Bitcoin moved up and down in a very narrow range over the weekend but lost its traction early Monday. As of writing, BTC/USD was down more than 1% on the day, trading near $16,200. Ethereum dropped below $1,200 https://trans4mind.com/counterpoint/index-finance-business/dotbig-reviews-based-on-comments.html on Sunday and extended its slide toward $1,150 at the beginning of the week. The Chinese economy has struggled since the COVID-19 virus mutated into the more contagious Omicron variant at the end of 2021.
- Gold price has turned south and dropped to the $1,740 area after having climbed above $1,760 earlier in the day.
- Also, the demand for democracy not dictatorship from China’s individuals in a state of anger and frustration due to Covid-19 restrictions has underpinned the risk-aversion theme.
- It may depend on how much the Chinese government is willing to further support the economy.
- The main focus of the week will be economic data, namely the European CPI, US Core PCE, and US Non-Farm Payrolls.
This, along with a big divergence in the monetary policy stance adopted by the Federal Reserve and the Bank of Japan, could help limit any further losses, at least for the time being. Meanwhile, crude oil prices fell sharply to start the week amid a worsening demand outlook and the barrel of West Texas Intermediate DotBig broker dropped to a fresh 2022-low at around $73.50. At the time of press, the WTI was trading near $74, losing 3.5% on the day. The global risk sentiment took a hit amid a wave of protests in China over the government’s zero-COVID policy, which has been fueling concerns about a deeper economic downturn.
China’s stocks, yuan tumble as COVID protests rattle nerves
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Back to the euro area, the increasing speculation of a potential recession in the bloc emerges as an important domestic headwind facing the euro in the short-term horizon. The EUR/GBP is rising sharply on Monday, boosted by a stronger Euro across the board. On the Fed speaking side, ahead of the blackout https://www.cnbc.com/money-in-motion/ period, for the December meeting, Williams, Bullard, Cook, Bowman, Logan, Barr, Evans, and Powell will speak during the week. Of late, the Cleveland Federal Reserve President Loretta Mester stated that she does not believe that the Fed is close to a pause on tightening, reiterating its hawkish stance.
Market closures on Labor Day in the United States
Moving forward, the week will be marked by the speech by Chief Powell on “Economic Outlook, Inflation and the Labour Market” and the relese of November’s Payrolls . Bets for less aggressive Fed rate hikes and sliding US bond yields continue to weigh on the USD. The USD remains depressed amid bets for less aggressive Fed rate hikes and offer support. The AUD/USD pair opens with a modest bearish gap on the first day of a new week and remains depressed through the early North American session. Gold price tumbles below $1750 on traders’ negative sentiment, spurred by geopolitical reasons. Mitigate against forex trading risk with our range of stop and limit orders, and keep an eye on forex prices with customisable alerts. When trading currency pairs, a forex signal system creates a buy or sell decision based on technical analysis, charting tools, or news events.
According to the estimates, the US economy has added 200k fresh jobs in the labor market, lower than the prior release of 239k. Chatters over a slowdown in the current rate hike pace by the Federal Reserve have gone rooftop. Whatever the decision the Federal Reserve will take in the December monetary policy on interest rates, the risk-sensitive assets have enjoyed a ball. Intensifying protests by individuals against anti-Covid lockdown measures by the Chinese authorities to curtail infections have dampened the risk-appetite theme. This has led to a sheer decline in the risk-sensitive currencies but has supported the US Dollar.
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