Bitcoin prices slip to a five-week low below $3,500 over the weekend, dragging down the collection of smaller digital currencies known as altcoins.
While the U.S. dollar remains muted and the haven Japanese yen gains on the back global growth and trade worries, the Brexit-ridden British pound climbs to lead currency gainers on Tuesday.
Gold markets pulled back a bit during the day on Tuesday but seem to be hanging on to the $1280 level, an area that I thought could be supportive. Because of this, I think we are now looking at a possible return to consolidation.
The US dollar pulled back against the Japanese yen during the trading session on Tuesday, as we had gotten a bit ahead of ourselves in this rally. We are seeing a lot of resistance right where you would expect to based upon the massive flash crash that happened.
The British pound pulled back initially against the Japanese yen but seems to be finding support during the day on Tuesday, as the 50 day EMA is in play. Beyond that, we have a significant amount of support underneath than the form of the ¥140 level.
The Euro dropped a bit during the trading session on Tuesday as the Americans came back to work. That being the case, the market is testing and uptrend line, and it looks likely that we could see a little bit of support in this area as we have been forming a “rounded bottom” as of late.
The Australian dollar pulled back a bit during the trading session on Tuesday, breaking significantly below the 50 day EMA. However, I do think there is play support below, pictured by the massive bullish candle from the 0.70 level.
Investing.com - Global slowdown fears are growing, but the bigger beneficiary this time seems to be the dollar, not precious metals.
Investing.com – The U.S dollar trickled lowered against its rivals Tuesday as data showed U.S. existing home sales in December fell to their lowest level in more three years.
LONDON MARKETS The FTSE 100 struggled on Tuesday, as the London banking sector came under pressure after earnings from Swiss bank UBS Group AG fell short of analysts’ expectations. Energy stocks were also weaker as oil prices fell on continued concerns about global growth, most recently sparked by a warning from the International Monetary Fund and Chinese data reported Monday.
The USD has been suffering since the beginning of the year and started recovering since January 10. At the same time, the Japanese yen couldn’t take revenge over the USD and couldn’t pull the pair significantly down. As a result, USD/JPY had been trading sideways and rose as soon as the USD recovered.
The Fed’s dovish outlook and slower global economic growth had been driving gold prices higher. But this has changed recently with gold traders focusing lately on Treasury yields and the movement in the U.S. Dollar. We expect to see these two factors exert the biggest influence on gold prices today.
As was widely expected PM May’s deal was met with a resounding rejection in the house of commons, with the margin of the parliamentary defeat the largest ever suffered by a government.
Investing.com - Cryptocurrencies traded higher on Tuesday as bitcoin bounced off its lowest level this year amid a flurry of problems with South Korean crypto exchanges and further news of attempted regulation.
Ever since the EURUSD declined from 1.1570, it’s moves can be depicted by a short-term descending trend-line, which in-turn presently drags the quote towards 1.1325 support-line. Should prices refrain to respect the 1.1325 rest-point, the 1.1300 and the 1.1265-60 may lure the sellers ahead of pushing them to aim for recent low around 1.1215. If at all the pair manage to cross the 1.1370 TL barrier, the 1.1420 and the 1.1450 could entertain counter-trend traders prior to challenging them with 1.1490-1.1500 resistance-zone. Though, pair’s successful break of 1. ...
US Dollar trades steady above 1.33 handle on weak crude oil price action in the broad market and the price action is expected to continue ahead of Canadian macro data update which is expected to provide directional cues for near term price action.
Gold prices have pulled back significantly during the Monday’s session, breaking below the supportive $1280 level. It is expected that the market will continue to witness volatility until it breaks above the $1300 level. Pullbacks of this sort will continue to be a nice buying opportunity with strong support at $1250 level. …Read MoreSilver
The Euro is continuing to lose momentum against the USD and in Monday’s session, it pulled back after rallying a bit to test the 1.1350 level underneath. There are several support points underneath and break below 1.13 level would invite more trouble. The market will continue to be difficult and until unless the pair breaks above the 1.15 level and the 200 Day EMA, it will continue to chop around. …Read MoreGBP/USD
The bleak economic forecasts are likely to continue to pressure the Aussie and the Kiwi on Tuesday especially if investors start to move money into the safe-haven U.S. Dollar. Basically, if the global economy slows especially China then the Australian and New Zealand economies should feel similar pressure. The would push any chances of a rate hike by the Reserve Bank of Australia and the Reserve Bank of New Zealand further out into the future.
Precious metals trade positive on increased safe-haven demand as US Dollar failed to make sharp gains owing to bearish pressure from U.S. political woes and dovish Fed stance.
Investing.com - Gold prices bounced off their lowest level in around three weeks on Tuesday, as worries about a global economic slowdown boosted appetite for safe haven assets.
Based on last week’s price action, we don’t expect much movement in the USD/JPY unless there is volatility in Treasury yields. This will occur if there are any fresh developments over U.S.-China trade relations. Appetite for risky assets will also have an influence on prices.
Demand for USD following IMF growth forecast update limits GBP’s upside move as traders await UK macro data for direction cues to trade in the short term.