advantage of trends in the cryptocurrency markets without the fear of the safety of your funds due to bankruptcies or crypto exchange hacks, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
BRAZIL TO LEGALIZE CRYPTOCURRENCIES
No, bitcoin will not become legal tender like in El Salvador. The Chamber of Deputies of Brazil has approved a regulatory framework that legalizes the use of cryptocurrencies as a means of payment in the country.
For the law to enter into force, only the signature of the President of the Republic is required, then payments in cryptocurrencies for goods and services will receive legal status.
In addition, the adopted regulatory framework establishes the rules for the operation of cryptocurrency exchange platforms, as well as services for the storage and management of cryptocurrencies.
Against the backdrop of this positive news, the rate of bitcoin (and other cryptocurrencies) received a noticeable bullish impulse, the price of the coin exceeded the psychological mark of 17k, but could not stay there.
Also note the following bullish patterns on the chart:
→ BC rollback was about 50% of the AB impulse;
→ the 16300 level works as support again (as the arrows show).
It seems that cautious optimism is returning to the market after the shocking news about the collapse of FTX.
To take advantage of trends in the cryptocurrency markets without the fear of the safety of your funds due to bankruptcies or crypto exchange hacks, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
Cryptocurrency CFDs are not available to Retail clients in the UK.
#MarketNews
THE US DOLLAR SUFFERS BIGGEST FALL IN 12 YEARS
In the first 10 months of 2022, the dollar index had gone up 16%, the biggest gain since 1985. But in November, the index fell by 5% — it was worse only in September 2010 (-5.4%).
“Sweeping” trends in the foreign exchange market are caused by the activity of central banks. Yesterday it became known that US GDP in the 3rd quarter grew by 2.9% (above analysts' expectations), and there were no "tough" statements in the speech of the head of the Fed. As a result, the dollar index fell, and stocks rose — technology stocks, which are most sensitive to the Fed's policy, rose especially strongly in price. Cryptocurrencies and gold also increased in value.
Note that the S&P-500 stock market index on yesterday's candlestick (1) broke through the descending trend line (2), which was in effect in 2022. Given that December is the time of the Santa Claus rally, the bulls have a chance to build on the success despite ongoing talk of a possible recession in 2023.
Fears about a recession scenario are easing when looking at volume figures. Notice how the activity of the big players (as measured by the volume indicator, as indicated by the arrows) slowed down the rate of decline and then reversed the market.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
THE US DOLLAR SUFFERS BIGGEST FALL IN 12 YEARS
In the first 10 months of 2022, the dollar index had gone up 16%, the biggest gain since 1985. But in November, the index fell by 5% — it was worse only in September 2010 (-5.4%).
“Sweeping” trends in the foreign exchange market are caused by the activity of central banks. Yesterday it became known that US GDP in the 3rd quarter grew by 2.9% (above analysts' expectations), and there were no "tough" statements in the speech of the head of the Fed. As a result, the dollar index fell, and stocks rose — technology stocks, which are most sensitive to the Fed's policy, rose especially strongly in price. Cryptocurrencies and gold also increased in value.
Note that the S&P-500 stock market index on yesterday's candlestick (1) broke through the descending trend line (2), which was in effect in 2022. Given that December is the time of the Santa Claus rally, the bulls have a chance to build on the success despite ongoing talk of a possible recession in 2023.
Fears about a recession scenario are easing when looking at volume figures. Notice how the activity of the big players (as measured by the volume indicator, as indicated by the arrows) slowed down the rate of decline and then reversed the market.
To take advantage of trends in the financial markets, consider enlisting the services of a reliable broker like FXOpen.
⚠️
CFDs are complex instruments and come with a high risk of losing your money.
This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.
