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WIF and BONK post gains amid wider market drawdown
400989 July 6, 2024 07:45 FXStreet Market News
- WIF is up more than 7% as Solana bulls appear to have returned to the meme coin.
- BONK joined WIF in defiling the bearish trend, posting a 2% gain in the past 24 hours.
- Meme coins may suffer major hits if the crypto market’s bearish pressure persists.
Solana meme coins dogwifhat (WIF) and BONK surprisingly stood out as outliers on Friday, posting gains of 7% and 2% despite the bloodbath across tokens in the meme coin sector.
WIF and BONK defile bearish trend
In the early hours of Friday, WIF declined alongside other meme coins, continuing a downward move that began on Wednesday. However, the top Solana meme coin quickly flipped the trend, rising about 14% in the past few hours.
WIF bulls are becoming active again after staying mute for nearly two months. From mid-April into June, WIF sustained steady declines that erased earlier gains from the Solana meme coin frenzy in March. As a result, WIF lost its place as the third largest meme coin to Ethereum-based PEPE, which broke into the top 30 cryptocurrencies by market capitalization.
The bearish outlook looked set to change for WIF as bulls returned to buy the dip after its price reached a three-month low of $1.58 on June 24. The buying pressure saw WIF rise about 43% within one week before seeing a correction due to wider market bearish sentiment.
WIF is currently up more than 7% in the past 24 hours.
After seeing a sharp decline earlier on Friday, BONK has also seen nearly a 3% gain in the past 24 hours. The second biggest Solana meme coin bounced back from a 15% decline with an 18% jump within a few hours, putting its daily gain at 3%.
Solana’s slight 1% increase may have been a factor in helping WIF and BONK outperform the market, considering they are the two largest Solana meme coins.
Meanwhile, other top meme coins like Dogecoin (DOGE), Shiba Inu (SHIBA) and PEPE have failed to break out from the wider bearish pressure across the market.
The general crypto market is still struggling to recover from the impact of Mt. Gox’s BTC repayment program going live. With Bitcoin (BTC) and Ethereum (ETH) dropping by 2.3% and 4.6%, respectively, nearly $570 million has been wiped off the entire crypto market in the past 24 hours. Due to their high volatility and low cap, meme coins may suffer the most if the market downturn persists.
The crypto market is down by 3.4%, and the meme coin category has shed 10.6% of its market capitalization.
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Gold bug Peter Schiff predicts Bitcoin sell-off will intensify when price drops under $38,000
400988 July 6, 2024 06:33 FXStreet Market News
- Peter Schiff predicted that 100% of Bitcoin ETF buyers will lose money when BTC trades below $38,000.Â
- Schiff expects the sell-off to intensify once Bitcoin ETF buyers are underwater on their investment.Â
- Bitcoin swept a low of $53,485 early on Friday.
Peter Schiff, American stockbroker and financial commentator, shared his views on where Bitcoin is headed in a recent tweet on X. As Bitcoin slips under key support at $54,000 early on Friday, Schiff predicts an intense sell-off once the asset drops below $38,000.Â
Schiff is popular in the crypto community for his criticism of the largest asset by market capitalization on several occasions in previous cycles.Â
Peter Schiff calls intense sell-off if Bitcoin drops under $38,000
Peter Schiff notes that over 70% of Bitcoin ETF buyers are underwater on their investment once BTC is under $54,000. Schiff believes that a decline to the $38,000 level would mean that 100% of Bitcoin ETF buyers will lose money.Â
Schiff expects the Bitcoin sell-off to intensify as most crypto ETF speculators shed their holdings and realize losses. Schiff says under $38,000, he expects “the real selling to start, as most crypto ETF speculators will throw in the towel for good.”
At $54K my guess is that over 70% of those who bought #BitcoinETFs are losing money. When #Bitcoin trades below $38K, 100% of Bitcoin ETF buyers will be losing money. That’s when I expect the real selling to start, as most #crypto ETF speculators will throw in the towel for good.
— Peter Schiff (@PeterSchiff) July 5, 2024
Schiff argued that Gold has been a better asset than “everything since inception.” The stockbroker supports his argument by stating that,
Most people who bought Bitcoin are down. Almost everyone who bought Gold is up.
Bitcoin hit its lowest point since February 2024, erasing gains from the past four months. The asset swept $53,485 at its lowest point on Friday. Bitcoin trades at $56,834 at the time of writing.Â
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NZD/USD Price Analysis: Bulls gaining control, closes week above critical resistance
400986 July 6, 2024 05:45 FXStreet Market News
- NZD/USD edged higher and closed above the 20 SMA support around 0.6120.
- With the technical outlook now showing signs of bullishness, the pair tests resistance around the 0.6150 level.
On Friday, the NZD/USD saw gains of 0.40% to 0.6050, as it managed to close above the 20, 100, and 200-day Simple Moving Averages (SMA).
As for the daily technical indicators, the Relative Strength Index (RSI), now at 57, indicates an increase in buying momentum. The Moving Average Convergence Divergence (MACD) continues to register decreasing red bars which could be seen as fading bearish strength.
NZD/USD daily chart
On the upside, resistance is at the 0.6150- 0.6170 zone, and above at the 0.6200 level. A firm break above these levels could be viewed as a full confirmation of the recent bearish dominance, driving the pair into bullish territory.
On the downside has immediate support near the 20-day SMA at 0.6120, and below at the crucial 0.6070 mark. If the sellers manage to drive the price lower, it will indicate strengthening selling pressure and the possibility of a deeper downward correction.
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EUR/USD churns but finds fresh Friday highs after US NFP sparks rate cut hopes
400982 July 6, 2024 05:40 FXStreet Market News
- EUR/USD clipped into 1.0840 after broad-market risk appetite rally after US NFP print.
- Sharp NFP revisions have reignited hopes for a September Fed rate cut.
- Coming up next week: Fed Chair Powell, US CPI print, German Retail Sales.
EUR/USD whipsawed after a mixed US Nonfarm Payrolls (NFP) print on Friday before settling on the high side, tapping in a peak bid near 1.3840 just ahead of the trading weekÂ’s close.
European Industrial Production fell steeper than expected on Friday, contracting -2.5% MoM in May and hobbling Fiber risk appetite. Pan-EU Retail Sales beat forecasts, printing at 0.3% YoY versus the expected 0.1%, but still eased from the previous 0.6%.
Read more: US Nonfarm Payrolls increase 206,000 in June vs. 190,000 forecast
Investors have ignored the better-than-expected Non-Farm Payrolls (NFP) report and are instead paying attention to increasing unemployment, slowing wage growth, and downward revisions to previous job reports. As a result, they are increasing their bets that the Federal Reserve will be pushed to cut interest rates sooner rather than later. The CME’s FedWatch Tool shows that the rate markets are currently pricing in an almost 80% probability of at least a quarter-point rate cut on September 18. Friday’s US Non-Farm Payrolls (NFP) exceeded median market forecasts by adding 206K net new jobs in June. This figure was higher than the expected 190K, but the previous month’s number was revised down sharply to 218K from the initial 272K.
The growth in US Average Hourly Earnings for the year ending June slowed to the expected 3.9% year-over-year, from the previous period’s 4.1%. Additionally, the US Unemployment Rate increased to 4.1%, marking the first rise since December 2021. This was slightly higher than the expected 4.0% hold forecasted by the market.
Fed Semi-Annual Policy Report: Need greater confidence before moving to rate cuts
Fiber traders will be looking out for an appearance from Federal Reserve (Fed) Chairman Jerome Powell on Tuesday, followed by final inflation figures from both the EU and the US on Thursday. Next Friday will close out next week with German Retail Sales, as well as US Producer Price Index (PPI) inflation and University of Michigan Consumer Sentiment Index survey results.
Economic Indicator
Nonfarm Payrolls
The Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months’ reviews ?and the Unemployment Rate are as relevant as the headline figure. The market’s reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole.
EUR/USD technical outlook
EUR/USD drifted into the high end in largely one-sided trading this week, climbing from the early weekÂ’s low bids near 1.0710. Fiber climbed 1.25% bottom-to-top through the trading week, and chalked in seven consecutive trading days in the green.
Fiber bidders have extended price action north of the 200-day Exponential Moving Average (EMA) at 1.0784, but a rough descending channel is still pricing in downside technical pressure just above 1.0860.
EUR/USD hourly chart
EUR/USD daily chart
Euro FAQs
The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECBÂ’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the EurozoneÂ’s economy.
Another significant data release for the Euro 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 then its currency will gain in value 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.
GBP/USD continues win streak, extends rally post-NFP
400979 July 6, 2024 05:26 FXStreet Market News
- GBP/USD climbed above 1.2800 after US NFP figures sparked risk rally.
- Broad-market risk sentiment recovered on Friday as rate cut hopes reignite.
- Coming up next week, Fed Chair Powell appearance, US CPI, UK industrial activity.
GBP/USD rallied back over the 1.2800 handle on Friday, bolstered by a broad-market risk appetite recovery fueled by reinvigorated rate cut hopes. Investors are betting that the Federal Reserve (Fed) will be pushed further towards rate cuts in the third quarter after US Nonfarm Payrolls (NFP) labor figures gave a lopsided print, beating forecasts but carrying steep revisions to previous figures.
Read more: US Nonfarm Payrolls increase 206,000 in June vs. 190,000 forecast
The UKÂ’s latest Parliamentary Election came and went with little market volatility. The British populace swept in the UK Labour PartyÂ’s Kier Starmer as the next Prime Minister, casting out Rishi Sunak after 14 years of Conservative Party leadership and its revolving door of leaders. GBP traders will be buckling down for the long wait to next weekÂ’s UK Industrial Production figures for May, which are expected to rebound after a firm contraction in April.
FridayÂ’s US NFP beat median market forecasts, adding 206K net new jobs in June. While the figure handily beat the expected 190K, the previous month saw a sharp downside revision to 218K from the initial print of 272K.
US Average Hourly Earnings growth also cooled for the year ended June, easing to the expected 3.9% YoY compared to the previous periodÂ’s 4.1%. The US Unemployment Rate also ticked higher, rising to 4.1% for the first time since December of 2021. Markets had broadly forecast a hold at 4.0%.
Fed Semi-Annual Policy Report: Need greater confidence before moving to rate cuts
Investors have brushed off the above-forecast NFP print to focus on rising unemployment, cooling wages, and downside revisions to previous jobs reports to scale up bets that the Fed will get pushed towards rate cuts sooner rather than later. According to the CMEÂ’s FedWatch Tool, rate markets are pricing in nearly 80% odds of at least a quarter-point rate trim on September 18.
With FridayÂ’s NFP over, investors will pivot to Fed Chairman Jerome Powell’s appearance on Tuesday next week. Final US Consumer Price Index (CPI) figures are slated for Thursday, with Producer Price Index (PPI) inflation and the University of MichiganÂ’s Consumer Sentiment Index in the pipeline for next Friday.
Economic Indicator
Nonfarm Payrolls
The Nonfarm Payrolls release presents the number of new jobs created in the US during the previous month in all non-agricultural businesses; it is released by the US Bureau of Labor Statistics (BLS). The monthly changes in payrolls can be extremely volatile. The number is also subject to strong reviews, which can also trigger volatility in the Forex board. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish, although previous months’ reviews ?and the Unemployment Rate are as relevant as the headline figure. The market’s reaction, therefore, depends on how the market assesses all the data contained in the BLS report as a whole.
GBP/USD technical outlook
GBP/USD scaled the 1.2800 handle on Friday, extending its win streak to seven consecutive trading days. Cable has gained 1.62% from the last swing low into 1.2613. Price action halted a decline into the 200-day Exponential Moving Average (EMA) at 1.2608, and bids are poised to challenge a supply zone price in above 1.2800.
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.
AUD/JPY Price Analysis:Bulls Pause, pair remains steady above 108.00
400977 July 6, 2024 05:12 FXStreet Market News
- AUD/JPY moderates, hovering steadily above the 108.00 mark, wrapping up a week with a 1% gain.
- Buyers are taking a breather and keeping the cross in cycle highs.
- A healthy correction shouldnÂ’t be taken off the table.
In the trading session of Friday, the AUD/JPY pair curtailed its recent bullish momentum but managed to close the week around 108.50 level. This slight pullback, most likely an effect of traders booking profits, has not blown out the bullish shine of the pair’s weekly performance, winning a close of 1%.
In the day’s performance, the Relative Strength Index (RSI) for the AUDJPY settled at 80, translating into a flattening but still pointing towards an overbought scenario. This may indicate the potential of a forthcoming correction in the near term. Concurrently, the Moving Average Convergence Divergence (MACD) painted a scenario of flattening green bars, mirroring a cooling of the robust bullish momentum.
AUD/JPY daily chart
Looking at the bigger picture, the AUD/JPY pair keeps showing signs of robust bullish sentiment underpinned by its standing above the 20-day, 100-day, and 200-day Simple Moving Averages (SMAs). In the event of a corrective pressure bringing the pair could will face at the 108.00 mark and then further down at the 107.50 and 107.00 levels. Specifically, the 104.90 (20-day SMA) level could serve as an additional support line.
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Silver Price Analysis: XAG/USD skyrockets above $31.00, eyes further gains
400975 July 6, 2024 05:12 FXStreet Market News
- Silver reaches $30.66, an eight-day peak, after surpassing the $30.00 resistance.
- Resistance levels: $30.84 (June 21 high) and $32.51 (YTD high).
- Support points: $29.48 (July 3 low), $29.00, $28.57 (June 26 low), $27.59 (April 15 low).
Silver soared above the June 20 high of $30.78 on Friday and extended its gains past the $31.00 figure following a weak US jobs report that lifted expectations about a possible Fed interest rate cut. Therefore, the XAG/USD climbed and traded at $31.20, a gain of 2.65%.
XAG/USD Price Analysis: Technical outlook
Silver remains bullishly biased and has cleared the ‘double bottom’ neckline at the time of writing, validating the chart pattern. Buyers are gathering momentum, as depicted by the Relative Strength Index (RSI) and the daily moving averages (DMAs) located below the price action and aiming up.
For a bullish continuation, the XAG/USD first resistance would be the $31.50 psychological mark, followed by the $32.00 figure. Up next would be the year-to-date (YTD) high of $32.51.
On the downside, if XAG/USD slips past $31.00, the first support would be the July 5 low of $30.18, ahead of $30.00. Further losses are seen below, with the July 3 low of $29.48 up next, ahead of $29.00.
XAG/USD Price Action – Daily Chart
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold’s. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold’s moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Ethereum finds strength at key support level amid pressure from Mt. Gox liquidations
400972 July 6, 2024 05:09 FXStreet Market News
- Ethereum sees over $108 million in liquidations as Mt. Gox begins repayment to creditors.
- Grayscale Ethereum Trust switched to trading at a premium to net asset value as spot ETH ETF launch draws closer.
- Ethereum may begin consolidation as key support may prove crucial in coming days.
Ethereum (ETH) is down nearly 5% on Friday following the Mt. Gox BTC repayment, sparking more than $108 million in ETH liquidations. The repayment’s supply strengthened the bearish momentum on Bitcoin, which spiraled into altcoins like ETH.Â
Daily digest market movers: Mt. Gox headwind, ETHE discount
The defunct exchange Mt. Gox began the repayment of creditors today after transferring about $84.87 million worth of BTC to Japanese exchange Bitbank’s hot wallets. The move increased the prevailing bearish sentiment in the crypto market as altcoins, led by Ethereum, suffered significant declines.
While many expected ETH to be less affected by the wider market sentiment due to the upcoming spot ETH ETF launch, the Securities & Exchange Commission’s (SEC) slow move to greenlight issuersÂ’ S-1 drafts likely gave bears the momentum.
The SEC approved the 19b-4 forms of spot ETH ETF issuers on May 23 but needs to greenlight their S-1s before the products can begin trading. The prospective issuers include VanEck, BlackRock, Bitwise, Grayscale, 21Shares, Fidelity, Franklin Templeton and Invesco.
Meanwhile, the Grayscale Ethereum Trust (ETHE) switched from trading at a discount to net asset value (NAV) to a premium of about 0.31% on July 3, according to data from YCharts.Â
A trust trading at a discount or premium to net asset value means one share of the trust trades below or above the market price of the underlying asset it tracks.
ETHE Discount or Premium to NAV
ETHE has been trading at a discount because investors must sell their shares to exit their positions, as the trust doesn’t allow them to redeem it for cash. The discount particularly increased between March and May after rumors of the SEC’s Ethereum 2.0 investigation.
However, the gap has closed and is now at a premium as investors bought the discounted shares heavily following the SEC’s approval of prospective issuers’ 19b-4 filings. The $9.5 billion ETHE trust will convert to an ETF when spot ETH ETFs go live.
ETH technical analysis: Ethereum may begin consolidation
Ethereum is trading around $2,984 on Friday, down nearly 5% in the past 24 hours. The further decline from Thursday’s lows sparked historic liquidations for ETH, wiping off $134 million of open positions from the market. Long liquidations climbed to $108.4 million, while shorts were shy of $26 million.
ETH’s price has reached the lows of May, when most investors expected a spot ETH ETF denial following reports that the SEC was investigating Ethereum 2.0. ETH broke below the $2,852 key support level but quickly posted a weak exhaustion liquidity void, considering this represents a key demand zone for the top altcoin.
ETH/USDT 8-hour chart
ETH has failed to sustain an extended move below this support level since mid-February. Additionally, IntoTheBlock’s data reveals investors purchased about 57.02 million ETH around the $2,268 to $2,909 price range.
Considering these factors, ETH may not sustain an extended decline below the $2,852 support as the weekend approaches. ETH will likely begin a horizontal trend around the $2,852 to $3,367 price range, where it traded for nearly five weeks (April 12 – May 19).
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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1649 | +1.076% | AUDUSD AUDJPY
400719 July 6, 2024 04:31 SwingFish Trading Room Journal AUDJPY • AUDUSD
Today’s risk: 0.71% [Drawdown: 0.534%] (more…)
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USD/CHF losses further ground following rise in US Unemployment
400968 July 6, 2024 04:02 FXStreet Market News
- USD/CHF continues soft following an unexpected increase in US Unemployment.
- On the positive side for the US, NFPs for June surpassed market expectations.
- With falling inflation in both countries, both the Federal Reserve and the SNB could embrace cuts.
In Friday’s session, the USD/CHF pair softly sailed, with markets dumping further the USD following the release of mixed labor market data in the US.
The center of attention on Friday was the unexpected rise in the US Unemployment Rate to 4.1% from 4%, and an increase in Nonfarm Payrolls (NFP) in June by 206K, surpassing the market expectation of 190K. The rise in NFP follows a revised gain of 218K in May, down from the initially reported 272 K. As for Wage Inflation, indicated by the change in Average Hourly Earnings, decreased to 3.9% from 4.1% YoY, aligning with market forecasts.
This confirmed an overall uncertainty around the health of the labor market and substantially increased market odds for two cuts by the Federal Reserve by year-end, with the September bets reaching 90% according to the CME FedWatch tool.
On the Swiss front, market participants adjusted their expectations for a third interest-rate cut by the Swiss National Bank (SNB) in September after the inflation data announcement on Thursday which slightly declined, pushing the odds over 50%.
USD/CHF technical analysis
The technical outlook now turns somewhat negative in the short term. The currency pair ended a promising six-day streak, with the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI), losing momentum.
The pair is expected to end the week with mild losses, and closing a dip below the Simple Moving Average (SMA) on the daily chart. Main supports now lie at the 20-day SMAÂ at 0.8950, while the next immediate resistance has shifted to the 100-day SMA at 0.8990 (former support).
USD/CHF daily chart
