DIFX Buzz: Here’s a weekly market recap for you to start your Monday with the top news of the week.
Let’s see what happened in markets this week:
❖ The Dollar ended last week with some gains as it rejected the psychological support area at $100.
❖ The Dollar, however, hit a 5-week high at $102.7 and is trading lower at the start of this week.
❖ The safe haven trade into the Dollar has boosted the greenback due to concerns about the debt ceiling and what this means for the current stance on the monetary policy.
❖ It seems the expectation of rate cuts before the end of the year is fading which could result in more upward movement for the Dollar.
Equities
❖ Wall Street is preparing for a potential US debt default as bonds are the foundation of the entire market.
❖ If there is a default, equities will be severely affected accompanied by massive volatility.
❖ Banks and brokers are piling up cash to withstand these potential moves and to ensure they don’t have to close positions at the worst possible price.
❖ Biden has stated that there will be a resolution before the end of the month.
❖ Bitcoin hit a 2-month low and most people agree this could be due to the fact that there is a liquidity problem.
❖ Low liquidity has been a result of recent defaults by banks but also an aftermath of the cascading effect of the FTX collapse.
❖ Net Bitcoin accumulation rate is at its highest since October 2021 which signals that buyers have entered the market and adoption is picking up.
❖ US crude fluctuated between the $73.90 resistance and $69.90 support all throughout the week in a narrow $4 range.
❖ A small recovery between $71.70 and $72.20 will be aided by consolidation over $70, and above that, an additional upside can be seen toward the $73.80 resistance.
❖ The price of gold did not significantly change over the course of the week and ended within the previous week’s range.
❖ A retest of $2,016–$2,022 is possible as long as gold maintains its position above the 5-week EMA of $1,999.
