Articles
Forexlive Americas FX news wrap: CPI cools, Japan intervenes
401862 July 12, 2024 05:14 Forexlive Latest News Market News
Markets:
-
Gold
up
$43
to
$2441 -
WTI
crude
up
91-cents
to
$83.02 -
US
10-year
yields
down
7.6
bps
to
4.20% -
S&P
500
down
0.8%,
Nasdaq
down
2.1% -
JPY
leads,
CAD
and
USD
lag
It
was
a
strange
day
in
the
market.
The
news
was
straight-forward
with
CPI
unambiguously
weak.
All
the
numbers
were
below-estimate,
putting
another
nail
into
the
coffin
of
the
inflation
fight.
The
initial
reaction
is
what
you
would
expect
with
the
market
pricing
in
61
bps
in
Fed
easing
by
year
end,
up
from
49
pre-data.
The
dollar
fell,
stock
futures
rose
and
Treasury
yields
sank.
That
didn’t
last.
For
one,
Japan
may
have
unveiled
a
new
intervention
strategy
to
go
along
with
a
new
top
currency
official
announced
in
late
June.
They
tried
to
ride
the
wave
of
USD
selling
post-CPI
to
hammer
USD/JPY.
They
were
successful,
knocking
it
more
than
300
pips
lower
as
the
dollar
fell
around
40
pips
elsewhere.
The
dip
was
partially
bought
by
confirmation
of
the
intervention
and
we
will
have
to
wait
until
the
end
of
the
month
to
find
out
how
much
they
spent.
For
now,
this
might
keep
USD/JPY
spec
longs
sidelined
into
the
next
major
round
of
economic
data.
Aside
from
JPY,
the
dollar
move
was
moderate
with
EUR/USD
rising
to
1.09
from
1.0850
only
to
slowly
give
back
most
of
the
move.
Cable
made
more
headway,
climbing
80
pips
on
the
CPI
headlines
to
1.2950
before
sagging
back
to
1.2912.
Some
of
the
giveback
moved
with
bonds
as
yields
ticked
up
from
the
lows,
particularly
after
a
soft
30-year
reopening
auction.
The
bigger
driver
was
risk
aversion
though
as
high-flying
Nasdaq
stocks
were
cut
down
including
a
5.6%
fall
in
NVDA
and
am
8.4%
drop
in
TSLA
among
others.
Where
it
got
strange
was
in
the
Russell
2000,
which
gained
3.6%
in
a
huge
divergence.
Real
estate
and
regional
banks
absolutely
soared.
I
wonder
how
much
of
that
move
was
hedges
and
shorts
taken
off
rather
than
true
rotation.
It
looks
to
me
like
a
capitulation
on
inflation
trades/hedges
but
it
also
comes
after
an
extended
run
in
megacap
and
AI
stocks,
including
something
of
a
mysterious
and
strong
rally
yesterday.
So
for
all
the
fresh
clarity
in
the
macro
picture,
it’s
harder
to
find
in
markets.
Also
don’t
forget
that
in
the
prior
two
soft
CPI
reports,
the
bond
market
ultimately
gave
back
the
big
kneejerk
moves.
USD/JPY plunges on another possible ‘Yentervention’ alongside cooling US CPI inflation
401860 July 12, 2024 05:14 FXStreet Market News
-
USD/JPY
plummeted
2.6%
top-to-bottom
after
US
CPI
inflation
eased
in
June. -
Strong
signs
of
direct
market
invention
in
Yen
markets,
but
no
confirmation. -
Market
anticipation
for
a
September
Fed
rate
cut
is
pinned
to
the
ceiling.
USD/JPY
plummeted
on
Thursday,
declining
2.6%
in
a
sharp
reaction
to
cooling
US
Consumer
Price
Index
(CPI)
inflation
and
a
broadly
suspected
“Yentervention”
by
the
Bank
of
Japan
(BoJ)
to
prop
up
the
floundering
JPY.
June’s
US
CPI
inflation
broadly
fell
below
forecasts,
with
annualized
headline
CPI
inflation
easing
to
3.0%
YoY
from
the
previous
3.3%
and
falling
even
lower
than
the
forecast
3.1%.
CPI
inflation
actually
contracted
-0.1%
MoM
in
June,
falling
back
from
the
previous
month’s
flat
0.0%
and
below
the
forecast
0.1%.
US
Initial
Jobless
Claims
fell
to
222K
for
the
week
ended
July
5,
down
from
the
previous
week’s
revised
239K
and
improving
from
the
forecast
236K.
Thursday’s
Initial
Jobless
Claims
figure
helped
to
push
the
four-week
average
down
to
233.5K
from
the
previous
238.75K.
With
US
CPI
inflation
cooling
at
an
accelerated
pace,
market
expectations
for
a
rate
hike
from
the
Federal
Reserve
(Fed)
are
pricing
in
the
possibility
of
three
quarter-point
rate
cuts
in
2024.
According
to
the
CME’s
FedWatch
Tool,
rate
market
bets
of
a
September
rate
cut
have
soared
to
95%.
According
to
unconfirmed
rumors
citing
unnamed
officials
within
the
Japanese
government,
a
‘Yentervention’
was
timed
with
the
release
of
US
CPI
inflation
figures,
sending
the
Yen
broadly
higher
across
the
board
on
Thursday.
In
a
repeat
of
previous
Yenterventions,
any
official
confirmation
or
denial
is
unlikely
to
come
from
BoJ
or
Ministry
of
Finance
officials
for
several
weeks.
USD/JPY
technical
outlook
USD/JPY
took
a
steep
dive
on
Thursday,
briefly
testing
below
the
50-day
Exponential
Moving
Average
(EMA)
at
157.97
before
a
half-hearted
recovery.
The
pair
is
still
sharply
down
from
the
day’s
opening
bids,
but
a
long-running
bull
trend
that
has
dragged
USD/JPY
to
multi-decade
highs
has
left
the
pair
buried
deep
in
bull
country.
USD/JPY
is
still
trading
well
above
the
200-day
EMA
at
151.81,
and
Thursday’s
bearish
plunge
is
unlikely
to
cause
a
meaningful
shift
in
the
long-term
trend.
USD/JPY
daily
chart
Japanese
Yen
FAQs
The
Japanese
Yen
(JPY)
is
one
of
the
world’s
most
traded
currencies.
Its
value
is
broadly
determined
by
the
performance
of
the
Japanese
economy,
but
more
specifically
by
the
Bank
of
Japan’s
policy,
the
differential
between
Japanese
and
US
bond
yields,
or
risk
sentiment
among
traders,
among
other
factors.
One
of
the
Bank
of
Japan’s
mandates
is
currency
control,
so
its
moves
are
key
for
the
Yen.
The
BoJ
has
directly
intervened
in
currency
markets
sometimes,
generally
to
lower
the
value
of
the
Yen,
although
it
refrains
from
doing
it
often
due
to
political
concerns
of
its
main
trading
partners.
The
current
BoJ
ultra-loose
monetary
policy,
based
on
massive
stimulus
to
the
economy,
has
caused
the
Yen
to
depreciate
against
its
main
currency
peers.
This
process
has
exacerbated
more
recently
due
to
an
increasing
policy
divergence
between
the
Bank
of
Japan
and
other
main
central
banks,
which
have
opted
to
increase
interest
rates
sharply
to
fight
decades-high
levels
of
inflation.
The
BoJ’s
stance
of
sticking
to
ultra-loose
monetary
policy
has
led
to
a
widening
policy
divergence
with
other
central
banks,
particularly
with
the
US
Federal
Reserve.
This
supports
a
widening
of
the
differential
between
the
10-year
US
and
Japanese
bonds,
which
favors
the
US
Dollar
against
the
Japanese
Yen.
The
Japanese
Yen
is
often
seen
as
a
safe-haven
investment.
This
means
that
in
times
of
market
stress,
investors
are
more
likely
to
put
their
money
in
the
Japanese
currency
due
to
its
supposed
reliability
and
stability.
Turbulent
times
are
likely
to
strengthen
the
Yen’s
value
against
other
currencies
seen
as
more
risky
to
invest
in.
US Dollar unable to recover losses with Japan intervening
401858 July 12, 2024 05:14 FXStreet Market News
-
The
US
Dollar
retreats
firmly
after
soft
CPI
release. -
The
Fed
should
no
longer
be
concerned
on
the
disinflationary
trajectory. -
The
US
Dollar
index
falls
further
and
heads
to
104.00.
The
US
Dollar
(USD)
is
easing
firmly
on
Thursday
after
the
US
Consumer
Price
Index
(CPI)
for
June
revealed
a
substantial
decline
in
inflation.
Special
remarks
for
the
retail
sales
which
shrank
even
by
0.1%,
meaning
that
US
consumer
is
no
longer
willing
to
pay
current
prices
for
goods
and
is
rather
awaiting
for
lower
prices
before
making
their
purchases.
Add
in
there
a
softer
print
for
housing
and
rent,
and
it
looks
like
the
Fed
measures
put
in
place
are
starting
to
pay
off.
On
the
economic
front,
most
important
data
for
this
Thursday
is
out
of
the
way,
and
focus
will
now
shift
towards
Friday
on
the
Producer
Price
Index
(PPI)
numbers
for
June.
Meanwhile
markets
will
want
to
hear
from
Fed
officials
that
these
numbers
are
what
they
are
looking
for,
and
should
trigger
a
more
dovish
response
from
the
Fed.
With
nearly
less
than
two
months
left,
the
initial
rate
cut
for
the
US
looks
to
be
locked
in
for
September.
Daily
digest
market
movers:
Japan
used
momentum
-
The
Japanese
Ministry
of
Trade
and
Finance
refused
to
give
comments,
though
USD/JPY
is
down
nearly
2%,
to
158.50,
coming
from
161.69
earlier
this
week.
Television
network
Asahi
though
confirms
that
interventions
took
place
just
briefly
after
the
US
CPI
numbers
came
out. -
Let
us
walk
you
through
the
main
numbers
that
came
in
this
Thursday:-
US
CPI
for
June:-
Monthly
headline
CPI
fell
into
contraction
from
+0.1%
to
-0.1%
for
June. -
Monthly
core
CPI
declined
from
0.2%
to
0.1%. -
Annual
headline
CPI
fell
from
3.3%
to
3.0%. -
Annual
core
CPI
went
from
3.4%
to
3.3%.
-
Monthly
-
Weekly
Jobless
Claims
for
the
week
of
July
5:-
Initial
Claims
came
in
a
touch
lower,
from
239.000
to
222.000. -
Continuing
Claims
went
from
1.856
million
to
1.852
million.
-
Initial
-
US
-
At
15:30
GMT,
President
of
Federal
Reserve
Bank
of
Atlanta
Raphael
Bostic
participates
in
a
moderated
conversation
at
the
NCUA’s
Diversity,
Equity,
and
Inclusion
Summit
in
Minneapolis,
United
States. -
Equity
markets
are
getting
dispersed
with
the
Nasdaq
dragging
the
other
two
major
US
indices
in
the
red,
while
European
equities
get
to
keep
their
gains. -
The
CME
Fedwatch
Tool
is
broadly
backing
a
rate
cut
in
September
despite
recent
comments
from
Fed
officials.
The
odds
now
stand
at
68.1%
for
a
25-basis-point
cut.
A
rate
pause
stands
at
a
28.6%
chance,
while
a
50-basis-point
rate
cut
has
a
slim
3.3%
possibility. -
The
US
10-year
benchmark
rate
trades
at
4.17%
and
prints
a
fresh
low
for
this
week.
US
Dollar
Index
Technical
Analysis:
Where
DXY
will
close
this
week
will
be
key
The
US
Dollar
Index
(DXY)
faces
a
key
pivotal
moment
with
the
US
Consumer
Price
Index
release
for
June.
This
is
the
make-or-break
moment
for
September
rate
cut
prospects,
with
any
uptick
snapping
the
disinflationary
trajectory
that
would
mean
that
September
meeting
is
off
the
table.
So,
expect
markets
to
give
a
more
significant
probability
of
a
further
easing
of
the
DXY
than
a
stronger
US
Dollar.
On
the
upside,
the
55-day
Simple
Moving
Average
(SMA)
at
105.14
remains
the
first
resistance.
Should
that
level
be
reclaimed
again,
105.53
and
105.89
are
the
following
nearby
pivotal
levels.
The
red
descending
trend
line
in
the
chart
below
at
around
106.23
and
April’s
peak
at
106.52
could
come
into
play
should
the
Greenback
rally
substantially.
On
the
downside,
the
risk
of
a
nosedive
move
is
increasing,
with
only
the
double
support
at
104.81,
which
is
the
confluence
of
the
100-day
SMA
and
the
green
ascending
trend
line
from
December
2023,
still
in
place.
Should
that
double
layer
give
way,
the
200-day
SMA
at
104.41
is
the
gatekeeper
that
should
catch
the
DXY
and
avoid
further
declines.
Further
down,
the
correction
could
head
to
104.00
as
an
initial
stage.
US
Dollar
Index:
Daily
Chart
Risk
sentiment
FAQs
In
the
world
of
financial
jargon
the
two
widely
used
terms
“risk-on”
and
“risk
off”
refer
to
the
level
of
risk
that
investors
are
willing
to
stomach
during
the
period
referenced.
In
a
“risk-on”
market,
investors
are
optimistic
about
the
future
and
more
willing
to
buy
risky
assets.
In
a
“risk-off”
market
investors
start
to
‘play
it
safe’
because
they
are
worried
about
the
future,
and
therefore
buy
less
risky
assets
that
are
more
certain
of
bringing
a
return,
even
if
it
is
relatively
modest.
Typically,
during
periods
of
“risk-on”,
stock
markets
will
rise,
most
commodities
–
except
Gold
–
will
also
gain
in
value,
since
they
benefit
from
a
positive
growth
outlook.
The
currencies
of
nations
that
are
heavy
commodity
exporters
strengthen
because
of
increased
demand,
and
Cryptocurrencies
rise.
In
a
“risk-off”
market,
Bonds
go
up
–
especially
major
government
Bonds
–
Gold
shines,
and
safe-haven
currencies
such
as
the
Japanese
Yen,
Swiss
Franc
and
US
Dollar
all
benefit.
The
Australian
Dollar
(AUD),
the
Canadian
Dollar
(CAD),
the
New
Zealand
Dollar
(NZD)
and
minor
FX
like
the
Ruble
(RUB)
and
the
South
African
Rand
(ZAR),
all
tend
to
rise
in
markets
that
are
“risk-on”.
This
is
because
the
economies
of
these
currencies
are
heavily
reliant
on
commodity
exports
for
growth,
and
commodities
tend
to
rise
in
price
during
risk-on
periods.
This
is
because
investors
foresee
greater
demand
for
raw
materials
in
the
future
due
to
heightened
economic
activity.
The
major
currencies
that
tend
to
rise
during
periods
of
“risk-off”
are
the
US
Dollar
(USD),
the
Japanese
Yen
(JPY)
and
the
Swiss
Franc
(CHF).
The
US
Dollar,
because
it
is
the
world’s
reserve
currency,
and
because
in
times
of
crisis
investors
buy
US
government
debt,
which
is
seen
as
safe
because
the
largest
economy
in
the
world
is
unlikely
to
default.
The
Yen,
from
increased
demand
for
Japanese
government
bonds,
because
a
high
proportion
are
held
by
domestic
investors
who
are
unlikely
to
dump
them
–
even
in
a
crisis.
The
Swiss
Franc,
because
strict
Swiss
banking
laws
offer
investors
enhanced
capital
protection.
ICYMI – the new angle Japan is taking on yen intervention
401857 July 12, 2024 04:40 Forexlive Latest News Market News
ICYMI,
Adam
had
the
breaking
info:
Going
with
the
flow
worked
out
well
this
time,
its
created
a
bit
of
a
‘gap’
now.
159-161,
give
or
take.
Recent
months
have
shown
that
gaps
like
this
hanging
overhead
get
nibbled
at.
Will
it
be
any
different
this
time?
There
does
seem
to
be
a
broader
move
into
the
USD,
so
its
likely
to
be
hard
going.
Anyway,
more
on
the
intervention:
-
Japanese
media
(Mainichi)
says
it
confirmed
the
intervention
with
an
unnamed
Japanese
government
official.
I’ve
marked
the
gap
–
I
think
the
kids
call
these
FVGs
now?
Let
me
know
in
the
comments
what
you
think.
Silver Price Analysis: XAG/USD skyrockets over 2% amid ‘double bottom’ confirmation
401855 July 12, 2024 04:39 FXStreet Market News
-
Silver
breaks
$30.73
neckline,
surges
past
$31.00
to
trade
at
$31.40. -
Bullish
momentum
affirmed
by
RSI,
with
resistance
at
$31.75,
$32.00,
and
$32.51
(YTD
high). -
Key
support
levels:
$31.00,
$30.73
(June
21
high),
and
$29.82/79
(50-DMA)
for
potential
pullbacks.
Silver
price
confirmed
a
‘double
bottom’
chart
pattern,
sponsored
by
weaker
than
expected
US
inflation
data,
that
puts
back
into
the
table
discussion
about
when
the
Federal
Reserve
would
begin
to
ease
monetary
policy.
Therefore,
the
XAG/USD
trades
at
$31.40,
moving
up
more
than
2%.
XAG/USD
Price
Analysis:
Technical
outlook
The
grey
metal
finally
cleared
the
‘double
bottom’
neckline
at
$30.73,
which
opened
the
door
for
Thursday’s
rally
above
the
$31.00
figure.
It
hit
a
six-week
high
of
$31.75
before
settling
at
around
current
spot
prices.
Momentum
shows
buyers
are
regaining
control,
as
depicted
in
the
Relative
Strength
Index
(RSI).
This
opens
the
door
for
further
upside
in
the
XAG/USD.
Silver’s
next
resistance
would
be
$31.75,
followed
by
the
$32.00
psychological
figures.
Once
surpassed,
the
May
29
peak
of
$32.15
emerges,
ahead
of
the
year-to-date
(YTD)
high
at
$32.51.
Further
gains
are
seen
above
the
latter.
Conversely,
if
XAG/USD
spot
price
tumbles
beneath
$31.00,
that
could
exacerbate
a
pullback.
The
next
demand
zone
will
be
the
June
21
high
at
$30.73,
followed
by
the
$30.00
mark.
Up
next,
sellers
will
test
the
confluence
of
the
April
12
high
and
the
50-day
moving
average
(DMA)
at
$29.82/79.
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 primed for positive Q3 following slow inflation and launch of ETH ETF
401852 July 12, 2024 04:39 FXStreet Market News
-
Ethereum
could
rally
in
Q3
following
reduced
US
inflation
and
launch
of
spot
ETH
ETFs. -
Ethereum’s
on-chain
activity
shows
mixed
sentiment
among
investors. -
Bearish
exhaustion
candle
could
signify
a
downturn
for
ETH
if
SEC
delays
ETH
ETF
approval.
Ethereum
(ETH)
is
up
0.5%
on
Thursday
following
cooling
inflation
reports
in
the
US.
However,
mixed
on-chain
sentiment
signals
uncertainty
among
investors
despite
the
potential
launch
of
spot
ETH
ETFs.
Daily
digest
market
movers:
CPI
data,
mixed
on-chain
signals,
increasing
supply
Ethereum’s
price
is
expected
to
react
positively
in
the
coming
days
to
the
recent
decline
in
the
US
Consumer
Price
Index
(CPI),
a
metric
for
measuring
the
cost
of
goods
and
services.
The
CPI
for
June
declined
by
0.1%
from
May,
beating
market
expectations
and
reaching
a
three-year
low.
As
a
result,
many
expect
the
Federal
Reserve
(Fed)
to
cut
rates
in
September.
Combined
with
the
potential
launch
of
spot
ETH
ETFs
in
the
coming
days,
many
expect
Ethereum
to
have
a
positive
Q3.
This
also
aligns
with
predictions
from
JP
Morgan
analysts
that
the
crypto
market
will
rebound
in
August.
Also,
on-chain
activity
shows
that
Ethereum
has
been
facing
a
flurry
of
exchange
deposits
and
withdrawals
in
the
past
24
hours,
according
to
data
from
Lookonchain.
This
shows
mixed
sentiment
and
uncertainty
among
ETH
investors.
As
some
are
de-risking,
others
are
accumulating
their
selling
pressure,
keeping
the
price
of
ETH
in
a
somewhat
horizontal
trend.
The
key
transactions
include
Golem
pausing
its
ETH
selling
spree
after
staking
40,000
ETH,
a
whale
depositing
10,000
ETH
into
Binance,
another
withdrawing
16,074
ETH
in
the
past
week,
and
HTX
founder
Justin
Sun
increasing
his
ETH
holdings.
Meanwhile,
despite
increasing
staking
deposits,
ETH’s
supply
has
started
trending
upwards
since
the
Ethereum
Dencun
upgrade
in
March.
As
the
chart
from
Bitwise
below
shows,
ETH’s
supply
trended
downward
to
-450K
between
The
Merge
and
Q1
’24.
It
started
moving
upwards
in
Q2’24
following
the
Dencun
upgrade.
If
ETH
continues
on
this
path,
it
will
lose
its
deflationary
status.
ETH
Supply
change
since
The
Merge
ETH
technical
analysis:
Ethereum
posts
bearish
exhaustion
candle
Ethereum
is
trading
around
$3,125
on
Thursday,
up
0.5%
on
the
day.
ETH
has
seen
$26.27
million
in
liquidations
in
the
past
24
hours,
with
long
and
short
liquidations
accounting
for
$17.05
million
and
$9.23
million,
respectively.
While
the
market
remains
gloomy,
ETH
is
taking
a
slow
ride
up,
offsetting
its
weekly
losses
as
the
market
anticipates
the
launch
of
spot
ETH
ETFs.
However,
ETH
posted
a
bearish
exhaustion
candle
on
the
8-hour
time
frame
after
attempting
to
sustain
a
move
above
the
$3,200
price.
An
exhaustion
candle
has
a
long
wick
2-3
times
the
length
of
its
body
and
little
or
no
wick
on
the
other
side.
If
a
bearish
exhaustion
candle
appears
during
an
uptrend,
it
indicates
bulls
may
be
losing
momentum,
and
vice
versa
if
a
bullish
exhaustion
candle
appears
during
a
downtrend.
ETH/USDT
8-hour
chart
In
the
case
of
ETH,
the
reversal
suggests
that
some
of
the
over
2
million
addresses
that
purchased
ETH
around
$3,200
sold
as
they
broke
even,
according
to
earlier
predictions.
While
it
seems
ETH
may
tilt
toward
the
downside
after
the
bearish
exhaustion
candle,
optimism
from
lower-than-expected
CPI
data
and
the
Securities
&
Exchange
Commission
(SEC)
approving
issuers’
ETH
ETF
S-1
drafts
may
see
it
attempt
another
move
above
the
$3,200
price
level.
The
move
up
may
see
$3.73
million
worth
of
shorts
being
liquidated
around
the
$3,222
price
level.
However,
if
the
SEC
continues
delaying
approval
of
ETH
ETF,
Ethereum
will
likely
fall
back
to
the
$2,900
to
$3,000
price
level.
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.
Full Article
Economic calendar in Asia Friday, 12 July 2024 – Biden speaking, China trade data (June)
401851 July 12, 2024 04:17 Forexlive Latest News Market News
US
President
Biden
is
holding
a
press
conference
at
the
conclusion
of
NATO
meetings.
The
media
will,
of
course,
be
focused
on
questions
about
his
fitness
for
running
and
holding
office
for
the
following
four
years.
On
the
data
agenda,
China’s
trade
balance
for
June
is
of
most
interest.
Both
exports
and
imports
are
expected
to
have
picked
up
the
pace
from
May.
The
7.6%
increase
for
exports
in
May
was
the
best
gain
since
March
last
year.
It
appears
exporters
are
cranking
it
up
as
tariff
fears
loom
larger.
Not
shown
on
the
pic
below
are
data
from
Singapore,
the
advance
reading
for
Q2
GDP:
expected
-
This
snapshot
from
the
ForexLive
economic
data
calendar,
access
it
here. -
The
times
in
the
left-most
column
are
GMT. -
The
numbers
in
the
right-most
column
are
the
‘prior’
(previous
month/quarter
as
the
case
may
be)
result.
The
number
in
the
column
next
to
that,
where
there
is
a
number,
is
the
consensus
median
expected.
AUD/JPY Price Analysis: Cross plunges and falls below 108.00
401849 July 12, 2024 04:16 FXStreet Market News
-
AUD/JPY
sharply
declined
by
more
than
1.50%. -
The
RSI
fell
non-stop
from
the
deep
overbought
region
near
its
middle
point.
During
Thursday’s
trading
session,
the
AUD/JPY
pair
witnessed
sharp losses
towards
107.30.
Overall,
the
pair
is
generally
taking
a
pause
as
buyers
hold
off,
and
given
the
pair’s
status
in
the
multi-year,
the
probability
of
further
corrections
is
imminent.
However,
indicators
scaped
overbought
conditions
which
is
healthy
for
the
pair.
On
the
daily
view,
the
Relative
Strength
Index
(RSI)
for
AUDJPY
plunged
to
nearly
56,
non-stop
from
the
70
threshold.
Concurrently,
the
Moving
Average
Convergence
Divergence
(MACD)
portrays
a
declining
green
bars
scenario,
mimicking
a
tapering
off
of
the
existing
bullish
momentum.
AUD/JPY
daily
chart
From
the
broader
perspective,
the
AUD/JPY
pair
continues
to
exhibit
signs
of
a
potent
bullish
sentiment
backed
by
its
position
in
multi-year
highs
and
above
its
main
Simple
Moving
Averages
(SMAs).
In
case
of
further pullbacks,
several
key
supports
line
up
below
107.00
where
the
20-day
SMA converges.
The
106.50
and
106.00
could
come
into
play
to
limit
losses.
However,
should
the
pair
sustain
buyer
interest,
the
pair
might
seek
a
retest
around
the
107.00-109.00
area.
Ripple holds steady above $0.44 as CEO slams Democrats for the SEC’s war on crypto
401847 July 12, 2024 04:14 FXStreet Market News
-
Ripple
CEO
Brad
Garlinghouse
called
the
majority
of
Democrats
to
take
notice
of
SEC’s
war
on
crypto
during
a
roundtable
on
Wednesday. -
The
event
brought
together
Coinbase
CLO,
key
congressional
leaders,
and
Garlinghouse,
and
called
attention
to
American
innovation
and
crypto. -
XRP
hovers
around
$0.45,
adding
0.50%
to
its
value
on
Thursday.
Ripple
(XRP)
CEO
Brad
Garlinghouse
spoke
at
a
crypto
roundtable
event
on
Wednesday.
The
Ripple
executive
slammed
Democrats
for
not
taking
notice
of
the
Securities
and
Exchange
Commission
(SEC)
Chair
Gary
Gensler’s
enforcement
actions
on
crypto.
Garlinghouse
addressed
a
gathering
that
included
Mark
Cuban,
Coinbase
CLO
Paul
Grewal,
and
key
US
Congressional
leaders.
There
was
no
further
update
in
the
SEC
vs.
Ripple
lawsuit
and
XRP
hovers
around
$0.45,
at
the
time
of
writing.
Daily
Digest
Market
Movers:
Ripple
executive
slams
democrats
for
lack
of
engagement
with
the
crypto
industry
-
Ripple
executive
Brad
Garlinghouse
thanked
the
crypto
roundtable
participants,
early
on
Wednesday
morning,
after
addressing
a
gathering
that
brought
together
several
US
Congressional
leaders
and
the
Coinbase
CLO
Paul
Grewal. -
Garlinghouse
slammed
the
Democrats
for
“enabling”
what
he
refers
to
as
an
unlawful
war
on
crypto. -
According
to
the
Ripple
CEO,
the
SEC
Chair
has
sabotaged
the
ability
of
Americans
to
innovate. -
Garlinghouse
noted
that
Republicans
have
announced
a
pro-crypto
stance
and
called
out
voters
to
take
note
of
the
issue
that
affects
crypto
traders
in
the
US.
-
The
SEC
vs.
Ripple
ruling
is
expected
in
July.
Judge
Analisa
Torres
will
rule
on
a
key
issue,
the
fine
to
be
imposed
on
Ripple
for
alleged
securities
law
violation.
While
the
SEC
quoted
$102.6
million
in
its
last
letter,
Ripple
has
put
forward
a
$10
million
figure. -
XRP
traders
are
closely
watching
the
SEC
vs.
Ripple
lawsuit
and
the
US
Presidential
election,
with
CEO
Brad
Garlinghouse’s
recent
comments
on
Democrats.
Technical
analysis:
XRP
extends
gains
to
$0.45
Ripple
is
in
an
upward
correction.
The
altcoin
extends
gains
on
Thursday,
rallying
to
$0.4509
at
the
time
of
writing.
Ripple
could
rally
towards
the
next
key
resistance
at
$0.4760,
the
July
2
low.
This
marks
a
5.55%
increase
in
XRP
price.
The
Moving
Average
Convergence
Divergence
(MACD)
indicator
shows
that
MACD
line
is
about
to
cross
above
the
signal
line.
If
this
occurs,
it
would
support
a
bullish
thesis
for
Ripple.
XRP/USDT
daily
chart
Ripple
could
find
support
at
$0.4032,
the
July
8
low,
and
$0.3823,
the
July
5
low.
SEC
vs
Ripple
lawsuit
FAQs
It
depends
on
the
transaction,
according
to
a
court
ruling
released
on
July
14:
For
institutional
investors
or
over-the-counter
sales,
XRP
is
a
security.
For
retail
investors
who
bought
the
token
via
programmatic
sales
on
exchanges,
on-demand
liquidity
services
and
other
platforms,
XRP
is
not
a
security.
The
United
States
Securities
&
Exchange
Commission
(SEC)
accused
Ripple
and
its
executives
of
raising
more
than
$1.3
billion
through
an
unregistered
asset
offering
of
the
XRP
token.
While
the
judge
ruled
that
programmatic
sales
aren’t
considered
securities,
sales
of
XRP
tokens
to
institutional
investors
are
indeed
investment
contracts.
In
this
last
case,
Ripple
did
breach
the
US
securities
law
and
will
need
to
keep
litigating
over
the
around
$729
million
it
received
under
written
contracts.
The
ruling
offers
a
partial
win
for
both
Ripple
and
the
SEC,
depending
on
what
one
looks
at.
Ripple
gets
a
big
win
over
the
fact
that
programmatic
sales
aren’t
considered
securities,
and
this
could
bode
well
for
the
broader
crypto
sector
as
most
of
the
assets
eyed
by
the
SEC’s
crackdown
are
handled
by
decentralized
entities
that
sold
their
tokens
mostly
to
retail
investors
via
exchange
platforms,
experts
say.
Still,
the
ruling
doesn’t
help
much
to
answer
the
key
question
of
what
makes
a
digital
asset
a
security,
so
it
isn’t
clear
yet
if
this
lawsuit
will
set
precedent
for
other
open
cases
that
affect
dozens
of
digital
assets.
Topics
such
as
which
is
the
right
degree
of
decentralization
to
avoid
the
“security”
label
or
where
to
draw
the
line
between
institutional
and
programmatic
sales
are
likely
to
persist.
The
SEC
has
stepped
up
its
enforcement
actions
toward
the
blockchain
and
digital
assets
industry,
filing
charges
against
platforms
such
as
Coinbase
or
Binance
for
allegedly
violating
the
US
Securities
law.
The
SEC
claims
that
the
majority
of
crypto
assets
are
securities
and
thus
subject
to
strict
regulation.
While
defendants
can
use
parts
of
Ripple’s
ruling
in
their
favor,
the
SEC
can
also
find
reasons
in
it
to
keep
its
current
strategy
of
regulation
by
enforcement.
The
court
decision
is
a
partial
summary
judgment.
The
ruling
can
be
appealed
once
a
final
judgment
is
issued
or
if
the
judge
allows
it
before
then.
The
case
is
in
a
pretrial
phase,
in
which
both
Ripple
and
the
SEC
still
have
the
chance
to
settle.
Full Article
GBP/JPY Price Analysis: Plunges amid intervention fears, hoovers around 205.00
401844 July 12, 2024 03:39 FXStreet Market News
-
GBP/JPY
experiences
volatility,
peaking
at
208.11,
then
dips
to
203.82,
settling
at
204.99. -
Downward
momentum
observed;
support
at
203.25
(Kijun-Sen)
and
200.16
(50-DMA). -
Resistance
positioned
at
205.00
and
205.64
(Tenkan-Sen);
breach
could
signal
recovery.
The
Pound-Yen
pair
witnessed
a
volatile
session
amid
speculation
of
Japanese
authorities’
intervention
after
the
latest
US
inflation
report
announcement.
The
GBP/JPY
traveled
425
pips
in
the
session,
hitting
a
high
of
208.11
before
plummeting
toward
203.82.
Since
then,
the
cross
stabilized
at
around
the
204.99
mark,
sustaining
more
than
1.20%
losses.
GBP/JPY
Price
Analysis:
Technical
outlook
The
GBP/JPY
daily
chart
shows
the
pair
as
upward
biased,
even
though
it
cleared
the
Tenkan-Sen
level
at
205.64,
which
accelerated
the
pair’s
fall
underneath
the
Senkou
Span
A
at
204.45.
Nevertheless,
it
has
recovered
some
ground,
though
in
the
near
term,
momentum
supports
sellers.
The
Relative
Strength
Index
(RSI)
remains
bullish
but
shows
a
steeper
slope
to
the
downside
at
the
time
of
writing,
hinting
that
bears
loom.
In
a
bearish
continuation,
sellers
must
push
the
prices
below
the
abovementioned
Senkou
Span
A,
which
could
pave
the
way
to
test
the
Kijun-Sen
at
203.25.
A
further
downside
is
seen
at
the
50-day
moving
average
(DMA)
at
200.16,
ahead
of
the
Senkou
Span
B
at
199.3.
Conversely,
if
GBP/JPY
recovers
some
ground
and
clears
205.00,
further
gains
lie
ahead.
The
cross
could
aim
towards
the
Tenkan-Sen
at
205.64
before
challenging
206.00.
GBP/JPY
Price
Action
–
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.
Forex Today: Focus remains on US inflation
401843 July 12, 2024 03:39 FXStreet Market News
The
Greenback
collapsed
in
response
to
the
softer-than-expected
US
inflation
readings
in
June,
at
the
time
when
investors
now
see
the
Fed
cutting
rates
as
soon
as
at
its
September
gathering.
Here
is
what
you
need
to
know
on
Friday,
July
12:
The
USD
Index
(DXY)
deflated
to
multi-week
lows
and
visited
the
104.00
region
in
the
wake
of
disappointing
US
CPI
data
and
declining
US
yields.
Producer
Prices
and
the
preliminary
Michigan
Consumer
Sentiment
gauge
will
take
centre
stage
on
July
12.
EUR/USD
rose
further
and
managed
to
finally
retest
the
1.0900
region,
although
that
move
fizzled
out
somewhat
afterwards.
German
Wholesale
Prices
and
Current
Account
results
are
expected
on
July
12.
GBP/USD
advanced
to
levels
last
seen
a
year
ago
near
1.2950
following
the
sell-off
in
the
Greenback.
There
are
no
scheduled
releases
in
the
UK
on
July
12.
USD/JPY
receded
to
monthly
lows
and
approached
the
157.00
zone
following
another
suspected
FX
intervention
move
by
Japanese
officials.
The
final
Industrial
Production
results
will
be
released
on
July
12.
AUD/USD
extended
its
monthly
recovery
and
climbed
to
levels
just
pips
away
from
the
0.6800
hurdle.
The
Australian
calendar
will
be
empty
on
July
12.
The
weaker
Dollar
and
market
chatter
around
rate
cuts
by
the
Fed
prompted
prices
of
WTI
to
add
to
Wednesday’s
gains
beyond
the
$83.00
mark
per
barrel.
Prices
of
Gold
advanced
markedly
and
surpassed
the
$2,420
mark
per
ounce
troy
amidst
the
Dollar’s
sell-off,
diminishing
yields
and
increasing
rate
cut
bets.
By
the
same
token,
Silver
improved
to
the
vicinity
of
the
$32.00
mark
per
ounce,
or
six-week
highs.