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EUR/USD hovers around 1.0750 with a negative sentiment amid hawkish Fed
EUR/USD could extend its losses for the third successive session, trading around 1.0750 during the Asian session on Thursday. The US Dollar appreciates amid expectations of the Federal Reserve’s maintaining higher interest rates.
GBP/USD holds below 1.2500 ahead of BoE rate decision
GBP/USD extends its losing streak for the third successive session, trading around 1.2490 during the Asian session on Thursday. Thursday brings the Bank of England interest rate decision, with expectations of maintaining interest rate at 5.25%.
Gold price gains momentum, investors await US data, Fedspeak for fresh catalyst
Gold price holds positive ground in Thursday’s Asian session. The rise in global gold demand, persistent central bank purchasing, and safe-haven flows might continue to boost the precious metal.
President Biden threatens crypto with possible veto of Bitcoin custody among trusted custodians
Joe Biden could veto legislation that would allow regulated financial institutions to custody Bitcoin and crypto. Biden administration’s stance would disrupt US SEC’s work to protect crypto market investors and efforts to safeguard broader financial system.
BoE set to leave interest rates unchanged amid increasing expectations of cuts
It's anticipated that the BoE will maintain the benchmark interest rate at 5.25% after its policy meeting today at 11:00 GMT. Alongside the policy rate announcement, the bank will release the Monetary Policy Minutes and the Monetary Policy Report.
DEEPER DIVE
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture.
Building the future
There is a construction boom underway that is quietly transforming the production capabilities and other aspects of the US economy. The fastest-growing category within nonresidential construction in recent years has been manufacturing.
Addressing the public debt challenge in the EU
Recently an agreement has been reached between representatives of the European Council, the European Parliament, and the European Commission on a new economic governance framework.
FXS Signals
Technical Confluences Detector
Gold flirts with $2,320 as USD demand losses steam Premium
Gold price flirts with $2,320 in the American session, trimming early losses that sent XAU/USD to a weekly low at $2,303.60. The US Dollar lost momentum after Wall Street's opening despite the poor performance of American indexes. The DJIA posts some modest gains, although the Nasdaq Composite and the S&P 500 trade in the red.
Financial markets continue to struggle for direction in a week marked by the absence of relevant macroeconomic data. Speculative interest tries to take clues from Fed officials' words, but so far, none provide fresh clues that could spur some directional price action.
CRYPTOCURRENCIES
VanEck launches MarketVector “MEMECOIN” index to track BONK, FLOKI, DOGE, PEPE, WIF and SHIB tokens
While Bitcoin ETFs track BTC price, $90 billion asset manager VanEck has launched a separate index, christened MEMECOIN, to track the performance of the sector’s best and worst performers.
Ethereum could experience bullish run, ETH ‘ultrasound’ money narrative at risk
Ethereum price action on Wednesday shows it could be gathering momentum for a rally as a recent report from CryptoQuant reveals its ultrasound money narrative is at risk.
President Biden threatens crypto with possible veto of Bitcoin custody among trusted custodians
Joe Biden could veto legislation that would allow regulated financial institutions to custody Bitcoin and crypto. Biden administration’s stance would disrupt US SEC’s work to protect crypto market investors and efforts to safeguard broader financial system.
AI tokens could rally following growth in NVIDIA's stock
While some predicted the Bitcoin halving would be the breaking point for a new bull cycle, a recent rally in AI tokens could see them lead the altcoin season. The continuous integration of AI-backed tokens has increased awareness of the possibilities that await the general blockchain ecosystem with them on board.
THE STOCK OF THE DAY
SHOP stock gets massacred as market scoffs at bare beat Premium
Shopify checked most of the boxes during its first-quarter earnings results late Tuesday, but that just wasn’t enough for the market’s outsized ambitions. The eCommerce solution has traded down more than 20% on Wednesday morning as the broader market tumbles in tandem.
ECONOMIC CALENDAR
WEEKLY FORECAST
EUR/USD: Optimism prevailed, hurting US Dollar demand Premium
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
GBP/USD: Recovering ahead of BoE, UK GDP data Premium
The British Pound (GBP) extended its march north against the US Dollar (USD) throughout the week, motivating GBP/USD to break above the 1.2600 figure for the first time since mid-April.
US Dollar: Less-hawkish Fed, Nonfarm Payrolls miss weigh on the Greenback Premium
A marked pullback during the week prompted the US Dollar (USD) to retreat to the area of three-week lows in the mid-104.00s when tracked by the USD Index (DXY) soon after the US NFP came in below expectations in April.
Gold: XAU/USD bears take action on mixed signals from US economy Premium
Gold (XAU/USD) price fell more than 2% for the second consecutive week, erased a small portion of its losses but finally came under renewed bearish pressure. The near-term technical outlook points to a loss of bullish momentum as the market focus shifts to Fedspeak.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.
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