Japan’s Finance Minister says they will take necessary steps to combat Yen’s weakness as the currency hit a high of $145. This is around the same area where the government last stepped in to buy Yen toward the end of 2022.
Last week, economic data out of the US showed signs that the economy is still strong with the GDP growth rate coming out higher than forecasted.
Friday data, however, displayed signs that Fed tightening is having the necessary effects on the US economy with the PCE price index coming out lower than expected.
FOMC Minutes for the June meeting will be out on Wednesday and jobs data is expected at the end of the week. These two are the most likely market movers.
In today’s DIFX Analytics, we’re going to look into the following assets:
Bitcoin is trading bullish near the 2023 high of $31,458. The SEC announced that the ETF filings were inadequate which sparked a short selloff in the asset but it found support very quickly and has avoided massive losses.
We should see prices go for the next support near $32,500 in the near term.
USD/CHF has been trading range-bound between $0.89 and $0.90. There is a slight upward trend but not too aggressive.
The Dollar gained against CHF at the start of the trading week but erased those gains through Tuesday.
With jobs data coming out at the end of the week, we may see some volume to push the pair out of this range.
Gold is bearish as it broke out of the range to the downside. $1932-39 which was the previous support has now become the resistance area.
RSI has tapped above 50 after weak ISM manufacturing data on Monday. Economists are now pricing in a 90% chance of a 25 basis point rate increase. Traders should wait to see how the asset reacts to the resistance near $1936.
The past 2 weeks have brought a consolidation of price action and EUR/USD is trading between the ranges near the 50-day EMA.
The Dollar saw some losses as data toward the end of the week came out indicating that high rates were having the desired effect on tightening the economy.
FOMC Minutes on Wednesday will have an impact on price action.
Crypto products are unregulated and could be highly volatile. Please be aware of the risks before investing.
DIFX shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee, or implication by DIFX that the forecast information will eventuate, that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses in particular if the conditions or assumptions used for the forecast or mentioned in the analysis do not eventuate as anticipated and the forecast is not realized.