#MarketNews
POWELL ACCELERATES THE BULLISH TREND ON THE DOLLAR INDEX
Jerome Powell, speaking in the US Congress on Tuesday, said that the Fed is ready to return to a more significant increase in interest rates to fight inflation (previously there were rate hikes of 0.5%, after which the pace fell to 0.25%).
According to the head of the Fed:
→ the final level of interest rates is likely to be higher than previously expected;
→ recent economic data was “stronger than expected”;
→ if the data set indicated the need for faster tightening, the Fed would dare to do so.
Powell's comments signal that he is ready to tighten the economy even more to bring down inflation. Such rhetoric is in line with that of ECB President Christine Lagarde, who over the weekend noted the "immobility" of price pressure, which requires further action to combat the inflationary "monster".
Against the backdrop of harsh statements by Powell, the stock market experienced a non-recoil drop in quotations, the price of gold also decreased. And futures for the dollar index reached its highest since the beginning of the year. At the same time, the price of the contract forms a breakdown of the important resistance (1) at the level of 105.5 — we pointed to it earlier. It is possible that in the near future the bulls will try to gain a foothold at the achieved heights. If market participants increase their expectations of a longer and tougher policy, this may lead to new highs of the year.
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.
POWELL ACCELERATES THE BULLISH TREND ON THE DOLLAR INDEX
Jerome Powell, speaking in the US Congress on Tuesday, said that the Fed is ready to return to a more significant increase in interest rates to fight inflation (previously there were rate hikes of 0.5%, after which the pace fell to 0.25%).
According to the head of the Fed:
→ the final level of interest rates is likely to be higher than previously expected;
→ recent economic data was “stronger than expected”;
→ if the data set indicated the need for faster tightening, the Fed would dare to do so.
Powell's comments signal that he is ready to tighten the economy even more to bring down inflation. Such rhetoric is in line with that of ECB President Christine Lagarde, who over the weekend noted the "immobility" of price pressure, which requires further action to combat the inflationary "monster".
Against the backdrop of harsh statements by Powell, the stock market experienced a non-recoil drop in quotations, the price of gold also decreased. And futures for the dollar index reached its highest since the beginning of the year. At the same time, the price of the contract forms a breakdown of the important resistance (1) at the level of 105.5 — we pointed to it earlier. It is possible that in the near future the bulls will try to gain a foothold at the achieved heights. If market participants increase their expectations of a longer and tougher policy, this may lead to new highs of the year.
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.
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#MarketNews #Cryptocurrency #XRP
WHY XRP IS STRONGER THAN BITCOIN
In recent days, the price of XRP (1) has been acting noticeably stronger than BTC (2). This is especially noticeable against the backdrop of the latest negative news related to the closure of the Silvergate crypto bank.
The activity of XRP bulls is due to the fact that the long ongoing trial between Ripple and the SEC regulator can be completed very soon. The positive mood came after US District Judge Analisa Torres delivered a long-awaited decision on the petitions of the litigants.
The case is moving. Attorney John E. Deaton, who represents XRP holders, tweeted regarding his expectations for when the verdict would be delivered: “I seriously doubt we will see a significant delay. Maybe tonight or in a couple of weeks."
Note that earlier the general positive associated with the expectation of XRP's victory in the SEC trial led to a sharp increase in (3) XRPUSD quotes. It is possible that a similar burst of activity could occur this month.
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.
WHY XRP IS STRONGER THAN BITCOIN
In recent days, the price of XRP (1) has been acting noticeably stronger than BTC (2). This is especially noticeable against the backdrop of the latest negative news related to the closure of the Silvergate crypto bank.
The activity of XRP bulls is due to the fact that the long ongoing trial between Ripple and the SEC regulator can be completed very soon. The positive mood came after US District Judge Analisa Torres delivered a long-awaited decision on the petitions of the litigants.
The case is moving. Attorney John E. Deaton, who represents XRP holders, tweeted regarding his expectations for when the verdict would be delivered: “I seriously doubt we will see a significant delay. Maybe tonight or in a couple of weeks."
Note that earlier the general positive associated with the expectation of XRP's victory in the SEC trial led to a sharp increase in (3) XRPUSD quotes. It is possible that a similar burst of activity could occur this month.
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.
#MarketNews #USD
USDCAD: BREAKOUT OF AN IMPORTANT FIGURE
USDCAD hit a year-to-date high as the Bank of Canada decided to leave interest rates unchanged at 4.50%.
Thus, the Bank of Canada is suspending its tightening campaign, in contrast to the hawkish rhetoric from the US Federal Reserve this week.
News from the Bank of Canada led to strong volatility with the USDCAD rate and weakening of the loonie. At the same time, on the USDCAD daily chart, there is a breakdown (1) of the contracting triangle AB, which has been forming since the fall of last year. This indicates a violation of the balance of supply and demand. If the contrast in decisions between the Bank of Canada and the Fed persists (or even intensifies), this could lead to a sustained bullish trend.
To take advantage of currency fluctuations, 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.
USDCAD: BREAKOUT OF AN IMPORTANT FIGURE
USDCAD hit a year-to-date high as the Bank of Canada decided to leave interest rates unchanged at 4.50%.
Thus, the Bank of Canada is suspending its tightening campaign, in contrast to the hawkish rhetoric from the US Federal Reserve this week.
News from the Bank of Canada led to strong volatility with the USDCAD rate and weakening of the loonie. At the same time, on the USDCAD daily chart, there is a breakdown (1) of the contracting triangle AB, which has been forming since the fall of last year. This indicates a violation of the balance of supply and demand. If the contrast in decisions between the Bank of Canada and the Fed persists (or even intensifies), this could lead to a sustained bullish trend.
To take advantage of currency fluctuations, 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.
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#MarketNews #Cryptocurrency
WHITE HOUSE BOOSTS BEARISH SENTIMENT
Biden will propose a plan to reduce the US budget deficit by $3 trillion over 10 years. One measure is a 25% tax on the rich. It is also planned to cancel tax incentives for the oil business to raise taxes:
- corporate from 21% to 28%,
- for buybacks from 1% to 4%,
- for crypto.
Stock and cryptocurrency markets reacted by lowering. The situation is exacerbated by the bankruptcy of the Silvergate crypto bank this week. It was announced by the management that, in light of recent industry and regulatory developments, the voluntary liquidation of the bank was the best solution.
Silicon Valley Bank is also experiencing problems, its shares fell by 60%. The negative is strengthened by the current tough policy of the Fed, which is not interested in injecting liquidity into the system to save troubled banks, but on the contrary, is squeezing the economy in the fight against inflation.
S&P-500 futures fell yesterday to important support (1), while the XLF fund (based on the value of shares of banking sector companies) fell (2) much more noticeably, its values set a year low - a wake-up call.
The report on the labor market in the US will be released today, a surge in volatility is expected.
To take advantage of the rise and fall of XLF, SPX and other stock market instruments, 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.
WHITE HOUSE BOOSTS BEARISH SENTIMENT
Biden will propose a plan to reduce the US budget deficit by $3 trillion over 10 years. One measure is a 25% tax on the rich. It is also planned to cancel tax incentives for the oil business to raise taxes:
- corporate from 21% to 28%,
- for buybacks from 1% to 4%,
- for crypto.
Stock and cryptocurrency markets reacted by lowering. The situation is exacerbated by the bankruptcy of the Silvergate crypto bank this week. It was announced by the management that, in light of recent industry and regulatory developments, the voluntary liquidation of the bank was the best solution.
Silicon Valley Bank is also experiencing problems, its shares fell by 60%. The negative is strengthened by the current tough policy of the Fed, which is not interested in injecting liquidity into the system to save troubled banks, but on the contrary, is squeezing the economy in the fight against inflation.
S&P-500 futures fell yesterday to important support (1), while the XLF fund (based on the value of shares of banking sector companies) fell (2) much more noticeably, its values set a year low - a wake-up call.
The report on the labor market in the US will be released today, a surge in volatility is expected.
To take advantage of the rise and fall of XLF, SPX and other stock market instruments, 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
NO PANIC IN THE CRYPTOCURRENCY MARKET YET
Amid the latest news from the Fed, Silvergate and the White House, the market capitalization of all cryptocurrencies has dropped below $1 trillion this week.
Analysts at JP Morgan are bearish, believing that 2 factors are required for the industry to grow steadily (both so far showing a downward trend):
→ increase in investments in crypto projects;
→ an increase in the supply of stablecoins.
At the same time, the price of Bitcoin has not been able to overcome the $25k resistance line (1), which we have repeatedly mentioned, and has already made a bearish breakout of the trend line (2).
The sentiment indicator (3) is steadily descending from greed last month to neutral last week to fear today. Perhaps, if BTCUSD drops to the line (4), having almost completely leveled the January positive, then the sentiment indicator will indicate the presence of panic.
To take advantage of rising and falling prices 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.
NO PANIC IN THE CRYPTOCURRENCY MARKET YET
Amid the latest news from the Fed, Silvergate and the White House, the market capitalization of all cryptocurrencies has dropped below $1 trillion this week.
Analysts at JP Morgan are bearish, believing that 2 factors are required for the industry to grow steadily (both so far showing a downward trend):
→ increase in investments in crypto projects;
→ an increase in the supply of stablecoins.
At the same time, the price of Bitcoin has not been able to overcome the $25k resistance line (1), which we have repeatedly mentioned, and has already made a bearish breakout of the trend line (2).
The sentiment indicator (3) is steadily descending from greed last month to neutral last week to fear today. Perhaps, if BTCUSD drops to the line (4), having almost completely leveled the January positive, then the sentiment indicator will indicate the presence of panic.
To take advantage of rising and falling prices 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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Watch FXOpen's March 6 - 10 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/ihgq5UbO1Ms
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/ihgq5UbO1Ms
YouTube
FXOpen Weekly Market Wrap With Gary Thomson: AAPL, INFLATION & EURO, DOLLAR INDEX, SWISS BANK
Watch FXOpen's March 6 - 10 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.
- Swiss National Bank reports record losses
- AAPL shares: Goldman Sachs puts…
In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.
- Swiss National Bank reports record losses
- AAPL shares: Goldman Sachs puts…
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#MarketNews
THE US DOLLAR DEPRECIATED SHARPLY AMID PROBLEMS WITH BANKS
The collapse of Silvergate Bank was followed by the collapse of Silicon Valley Bank (SVB), a financial company with a 40-year history:
→ on Wednesday, SVB released a message about the need to raise $2 billion to strengthen its balance sheet;
→ on Thursday, worried clients withdrew $42 billion;
→ On Friday, regulators shut down the bank, effectively marking the biggest US bank failure since the 2008 financial crisis. SVB was the 16th largest bank in the US at the end of last year with about $209 billion in assets.
Two bank failures in a row may indicate the vulnerability of the banking system. According to Businessinsider, SVB's business model is ill-adjusted to rising interest rates.
Against the backdrop of problems in the banking sector, the cost of futures on the dollar index fell sharply at the end of last week. And today's week started with a bearish gap. Thus, a false bullish resistance line (1) was formed on the chart, which we indicated earlier.
The dollar can be supported by:
→ technically — line (2) around 103.5;
→ fundamentally — Biden's words about supporting the banking sector; his speech is expected today.
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.
THE US DOLLAR DEPRECIATED SHARPLY AMID PROBLEMS WITH BANKS
The collapse of Silvergate Bank was followed by the collapse of Silicon Valley Bank (SVB), a financial company with a 40-year history:
→ on Wednesday, SVB released a message about the need to raise $2 billion to strengthen its balance sheet;
→ on Thursday, worried clients withdrew $42 billion;
→ On Friday, regulators shut down the bank, effectively marking the biggest US bank failure since the 2008 financial crisis. SVB was the 16th largest bank in the US at the end of last year with about $209 billion in assets.
Two bank failures in a row may indicate the vulnerability of the banking system. According to Businessinsider, SVB's business model is ill-adjusted to rising interest rates.
Against the backdrop of problems in the banking sector, the cost of futures on the dollar index fell sharply at the end of last week. And today's week started with a bearish gap. Thus, a false bullish resistance line (1) was formed on the chart, which we indicated earlier.
The dollar can be supported by:
→ technically — line (2) around 103.5;
→ fundamentally — Biden's words about supporting the banking sector; his speech is expected today.
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.
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#MarketNews #Cryptocurrency
USDC STABLECOIN DEALS BLOW TO STABILITY OF CRYPTOCURRENCY MARKET
Among the clients of the bankrupt Silicon Valley Bank are a large number of companies from the technology sector. For example, video game maker Roblox Corp and streaming device maker Roku Inc have announced millions in uninsured accounts at SVB. The issuer of the USBC stablecoin also held part of the reserves in SVB.
As a result of the bankruptcy of SVB, the stablecoin was under strong pressure, its rate against USD, which should be stable around 1:1, began to decline. On Saturday, on the Gemini exchange, 1 USDC cost less than 84 cents.
However, the link was maintained. This was facilitated by the statement of the Fed, which decided to allocate $ 25 billion to stabilize the banking system, shaken after the failures of Silicon Valley Bank and Silvergate Bank.
It turns out that the Fed, which has a lot of claims against the cryptocurrency industry, reassured investors in cryptocurrencies by its actions, causing their quotes to grow. Also, the bankruptcy of centralized banks has become another argument in favor of a decentralized financial system.
On the CME exchange on Monday morning, a bullish gap was recorded on the Bitcoin chart (1). Note that this is a reversal on the chart from level C, which is 50% of the A → B advance — this is a bullish sign, suggesting that demand forces may push the price of the coin to a new storm of psychological resistance at $25k.
To take advantage of changes in cryptocurrency quotes, 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.
USDC STABLECOIN DEALS BLOW TO STABILITY OF CRYPTOCURRENCY MARKET
Among the clients of the bankrupt Silicon Valley Bank are a large number of companies from the technology sector. For example, video game maker Roblox Corp and streaming device maker Roku Inc have announced millions in uninsured accounts at SVB. The issuer of the USBC stablecoin also held part of the reserves in SVB.
As a result of the bankruptcy of SVB, the stablecoin was under strong pressure, its rate against USD, which should be stable around 1:1, began to decline. On Saturday, on the Gemini exchange, 1 USDC cost less than 84 cents.
However, the link was maintained. This was facilitated by the statement of the Fed, which decided to allocate $ 25 billion to stabilize the banking system, shaken after the failures of Silicon Valley Bank and Silvergate Bank.
It turns out that the Fed, which has a lot of claims against the cryptocurrency industry, reassured investors in cryptocurrencies by its actions, causing their quotes to grow. Also, the bankruptcy of centralized banks has become another argument in favor of a decentralized financial system.
On the CME exchange on Monday morning, a bullish gap was recorded on the Bitcoin chart (1). Note that this is a reversal on the chart from level C, which is 50% of the A → B advance — this is a bullish sign, suggesting that demand forces may push the price of the coin to a new storm of psychological resistance at $25k.
To take advantage of changes in cryptocurrency quotes, 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
THERE WILL BE MORE BANK FAILURES
Prepare for a possible extreme surge in volatility. CPI data will be published today at 12:30 UTC amid the emergency situation in the US banking sector.
The list of the largest US bank failures now looks like this:
1. Washington Mutual: $307 billion (2008)
2. Silicon Valley Bank: $209 billion (2023)
3. Signature Bank: $118 billion (2023)
4. Continental Illinois National Bank and Trust: $40 billion (1984)
5. First Republic Bank Corporation**: $33 billion (1988)
Former Federal Deposit Insurance Corporation chairman William Issac has no doubt that there will be more bank failures this year.
Banking sector stocks are rapidly declining. Shares of First Republic (down 78% on the day), PacWest, Western Alliance and Charles Schwab are among the top losers as investors worry about banks' ties to the tech industry.
Biden yesterday assured ordinary depositors that their deposits would not be lost. While shareholders of banks can part with their capital.
High volumes (1) of trading in S&P-500 index futures underline the growing anxiety in the market. The quote is falling below the support line (2), opening the way for a downtrend. According to analysts at Morgan Stanley, the situation suggests the opening of short positions in shares until new lows are reached.
To take advantage of trends in the financial markets without fear for the safety of your capital, 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.
THERE WILL BE MORE BANK FAILURES
Prepare for a possible extreme surge in volatility. CPI data will be published today at 12:30 UTC amid the emergency situation in the US banking sector.
The list of the largest US bank failures now looks like this:
1. Washington Mutual: $307 billion (2008)
2. Silicon Valley Bank: $209 billion (2023)
3. Signature Bank: $118 billion (2023)
4. Continental Illinois National Bank and Trust: $40 billion (1984)
5. First Republic Bank Corporation**: $33 billion (1988)
Former Federal Deposit Insurance Corporation chairman William Issac has no doubt that there will be more bank failures this year.
Banking sector stocks are rapidly declining. Shares of First Republic (down 78% on the day), PacWest, Western Alliance and Charles Schwab are among the top losers as investors worry about banks' ties to the tech industry.
Biden yesterday assured ordinary depositors that their deposits would not be lost. While shareholders of banks can part with their capital.
High volumes (1) of trading in S&P-500 index futures underline the growing anxiety in the market. The quote is falling below the support line (2), opening the way for a downtrend. According to analysts at Morgan Stanley, the situation suggests the opening of short positions in shares until new lows are reached.
To take advantage of trends in the financial markets without fear for the safety of your capital, 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.
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#MarketNews
INFLATION DATA WAS NOT SURPRISING. WHAT WILL HAPPEN NEXT?
Analysts' forecasts coincided with yesterday's data on inflation in the US for February — price growth slowed down a bit. The dollar index practically did not change by the results of the session, and some positivity returned to the stock markets.
While the inflation data did not come as a surprise, tensions and uncertainty are mounting as the Fed reacts to the banking crisis. According to media reports, the bankruptcy of Silicon Valley Bank may have occurred due to the fact that the bank's portfolio had too many bonds, which fell in price due to rising interest rates. Therefore, a further increase in rates in the fight against inflation may lead to new problems with banks.
→ Moody's downgraded its outlook on the US banking system from stable to negative.
→ Ken Griffin, billionaire founder of the Citadel hedge fund, believes that American capitalism is crumbling before our eyes.
→ S&P downgraded the rating outlook for First Republic Bank to negative.
In such circumstances, the value of the Swiss franc has skyrocketed as a currency with the image of a “safe haven”. For 3 days, the USDCHF rate dropped sharply to an important support (1). If the situation with the banks stabilizes, we may see a rebound from this line.
To take advantage of trends in the financial markets without fear for the safety of your deposits, 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.
INFLATION DATA WAS NOT SURPRISING. WHAT WILL HAPPEN NEXT?
Analysts' forecasts coincided with yesterday's data on inflation in the US for February — price growth slowed down a bit. The dollar index practically did not change by the results of the session, and some positivity returned to the stock markets.
While the inflation data did not come as a surprise, tensions and uncertainty are mounting as the Fed reacts to the banking crisis. According to media reports, the bankruptcy of Silicon Valley Bank may have occurred due to the fact that the bank's portfolio had too many bonds, which fell in price due to rising interest rates. Therefore, a further increase in rates in the fight against inflation may lead to new problems with banks.
→ Moody's downgraded its outlook on the US banking system from stable to negative.
→ Ken Griffin, billionaire founder of the Citadel hedge fund, believes that American capitalism is crumbling before our eyes.
→ S&P downgraded the rating outlook for First Republic Bank to negative.
In such circumstances, the value of the Swiss franc has skyrocketed as a currency with the image of a “safe haven”. For 3 days, the USDCHF rate dropped sharply to an important support (1). If the situation with the banks stabilizes, we may see a rebound from this line.
To take advantage of trends in the financial markets without fear for the safety of your deposits, 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.
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FXOpen official pinned «#MarketNews INFLATION DATA WAS NOT SURPRISING. WHAT WILL HAPPEN NEXT? Analysts' forecasts coincided with yesterday's data on inflation in the US for February — price growth slowed down a bit. The dollar index practically did not change by the results of…»
#MarketNews #Cryptocurrency
BITCOIN HITS A HIGH OF THE YEAR
Yesterday, the BTCUSD quote exceeded $26k per coin. The bulls made another attempt at the $25k psychological level, as we suggested in the previous post.
The price surge occurred against the background of a number of bullish factors that followed the bearish ones:
→ return of the USDC peg to the dollar 1:1;
→ encouraging forecasts for the stabilization of the banking crisis;
→ the flow of capital from the US banking sector to cryptocurrency assets;
→ launch of new derivatives based on bitcoin on the CME exchange (Chicago).
However, the bulls failed to hold the all-time high on Tuesday, and on Wednesday morning, the price is again below the psychological level of $25k. Moreover, the chart indicates signs of FOMO (extreme hype):
1 → long upper shadow on the candle;
2 → maximum daily volumes since the beginning of the year (aggregated data from 5 crypto exchanges).
After an excessive burst of activity, there is reason to believe that the price will range around the $25k level before the Fed meeting, which is less than 10 days away.
To take advantage of price changes in major 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 A HIGH OF THE YEAR
Yesterday, the BTCUSD quote exceeded $26k per coin. The bulls made another attempt at the $25k psychological level, as we suggested in the previous post.
The price surge occurred against the background of a number of bullish factors that followed the bearish ones:
→ return of the USDC peg to the dollar 1:1;
→ encouraging forecasts for the stabilization of the banking crisis;
→ the flow of capital from the US banking sector to cryptocurrency assets;
→ launch of new derivatives based on bitcoin on the CME exchange (Chicago).
However, the bulls failed to hold the all-time high on Tuesday, and on Wednesday morning, the price is again below the psychological level of $25k. Moreover, the chart indicates signs of FOMO (extreme hype):
1 → long upper shadow on the candle;
2 → maximum daily volumes since the beginning of the year (aggregated data from 5 crypto exchanges).
After an excessive burst of activity, there is reason to believe that the price will range around the $25k level before the Fed meeting, which is less than 10 days away.
To take advantage of price changes in major 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 #Oil
OIL UPDATES THE MINIMUMS OF THE YEAR
The reason is the banking crisis. After the bankruptcies of Silvergate, SVB, Signature, market participants discuss which bank will be as follows. Among the main applicants is Credit Suisse, the cost of its share yesterday sank below $2, -43% since the beginning of the year. The bank asks the Switzerland authorities for more than $50 billion, since one of the main shareholders from Saudi Arabia cannot support the bank financially due to the current restrictions on regulators.
It is not surprising that the discussions are subject to comparisons between the current banking crisis and the 2008 crisis, when the bankruptcy of the Washington Mutual, Lehman Brothers occurred. Also, a common feature in both situations (1 and 2) is a drop in oil price, since the banking crisis can lead to a slowdown in the economy and a decrease in demand for raw materials.
The price of oil yesterday dropped below the psychological mark of $70, overcoming at least 2022, and also broke the support line (shown in blue). If the rates of an unfolding price reduction are comparable to those that took place in 2008, we could see oil at $60 and $50 per barrel.
To take advantage of trends in 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.
OIL UPDATES THE MINIMUMS OF THE YEAR
The reason is the banking crisis. After the bankruptcies of Silvergate, SVB, Signature, market participants discuss which bank will be as follows. Among the main applicants is Credit Suisse, the cost of its share yesterday sank below $2, -43% since the beginning of the year. The bank asks the Switzerland authorities for more than $50 billion, since one of the main shareholders from Saudi Arabia cannot support the bank financially due to the current restrictions on regulators.
It is not surprising that the discussions are subject to comparisons between the current banking crisis and the 2008 crisis, when the bankruptcy of the Washington Mutual, Lehman Brothers occurred. Also, a common feature in both situations (1 and 2) is a drop in oil price, since the banking crisis can lead to a slowdown in the economy and a decrease in demand for raw materials.
The price of oil yesterday dropped below the psychological mark of $70, overcoming at least 2022, and also broke the support line (shown in blue). If the rates of an unfolding price reduction are comparable to those that took place in 2008, we could see oil at $60 and $50 per barrel.
To take advantage of trends in 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.
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#MarketNews #Gold
GOLD TENDS TO HIGHS SINCE THE BEGINNING OF THE YEAR
Having started the week with a bullish gap (1), the price of a gold futures contract rose by more than 3% by Friday morning.
The rise in gold prices is characterized by the demand for “safe haven assets” in the context of the banking crisis, which is unfolding against the backdrop of tight monetary policy by the Fed. Will the Fed decide to soften the policy aimed at suppressing inflation?
Perhaps not, as the ECB decided to raise the rate by 0.25% — this became known yesterday. It seems that in Europe they believe that inflation is a greater evil than the risks posed by a banking crisis. We will find out at the next one whether the Fed will follow the example of the ECB. It is possible that we will witness a paradoxical situation when the Powell department will squeeze the economy with high rates with one hand, and inject liquidity into troubled banks with the other hand.
If the fears of market participants grow, the price of gold may continue to grow and break through the maximum of the current year in the region of 1975 dollars per ounce. The probability of such a scenario is increased by the highest volumes (2) of trading for the year, which can be interpreted as injections of large capitals into “rescue” gold.
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.
GOLD TENDS TO HIGHS SINCE THE BEGINNING OF THE YEAR
Having started the week with a bullish gap (1), the price of a gold futures contract rose by more than 3% by Friday morning.
The rise in gold prices is characterized by the demand for “safe haven assets” in the context of the banking crisis, which is unfolding against the backdrop of tight monetary policy by the Fed. Will the Fed decide to soften the policy aimed at suppressing inflation?
Perhaps not, as the ECB decided to raise the rate by 0.25% — this became known yesterday. It seems that in Europe they believe that inflation is a greater evil than the risks posed by a banking crisis. We will find out at the next one whether the Fed will follow the example of the ECB. It is possible that we will witness a paradoxical situation when the Powell department will squeeze the economy with high rates with one hand, and inject liquidity into troubled banks with the other hand.
If the fears of market participants grow, the price of gold may continue to grow and break through the maximum of the current year in the region of 1975 dollars per ounce. The probability of such a scenario is increased by the highest volumes (2) of trading for the year, which can be interpreted as injections of large capitals into “rescue” gold.
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.
👍1
#MarketNews #Cryptocurrency
ETH IS FALLING RAPIDLY AGAINST BTC
Over the past 5 days, ETHBTC has plummeted to a multi-month low below the broken support at 0.0666.
Despite the fact that the cryptocurrency market is feeling positive due to the influx of funds from investors diversifying their portfolios amid the banking crisis, the growth of the ETH rate is not as confident as the BTC.
The reason may lie in the position of the SEC. Gary Gensler again said on Wednesday that tokens using staking mechanisms (which is directly related to Ethereum 2.0) can be considered securities under US law. After all, according to Gensler, by buying tokens, investors are counting on some profitability, or a return on investment.
In its position, the SEC regulator is quite consistent, and has already achieved that staking services were suspended for US citizens on the Kraken exchange.
As for the ETHBTC rate, Ethereum may be supported by the upcoming April update of Shanghai-Capella, or Shapella. It aims to allow withdrawals from a validator on the mainnet. This important feature was not introduced during Ethereum's transition to the Proof-of-Stake consensus in September 2022 to ensure the security of the transition.
To take advantage of trends in the crypto 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.
ETH IS FALLING RAPIDLY AGAINST BTC
Over the past 5 days, ETHBTC has plummeted to a multi-month low below the broken support at 0.0666.
Despite the fact that the cryptocurrency market is feeling positive due to the influx of funds from investors diversifying their portfolios amid the banking crisis, the growth of the ETH rate is not as confident as the BTC.
The reason may lie in the position of the SEC. Gary Gensler again said on Wednesday that tokens using staking mechanisms (which is directly related to Ethereum 2.0) can be considered securities under US law. After all, according to Gensler, by buying tokens, investors are counting on some profitability, or a return on investment.
In its position, the SEC regulator is quite consistent, and has already achieved that staking services were suspended for US citizens on the Kraken exchange.
As for the ETHBTC rate, Ethereum may be supported by the upcoming April update of Shanghai-Capella, or Shapella. It aims to allow withdrawals from a validator on the mainnet. This important feature was not introduced during Ethereum's transition to the Proof-of-Stake consensus in September 2022 to ensure the security of the transition.
To take advantage of trends in the crypto 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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#MarketNews
TRADERS ARE IN FOR A VOLATILE WEEK
Monetary policy decisions are expected from the Fed (Wednesday), the Bank of England and Switzerland (Thursday). Moreover, the focus will be not only inflation, but also the banking crisis.
So far, the main financiers are acting more decisively than during the 2008 crisis. Thus, UBS announced the purchase of the troubled bank Credit Suisse, and the Swiss National Bank promised unlimited support to prevent a systemic collapse.
In anticipation of important news, futures for the dollar index show bearish signs. Thus, the rebound in B→C was about 50% of the decline in A→B. The return to the support line (1), which almost took place, can be interpreted as the failure of the bulls to keep the initiative, which manifested itself on Wednesday, March 15 (2).
It is possible that as a result of Powell's statements, the value of the contract will fall below the level of 103.1.
To take advantage of trends in the markets of the world's major financial instruments, 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.
TRADERS ARE IN FOR A VOLATILE WEEK
Monetary policy decisions are expected from the Fed (Wednesday), the Bank of England and Switzerland (Thursday). Moreover, the focus will be not only inflation, but also the banking crisis.
So far, the main financiers are acting more decisively than during the 2008 crisis. Thus, UBS announced the purchase of the troubled bank Credit Suisse, and the Swiss National Bank promised unlimited support to prevent a systemic collapse.
In anticipation of important news, futures for the dollar index show bearish signs. Thus, the rebound in B→C was about 50% of the decline in A→B. The return to the support line (1), which almost took place, can be interpreted as the failure of the bulls to keep the initiative, which manifested itself on Wednesday, March 15 (2).
It is possible that as a result of Powell's statements, the value of the contract will fall below the level of 103.1.
To take advantage of trends in the markets of the world's major financial instruments, 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 IS APPROACHING THE LEVEL OF $30K PER COIN
Over the past week, the price of bitcoin has increased by almost 25% - this is the best result since the beginning of 2021. Other cryptocurrencies also demonstrate sharp rises in value: for example, the capitalization of XRP has exceeded $20 billion.
Bullish sentiment in the cryptocurrency market is facilitated by:
→ high inflation in major economies around the world. By the way, in Argentina it was 100%.
→ concerns about the banking sector. The failure of 3 banks in a short time plus the collapse of the shares of other banks; supposedly this led to a flow of capital into crypto assets, which now seem to be regaining the status of an attractive investment asset after a terrible 2022.
If the current growth rates continue, this week we may see an attempt to break through the psychological level of 30k. Note that this level acted as an important support in 2021 (1) and also held (2) the selling pressure for a long time during the bearish trend in 2022. Therefore, there is reason to believe that it will not be easy for buyers to gain a foothold above 30 thousand.
To take advantage of trends in the crypto 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.
BITCOIN IS APPROACHING THE LEVEL OF $30K PER COIN
Over the past week, the price of bitcoin has increased by almost 25% - this is the best result since the beginning of 2021. Other cryptocurrencies also demonstrate sharp rises in value: for example, the capitalization of XRP has exceeded $20 billion.
Bullish sentiment in the cryptocurrency market is facilitated by:
→ high inflation in major economies around the world. By the way, in Argentina it was 100%.
→ concerns about the banking sector. The failure of 3 banks in a short time plus the collapse of the shares of other banks; supposedly this led to a flow of capital into crypto assets, which now seem to be regaining the status of an attractive investment asset after a terrible 2022.
If the current growth rates continue, this week we may see an attempt to break through the psychological level of 30k. Note that this level acted as an important support in 2021 (1) and also held (2) the selling pressure for a long time during the bearish trend in 2022. Therefore, there is reason to believe that it will not be easy for buyers to gain a foothold above 30 thousand.
To take advantage of trends in the crypto 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.
👍1
#MarketNews
AI, NVDA: WHAT IS THE FUTURE FOR US?
According to Google CTO Ray Kurzweil, in the next 6-7 years, Artificial Intelligence (AI) will pass the Turing test, and by 2030, scientists will learn how to connect the human brain to a cloud service. Then, the human mind will be in two states at once: real and digital. It seems fantastic, but given the success of ChatGPT (Version 5 has just been released), all of this is plausible to assume.
How to make money on the development of AI? Perhaps this will work by investing in Nvidia (NVDA) shares. A Citi analyst raised NVDA's price target on Friday from $245 to $305 as they believe that many companies (primarily GOOG and META) will be forced to increase capex for Nvidia chips in the race for the emerging market leader (MSFT). Amazon and a number of other companies are also actively participating in this race.
Stocks are noticeably stronger than the S&P 500 index (shown in green), their price forms an upward channel (shown in blue). By the way, today at the developer conference a report is expected from the head of Nvidia, on which statements the price of NVDA can rise sharply due to the demand of emotional buyers, and then gradually decrease; this has happened more than once after the statements of company bosses.
To take advantage of trends in the stock market, 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.
AI, NVDA: WHAT IS THE FUTURE FOR US?
According to Google CTO Ray Kurzweil, in the next 6-7 years, Artificial Intelligence (AI) will pass the Turing test, and by 2030, scientists will learn how to connect the human brain to a cloud service. Then, the human mind will be in two states at once: real and digital. It seems fantastic, but given the success of ChatGPT (Version 5 has just been released), all of this is plausible to assume.
How to make money on the development of AI? Perhaps this will work by investing in Nvidia (NVDA) shares. A Citi analyst raised NVDA's price target on Friday from $245 to $305 as they believe that many companies (primarily GOOG and META) will be forced to increase capex for Nvidia chips in the race for the emerging market leader (MSFT). Amazon and a number of other companies are also actively participating in this race.
Stocks are noticeably stronger than the S&P 500 index (shown in green), their price forms an upward channel (shown in blue). By the way, today at the developer conference a report is expected from the head of Nvidia, on which statements the price of NVDA can rise sharply due to the demand of emotional buyers, and then gradually decrease; this has happened more than once after the statements of company bosses.
To take advantage of trends in the stock market, 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.
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#MarketNews
EURUSD HITS MONTHLY HIGHS AHEAD OF FED NEWS
The Fed's record-breaking rate hike to curb inflation may be the main reason behind the biggest banking crisis since 2008. After the collapse of Silvergate, Silicon Valley, Signature and the takeover by UBS of its competitor Credit Suisse, the attention of financial market participants is drawn to the situation around First Republic Bank.
Therefore, discussions are relevant whether the Fed should continue its cycle of raising rates. Moreover, the crisis in the banking sector can do the same job as the tightening of monetary policy.
On the eve of today's news from the Fed (a surge in volatility is expected in the evening), euro futures on the CME exchange reached a maximum in a month, storming the level (1) resistance around $1.082 per euro. Pay attention to the large volumes at the March lows, followed by a rise in price: the pattern may indicate the activity of institutional investors who have invested in the euro, apparently counting on the prospect of a weakening dollar.
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.
EURUSD HITS MONTHLY HIGHS AHEAD OF FED NEWS
The Fed's record-breaking rate hike to curb inflation may be the main reason behind the biggest banking crisis since 2008. After the collapse of Silvergate, Silicon Valley, Signature and the takeover by UBS of its competitor Credit Suisse, the attention of financial market participants is drawn to the situation around First Republic Bank.
Therefore, discussions are relevant whether the Fed should continue its cycle of raising rates. Moreover, the crisis in the banking sector can do the same job as the tightening of monetary policy.
On the eve of today's news from the Fed (a surge in volatility is expected in the evening), euro futures on the CME exchange reached a maximum in a month, storming the level (1) resistance around $1.082 per euro. Pay attention to the large volumes at the March lows, followed by a rise in price: the pattern may indicate the activity of institutional investors who have invested in the euro, apparently counting on the prospect of a weakening dollar.
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.
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