Articles
Three key factors that could propel Ethereum to new heights
398861 June 28, 2024 07:21 FXStreet Market News
- Ethereum’s decreasing exchange supply may be caused by increasing ETH staking.
- Galaxy Research predicts $5 billion in inflows in first five months of Ethereum ETF launch.
- Ethereum needs to overcome the $3,629 key resistance to validate bullish thesis.
Ethereum (ETH) is up nearly 3% on Thursday as upcoming spot ETH ETF launch and key on-chain metrics suggest an ETH rally might be around the corner.
Daily digest market movers: Why declining ETH exchange supply, staked ETH and spot ETH ETF launch primes Ethereum for new high
According to Glassnode data, Ethereum supply on exchanges has continued a downward trend despite recent price rises.
As earlier reported, this signifies that most ETH long-term holders (LTHs) have yet to begin profit-taking. LTHs may be anticipating higher price rises and a new all-time high before they begin locking in profits, especially with the launch of spot ETH ETFs on the horizon.
The increasing yield from ETH staking and restaking protocols could also be fuelling the declining exchange supply. Glassnode’s data also shows that the number of staked ETH has increased steadily, meaning most of the declining exchange supply may have flowed to staking protocols.
ETH Exchange Supply vs Staked ETH
With the growth of EigenLayer, Kaiko and Symbiotic and the increasing number of underlying restaking and liquid restaking protocols they power, the ETH exchange supply may continue decreasing. Combined with the potential launch of spot ETH ETFs, Ethereum may be poised for significant price growth in the future.
The Securities & Exchange Commission (SEC) approved issuersÂ’ spot ETH ETF 19b-4 applications on May 23 but have yet to greenlight their S-1 registration statements. Issuers filed amended S-1s last week after the SEC made “light” comments on them.
A recent Galaxy Research report on potential spot ETH ETF inflows also aligns with this prediction. The report stated that Ethereum ETFs could attract up to $5 billion within their first month of trading.
“We expect the net inflows into ETH ETFs to be 20-50% of the net inflows into BTC ETFs over the first five months, with 30% as our target, implying $1 billion/month of net inflows,” said Galaxy analyst Charles Yu.
The report said Ethereum’s price would be more sensitive to inflows than Bitcoin due to the ETH supply being locked in staking protocols, bridges, smart contracts, and the reduced exchange supply. However, Galaxy also highlighted that potential outflows from Grayscale’s Ethereum Trust conversion and the absence of staking could affect ETH ETF inflows.
This follows earlier predictions from Bitwise CIO Matt Hougan that spot ETH ETFs could attract $15 billion in net flows by the end of 2025.
The SEC may give the final approval for spot ETH ETFs on July 4, according to a Reuters report.
ETH technical analysis: Could Ethereum move past the $3,629 key resistance?
Ethereum is trading around $3,450, up nearly 3% on Thursday following a slight recovery in the crypto market. The move up has seen ETH short liquidations reach $18.31 million, with long only at $4.10 million in the past 24 hours.
ETH Chicago Mercantile Exchange (CME) open interest (OI) reached an all-time high this week. With ETH price also rising slightly, the increasing CME OI indicates US investors may be anticipating a rally. This also signifies potential good inflows in spot ETH ETFs when they launch, potentially causing a price rise in ETH.
ETH/USDT 4-hour chart
ETH could see a rally as the potential launch date for spot ETH ETF draws closer, but it faces resistance at the $3,629 price level. In the past three weeks, ETH bulls have failed on three different attempts to sustain a move above this level. A successful sustained move above the $3,629 price level could see ETH aiming to overcome the next resistance of $3,829.
A move below the $3,300 support could see ETH falling back to collect liquidity around the Fair Value Gap of May 20, extending from $3,110 to $3,457. The $3,203 key support could help prevent a further decline.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
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Dow Jones Industrial Average grinds into the midrange after mixed US data flummoxes risk appetite
398858 June 28, 2024 07:17 FXStreet Market News
- Dow Jones continues to churn just above 39,000.00 after ThursdayÂ’s mixed data.
- US data came in mixed on Thursday, leaving the American market session in the lurch.
- Investors now pivot to face FridayÂ’s US PCE Price Index inflation print.
The Dow Jones Industrial Average (DJIA) went sideways on Thursday, finding tentative gains but battling the downside as traders grapple with a mixed print on the US data docket. US Initial Jobless Claims printed better than expected, but still on the higher end of recent figures, while US Personal Consumption Expenditures (PCE) rose faster than expected in Q1. Equities will now be on the lookout for FridayÂ’s US PCE Price Index inflation, which is still expected to show an overall easing in core price pressures in May.
US Initial Jobless Claims for the week ended Jun 21 came in better than expected, showing 233K net new jobless benefits seekers compared to the forecast 236K, and down slightly further from the previous weekÂ’s 238K. The four-week average for Initial Jobless Claims jumped to 236K, bringing the newest week-on-week figure back below the running average.
US Gross Domestic Product (GDP) met expectations on Thursday, with Q1 GDP slightly revised to 1.4% from the initial print of 1.3%. Core Personal Consumption Expenditures in the first quarter also rose slightly, ticking up to 3.7% QoQ versus the forecast hold at 3.6%. ThursdayÂ’s upcoming Presidential debate, due to start after the dayÂ’s market close, will draw some attention as investors keep an eye out for possible policy hints from candidates.
FridayÂ’s US PCE Price Index inflation print will be the weekÂ’s key data figure as investors hope for continued cooling in US inflation numbers to help push the Federal Reserve (Fed) closer toward rate cuts. At current cut, core PCE Price Index inflation is forecast to tick down to 0.1% MoM in May from 0.2%.Â
Economic Indicator
Core Personal Consumption Expenditures – Price Index (MoM)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal ReserveÂ’s (Fed) preferred gauge of inflation. The MoM figure compares the prices of goods in the reference month to the previous month.The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
Dow Jones news
The Dow Jones is finding slim gains on Thursday after a firm surge in familiar favorites, but overall securities remain mixed. About half of the Dow JonesÂ’ constituent securities are in the red for the day, with losses led by Merck & Co Inc. (MRK), which fell 2.25% to $128.55 per share and shed around three points on Thursday.
On the high side, Salesforce Inc. (CRM) soared around 6% to $256.82 per share as the company gears up for its latest shareholder meeting on Thursday.
Dow Jones technical outlook
The Dow Jones index shrugged off an early decline on Thursday, rallying to a thin gain into the 39,250.00 region. Still, bullish momentum remains tepid, and the major equity index is settling into a soft churn pattern in intraday trading.
Daily candlesticks are holding onto chart paper just north of the 50-day Exponential Moving Average (EMA) at 38,889.40, but topside momentum remains limited and bidders are running out of steam as the index trades south of recent all-time highs around the 40,000.00 major price handle.
Dow Jones five minute chart
Dow Jones daily chart
Dow Jones FAQs
The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, who also founded the Wall Street Journal. In later years it has been criticized for not being broadly representative enough because it only tracks 30 conglomerates, unlike broader indices such as the S&P 500.
Many different factors drive the Dow Jones Industrial Average (DJIA). The aggregate performance of the component companies revealed in quarterly company earnings reports is the main one. US and global macroeconomic data also contributes as it impacts on investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.
Dow Theory is a method for identifying the primary trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where both are moving in the same direction. Volume is a confirmatory criteria. The theory uses elements of peak and trough analysis. DowÂ’s theory posits three trend phases: accumulation, when smart money starts buying or selling; public participation, when the wider public joins in; and distribution, when the smart money exits.
There are a number of ways to trade the DJIA. One is to use ETFs which allow investors to trade the DJIA as a single security, rather than having to buy shares in all 30 constituent companies. A leading example is the SPDR Dow Jones Industrial Average ETF (DIA). DJIA futures contracts enable traders to speculate on the future value of the index and Options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds enable investors to buy a share of a diversified portfolio of DJIA stocks thus providing exposure to the overall index.
Mexican Peso slides as Banxico hold rates amid depreciation concerns
398856 June 28, 2024 07:12 FXStreet Market News
- Mexican Peso declined after the Banxico decision to keep rates at 11.00%, hinting at possible future easing.
- Policymakers optimistic about ongoing disinflation, open to future rate adjustments.
- Despite positive Mexican economic indicators like lower unemployment and trade surplus, Peso stays weak.
The Mexican Peso extended its losses against the US Dollar after the Bank of Mexico (Banxico) monetary policy decision, in which the Mexican central bank held rates unchanged, though it opened the door for further easing. At the time of writing, the USD/MXN trades at 18.39, up by 0.38%.
Banxico’s Governing Board held rates at 11.00%, mentioning that domestic financial markets were volatile due to “idiosyncratic factors,” spurring a jump in Mexican bond yields and the Peso’s depreciation. Nevertheless, Banxico policymakers failed to say that traders’ reaction was sponsored by the ruling party majority in Congress, which would push for bills that could threaten the state of law.
Besides that, officials mentioned that the disinflation process is expected to continue, adding that “the board foresees that the inflationary environment may allow for discussing reference rate adjustments.”
Aside from this, MexicoÂ’s economic docket fared better than foreseen, with the Unemployment Rate coming in below estimates, while the Balance of Trade printed a surprising surplus. Despite that, the Mexican currency remained slightly weaker against the US Dollar (USD).
Across the border, mixed data in the United States (US) boosted the Greenback against most emerging market currencies but dropped against most G7 currencies. The final reading of the Gross Domestic Product (GDP) for Q1 2024 was higher than expected, unemployment claims dipped, and Durable Goods Orders exceeded forecasts.
Daily digest market movers: Mexican Peso stays weak post Banxico
- Data from Mexico, revealed the Unemployment Rate in May was 2.6%, below estimates of 2.7%. The Balance of Trade printed a surplus of $1.99 billion, crushing the consensus projections for a $-2.04 billion deficit.
- Citibanamex survey showed economists priced out fewer rate cuts by the central bank, estimating rates will be lowered to 10.25% in 2024, up from 10.00%. Regarding the USD/MXN, the consensus year-end exchange rate estimate is 18.70, up from 18.00 in the previous report.
- Regarding economic growth, the consensus revised the Gross Domestic Product (GDP) for 2024 downward from 2.2% to 2.1% YoY.
- US GDP for Q1 2024 came at 1.4% higher than the 1.3% in the previous two readings, still trailing last yearÂ’s fourth quarter of a 3.4% expansion.
- US Durable Goods Orders in May rose by 0.1% MoM, exceeding forecasts for a -0.1% contraction. At the same time, Initial Jobless Claims dipped from 239K a week ago to 233K, beneath forecasts of 236K.
- CME FedWatch Tool shows odds for a 25-basis-point Fed rate cut at 59.5% up from WednesdayÂ’s 56.3%.
Technical analysis: Mexican Peso slides slightly as USD/MXN rallies back above 18.30
The USD/MXN is upwardly biased, yet the pair would likely remain volatile as BanxicoÂ’s decision looms. Despite that, momentum is in favor of buyers as the Relative Strength Index (RSI) suggests that bulls are in control.
For a bullish continuation, buyers need to push the USD/MXN exchange rate past the psychological 18.50 level. Once cleared, the next stop would be the year-to-date (YTD) high of 18.99, followed by the March 20, 2023, high of 19.23, followed by an uptick to 19.50.
On the flip side, if USD/MXN tumbles below the April 19 high turned support at 18.15, that will pave the way toward 18.00. Next key support level would be the 50-day Simple Moving Average (SMA) at 17.37 before testing the 200-day SMA at 17.23. Once those two levels are cleared, the next stop would be the 100-day SMA at 17.06.
Mexican Peso FAQs
The Mexican Peso (MXN) is the most traded currency among its Latin American peers. Its value is broadly determined by the performance of the Mexican economy, the country’s central bank’s policy, the amount of foreign investment in the country and even the levels of remittances sent by Mexicans who live abroad, particularly in the United States. Geopolitical trends can also move MXN: for example, the process of nearshoring – or the decision by some firms to relocate manufacturing capacity and supply chains closer to their home countries – is also seen as a catalyst for the Mexican currency as the country is considered a key manufacturing hub in the American continent. Another catalyst for MXN is Oil prices as Mexico is a key exporter of the commodity.
The main objective of MexicoÂ’s central bank, also known as Banxico, is to maintain inflation at low and stable levels (at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%). To this end, the bank sets an appropriate level of interest rates. When inflation is too high, Banxico will attempt to tame it by raising interest rates, making it more expensive for households and businesses to borrow money, thus cooling demand and the overall economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN.
Macroeconomic data releases are key to assess the state of the economy and can have an impact on the Mexican Peso (MXN) valuation. A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only does it attract more foreign investment but it may encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this strength comes together with elevated inflation. However, if economic data is weak, MXN is likely to depreciate.
As an emerging-market currency, the Mexican Peso (MXN) tends to strive during risk-on periods, or when investors perceive that broader market risks are low and thus are eager to engage with investments that carry a higher risk. Conversely, MXN tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.
GBP/USD pinned to key technical levels ahead of FridayÂ’s US inflation update
398853 June 28, 2024 07:09 FXStreet Market News
- GBP/USD is mired in long-term averages near 1.2620.
- Mixed US data on Thursday left risk appetite in the lurch.
- US PCE Price Index inflation to round out the weekÂ’s data releases.
GBP/USD waffled on Thursday, churning in empty yet familiar chart paper between long-term moving averages, with price action sandwiched between the 1.2700 and 1.2600 handles. US data came in mixed, leaving market sentiment to grind into the middle as investors await FridayÂ’s key US inflation print.
Forex Today: US inflation comes to the fore… again
Before key US price growth data, the upcoming US Presidential Election is expected in the early Friday market session. Investors will be keeping one ear out for any hints regarding potential policy plans from all of the US candidates.
During the London market window, the UK also drops revisions to first-quarter Gross Domestic Product (GDP). Median market forecasts expect UK GDP growth to hold steady at the initial print of 0.6% QoQ.
US Initial Jobless Claims for the week ended Jun 21 came in better than expected, showing 233K net new jobless benefits seekers compared to the forecast 236K, and down slightly further from the previous weekÂ’s 238K. The four-week average for Initial Jobless Claims jumped to 236K, bringing the newest week-on-week figure back below the running average.
US Gross Domestic Product (GDP) met expectations on Thursday, with Q1 GDP slightly revised to 1.4% from the initial print of 1.3%. Core Personal Consumption Expenditures in the first quarter also rose slightly, ticking up to 3.7% QoQ versus the forecast hold at 3.6%. ThursdayÂ’s upcoming Presidential debate, due to start after the dayÂ’s market close, will draw some attention as investors keep an eye out for possible policy hints from candidates.
FridayÂ’s US PCE Price Index inflation print will be the weekÂ’s key data figure as investors hope for continued cooling in US inflation numbers to help push the Federal Reserve (Fed) closer toward rate cuts. At current cut, core PCE Price Index inflation is forecast to tick down to 0.1% MoM in May from 0.2%.Â
Economic Indicator
Core Personal Consumption Expenditures – Price Index (MoM)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal ReserveÂ’s (Fed) preferred gauge of inflation. The MoM figure compares the prices of goods in the reference month to the previous month.The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures. Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.
GBP/USD technical outlook
The Cable has ground to a halt at the 200-day Exponential Moving Average (EMA) near 1.2611, with the pair hamstrung between 1.2700 and 1.2600, and ThursdayÂ’s price action caught between the 200-day and 50-day EMAs.Â
Downside pressure is more apparent on intraday charts, with a clear low-side drift baked into hourly candlesticks as buyers remain unable to push intraday price action back above the 200-hour EMA at 1.2674.
GBP/USD hourly chart
GBP/USD daily chart
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, aka ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
South Korea Industrial Output (YoY) came in at 3.5%, above expectations (3.1%) in May
398852 June 28, 2024 07:06 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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Canadian Dollar gives a mixed performance on Thursday as markets await key data
398849 June 28, 2024 07:05 FXStreet Market News
- Canadian Dollar went in both directions on ThursdayÂ’s mixed US data.
- Canada is absent from economic calendar until FridayÂ’s GDP update.
- US PCE Price Index inflation also looms ahead on Friday.
The Canadian Dollar (CAD) gave a mixed performance on Thursday after a data-light economic calendar on the Canadian side left the CAD to twist amid a mixed print in key US figures. Markets are gearing up for FridayÂ’s US Personal Consumption Expenditure Price Index (PCE) inflation release after ThursdayÂ’s burgeoning US release schedule ran the gamut.
Canada is absent from the economic calendar on Thursday, leaving CAD traders to shuffle in place until FridayÂ’s Canadian Gross Domestic Product (GDP) update for April.
However, FridayÂ’s US PCE Price Index inflation is set to eclipse Canadian GDP figures entirely. As a key reading of inflation for the Federal Reserve (Fed), significant market attention will be focused squarely on US price growth figures to cap off the trading week.
Daily digest market movers: US data comes in mixed, Canadian Dollar follows suit
- US Durable Goods Orders contracted in May, clocking in -0.1% MoM versus the forecast 0.2%, falling further than expected from the previous 0.4%.Â
- US Q1 GDP came in exactly as expected with first-quarter GDP slightly revised to 1.4% from the initial print of 1.3%.
- US Initial Jobless Claims beat expectations with 233K net new jobless benefits seekers for the week ended June 21. Median market forecasts had expected a print of 236K compared to the previous weekÂ’s 238K.
- US Core Personal Consumption Expenditures, a preview of FridayÂ’s PCE Price Index, ticked upwards to 3.7% in the first quarter versus the expected hold at 3.6%.
- FridayÂ’s Canadian MoM GDP in May is expected to rebound to 0.3% from the previous flat print.
- US core PCE Price Index inflation is expected to ease to 0.1% in May from the previous 0.2%.
Canadian Dollar PRICE Today
The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the Swiss Franc.
| Â | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | Â | -0.23% | -0.16% | -0.03% | -0.08% | -0.02% | -0.05% | 0.14% |
| EUR | 0.23% | Â | 0.06% | 0.19% | 0.13% | 0.21% | 0.15% | 0.36% |
| GBP | 0.16% | -0.06% | Â | 0.14% | 0.08% | 0.16% | 0.11% | 0.31% |
| JPY | 0.03% | -0.19% | -0.14% | Â | -0.05% | 0.00% | -0.06% | 0.18% |
| CAD | 0.08% | -0.13% | -0.08% | 0.05% | Â | 0.04% | 0.03% | 0.21% |
| AUD | 0.02% | -0.21% | -0.16% | -0.01% | -0.04% | Â | -0.03% | 0.15% |
| NZD | 0.05% | -0.15% | -0.11% | 0.06% | -0.03% | 0.03% | Â | 0.20% |
| CHF | -0.14% | -0.36% | -0.31% | -0.18% | -0.21% | -0.15% | -0.20% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Canadian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CAD (base)/USD (quote).
Technical analysis: Canadian Dollar churns on data-light Thursday, but gains remain thin
The Canadian Dollar (CAD) is mixed on Thursday, giving a middling performance in overall quiet markets. The CAD is up over a tenth of a percent against the Swiss Franc (CHF) and the Japanese Yen (JPY), but falling back a fifth of a percent against the Euro (EUR) and the Pound Sterling (GBP).
USD/CAD is stuck close to ThursdayÂ’s opening bids after an early dip to 1.3680. The pair remains stuck in a price action trap near the 1.3700 handle as intraday bids get hung up on the 200-hour Exponential Moving Average (EMA) at 1.3692.
Daily candlesticks are forming a bullish bounce after running aground of the 50-day EMA at 1.3676 and is set to snap a near-term losing streak after the pair flubbed a bullish recovery of the 1.3800 handle earlier in June.
USD/CAD hourly chart
USD/CAD daily chart
Canadian Dollar FAQs
The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar.
The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. This influences the level of interest rates for everyone. The main goal of the BoC is to maintain inflation at 1-3% by adjusting interest rates up or down. Relatively higher interest rates tend to be positive for the CAD. The Bank of Canada can also use quantitative easing and tightening to influence credit conditions, with the former CAD-negative and the latter CAD-positive.
The price of Oil is a key factor impacting the value of the Canadian Dollar. Petroleum is CanadaÂ’s biggest export, so Oil price tends to have an immediate impact on the CAD value. Generally, if Oil price rises CAD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Oil falls. Higher Oil prices also tend to result in a greater likelihood of a positive Trade Balance, which is also supportive of the CAD.
While inflation had always traditionally been thought of as a negative factor for a currency since it lowers the value of money, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Higher inflation tends to lead central banks to put up interest rates which attracts more capital inflows from global investors seeking a lucrative place to keep their money. This increases demand for the local currency, which in CanadaÂ’s case is the Canadian Dollar.
Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the CAD. A strong economy is good for the Canadian Dollar. Not only does it attract more foreign investment but it may encourage the Bank of Canada to put up interest rates, leading to a stronger currency. If economic data is weak, however, the CAD is likely to fall.
South Korea Service Sector Output dipped from previous 0.3%Â to -0.5% in May
398848 June 28, 2024 07:02 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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South Korea Industrial Output Growth below expectations (0.2%) in May: Actual (-1.2%)
398847 June 28, 2024 07:02 FXStreet Market News
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Axie Infinity price dips 45% since April even as AxiesÂ’ active addresses rise nearly 700%
398844 June 28, 2024 06:33 FXStreet Market News
- Axie NFT collectionÂ’s monthly active addresses climbed 690% since April.Â
- The NFT project has generated more monthly on-chain revenue than most other blue-chip collections in the past 30 days.Â
- AXS wiped out 45% of its value since April even as Axie NFTs are relevant among investors.Â
Axie Infinity (AXS) is a gaming finance (GamsFi) token with a virtual world and a game featuring Axies from the NFT collection. AXS has wiped out nearly 45% of its value in the past two months as AXS price has been in a state of decline since April, down from $11.10 on April 1 to $6.22 on June 27, at the time of writing.Â
The NFT collectionÂ’s Axies have generated more monthly on-chain revenue than most other NFTs, per DeFiLlama data.Â
AXS suffers 45% correction since April, AxiesÂ’ popularity persists
Data from DeFi intelligence tracker DeFiLlama shows that the monthly active users of Axies have climbed 690%, from 26,500 to 209,600 between April and June 2024. The blue-chip NFT collection is generating more monthly on-chain revenue relative to others, as seen in the chart below.Â
30-day on-chain revenue of the NFT collectionÂ
Co-founder of Axie Infinity shared statistics from the Coinbase learn-to-earn campaign in mid-June. @Jihoz_Axie dropped key details of the campaign that evidence the rising demand for the NFTs and the relevance among traders:
- 236,000 total participants engaged with Axies
- 202,000 Axies were purchased
- Axie treasury noted a 99% surge in weekly fees paid, up from $50,685 to $100,843, during the first ten days of the campaign.Â
In the 10 days since the start of the Coinbase learn to earn campaign:
• 236k total participants
• 202k axies purchased vs 48k in the 10 day window prior to the campaign
• Origins and Classic DAU up 10%
• 570 Eth in marketplace traded in the last 10 days an increase of 165%… pic.twitter.com/htkIBVNfxi— Jihoz.ron (@Jihoz_Axie) June 14, 2024
AXS/USDT daily chart shows a 45% decline in the GameFi tokenÂ’s price in the same timeframe where Axies collection noted a surge in revenue and monthly active users. It is likely that the tokenÂ’s price has failed to catch up with the popularity of the NFT collection.Â
Axie InfinityÂ’s AXS could extend gains by 6% and rally towards the Fair Value Gap at $6.661, as seen in the chart below. The GameFi token could make steady progress towards recovering from the 45% correction.Â
The Moving Average Convergence Divergence (MACD) momentum indicator supports the bullish thesis. Green histogram bars appeared above the neutral line on the AXS/USDT daily chart, as seen below, signaling positive momentum underlying AXS price trend.
AXS/USDT daily chartÂ
If AXS fails to extend gains, it could find support at the Fair Value Gap between $5.996 and $6.036.
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GBP/JPY extends into further multi-year highs on Thursday
398841 June 28, 2024 06:29 FXStreet Market News
- GBP/JPY touches fresh 16-year highs as Yen continues to backslide.
- Japanese Retail Trade ticked higher, Tokyo CPI inflation next on the docket.
- UK GDP revision slated for Friday, little change expected.
GBP/JPY tapped a fresh 16-year high of 203.39 on Thursday as the Yen continues ot get pushed lower across the board. An uptick in Japanese Retail Sales early Thursday failed to spark a recovery in the Yen as JPY traders buckle down for the last print of JapanÂ’s Tokyo Consumer Price Index (CPI) inflation due early Friday.
The UK will also be delivering a fresh revision to first-quarter Gross Domestic Product (GDP) figures, but little change is expected and Q1 UK GDP is expected to hold steady at 0.6%, in-line with the initial print.
Core Tokyo CPI is expected to tick upwards slightly to 2.0% YoY in June, but the upswing is likely not enough to push the Bank of Japan (BoJ) out of its stubborn, long-running hypereasy monetary policy stance. With BoJ reference rates functionally at zero and a significant ratio of Japanese government bonds scooped up by the Japanese central bank itself, the YenÂ’s battered stance is unlikely to change, regardless of a carousel of increasingly concerned threats of direct intervention in FX markets by JapanÂ’s Ministry of Finance.
Economic Indicator
Tokyo Consumer Price Index (YoY)
The Tokyo Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households in the Tokyo region. The index is widely considered as a leading indicator of JapanÂ’s overall CPI as it is published weeks before the nationwide reading. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.
GBP/JPY technical outlook
The Guppy has traded so firmly traded into the bullish side in one-sided action that the pair has not pulled back to the 200-day Exponential Moving Average (EMA) since the start of 2024 when the pair briefly eased below the 180.00 handle before proceeding to climb over 13% from JanuaryÂ’s opening bids at 179.55.
GBP/JPY has set a fresh 16-year high for five consecutive days in lopsided bullish action, and the pair has likewise chalked in nine straight green trading days as the pair continues to climb into multi-year peaks.
GBP/JPY hourly chart
GBP/JPY daily chart
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Grab your popcorn for the upcoming presidential debate
398840 June 28, 2024 06:26 Forexlive Latest News Market News
Hope you have your popcorn ready for the upcoming presidential debate between Biden and Trump (due at 9PM NY time).
Bloomberg was out with some helpful thoughts on what type of topics could be important for markets:
- Topics like taxes, tariffs, electric cars, semiconductors, and cryptocurrencies could be focal points in the debate.
- Stocks with high China exposure, like Air Products and Chemicals, Celanese, and Otis Worldwide, could be volatile due to trade discussions.
- Chipmakers with high exposure to China, such as Nvidia, Broadcom, and Qualcomm, may experience volatility.
- TrumpÂ’s favorable stance on cryptocurrency could affect stocks like Coinbase, Marathon Digital, and Riot Platforms.
- Defense stocks like Lockheed Martin and Northrop Grumman may react to discussions on Middle East and Ukraine conflicts.
- Cannabis stocks, including Tilray and Canopy Growth, might move based on policy debates.
- Gun rights issues could impact Smith & Wesson and Sturm Ruger stocks.
- Drugmakers like Pfizer and Johnson & Johnson may be influenced by populist policies from both parties.
Personally, I am lamenting the next few months as we move closer to the election. The constant back and forth from the candidate, the naming and shaming, and of course the fact that financial media will be drenched in all of it.
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Silver Price Analysis: XAG/USD rebounds as bulls target $29.00
398838 June 28, 2024 05:56 FXStreet Market News
- Silver stages a comeback, trading at $29.00 with gains of 0.83% after yesterday’s 0.46% loss.
- RSI shows bearish momentum, indicating possible extended losses.
- Support levels: $28.28 (June 10 high), $28.00, $27.01 (May 8 low), $26.82 (100-DMA).
- Resistance points: $29.00, $29.17 (50-DMA), $31.54 (June 7 high), $32.00, $32.51 (YTD high).
Silver price stages a comeback on Thursday and erases yesterdayÂ’s losses of 0.46%. It trades near the crucial $29.00 psychological level and registers gains of 0.83% at the time of writing. Â
XAG/USD Price Analysis: Technical outlook
SilverÂ’s price action during the last couple of days formed a quasi ‘tweezers bottomÂ’ candle chart, yet it remains trading within a descending channel, spurred by last week’s ‘bearish engulfingÂ’ chart pattern formation, that exacerbated the greyÂ’s metal downtrend.
Momentum support sellers, as measured by the Relative Strength Index (RSI), standing at bearish territory, hinting the grey metal could extend its losses.
Therefore, XAG/USD’s first support is the June 10, 2021, high at $28.28. A breach of the latter will expose the psychological $28.00 mark, followed by the May 8 swing low of $27.01, ahead of the 100-DMA at $26.82.
Conversely, if XAG/USD reclaims the $29.00 figure, the next resistance level would be the 50-day moving average (DMA) at $29.17. Once hurdle, the next level would be the June 7 high of $31.54. Clearing this would aim for $32.00 before challenging the year-to-date (YTD) high of $32.51.
XAG/USD Price Action – Daily Chart
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| Â | USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|---|
| USD | Â | -0.01% | -0.02% | -0.03% | -0.02% | -0.00% | 0.01% | -0.00% |
| EUR | 0.01% | Â | -0.00% | -0.02% | -0.00% | -0.01% | 0.02% | 0.00% |
| GBP | 0.02% | 0.00% | Â | -0.02% | -0.02% | 0.00% | 0.02% | -0.02% |
| JPY | 0.03% | 0.02% | 0.02% | Â | -0.03% | 0.01% | -0.01% | 0.02% |
| CAD | 0.02% | 0.00% | 0.02% | 0.03% | Â | 0.00% | 0.01% | -0.01% |
| AUD | 0.00% | 0.00% | -0.00% | -0.01% | -0.00% | Â | 0.02% | 0.02% |
| NZD | -0.01% | -0.02% | -0.02% | 0.00% | -0.01% | -0.02% | Â | -0.03% |
| CHF | 0.00% | -0.00% | 0.02% | -0.02% | 0.00% | -0.02% | 0.03% | Â |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).