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Ethereum traders realize nearly $33 million in losses as overheated futures market cools

Ethereum traders realize nearly $33 million in losses as overheated futures market cools

FXStreet News FXStreet News 23.01.2024 15:41
Ethereum traders realized $32.73 million in losses during the crypto market correction on Monday.ETH funding rate declined alongside Ethereum's price drop of nearly 7%.Sentiment among traders improved, increasing the chances of a recovery in the altcoin's price.Ethereum price dipped nearly 7% in the past day as the crypto market corrected on Monday. Bitcoin led the decline by dropping below $40,000, a psychologically important level, for the first time since December 3. ETH price, which is correcting to the lowest level in two weeks, could be bottoming out as market participants’ sentiment improves alongside a decline in the altcoin’s funding rate.Ethereum traders hit by $32.73 million losses in single dayEthereum’s Network Realized Profit/ Loss (NRPL) metric indicates that ETH traders suffered $32.73 million in losses on Monday. This marks the first time Ethereum traders realized a loss since October 13. Ethereum’s Network Realized Profit/Loss. Source: SantimentEthereum price dropped from $2,467 to $2,300 on Monday. The altcoin continued to decline on Tuesday, hitting a low of $2,285. While Ethereum’s price is currently in a downward trend, some on-chain indicators suggest that the altcoin could begin a recovery. Two key metrics, Ethereum’s funding rate and weighted sentiment, suggest that ETH price trend could reset. The sentiment among traders, according to data from crypto intelligence tracker Santiment, recovered from its 2024 low of negative 0.89 on Monday to negative 0.75 on Tuesday. Meanwhile, the funding rate is considered a key predictor of the Ethereum price trend. If the funding rate declines while the sentiment among traders improves, it indicates there is a cooling-off in the derivatives market. Ethereum price could begin its recovery following the completion of the ongoing correction.Ethereum funding rates and price. Source: CoinalyzeEthereum weighted sentiment. Source: Santiment To the downside, Ethereum price could find support at $2,232, the 50% Fibonacci retracement level of its decline from April 2022 to June 2022. Should the current selling pressure abate at this level, ETH price could reboundand make a recovery to its 2023 peak of $2,446. ETH/USDT 1-day chartHowever, a daily candlestick close below $2,232 could invalidate the bullish thesis. If Ethereum price drops further, the bearish imbalance zone between $2,086 and $2,056 could act as the next support zone.
US Dollar slightly up with markets looking for direction

US Dollar slightly up with markets looking for direction

FXStreet News FXStreet News 23.01.2024 15:41
The US Dollar is flat in the aftermath of the BoJ meeting.Traders try to keep powder dry towards main events on Thursday and Friday. The US Dollar Index sees pressure building on 103 to break lower. The US Dollar (USD) is flat again, though it keeps flirting with a break below the important 103-level in the US Dollar Index (DXY). Markets are having difficulties with the Bank of Japan (BoJ) rate decision this Tuesday. BoJ governor Kazuo Ueda has tested markets’ patience by not hiking, and postponing the long awaited exit out of negative rates. Markets are starting to recover near the US opening bell after the initial reaction was rather negative in reaction to the nerve game the BoJ is playing, with US yields jumping higher and equities flat to mildly negative. On the economic front, some very light data lies ahead of Thursday and Friday. In the run-up to the US Gross Domestic Product (GDP) and rate decision from the European Central Bank (ECB) along with comments from ECB’s head Christine Lagarde on Thursday, traders are looking for some clues in the Redbook index and Richmond Fed Manufacturing Index for January. Certainly that last one might initiate some moves in the Greenback, seeing the recent poor performance of several Manufacturing Index numbers over the past few weeks. US Dollar Index Technical Analysis: Focal point later this weekThe US Dollar Index (DXY) is not giving up that easily on its opportunity to possibly pop back up above the important resistance at the 200-day SImple Moving Average (SMA) near 103.48. Despite downside pressure with lower highs and lower lows, the DXY for now is not selling off as one would expect in these kinds of conditions. Expect the main rehearsal to come on Thursday with the ECB rate decision, ahead of the US Federal Reserve meeting next week. There are some economic data points that could still build a case for the DXY to get through those two moving averages again and run away. Look for 104.44 as the first resistance level on the upside, in the form of the 100-day SMA. If that gets scattered as well, nothing will hold the DXY from heading to either 105.88 or 107.20, the high of September. A bull trap looks to be underway, where US Dollar bulls were caught buying into the Greenback when it broke above both the 55-day and the 200-day SMA in last week's trading. Price action could decline substantially and force US Dollar bulls to sell their positions at a loss. This would see the DXY first drop to 102.60, at the ascending trend line from September. Once below it, the downturn is open towards 102.00.
EUR/USD slightly dips below 1.0900 ahead of ECB’s decision

EUR/USD slightly dips below 1.0900 ahead of ECB’s decision

FXStreet News FXStreet News 22.01.2024 16:14
Euro registers minor losses as markets prepare for the European Central Bank's monetary policy announcement.Federal Reserve officials enter blackout period; San Francisco's Fed President Daly adopts a dovish stance on monetary policy.Traders eagerly await ECB President Lagarde's comments on forward guidance, with expectations of potential rate cuts by the Summer.The Euro (EUR) registers minuscule losses against the US Dollar (USD) early in the North American session as risk appetite improved and traders brace for the European Central Bank (ECB) monetary policy decision on Thursday. At the time of writing, the EUR/USD meanders at around 1.0890, down 0.06%.EUR/USD could witness sideways price action ahead of ECB’s meetingWall Street has opened Monday’s session in the green, while US and global bond yields take a toll and are lower in the day. Even though the Greenback (USD) is down as shown by the US Dollar Index (DXY) at 103.45, losing a mediocre 0.02%, Euro buyers had failed to underpin the pair, failing to crack key resistance at 1.0900.Meanwhile, Federal Reserve (Fed) officials began their blackout period ahead of January’s 30-31 meeting. The latest policymaker that crossed the newswires was San Francisco’s Fed President Mary Daly, who commented that monetary policy is fine and that risks of achieving the central bank’s mandates are more balanced. She’s adopted a more dovish stance, adding that rates could be lowered without impacting the progress on inflation.In the Eurozone (EU), traders are laser-focused on the ECB’s monetary policy meeting. The ECB is expected to keep the deposit rate at 4%, though traders would be dissecting ECB’s President Christine Lagarde’s comments on forward guidance. Even though she said that it’s too early to cut rates, she added the central bank could begin reducing interest rates by the Summer.EUR/USD Price Analysis: Technical outlookAlthough the EUR/USD headed south, it found support at the 200-day moving average (DMA) for two consecutive days in January 17 and 18, forming a ‘tweezers bottom’ chart pattern, that could open the door for further upside. Despite hitting a daily high above 1.0900, buyers need a daily close above that level to begin trading within the 1.0900/1.1000 area. On the other hand, if sellers drag prices below the 200-DMA at 1.0845, that would expose the 100-DMA at 1.0770.
Ethereum price could suffer setback to $2,000 according to bearish on-chain metrics

Ethereum price could suffer setback to $2,000 according to bearish on-chain metrics

FXStreet News FXStreet News 22.01.2024 16:14
Ethereum is currently in a key demand zone, a drop below the $2,300 level could result in further decline in ETH. Ethereum whales are likely realizing profits, profit-taking could push ETH lower, according to on-chain metrics. ETH volume has been on a decline since January 20, alongside Ethereum price drop, supporting a bearish thesis for the altcoin.Ethereum is trading at $2,372 on Monday. This puts the altcoin in a key demand zone. In the event that Ethereum price drops below the demand zone, the altcoin is likely to suffer a setback to $2,000. On-chain metrics for the altcoin are flashing neutral to bearish signals, as seen on Santiment.Ethereum sits in demand zone, ETH price move could determine direction of trendAccording to data from crypto intelligence tracker IntoTheBlock, Ethereum price is in the demand zone between $2,368 to $2,373. A drop below this area could see Ethereum price drop to the zone between $2,010 and $2,082, since there is no significant barrier in the path, as seen in the chart below. On the other hand, if ETH price rallies, it faces resistance at the $2,440 level. The zone between $2,373 and $2,440 is where 903,110 ETH addresses scooped up 4.73 million Ether. In/Out of the Money around price. Source: IntoTheBlockWhen the Network Realized Profit/Loss (NRPL) metric, which is used to track the profits realized by Ethereum holders, is combined with the whale transactions valued at $100,000 and higher, it could be assumed that large wallet investors are likely engaged in profit-taking.As seen in the Santiment chart, the spikes in whale transactions coincide with the profit-taking spikes in the NRPL metric. Profit-taking activities by large wallet investors typically increase selling pressure on the asset and drive prices lower. Ethereum NRPL and whale transactions. Source: SantimentVolume is another key metric used to track the on-chain activity of an asset. ETH volume has declined between January 10 and 22, according to Santiment data. Volume has dropped alongside a decline in ETH price. Dwindling volume and activity supports the thesis of a correction in the asset in the short-term. ETH Volume and price. Source: Santiment Ethereum price lost around 4% in the past week. ETH price hit its 2024 peak of $2,715 on January 12 and corrected to $2,372, at the time of writing. ETH/USDT 1-day chart
Oil jumps by 1% as markets foresee demand pickup after US Jobs Report

Oil jumps by 1% as markets foresee demand pickup after US Jobs Report

FXStreet News FXStreet News 08.12.2023 15:26
Oil prices are daring to advance a touch this Friday after the release of the most recent US Jobs Report. Although the Nonfarm Payroll number was roughly within the benchmark of estimates, printing 199,000 above 183,000 forecasted. It is the unemployment rate decline from 3.9% to 3.7% which is taking away all the attention, and which commodity traders now see as a possible pick up in demand for energy in the coming quarter. Meanwhile, the US Dollar (USD) jumps and breaks back above 104. It goes without saying of course that the stronger US Dollar is a result of markets paring back bets on quick and swift cuts from the US Federal Reserve. With still such a tight and growing job market, the Fed is at ease and keep rates elevated for longer as needed to get inflation back to 2%.Crude Oil (WTI) trades at $71.16 per barrel and Brent Oil trades at $75.85 per barrel at the time of writing. Oil Technical Analysis: Up nextOil prices are facing issues, image issues to be precise. Traders are placing further bearish bets on Oil prices after OPEC+ was unable to put firm measures in place that could support the Oil prices and rather move the needle upwards instead of downwards. As long as OPEC+ can not make a united front, more downside is the only outcome with arch nemesis, the US, dumping millions of barrels per day in an already flooded Oil market. On the upside, $80.00 is the resistance to watch out for. Should crude be able to jump above that again, look for $84.00 (purple line) as the next level to see some selling pressure or profit taking. Should Oil prices be able to consolidate above there, the topside for this fall near $93.00 could come back into play.On the downside, the soft floor near $74.00 got broken and is gone for now. For now, $70.00 is trying to salvage the situation, though it has been breached already on Thursday and Wednesday. Watch out for $67.00, which aligns with a triple bottom from June, as the next support level to trade at. US WTI Crude Oil: Daily Chart
Bitcoin price notes minor decline as US Nonfarm Payrolls report creation of 199K jobs

Bitcoin price notes minor decline as US Nonfarm Payrolls report creation of 199K jobs

FXStreet News FXStreet News 08.12.2023 15:26
US Nonfarm Payrolls reported an increase in job creation from 150K in October to 199K in November.The Federal Reserve is expected to keep the interest rates stable at 5.25% to 5.50% during the next meeting on December 13.Bitcoin price, along with the rest of the crypto market, observed a slight decline in the past hour, as expected.The United States Bureau of Labor Statistics (BLS), in its Nonfarm Payrolls (NFP) data, reported the creation of 199K jobs in the month of November, wildly surpassing the expectations of 180K jobs. This data, while expected to have a significant impact on the market, ended up being a low-impact event on Bitcoin price and other crypto assets.US NFP data surpasses expectationsThe creation of 199K jobs, as per the Nonfarm Payrolls report, is a sign of the US job market remaining strong despite the tightening in financial conditions. This also suggests that the likelihood of earlier rate cuts might decrease.With the jobs report coming in higher than the market’s forecast of 180K, the unemployment rate also declined. The unemployment rate was expected to remain steady at 3.9% but instead dropped to 3.7%.The impact of the strong jobs report can be seen in the market, wherein the probability of a rate cut has decreased considerably. Amidst cooling inflation in the US, market expectations the Federal Reserve is done with its tightening cycle are increasing, foreseing rate cuts going forward. The CME FedWatch Tool is also noting a 97.5% chance of the Fed keeping the target rate unchanged at 5.25% to 5.50% during the next Federal Open Market Committee (FOMC) meeting.CME FedWatch ToolBitcoin price remains steadyBitcoin price, along with the rest of the market, did not observe much change in the price. Trading at $43,559 at the time of writing, BTC staged a minor decline of 0.45% in the past hour. BTC/USD 1-day chartSimilarly, the total crypto market capitalization in the 24-hour timeframe remained positive, observing a 1% increase. Crucial altcoins such as Ethereum, Cardano, Ripple, Solana and Avalanche reported positive numbers in the past hour as well.Generally, job increases tend to strengthen the US Dollar, which has a negative impact on stocks, commodities, etc. Since crypto tends to share a positive correlation with the stock market, BTC, particularly a bearish move, is the most likely outcome.Thus, as the FOMC makes its decision regarding the interest rates in the next meeting, Bitcoin could see some potential decrease to $42,000.
Gold price capitalizes on weak US data, Fed policy hogs limelight

Gold price capitalizes on weak US data, Fed policy hogs limelight

FXStreet News FXStreet News 01.11.2023 15:51
Gold price managed to recover some losses as the private payrolls failed to meet estimates.The Fed is expected to keep interest rates unchanged but will keep expectations of further policy tightening alive.Middle East tensions keep the broader appeal for Gold bullish.Gold price (XAU/USD) recovered losses and turned positive on Wednesday after a two-day losing spell on weaker-than-anticipated United States Automatic Data Processing (ADP) and the Institute of Supply Management (ISM) Manufacturing PMI data for October. The US ADP reported that employers hired 113K job seekers, which were lower than expectations of 159K but significantly higher than the former reading of 89K. Meanwhile, job openings rose significantly in September, as reported by the US Bureau of Labor Statistics (BLS). The agency reported that the number of job openings on the last business day of September stood at 9.55 million against 9.49 million (revised from 9.61 million) openings in August and market expectations of 9.25 million.The ISM reported the Manufacturing PMI at 46.7, lower than expectations and the former reading of 49.0. The factory data remained below the 50.0 threshold for the 12th month in a row as business investment fell sharply due to higher borrowing costs. New factory orders also dropped significantly to 45.5 from September's reading of 49.2. The US Dollar Index has faced selling pressure near 107.00 after the release of the downbeat US economic data.The precious metal would show a decisive move after the interest rate decision by the Federal Reserve (Fed). The precious metal fell sharply in the last two trading sessions even though markets widely expect that the Fed will keep interest rates unchanged in the 5.25%-5.50% range. However, a hawkish interest rate outlook is highly anticipated as robust spending by households and strong labor market conditions keep upside inflation risks alive.Fed Chair Jerome Powell and his colleagues may keep the likelihood of further policy tightening on the table as the progress in inflation easing toward the 2% target has slowed due to strong wage growth. US households having high purchasing power are spending heavily, keeping the core Personal Consumption Expenditure (PCE) price index relatively stubborn.Apart from the upcoming Fed decision, the broader appeal for Gold is still upbeat as Middle East tensions persist. The Israeli army is preparing for the ground incursion in Gaza as Israeli authorities rejected calls for a ceasefire. Technical Analysis: Gold price jumps close to $1,990Gold price rebounds after discovering buying interest near $1,970.00. Earlier, the precious metal faced an extended sell-off while attempting to stabilize above the psychological resistance of $2,000. The yellow metal has been trading in a range between $1,960 and $2,010 for the past week. The gold price has discovered some support near $1,970.00 but a volatile action is widely anticipated after the Fed’s policy announcement. Momentum oscillators continue to trade in a bullish trajectory.
Shiba Inu announces launch of Shib Name Service on Shibarium, SHIB holders await reaction

Shiba Inu announces launch of Shib Name Service on Shibarium, SHIB holders await reaction

FXStreet News FXStreet News 01.11.2023 15:51
Shiba Inu revealed the Shib Name Service feature for SHIB token holders on Shibarium. The Shib Name Service is meant to replace complex addresses and introduce friendly names for users, allowing them to control their SHIB identity. Shiba Inu price dropped 2% on the day, holders await a boost in the asset from the bullish announcement.Shiba Inu teased a key feature for SHIB holders on its Layer 2 scaling solution Shibarium on October 28. The meme coin project announced the launch of a Shib Name Service (SNS) feature, to allow users to personalize their names and control their identity on Shibarium.SHIB price yielded 2% daily losses for holders on Binance. The bullish development failed to drive Shiba Inu price recovery.Shib Name Service goes live on ShibariumShiba Inu-themed meme coin SHIB announced the launch of the Shib Name Service (SNS) on Shibarium. As of November 1, Wednesday, the service is live for Shibarium users. This marks a key milestone for the SHIB community as it allows secure names, rather than complex addresses like 0xCD4(...).Users can now sport names like name.shib, controlling their identity and how they interact with the Layer 2 scaling solution. The project has announced a launch celebration and a $5,000 SHIB giveaway, find details in the official tweet.Shytoshi Kusama, Shiba Inu’s lead developer, teased more developments to follow for SHIB holders in his recent tweet. Shiba Inu price fails to react to SNS launchThe launch of the SNS for Shibarium users failed to act as a catalyst for Shiba Inu price. SHIB price dropped nearly 2% on the day, on Binance. As seen in the price chart below, the 50-day Exponential Moving Average (EMA) at $0.00000770 acts as support for SHIB.Shiba Inu price faces resistance at the 200-day EMA at $0.00000833. Below the 50-day EMA, SHIB price could find support at the upper boundary of the FVG, $0.00000746. Once the gap is filled, Shiba Inu is likely to resume its uptrend. SHIB/USDT one-day price chart on BinanceSHIB price correction to $0.00000746 is therefore likely to be followed by a trend reversal and a rally in Shiba Inu.
US Inflation Quick Analysis: US Dollar set to reverse gains as core prices continue climbing down

US Inflation Quick Analysis: US Dollar set to reverse gains as core prices continue climbing down

FXStreet News FXStreet News 12.10.2023 15:21
Headline US inflation exceeded estimates by staying at 3.7% YoY in September.Core inflation came down to 4.1%, meeting economists' estimates. Federal Reserve officials have been playing down the chances of another rate hike.One step at a time, inflation is coming down, including the stickier parts of it. The September Consumer Price Index (CPI) report carried relatively high expectations, making a miss more likely. Nevertheless, apart from US Dollar bulls, there is good news for all – contrary to the initial reaction. Food prices remain dear – more than compensating for a small drop in Oil prices. These volatile factors kept headline inflation elevated. The CPI rose by 0.4% MoM, above the 0.3% increase expected, while yearly price rises came out at 3.7%, as expected. Underlying prices slowed to 4.1% YoY, also meeting early projections. The core data is what the Federal Reserve cares about – it is the kind of prices the central bank can impact. Higher rates discourage buying home and paying higher wages, which impact the services sector. Without a surprise in core prices, markets reacted to the small surprise in the headline, raising rate hike expectations via higher yields. The US Dollar advanced while stocks and Gold retreated. However, Fed officials recently indicated that higher returns on Treasuries obviate the need for further hikes. They may repeat this stance in speeches following the release, reversing current moves. Moreover, the Core CPI data joins softer wage data in an otherwise robust jobs report. While Nonfarm Payrolls came out at 336,000 for September, Average Hourly Earnings increased by only 0.2%. All in all, both headline and core inflation are below interest rates, and the Fed has little need for further moves.
RNDR Price Prediction: A 10% rise in sight for Render

RNDR Price Prediction: A 10% rise in sight for Render

FXStreet News FXStreet News 12.10.2023 15:21
Render token is up 30% since September and 20% up so far in the month with little signs of slowing.RNDR could extend the gains by 10% to the three-day supply zone at $1.938 with the bulls still in the driver’s seat.Invalidation of the bullish thesis will occur when the altcoin records a three-day candlestick close below $1.384.Render (RNDR) token has sustained a bullish streak since early last month, with the price action recording higher highs and higher lows. The upside potential remains plausible for RNDR but it depends on how bulls play their hand from here on out.Render token eyes 10% gainsRender token (RNDR) price is up 30% since September and 20% up so far in the month with no signs of stopping. With bulls still taking the lead, RNDR is confronting a supply barrier between $1.938 and $2.035, the supply zone, where aggressive selling is expected. A test of this order block would constitute a 10% surge above current levels.With profit-taking appetites kept at bay, the altcoin could break past this zone, flipping it into a bullish breaker and possibly extending to clear the equal highs at $2.395. In a highly bullish case, the gains could extrapolate to the range high of $2.804.The position of the Relative Strength Index (RSI) supports this outlook, climbing to show momentum is still rising. In the same way, the Awesome Oscillator (AO) indicators are in the positive zone after a steady series of green histogram bars, also bolstering the case to the upside.RNDR/USDT 3-day chartConversely, if the supply zone holds as a resistance level, Render token price could face a rejection. The ensuing selling pressure could plunge RNDR into the demand zone between $1.496 and $1.296. A solid move below the midline at $1.384 could invalidate the bullish thesis, sending RNDR to collect buy side liquidity residing underneath.
Shiba Inu price at an inflection point with SHIB testing the 50% retracement of a three-day demand zone

Shiba Inu price at an inflection point with SHIB testing the 50% retracement of a three-day demand zone

FXStreet News FXStreet News 11.10.2023 15:25
Shiba Inu price tests the three-day demand zone between $0.00000694 and $0.00000655, a make or break moment for the memecoin.SHIB must hold above the 50% retracement level of $0.00000675 to maintain its upside potential.A decisive breach of the aforementioned level would clear the clog for further decline, putting off prospects for recovery rally.Shiba Inu (SHIB) price has been on a steep downtrend since mid-August, recording pronounced lower lows on the three-day time frame. The slump has brought SHIB to a crossroad in the short term.Shiba Inu price at a crossroadShiba Inu (SHIB) price seems to have found support at the $0.00000675 level, which coincides with the 50% retracement level or midline of the three-day demand zone ranging between $0.00000694 and $0.00000655.Historically, when an asset’s price records a solid move below the midline of an order block, it tends to extend the trend. As such, it is critical that SHIB holds above $0.00000675, or that the order block continues to hold as a support. While a correction is critical, the odds continue to favor the downside, with the Relative Strength Index (RSI) still below 50 and the Awesome Oscillator (AO) indicators soaked in the negative territory. As such, it is likely that Shiba Inu price could extrapolate the losses, heading towards the $0.00000654 level while collecting the buy side liquidity that continues to reside underneath. Such a move would fail the demand zone, rendering it a bearish breaker.SHIB/USDT 1-day chartOn-chain aggregator IntoTheBlock’s Global In/Out of the Money (GIOM) model reveals there exists a strong supply barrier that will prevent the meme cryptocurrency from achieving its upside potential. Based on this on-chain metric, two major areas of interest abound between $0.000008 and $0.000014 and secondly, between $0.00001400 and $0.00001900. A high number of investors fill these areas, constituting traders that had previously purchased the meme coin around this price level. Here, an aggregate of around 514,140 addresses are holding nearly 721.23 trillion Shiba Inu tokens.SHIB GIOMConversely, if the demand zone holds as a support floor, Shiba Inu price could use it as the jumping-off point for its potential recovery rally. Such a move could send SHIB north, to the supply zone between $0.00000786 and $0.00000837. A decisive three-day candlestick close above the midline of this order block at $0.00000815 would confirm the trend north.
FOMC Minutes Preview: Reinforcing higher for longer

FOMC Minutes Preview: Reinforcing higher for longer

FXStreet News FXStreet News 11.10.2023 15:25
The Federal Reserve will release the minutes of the FOMC meeting held on September 19-20.The Fed suggested that additional rate hikes may be appropriate before the end of the year.The US Dollar Index is undergoing a downward correction following an extended rally.The US Federal Reserve (Fed) will release the minutes of the Federal Open Market Committee's (FOMC) September 19-20 policy meeting at 18:00 GMT on Wednesday, October 11. These minutes will provide insights into policymakers' views on the current stance of monetary policy. Traders and investors will be closely analyzing the minutes for any indications of what conditions it would take for the Fed to raise rates further.During the September meeting, the FOMC decided to maintain the federal funds rate within the range of 5.25% to 5.5%, as expected. The accompanying statement showed minimal changes compared to previous meetings. The economic projections indicated the possibility of another rate hike before the end of the year.Inflationary pressures in the US are diminishing, alleviating the need for the Fed to tighten monetary policy further. However, economic activity remains resilient, and the labor market continues to show strength, as the recent official employment report demonstrates. This suggests that the Fed still has room to continue raising interest rates.While the central bank remains data-dependent, inflation is one of the crucial economic indicators to monitor, apart from any unexpected economic boom (which is not currently evident). Before the release of the FOMC minutes, the September Producer Price Index (PPI) will be published, followed by the Consumer Price Index (CPI) on Thursday. These reports are expected to hold more significance than the minutes themselves, as they provide insights into the current inflationary pressures in the economy.Unless the minutes reveal surprising or clear forward guidance, which is unlikely, they may not significantly impact market expectations regarding the Fed's next moves. The upcoming FOMC meeting is scheduled for October 31 - November 1, and the market anticipates no changes at that meeting.The CME FedWatch Tool indicates that market expectations are for interest rates to remain steady until at least June of next year, at this point, the probability of rate cuts rises above 50%. This suggests that the market does not anticipate a significant tightening or rebound in inflation in the short term.During the September meeting, Federal Reserve officials expressed a higher possibility of a "soft landing." This, combined with a slowdown in inflation, suggests a scenario of no rate hikes. However, the focus shifts to how long rates will remain elevated, which depends on the balance between the economy and inflation.The upcoming release of the Consumer Price Index for September is expected to show a decline in the annual inflation rate from 3.7% to 3.6%. While the Fed would welcome this, it would still indicate inflation above the target, necessitating the need to maintain high rates.Recent developments in the Middle East have introduced new factors that were non-existent at the time of the September FOMC meeting. These developments could have significant market implications, particularly regarding risk aversion and Crude Oil prices. The better performance of the US economy compared to European countries has been a critical driver for the strength of the US Dollar. While the Dollar has recently started to correct lower, the fundamental factors still favor it. If the minutes point to a willingness to further increase rates as a precaution against a resurgence of inflation or any similar indication, the Greenback could gain strength. Conversely, suggestions that the Fed is done hiking rates would likely have a neutral impact. If the document leads the market to consider the possibility of rate cuts before June, the US Dollar could face downward pressure.US Dollar Index: The uptrend weakness further The US Dollar Index (DXY) has been testing support at the 20-day Simple Moving Average (SMA) since early September, pulling back from multi-month highs. Technical indicators on the daily chart suggest a downside bias, with Momentum, the Relative Strength Index (RSI), and the Moving Average Convergence Divergence (MACD) moving lower. However, the overall trend remains bullish.If consolidation below 106.00 solidifies, it could potentially lead to further downside, initially targeting 105.50 and then the substantial support area around 104.40, which could limit the downward move.On the other hand, if the DXY remains above the 20-day SMA, it could extend the consolidation phase between 106.00 and 107.00. A daily close well above the 107.00 level would indicate a potential resumption of the bullish trend.
Solana inflows dominate altcoin space as funding rout plagues sector

Solana inflows dominate altcoin space as funding rout plagues sector

FXStreet News FXStreet News 10.10.2023 15:38
Solana capital inflows reached $24 million in the week to October 6, the highest level in more than a year, CoinShares noted.The altcoin topped the sector behind Bitcoin, which attracted weekly inflows totaling almost $43 million.Solana's Year-to-Date (YTD) inflows stand at $55 million, defying a funding rout in the crypto space.Solana has emerged as a standout performer in the altcoin market with a surge in weekly inflows at $24 million, making it the "altcoin of choice", according to a recent CoinShares report. Meanwhile, venture capital funding in the sector is down, a decline that could be challenging for the broader crypto market.Solana inflows top altcoin influxSolana saw capital inflows of almost $24 million in the week ending October 6, a level not seen since March 2022, CoinShares noted in a report published Monday.Based on the report, the altcoin came only behind Bitcoin, which attracted most of the digital asset inflows, totaling $43 million in the past week. Investment in the overall digital assets space increased by $78 million in the week to October 6, the largest amount since July, while trading volumes for exchange-traded products rose 37%, the data showed.Solana's Year-to-Date (YTD) inflows stand at an impressive $55 million, solidifying its position, second only to Bitcoin.Solana boasts an Assets Under Management (AUM) of $118 million at a time when VC funding is dwindling. A PitchBook report cited by Bloomberg noted a 63% decline in year-on-year venture funding for crypto startups.Investors’ interest in Solana seems to be holding up at the time of a fall in VC funding, which could continue to cut the institutional cash when the sectoral funding is almost at its lowest point since 2020.Solana price outlook amid market weaknessWhile Solana's inflows paint a positive picture, the broader altcoin market is grappling with challenges. This comes amid an escalating Hamas-Israel conflict, which brings further uncertainty to the market.Solana price is around the $22 mark on Tuesday, with a 24-hour trading volume of $350.4 million, based on CoinGecko figures. Solana has experienced a stagnant price in the last 24 hours and an 8% decrease over the past week.In the decentralized finance (DeFi) front, Solana boasts a Total Value Locked (TVL) of $312.42 million, reflecting a minor 0.87% decline in the last 24 hours, as per defiLlama. Solana hosts 110 protocols and serves 84,923 active users, commanding 0.84% of the cumulative TVL.Solana's surge in inflows makes it a compelling contender in the altcoin market. However, investors should approach the broader altcoin market with caution amid the current downtrend.
Palantir Stock Forecast: PLTR advances on $250 million US Army contract

Palantir Stock Forecast: PLTR advances on $250 million US Army contract

FXStreet News FXStreet News 10.10.2023 15:38
Palantir stock rose 6% on Monday due to Israel-Hamas war.Palantir rises again Tuesday after receiving $250 million US Army contract.PLTR stock is back above the $17 level, an important resistance level.The UK's NHS will supposedly soon anounce Palantir as winner of a $579 million contract. Palantir Stock (PLTR) stock broke above $18 per share in Tuesday’s premarket after the prominent data miner announced it had received a three-year, $250 million contract from the US Army.US equity futures are higher early Tuesday after the Monday market showed that the Israel-Hamas conflict may prove to be more of a blip on the global economy. Even oil prices have returned to their downward trajectory after initially rising more than 3% on Monday. The Dow Jones, S&P 500 and NASDAQ 100 futures have all risen on the margin ahead of the opening bell.Palantir stock news: Army contract follows rumored NHS projectAs is usual for top-secret military contracts, the announcement is short on details. What we know is that Palantir was awarded the contract, which runs through 2026, to aid the US Army’s Combatant Commands, or COCOMs in Army parlance, as well as the Armed Services, Intelligence Community and Special Forces.The contract is worth up to $250 million if a number of performance goals are met and involves helping these segments of the US Army develop their artificial intelligence (AI) and machine learning capabilities. The contract seeks to help integrate informational sharing and AI modeling through the Joint All-Domain Command & Control (JADC2)."We’re honored to expand our partnership with the Army to continue delivering the most innovative technologies and advanced data applications across the Armed Services," said Akash Jain, President of Palantir USG, the segment of the company that deals with US government contracts. "Maturing new concepts for how we deploy solutions in different contexts is key to maintaining our nation’s competitive advantage, and we appreciate the opportunity to support this mission."Palantir stock closed 6% higher on Monday as a number of stocks related to the military and defense benefited from US politicians announcing their intention to put together an aid package for Israel in light of its bombing campaign against the Hamas-controlled territory of Gaza. Israel is also readying a ground campaign.Palantir was rumored last week to have secured a $579 million, multiyear contract with the National Health Service (NHS) of the United Kingdom. Additionally, the company has recently broadened its partnership with PwC to distribute its Foundry and Artificial Intelligence Platform (AIP) to corporate partners of the global accounting firm.Palantir stock forecastPalantir stock broke through an important resistance barrier on Monday and was already in an uptrend. The level worked as support back on May 11, 2021, when the high growing software provider experienced an extreme sell-off event. More recently, PLTR stock has experienced the $17 level as resistance during June and July of this year.If bulls turn $17 back into support, an activity it hasn’t seen in two years, then there is further hope that PLTR stock could soon retest the August first swing high at $20.24. Beware of poor macro chatter, however, as despite PLTR’s industry-specific tailwinds, the stock has often been a market trend follower. If Palantir does sell off later this week, expect the support band from $13.50 to $14 to catch it.PLTR daily chart
USD/CAD eyes downside to near 1.3600 as oil rallies on Middle East tensions

USD/CAD eyes downside to near 1.3600 as oil rallies on Middle East tensions

FXStreet News FXStreet News 09.10.2023 16:16
USD/CAD is exposed to more downside as higher oil prices strengthen the Canadian Dollar.Fed Bowman reiterated this weekend that further policy tightening is appropriate.Canada’s upbeat labor market data has prompted hawkish BoC bets.The USD/CAD pair sets for a breakdown to near the round-level support of 1.3600 as deepening Middle East tensions due to Israel-Hamas bellicose has ramped up global oil prices. The Loonie asset has been exposed to more downside as the oil price rally has strengthened the Canadian Dollar.S&P500 futures have generated losses in the early New York session as geopolitical tensions have dampened market sentiment. The appeal for the US Dollar improves significantly as investors rush for safe-haven assets amid a highly volatile environment.The US Dollar Index (DXY) recovers to near 106.60 but struggles to extend the upside. The broader USD Index outlook is bullish due to the collective effort of risk-off impulse and rising odds of one more interest rate increase prompted by strong labor demand and decent wage growth. Fed Governor Michelle Bowman reiterated this weekend that further policy-tightening by the central bank is appropriate. She is willing to support one more interest rate hike at a future policy meeting if incoming data conveys that progress in inflation easing to 2% has stalled.On the Canadian Dollar front, upbeat labor market data for September improved odds of an interest rate hike from the Bank of Canada (BoC). Canadian employers hired 63.8K job-seekers in September, significantly higher than expectations of 20K and the former release of 39.9K. The Unemployment Rate remained steady at 5.5% while investors anticipated nominally higher at 5.6%. The annual wage rate accelerated to 5.3% against the former release of 5.2%.
Pro-XRP attorney suggests SEC could potentially lose trial against individual defendants

Pro-XRP attorney suggests SEC could potentially lose trial against individual defendants

FXStreet News FXStreet News 09.10.2023 16:16
Pro-XRP attorney Jeremy Hogan's analysis suggests that the SEC faces limited strategic options in the Ripple lawsuit.XRP's price remains sluggish amid broader market trends despite rejection of SEC's appeal.The SEC may still appeal the decision after the trial, according to legal expert John Reed Stark.In the ongoing legal battle between Ripple Labs and the U.S. Securities & Exchange Commission (SEC), attorney Jeremy Hogan – who is known for supporting Ripple in its legal battle against the regulator – has raised questions about the SEC's strategic choices. Hogan's analysis indicates that the federal agency may have limited options in the Ripple case, even if they achieve success in an appeal. The statement comes in the wake of Judge Torres's refusal to grant the SEC an interlocutory appeal. However, the decision hasn’t helped to propel XRP price, which has fallen around 4% in the last 24 hours amid a broadly bearish market trend. SEC has limited options after Ripple verdictAmerican attorney Jeremy Hogan, known for his commentary around the Ripple vs. SEC lawsuit, recently shared his thoughts on X (formerly Twitter), on the potential road ahead for the SEC. Hogan explained that if the SEC proceeds with the trial against individual defendants next April, it would lose with a chance of success standing at close to 40%."If the SEC goes to trial, an appeal of the case won't be filed until 2025. That means an appellate ruling likely won't come out until 2026," he said.Hogan said that the case could be sent back to Judge Torres for further litigation even if the SEC wins the appeal. Hogan explained that if the SEC settles the case against individual defendants and appeals only after the final judgment against Ripple has an associated chance of around 32%. However, the attorney explained that this could expedite the appeal process by around 9-12 months, potentially reaching a resolution by August 2026.Another option as per the lawyer is the SEC settles all litigation against Ripple and the individual defendants. "Settlement is a good option for the SEC," Hogan said.Lastly, Hogan acknowledged the possibility of unforeseen developments but assigned it a relatively low chance of happening, at around 9%. He emphasized that this could be a potentially unfavorable option for the SEC, adding, "The Summary Judgment is the law of the land and that can't even possibly change until...2026 at earliest."Attorney John E. Deaton, who represented XRP holders in the lawsuit, also expressed scepticism about the SEC's chances of winning a trial in the past. He suggested in an interview recently that the agency's options primarily involve dismissal or settlement negotiations. XRP price does not lift with the verdict The rejection of an interlocutory appeal in the Ripple SEC lawsuit has had no positive impact on XRP's price. Over the last 24 hours, XRP (XRP) has experienced at least a 4% decline, based on CoinGecko analysis. In the past week, the value decline of 4% to 5% is in line with broader crypto market trends. XRP/USDT hourly price chartAt the time of writing, XRP is trading under $0.5, with a 24-hour trading volume of $763 million. Meanwhile, John Reed Stark, President of John Reed Stark Consulting LLC, pointed out that Judge Torres's order noted not to cite her summary judgment decision as precedent. He emphasised, "Judge Torres has specifically deemed her decision as NOT precedent for the rest cryptoverse."This could be a limited victory for the XRP team, which was unable to lift the price amid the stagnation in crypto prices. Investors will have to wait for the XRP price reaction to future appeals.
Rivian Stock News: Convertible debt comes for another EV maker as RIVN plunges 9%

Rivian Stock News: Convertible debt comes for another EV maker as RIVN plunges 9%

FXStreet News FXStreet News 05.10.2023 15:36
Rivian stock sells off 9% after company initiates $1.5 billion convertible bond sale.If total debt offering eventually gets converted into common stock, existing shareholders may face 7.7% dilution or more.Rivian produced more than 16,000 EVs in Q3, beating consensus on deliveries.Rivian will offer an additional $225 million in bonds to initial purchasers if demand is there. Rivian (RIVN) stock has placed its shareholders on a rollercoaster ride this week. The electric vehicle (EV) producer known for its pickup trucks surged 9.2% on Wednesday only to plunge another 9% in the post-market session when it announced a $1.5 billion convertible debt offering. These types of offerings allow the holder of the debt to convert it into equity, thus are treated as dilution risks. Rivian stock is losing ground in a session that looks mixed. After Wednesday saw investors crowding back into equities amidst a two-month-long downtrend, NASDAQ 100 and S&P 500 futures are mixed but largely flat. Treasury yields are also mixed but placid.Rivian stock news: Extra $225 million could be added to convertible bond saleRivan’s share price predicament is rather predictable. The market usually treats companies with disdain that issue convertible bonds since they are akin to issuing new shares. Fellow Chinese EV automaker Nio (NIO) just raised $1 billion via convertible bonds two weeks ago, and the company’s shares crashed over 17% on the news.Rivian is initially selling $1.5 billion worth of convertible bonds that mature in October 2030, but its press release also states that it will give initial buyers the right to purchase up to an additional $225 million worth of convertible bonds in the 13 days following the initial sale.If all $1.725 billion worth of bonds get converted into shares at a later date, then this activity would dilute shareholders by about 7.7%, based on Wednesday’s closing market cap. Of course, the market will change by the time of conversion, so the actual dilution could easily be more or less. According to the statement from Rivian: “The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Rivian’s option at any time, and from time to time, on or after October 20, 2027 and on or before the 20th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Rivian’s common stock exceeds 130% of the conversion price for a specified period of time.”The conversion price and the coupon rate of the bonds are not yet fixed. Two weeks ago, Nio sold six-year convertible bonds with coupon rates of 3.875% and seven-year bonds with a rate of 4.625%. US Treasuries have seen their yields increase in the past two weeks, so the expectation is that Rivian will have to pay higher interest rates than Nio.On Monday, Rivian reported third-quarter deliveries that rose 140% from a year ago. The company beat the delivery consensus of 14,900 vehicles with 15,564 delivered in Q3. At its production factory in Normal, Illinois, Rivian produced 16,304 vehicles during the quarter and is on pace to meet its 52,000 production goal for 2023.Rivian stock forecastRivian stock has halted its plunge within the $21 to $22 resistance band that held up a rally back in January and February of this year. There is no particular reason why it should become support this time around, but anything is possible. The late September swing low pushed RIVN stock nearly all the way to $20, so there is no good reason that won’t happen again.Just below there the $19.50 price level support Rivian stock during its late August doldrums. If $19.50 fails to hold, Rivian could jet all the way back to the $15 range. The area from $15.28 to $15.84 worked as support back in January before flipping into an area of resistance during the March through June period. The Relative Strength Index (RSI) is showing RIVN stock close to neutral. Dip buyers will likely wait until the convertible bond news tips Rivian stock into an oversold reading on the RSI, which could take a few more sessions of pain.RIVN daily chart
Bitcoin ETF approval odds at 70%, says analyst ahead of January deadline

Bitcoin ETF approval odds at 70%, says analyst ahead of January deadline

FXStreet News FXStreet News 05.10.2023 15:36
Bitcoin ETF will get approved with a 70% likelihood in January, according to analyst Alex Krüger.Crypto traders are possibly preparing to employ a "Sell the News" strategy to front-run the market, Krüger says.A rise in correlation between the DXY US Dollar Index and Bitcoin can start a 2024 rally.As the crypto community awaits for the first spot Bitcoin Exchange-Traded Fund (ETF), analyst Alex Krüger hints at a 70% likelihood of approval in January. Krüger anticipates that traders are gearing up for this event, possibly employing a "Sell the News" strategy. Meanwhile, a growing correlation between the DXY US Dollar Index and Bitcoin has raised the prospect of a rally in 2024.Bitcoin ETF could secure SEC approval next yearIn a series of tweets, analyst Alex Krüger pegged the approval odds of impending Bitcoin ETFs at 70%. Krüger underlined that the decision is a crucial event, where crypto traders might adopt a "Sell the News" strategy, front-running the market on the ETF's decision. Krüger suggested that this approach could lead to significant price movements depending on the US Securities & Exchange Commission’s (SEC) approval or rejection of such a fund. If an ETF rejection hits the Bitcoin community in the near future, Krüger anticipates a 'post news short' to $23,000. Contrarily, Krüger envisions "new year highs within a week" if the ETF were to get approved.Meanwhile, former BlackRock managing director Steven Schoenfield, who now serves as the CEO of MarketVector Indexes, predicts Bitcoin ETF approvals within three to six months. Notably, the industry has witnessed a surge in ETF applications. According to Bitinning founder Kashif Raza, 16 spot ETF applications are in queue for approval. He notes, "Never before you had so many applications in front of the SEC," he said. Bitcoin rally could be on the horizon for 2024While ETF approval would be a catalyst for Bitcoin price, the rise in correlation between the US Dollar Index (DXY) and Bitcoin is also positive news. The correlation has hit a 10-month high at 0.73. Previously, this rise marked the start of the 2023 Bitcoin rally. Therefore, if history were to repeat itself, this pattern could potentially trigger a similar rally in 2024.However, Bitcoin will need to test the critical $30,000 mark in Q4 before a new year rally. A failure to breach this resistance level could significantly impact the chances of an upward price movement. At the time of writing, Bitcoin is priced at $27,699, exhibiting a slight increase in the last 24 hours. Bitcoin has managed to rise about 5% over the past week. BTC/USDT 1-day price chartThe looming decision on a Bitcoin ETF along with macroeconomic factors like the US Dollar’s valuation could be a game-changer for the king coin. Traders are preparing for potential price swings that will shape Bitcoin's price trajectory in 2024.
Dow Jones Industrial Average Forecast: Rise in job openings sends DJIA plunging as Treasury yields soar

Dow Jones Industrial Average Forecast: Rise in job openings sends DJIA plunging as Treasury yields soar

FXStreet News FXStreet News 04.10.2023 16:49
The Dow Jones Industrial Average crashed 1.29% on Tuesday.JOLTS data for August surprised to the upside, showing the labor market stronger than many realized.US House Speaker McCarthy was kicked out of his job, making November funding fight less certain.Treasury yields are implying that the Fed will raise interest rates before year-end.Friday’s Nonfarm Payrolls data could tip equity market even lower.The Dow Jones Industrial Average (DJIA) opened higher on Wednesday, up 0.2%, as traders test whether Tuesday’s crash was overdone. The market is digesting the first time in history that a US Speaker of the House was voted out of office and how that will affect current budget talks. Additionally, the Nonfarm Payrolls (NFP) report on Friday has many market participants expecting a market-negative result of rising employment numbers.The Dow closed another 1.29% lower on Tuesday and is already down further in just two trading sessions than the entirety of last week, when it sold off 1.34%. The DJIA is now down 7.5% since its late July range high.Tuesday’s loss of confidence was due to JOLTS Job Openings data for August, which was much more robust than expected. Analysts had expected the reading to drop from July’s 8.9 million to 8.8 million in August. Instead, the August print came above 9.6 million. This data overshadowed last week’s reduced inflation print from the Personal Consumption Expenditures report, and many observers now think it a greater likelihood that the Federal Reserve raises rates before the year is out.That news sent Treasury yields zooming higher, with 30-year Treasuries reaching 5% for the first time since 2007. Higher US Treasury yields often correlate with a sell-off in the S&P 500 as the higher yield gives them a better risk-return profile than the equity market. The 30-year has fallen 1.2% on Wednesday at the time of writing, dropping back to 4.88%.Dow Jones News: McCarthy out as House SpeakerLate Tuesday, Speaker of the House Kevin McCarthy (R-CA) was ousted from his role – the first time this has occurred in US history. Normally, House Speakers leave their roles due to their political parties losing the majority or deciding to retire.This time it occurred because a small cadre of his Republican caucus chose to vote him out on the pretense that he had used Democratic Party votes to pass a continuing resolution to fund the federal government last week. With the continuing resolution, the federal government was set to shutdown operations last Sunday. Many pundits think McCarthy’s opponents, like Florida Representative Matt Gaetz, purposefully caused last week’s budget impasse in order to force McCarthy to court the opposite side of the aisle. In that sense, it may have been a self-fulfilling prophecy, Gaetz wanted McCarthy to seek Democratic votes in order that Gaetz and his triggermen had a reason to bring McCarthy’s speakership to a vote.Either way, last weekend’s continuing resolution, which funded the US federal government for 45 days, will run out in mid-November. That means the House of Representatives has no leader at a critical time when it needs to negotiate 12 separate spending bills for longer-term funding.Before last week’s last-minute continuing resolution, ratings agencies had already telegraphed that a federal government shutdown would lead them to downgrade US government debt. This move could further raise Treasury yields, thus hurting equity values, as some investors on the margin would certainly decide to sell off their Treasury holdings. September Nonfarm Payrolls could disappoint with higher readingDue to the JOLTS data from Tuesday, the market is poised for Friday’s Nonfarm Payrolls reading for September to jump above the 170K that analysts have been expecting. Recent months have seen the NFP slinking below the 200K level that analysts believe is roughly neutral. August saw a reading of 187K. However, before the stock exchanges opened on Wednesday, ADP reported its Employment Change reading for September. The print arrived at 89K, way under the 153K that economists expected and August’s 180K reading. The ADP release is often uncorrelated with the more stringent NFP data, but it will make traders wonder. For the NFP, both June and July’s data was revised lower after initially much higher readings. June’s initial reading showed 209K net new hires but was later revised to 105K. July’s initial 187K reading was revised to 157K. These lower revisions are viewed positively by the market since reduced employment growth should cut the chances of inflation frightening the Fed into hiking interest rates still higher.In addition to estimates for the number of new jobs, the NFP data from the Bureau of Labor Statistics also includes Average Hourly Earnings. This data is expected to grow 0.3% on a monthly basis and 4.3% on an annual basis. It grew at 0.2% MoM in August and 4.3% annually.What they said about the market – Omar SlimOmar Slim, the portfolio manager at Pinebridge Investments, said the equity market is only now coming to terms with the Federal Reserve’s determination to hold interest rates at the current high pitch through the first half of next year. This recognition is forcing Treasury yields higher and making equities less attractive."I think what we’re seeing is the ‘higher for longer’ narrative permeating the market to a large extent in the US but certainly also in the rest of the world. [...] I think what would stop it is a pretty decisive turn by the Fed or some of the data pointing to a substantial slowdown.”Dow Jones Industrial Average forecastThe Dow Jones has broken through a number of possible support levels of late. First, 34,029 fell on September 22. Then 33,700 gave way on September 26. On Tuesday, 33,400 failed, and the DJIA closed all the way down at 33,000.There is no real reason for the index to bottom at this big psychological number however. Expect another wave of selling to push it down to at least the 32,500 to 32,800 demand range. This band held up in late February and in May of this year. When it faltered in late March, however, the Dow Jones slid to support at 31,600.The Relative Strength Index (RSI) gives the Dow Jones an oversold reading, 26, so some technical traders might begin nibbling here. The DJIA will need to overtake 33,700 before most traders conclude that the sell-off is over.Dow Jones Industrial Average daily chart
Lido TVL pares recent gains as ETH, MATIC, SOL price rally wanes

Lido TVL pares recent gains as ETH, MATIC, SOL price rally wanes

FXStreet News FXStreet News 04.10.2023 16:49
Lido's Total Value Locked surged to $15.37 billion in the week to October 2 before undergoing a slight dip.Ethereum Futures ETF launch fell short of expectations, hitting prices stETH APR experienced a slight decline, according to seven-day moving average figures.Lido Finance Total Value Locked (TVL), the value of all crypto assets held in the protocol, reached $15.37 billion in the week to October 2, the highest level since August. The 10.24% weekly surge was largely fueled by Ethereum (ETH) price gains, although the lukewarm launch of Ethereum Futures ETFs has pulled down Lido's TVL. Lido's 10% TVL surge tapers after ETF launchLido Finance, an Ethereum staking player, witnessed a surge in its TVL to $15.37 billion between September 25 and October 2, or a 10.24% increase, according to data published Monday by the protocol in its official X account. Lido notes that the major factor that led to this surge was a 9.52% rise in Ethereum (ETH). During the period, Lido ranked second in net new deposits to the Ethereum Beacon Chain, attracting a substantial 40,768 ETH in just seven days.Additionally, altcoins like MATIC and SOL also contributed to the gains with an 11.04% and 23.22% price rise, respectively. Lido market markersHowever, Lido's TVL growth tapered off on Tuesday below the $15 billion mark. This could be largely attributed to the market's tepid response to Ethereum's Exchange-Traded Funds (ETFs).Drivers of Lido TVLStaked Ethereum APR declines Lido underlined that the staked Ethereum (stETH) APR, the annual percentage rate that stakers can expect to earn, experienced a slight decline in the last week. The seven-day moving average settled at 3.56%. However, the total amount of wrapped stETH deposited into DeFi pools increased by 0.92%, concluding the week at 3.09 million stETH. The share of wrapped stETH in DeFi also increased marginally, from 35.16% to 35.25%.Meanwhile, based on CoinShares figures, Ethereum witnessed its seventh consecutive week of outflows, amounting to $1.5 million. If the altcoin market remains lukewarm, Lido TVL could further take a hit in the coming week.
ADP Jobs Preview: Three reasons for an upside surprise, which may further lift USD, melt Gold

ADP Jobs Preview: Three reasons for an upside surprise, which may further lift USD, melt Gold

FXStreet News FXStreet News 03.10.2023 15:43
ADP’s private-sector jobs report has beat economists’ expectations in eight of the 12 past months.Low jobless claims in recent weeks imply a better chance of an upside surprise.An upbeat employment component in ISM's Manufacturing PMI also indicates better data.Correlation is not something to care about – investors are not scientists looking for rigorous proof that an economic indicator is a leading indicator. ADP's private sector jobs report provides a shaky hint toward the official Nonfarm Payrolls (NFP) publication. Nevertheless, it has an impact – providing traders an opportunity.Here is a preview of the ADP Employment Change for September, published on Wednesday at 12:15 GMT.There are three reasons to expect an upside surprise, extending the trend of US Dollar strength while pressuring Gold and stocks. 1) More beats than missesAfter several months of robust job gains, America's largest payroll provider reported an increase of only 177,000 positions in August. Nevertheless, such bumps in the road are common, followed by a return to robust beats.Here are the figures in the past few months:ADP Employment Change (in thousands).. Source: FXStreetADP's jobs report exceeded estimates in two-thirds of the releases in the past 12 months, with substantial surprises in April, May, June and July. August's small miss of 18,000 jobs looks like the outlier. 2) US jobless claims point lowerBetter-than-expected labor data comes from weekly Unemployment Claims as well. These have come out below estimates and close to the historic lows under 200,000 in recent weeks. The data beat estimates in the past seven weeks.ADP's report, like the Nonfarm Payrolls, is compiled in the week including the 12th of the month. In this case, it is the data released in the week ending on September 15, which was the bottom of the current cycle so far with merely 202,000 jobless claims:US Unemployment Claims. Source: FXStreet3) Soft data points higher as wellThe ISM Manufacturing Purchasing Managers' Index (PMI) came out on Monday, beating estimates with a score of 49, better than the 47.7 expected for September. More importantly, in the context of the ADP jobs report, the Employment component jumped from 48.5 to 51.2, surpassing the 50-point threshold which separates contraction from expansion.While the manufacturing sector is small in comparison to the services one, the stabilization of hiring in the industry is a positive sign, adding to the narrative that the weakest part of the economy is on a stronger footing. For the ADP report, economists expect an increase of only 160,000 private-sector jobs in September, below the 177,000 reported in August. These estimates look modest when the data above is taken into account. An upside surprise would give further backwind to the US Dollar, which is supported by other positive figures, rising yields – partially a result of increased bond issuance – and hawkish comments by Federal Reserve (Fed) officials. Gold suffers from higher yields, while stock market investors are wary of higher yields more than they are cheered by a stronger economy. Final thoughtsThe ADP's jobs report carries low expectations, and a series of upbeat figures imply a good chance of an upside surprise, supporting the US Dollar. How long would such a Greenback rally go? The next data point is the ISM Services PMI, less than two hours after ADP. Markets may partially reverse any short-term move – gearing up for the next release.
Avalanche Network introduces Firewood upgrade amid declining on-chain activity, AVAX holders uncertain

Avalanche Network introduces Firewood upgrade amid declining on-chain activity, AVAX holders uncertain

FXStreet News FXStreet News 03.10.2023 15:43
Avalanche introduces Firewood as an efficient blockchain database system.The smart chain platform notes a decline in several key metrics like active addresses, revenue and fees generated.AVAX price could decline in the short term amid dismal on-chain metrics. Avalanche Network will soon get an upgrade known as "Firewood," which is an efficient system for storage of Merkalized blockchain state. Ava Labs announced that Firewood is currently in the development stage and is not ready to be deployed yet. Avalanche network introduces FirewoodAvalanche Network has added a developer preview of Firewood on its network. Ava Labs, the creator of Avalanche blockchain, explained that the upcoming upgrade will tackle one of the most important bottlenecks – blockchain scaling. The goal of an intelligent filing system is to efficiently organize information while enabling effective state management to help scale blockchains. However, projects like Bitcoin and Ethereum use a tree data structure or Merkleized storage on their blockchains. Firewood is designed to read Merkleized blockchain state under heavy loads. Unlike other blockchain database management systems, Firewood is not based on generic key-value stores like LevelDB or RocksDB. Ava Labs, the company behind Avalanche, said that it will evaluate Firewood's performance in comparison to other blockchain databases in the coming months. While the update for Firewood is still under work, it is a bullish development for the Avalanche ecosystem from a big-picture perspective. But the on-chain metrics reveal a not-so-optimistic outlook, which could add headwinds to AVAX price.AVAX price to take a hitAccording to Token Terminal statistics, the number of addresses actively interacting with the Avalanche network has declined over the past month, indicating a capital flight. The 30-day Active Users average has dropped nearly 33%.Additionally, its 30-day revenue has also taken a hit with the fall in activity. Revenue that AVAX generated from fees and other sources for the period is down 45%. Annualized fees for the chain stand at $3.65 million, down over 47%.With the network’s key metrics on a slump, AVAX price, which currently trades at $9.35, is likely to suffer a further decline. AVAX Key Metrics
Nio Stock Forecast: NIO contracts 2% as Tesla delivery decline weighs on EV sector

Nio Stock Forecast: NIO contracts 2% as Tesla delivery decline weighs on EV sector

FXStreet News FXStreet News 02.10.2023 16:24
Nio delivered 15,641 vehicles in September, meeting its quarterly target.NIO stock added about 1% on the delivery news in Monday premarket.Nio delivered 55,432 in the third quarter, a 75% gain YoY.Competitors XPeng, Li Auto are seeing much swifter growth.Nio (NIO) stock dropped 2.3% on Monday morning despite meeting its quarterly delivery target for the third quarter. Tesla's (TSLA) Q3 production and delivery decline is the culprit. In the third quarter, Elon Musk's company produced 430,488 and delivered 435,059 vehicles. This fell from production of 479,700 vehicles and deliveries of 466,140 in the second quarter.Nio, the Chinese electric vehicle (EV) purveyor, met its quarterly delivery target after announcing deliveries of 15,641 units in September. That figure, helped by a surplus of SUV sales, pushed Nio to meet management’s third-quarter target of deliveries between 55,000 and 57,000.NIO’s stock price is also helped by positivity concerning a US Congressional deal over the weekend that gave the legislative body another six weeks to hammer out a budget without shutting down the federal government, as was earlier predicted. The NASDAQ Composite has gained 0.5% at the time of writing.Nio stock news: Q3 deliveries rise 75% from a year agoOn Sunday, Nio unveiled its delivery update for the final month of the third quarter. Total deliveries of 55,432 surmounted management’s forecast at the beginning of the quarter, but deliveries did decline throughout the quarter. July’s 20,462 deliveries were followed by August’s 19,329 deliveries and September’s 15,641. No reason was given why deliveries dropped on a monthly basis. In total, the third quarter witnessed a 75% surge in deliveries YoY, while September deliveries rose 44% YoY.September’s figures consisted of 11,504 electric SUVs and 4,137 electric sedans. The better mix of SUVs will likely help Nio’s struggle with profitability when it reports Q3 earnings on November 9.However, Nio’s primary competitors – XPeng (XPEV) and Li Auto (LI) – both overshadowed Nio’s data from September. XPeng reported an 81% surge in YoY deliveries to 15,310. Even more impressive, Li Auto’s September deliveries exploded 213% from a year ago to 36,060. Also, unlike Nio, Li Auto and XPeng both experienced rising MoM delivery figures. Both EV companies advanced 1% or more in the premarket.Nio’s share price has been beaten down since the automaker raised more than $1 billion in a dilutive convertible bond offering in mid-September. Nio’s share price fell more than 20% following the announcement, but has recently rebounded around 10%.Nio stock forecastNio stock still needs to clear the $9.50 level to make the market take this miniature rally seriously. After seeming to bottom at around $8 a share early last week, NIO stock was able to rally up past $9. The $9.50 level has worked as support on August 29, back in April and at the very start of 2023. It also showed the quality of resistance in February and March, so we might expect it to do so again on a first test.Nio stock has already closed above the 9-day Simple Moving Average (SMA) last week, so the 21-day SMA is the next obstacle. Being that it sits just a bit above $9.50, this gives the overall region around $9.50 more significance. A break and close above $9.50 would see Nio attempt to penetrate the $10.15 to $11.30 high-volume region that has had a tendency to slow down rallies. NIO daily chart
Three altcoins that have kickstarted Q4 rally: LINK, RDNT, FLOKI

Three altcoins that have kickstarted Q4 rally: LINK, RDNT, FLOKI

FXStreet News FXStreet News 02.10.2023 16:24
Chainlink price has been on a tear for the last two weeks and has the potential for more upside.Radiant Capital price has breached a falling wedge and shows promise of further ascent. Floki Inu price also witnessed a huge spike in buying pressure and could continue its northbound move.Crypto market volatility seems to be making a comeback with the start of 2023’s fourth quarter , and some altcoins are already making headway. Chainlink (LINK), Radiant Capital (RDNT) and Floki Inu (FLOKI) are some cryptos that are showing aggressive upside moves. Chainlink price shows immense strengthChainlink (LINK) price has shot up by 39% in September, pushing past the 15-month resistance level around the $7.80 area. This massive uptick now faces a decision – an extension of this move or a pullback. Considering recent whale activity, the chances of a northbound move are high.The $7.80 support level is a good place for a bounce that leads to a retest of the $10 psychological level.LINK/USDT 1-day chartA decisive monthly candlestick close below $7.50 will invalidate the bullish thesis as it would breach the support level. In such a case, LINK could revisit $7.Radiant Capital price triggers breakoutRadiant Capital (RDNT) price has breached a multi-month falling wedge setup, signaling the start of an uptrend. Additionally, RDNT bulls have also overcome the $0.250 hurdle. If the recently-breached level holds, investors can expect the altcoin to come face-to-face with the $0.297 and $0.334 hurdles, which would represent a roughly 15% and 28% increase from the current price of $0.261.RDNT/USDT 1-day chartA breakdown of the $0.250 support floor could open the chances of reentering the falling wedge setup. In such a case, RDNT could revisit the September 30 swing low at $0.231.Floki Inu price shuts bears downFloki Inu (FLOKI) price rallied nearly 20% on September 30 but pared some gains afterwards, closing the daily candlestick with a 12% return. Since then, FLOKI has rallied nearly 10% and currently trades at $0.0000202. If this momentum persists, the meme coin could revisit the $0.0000233 resistance level.FLOKI/USDT 1-day chartRegardless of the upbeat outlook, if Floki Inu price breaches $0.0000160, it would invalidate the bullish thesis. This move could see FLOKI revisit the swing lows formed around $0.0000152 for sell-side liquidity.
EUR/USD Forecast: Encouraging US data refreshes US Dollar demand

EUR/USD Forecast: Encouraging US data refreshes US Dollar demand

FXStreet News FXStreet News 28.09.2023 16:19
The German Harmonized Index of Consumer Prices rose 4.6% YoY in September.The United States confirmed Q2 Gross Domestic Product at 2.1% QoQ.EUR/USD holds above 1.0500 but lacks bullish strength.The EUR/USD pair recovered some ground on Thursday after bottoming at 1.0487 on Wednesday, its lowest since December 2022. Financial markets are still trading on sentiment, with concerns piling up.On the one hand, increased price pressures forced central banks to maintain their hawkish perspective in their September meetings and delay the chances of rate cuts. On the other, resurgent oil prices hint at continued inflationary pressures throughout September, bolstering the odds for a global economic setback.The dismal mood receded somehow, helping the Euro recover ground, yet optimism is nowhere to be found. The Joint Economic Forecasts prepared by five different economic institutes predict the German Gross Domestic Product (GDP) will contract by 0.6% this year and grow by 1.3% in 2024. Meanwhile, inflation is expected to be 6.1% in 2023 and ease to 2.6% in 2024.Ahead of Wall Street’s opening, Germany released the preliminary estimate of the September Harmonized Index of Consumer Prices (HICP), up 0.2% MoM and 4.6% YoY, below the market expectations. The Spaniard HICP printed at 3.2% YoY, below the 3.3% expected, although higher than the previous 2.4%. Finally, the Euro Zone published the September Economic Sentiment Indicator, which beat expectations by printing 93.3.The United States (US) came out with some encouraging news, as the Q2 GDP was confirmed at 2.1%, while Initial Jobless Claims for the week ended September 22 came in at 204K, better than the 215K anticipated.EUR/USD short-term technical outlookThe EUR/USD pair extended its recovery by a few pips following US figures but quickly retreated from an intraday high of 1.0556. In the daily chart, the advance seems corrective, as the pair keeps developing below all its moving averages, with the 20 SMA heading sharply lower at around 1.0670. Technical indicators, in the meantime, bounced from their recent lows but lack upward strength. Notably, the Relative Strength Index (RSI) indicator remains within oversold readings, falling short of confirming a bottom.The 4-hour chart shows EUR/USD is retreating from near a bearish 20 SMA, providing dynamic resistance at around 1.0560. At the same time, the Momentum indicator has turned flat well below its 100 level, while the RSI indicator heads higher at around 34, correcting extreme oversold conditions. Overall, the bullish potential seems well limited, while chances of lower lows increased after failure to extend the advance beyond the mentioned 20 SMA. Support levels: 1.0484 1.0440 1.0395Resistance levels: 1.0560 1.0610 1.0660
US Dollar dips on GDP miss

US Dollar dips on GDP miss

FXStreet News FXStreet News 28.09.2023 16:19
The US Dollar retreats a touch after a miss on GDPSmall uptick in initial claims adds to dip.The US Dollar Index touch lower but stil labove 106.The US Dollar (USD) is facing a small blow this Thursday after a downbeat surprise in the Gross Domestic Product (GDP) numbers was revealed. Overall in this third reading normally no real surprises are factored in. Still, the GDP Price Index fell from 2% to 1.7%, meaning that price pressure is further easing.A second element that has made the US Dollar a touch softer is the small uptick in initial jobless claims. Although the initial claims only rose by 2,000, the fact that there is an uptick is a small break from the earlier consecutive decline we saw past few weeks. WIth markets being so bullish on the Greenback, this could be the start for some easing together with the US government shutdown over the weekend.US Dollar Index technical analysis: off the highsThe US Dollar looks to be on a mission this week, surprising friends and foes with yet again a firm winning streak. Another weekly gain is almost locked in, making it an eleven straight week of gains for the US Dollar. With the US Dollar Index (DXY) breaking above 106.00, traders are eyeballing 107.00 next. The US Dollar Index opened around 106.50, though the overheated RSI might make it difficult to maintain this level. Traders that want to hit a new 52-week high need to be aware that a lot of road needs to be covered towards 114.78. Rather look for 107.19, the high of November 30, 2022, as the next profit target on the upside. On the downside, the recent resistance at 105.88 should be seen as first support. Still, it has just been broken to the upside, so it isn’t likely to be a strong barrier. Rather look for 105.12 to do the trick and keep the DXY above 105.00.
USD/CAD aims stability above 1.3500 amid broader strength in US Dollar

USD/CAD aims stability above 1.3500 amid broader strength in US Dollar

FXStreet News FXStreet News 27.09.2023 16:22
USD/CAD aims to stabilize above 1.3500 amid sheer strength in the US Dollar.US Durable Goods Orders surprisingly rose by 0.2% while investors anticipated a decline of 0.5%.The optimism about the US economic outlook seems uncertain as Fed policymakers support more interest rates.The USD/CAD pair faces some selling pressure while attempting to extend upside above the immediate resistance of 1.3540 in the early New York session. The Loonie asset struggles to extend recovery as the US Dollar faces a nominal sell-off after registering a fresh 10-month high at 106.45.S&P500 opens on a positive note as investors shrug off risks associated with potential government shutdown. The broader market mood is still cautious as the Federal Reserve (Fed) is expected to keep interest rates higher for a longer period. The US Dollar may resume its upside journey as the US Durable Goods Orders data for August outperformed expectations.Orders for core goods surprisingly expanded by 0.2% while investors anticipated a decline of 0.5%. In the month of July, the economic data contracted significantly by 5.6%. An expansion in orders book for core goods indicates some sort of optimism among firms despite higher interest rates by the Federal Reserve (Fed).The optimism about the US economic outlook seems uncertain as Fed policymakers are consistently supporting more interest rates from the central bank. Minneapolis Fed Bank President Neel Kashkari said that there was a risk interest rates might have to go higher but added that it was hard to know. Earlier, Fed Governor Kashkari commented that the economy is fundamentally much stronger than projected. Therefore, more rates seem warranted and are needed to remain high to cool things off.On the oil front, the oil price prints a fresh 10-month high at $92.66 as investors see demand rising due to a higher consumption outlook. Meanwhile, investors await the weekly oil inventories data to be reported by the US Energy Information Administration (EIA), which will be published at 14:30 GMT. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices support the Canadian Dollar.
Palantir Stock Forecast: PLTR advances following $250 million Army contract

Palantir Stock Forecast: PLTR advances following $250 million Army contract

FXStreet News FXStreet News 27.09.2023 16:22
Palantir wins $250 million contract with US Army unit from Aberdeen Proving Ground.The contract will last three years through September 2026.Palantir’s contract is for R&D work on AI and machine learning topics.S&P 500 and NASDAQ 100 futures have risen in Wednesday’s premarket. Palantir (PLTR) stock has advanced 1% to $14.10 in Wednesday’s premarket after the artificial intelligence-inflected (AI) data miner won a $250 million, three-year contract with a unit from the US Army.US equity futures are higher in Wednesday’s premarket after losing substantial ground this week. S&P 500 and NASDAQ 100 futures are both ahead by more than 0.4% at the time of writing.Palantir stock news: Research contract given to Palantir for Maryland Army unitEarly Wednesday, the Army Contracting Command attached to the Aberdeen Proving Ground in Maryland approved Palantir for a $250 million contract to provide research related to AI and machine learning.The “firm-fixed-price” contract runs through September 25, 2026. As is the norm, the Army did not provide much in the way of details on the specific contract other than to say it involved R&D. The announcement comes one week after Palantir’s Software for Government Summit. US government revenue still constitutes Palantir’s largest revenue source. For the second quarter of this year, US government revenue rose 10% YoY to $225 million, and a large share of it stems directly from various units of the US military.Of the US-based revenue in the second quarter, more than 68% came from its government operations. Still, Palantir has been rolling out its Artificial Intelligence Platform (AIP) at a quick pace so far in the third quarter. The company has announced contracts and partnerships with Houston investment manager CAZ Investments, UK-based defense firm Babcock International Group and Italian research hospital Policlinico Gemelli all in the last month.Palantir stock forecastPalantir stock has been using the $13.50 to $14 support range as a crutch going back to late June. This is now the fourth period in which this range has come in handy. Any close below $13.50 will spell a sell signal as the next historical support comes 24% lower at $10.25. The Relative Strength Index (RSI) is now at 38, which still puts it above the oversold signal that coincides with a reading of 30 or below. Palantir has rarely traded into oversold territory on the daily chart however. The last time this happened in any extended fashion was in May 2022. Palantir’s May 2023 rally began when PLTR shares ranged down to an RSI reading of 34. Palantir will be back on a more attractive footing once it climbs above the 21-day Simple Moving Average (SMA), which is currently at $15.10. The US equity market has been trending lower since July, and this pressure has been felt by Palantir as well. The S&P 500 is down 3.6% over the past month and 2.1% over the past five sessions.PLTR daily chart
VeChain Price Prediction: VET bears eye 10% correction

VeChain Price Prediction: VET bears eye 10% correction

FXStreet News FXStreet News 26.09.2023 16:20
VeChain price is correcting after its 25% rally and is now above a key support level.Breakdown of the $0.0166 foothold could trigger a 10% correction to $0.0147.A daily candlestick close above $0.0178 will invalidate the bearish thesis.VeChain price is slowly undoing the gains witnessed in the second and third weeks of September. If this trend continues, VET could stand to trigger a steep correction in the near future.VeChain price at crossroads VeChain price rallied 25% between September 11 and September 16 and created a local top at $0.0184. However, the lack of buying pressure coupled with the bearish market conditions allowed VET to start a countertrend rally. The altcoin has now shed nearly 10% and currently sits atop the $0.0166 support level, which is key in determining where the cryptocurrency will head next.A decisive daily candlestick close below this level would be a telltale sign of waning buying pressure and a takeover from sellers. In such a case, the VeChain price could trigger another 10% correction and tag the next key levels at $0.0147 and $0.0143. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) have both lost their respective mean levels, which further adds credence to the bearish outlook.VET/USDT 1-day chartThe bearish outlook for the VeChain price is logical and is contingent on the breakdown of the key support level at $0.0166. On the other hand, a bounce from the aforementioned level that produces a daily candlestick close above $0.0178 will invalidate the bearish thesis. In such a case, the VeChain price could target the buy-side liquidity resting above the lower highs produced between July 1 and September 16. The nearest targets for VET bulls would be the sweep of the September 16 high at $0.0184 and the August 14 swing high at $0.0188.
Alibaba Stock News: Cainiao subsidiary to register for IPO as soon as next week

Alibaba Stock News: Cainiao subsidiary to register for IPO as soon as next week

FXStreet News FXStreet News 22.09.2023 16:14
Alibaba rose above 4% in Friday's premarket.Shipping subsidiary Cainiao could file for an IPO next week.BABA stock has been in a downtrend since July 31.Cainiao is said to be seeking to raise at least $1 billion. Alibaba (BABA) stock surged more than 4% in Friday’s premarket after the Chinese ecommerce leader announced that its shipping and logistics business, Cainiao, will file for an initial public offering (IPO) in Hong Kong as soon as next week.The NASDAQ 100 futures are also up 0.6% in the premarket just a day after experiencing one of its worst trading days since early March.Alibaba stock news: Cainiao IPO ready to hit Hong KongDuring the Asian session early on Friday, Alibaba announced that Cainiao would seek to raise at least $1 billion from its IPO. There were no details concerning the overall value of Cainiao, but Alibaba stock rose 4% in Hong Kong on the news.The Jack Ma-founded ecommerce titan developed Cainiao in-house as its unit for operating worldwide delivery and shipping services for its primary ecommerce business, as well as AliExpress and Lazada. Back in March, Alibaba management announced its plan to split the conglomerate into six separately operating businesses, most of which will eventually hold their own IPOs. Recently, the company was in talks for spinning off its Freshippo supermarket unit, but management decided that the market was not prepared for consumer-focused businesses at the moment. China has spent all of 2023 under a cloud as economic growth has leveled off. Back in June, Bloomberg reported that Alibaba and Cainiao were already in talks with Citic Securities, Citigroup and JPMorgan Chase ahead of a possible IPO.Separately, Chinese EV automaker Nio (NIO) has seen its share price advance 3.8% in Friday’s premarket after the company announced a car-centric smartphone that will soon be introduced to the wider market. Alibaba stock forecastAlibaba stock has clearly been in a downtrend since July 31, when the stock had difficulty reaching the $101 to $103 resistance band. The 9-day Simple Moving Average (SMA) has traded below its 21-day counterpart (a bearish signal) since September 5.BABA daily chart
FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims

FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims

FXStreet News FXStreet News 22.09.2023 16:14
FTX exchange has sued former employees of Salameda, a Hong Kong based entity affiliated with the trading platform. The court filing shows that the bankrupt exchange seeks to recover $157.3 million from Salameda employees. FTX creditors struggle to agree with or dispute their scheduled claims worth $7.9 billion, a week away from the deadline.FTX exchange initiated legal proceedings against former employees of Salameda, a Hong Kong incorporated entity that is affiliated with the platform. Administrators of the bankrupt exchange, which are handling its liquidation, seeks to recover $157.3 million from the firm claiming it was controlled by Samuel Bankman-Fried, the former CEO of FTX.These developments come at a time when creditors of the exchange are reporting technical problems and are yet to agree or dispute claims worth $7.9 billion, a week away from the September 29 deadline.Also read: First Ethereum futures ETF expecting approval by October 2FTX sues Salameda employees In the past few weeks, bankrupt FTX exchange has approached sports influencers, athletes, Formula 1 teams or universities that received donations from the exchange and its founder, in an attempt to recover funds for paying back its creditors.In another move aligned with this objective, FTX exchange sued employees Michael Burgess, Matthew Burgess, their mother Lesley Burgess, Kevin Nguyen, Darren Wong and two companies that had accounts registered at FTX.com and FTX US for fraudulently withdrawing assets in the days leading up to the bankruptcy.According to the court filing, defendants attempted to quickly withdraw their assets in the preference period, or the 90-day period before the bankruptcy filing. This was an attempt to ensure that their withdrawals go through on priority.FTX therefore seeks $157.3 million, the collective pricing of the assets as of August 31, from the aforementioned individuals and entities. The recovery of these funds is key as they would add to the assets that the exchange can use to pay back its creditors and make them whole, nearly a year past the bankruptcy filing. FTX creditors struggle to agree to claims September 29 is the deadline for filing a proof of claim in case creditors want to dispute their scheduled claim with FTX.com or FTX US, according to a bankruptcy court filing from September 11. On combining the “yet to be filed” claims represented in gray in the bar charts below, the total value of claims “yet to be agreed with or disputed” stands at $7.9 billion.This means that 72% of the overall claims filed to date are yet to be agreed or disputed. The number is relatively high when considering that the deadline to file a proof of claim is a week away. According to posts on social media platforms like X, many users are reporting technical problems in submitting their claims and passing Know Your Customer (KYC). This is one of the reasons for a large percentage of claims waiting to be filed. FTX Customer claims detailsThe exchange’s former CEO, Sam Bankman-Fried, is set to go on trial on October 3.
BoE Analysis: Bailey bails out with first sign of soft inflation, more Sterling falls likely

BoE Analysis: Bailey bails out with first sign of soft inflation, more Sterling falls likely

FXStreet News FXStreet News 21.09.2023 16:41
The Bank of England has surprised markets by leaving its interest rate unchanged at 5.25%.Weaker inflation, higher unemployment and gloom from policymakers will likely continue pressuring the Pound.Faster withdrawal of funds and a split vote are insufficient as a hawkish counter-balance.A close call gone in favor of doves? This is the first impression from the Bank of England's first unchanged rate decision in over a year. However, a closer look implies an end to the tightening cycle and cuts on the road, weighing on the Pound Sterling. The BoE was on course to raise rates by another 25 bps, until inflation surprised to the downside. The headline Consumer Price Index (CPI) came out at 6.7% and Core CPI at 6.2%, both below estimates. That undermined market certainty about a rate hike.Nevertheless, the decision to leave borrowing costs at bay sent the Sterling down, and a pullback seems temporary. The Monetary Policy Committee (MPC) voted 5-4 against increasing rates, in a move that some observers see as a carefully planned message to markets meant to convey that another hike is on the cards. An open door to further tightening was seen in the accompanying statement. I see this split as genuine, reflecting a confusing turning point in the economy. For markets, uncertainty coming from the MPC's is only one reason to sell the Sterling. The fall in inflation is not the only issue holding the BoE back from hikes. Unemployment has been increasing, and growth seems shaky – the economy shrank in July. The pause in September likely marks the end of the tightening cycle from the "Old Lady," as the BoE is also known. The British pause is substantially different from the American one – the Federal Reserve (Fed) has a strong economy behind it. I expect further Pound weakness despite an accelerated pace of Quantitative Tightening. The BoE announced it is ramping up the pace at which it withdraws pandemic-era liquidity from markets. Moreover, the BoE's pause may also weigh on the Euro, reminding investors that the European Central Bank (ECB) is also likely to refrain from further hikes. The countdown to cuts has begun.
Arbitrum receives 2.5 million ARB funding request from Wormhole foundation

Arbitrum receives 2.5 million ARB funding request from Wormhole foundation

FXStreet News FXStreet News 21.09.2023 16:41
Wormhole Foundation submitted a funding proposal to the Arbitrum community, requesting 2.5 million ARB tokens.The messaging protocol has proposed 8% annualized returns for users.Wormhole’s objective is to attract 100 million USDC from other chains to Arbitrum.Wormhole, a crypto and web3 messaging protocol, has submitted a proposal to encourage users to mint native USDC on the Arbitrum chain. The goal is to attract 100 million USDC and migrate it from other chains to Arbitrum.The protocol has requested a maximum funding of 2.5 million ARB tokens and offers 8% annualized returns to users. This passive income opportunity is likely to attract investors.Also read: Tether increased its secured loans in Q2 despite commitment to reduce lendingWormhole requests 2.5 million ARB funding for this passive income opportunityWormhole’s latest proposal to the Arbitrum community offers ARB holders the opportunity to earn 8% annualized returns for a three-month timeframe in exchange for minting USDC using Circle’s Cross-Chain Transfer Protocol (CCTP).The passive income opportunity could offer a reward of 2% total return over a three-month timeframe. The messaging protocol requires 2.5 million ARB tokens for the mint of 100 million USDC tokens.Wormhole proposal for ARB community of holdersWormhole will execute the grand that will be shared among its contributors, including xLabs, Jump Crypto, and 19 Guardians. How ARB holders can earn rewards from Wormhole’s programThe reward period is 12 weeks, users will be free to move the USDC that they minted, but only the tokens held in the bridged address will accrue rewards. At the end of the reward period, unaccrued ARB rewards will be returned to the Arbitrum DAO Treasury address.Users who do not claim their ARB tokens within a 12-week window will have an opportunity to claim them within 365 days. Post this, the unused portion will be returned to the Arbitrum DAO Treasury address.It's important to note that this is a proposal and will need to go through a voting process before it is implemented. No investments are being received at the moment.At the time of writing, ARB price is $0.8177, yielding 4.15% gains for holders over the past week.
Robert Kiyosaki warns of stock crash, says Bitcoin is a bargain today

Robert Kiyosaki warns of stock crash, says Bitcoin is a bargain today

FXStreet News FXStreet News 20.09.2023 16:18
Robert Kiyosaki warns market participants of an impending crash in stocks, bond and real estate and said Gold, Silver and Bitcoin are bargains. Steve Miller, stock market veteran, responded to Kiyosaki’s advice and contradicted his take on Bitcoin. Miller believes Gold and Silver could double or triple in value, Bitcoin is more likely to get cut in half.Robert Kiyosaki is the author of the bestseller book “Rich Dad Poor Dad” and a renowned financial influencer. In his recent tweet, Kiyosaki shared his concerns with his 2.4 million followers, regarding an impending crash in stocks, bonds and real estate.Kiyosaki has been a Bitcoin proponent for years now, advising that market participants buy BTC “at a bargain."Kiyosaki recommends traders to buy Gold, Silver and Bitcoin at a bargainIn his recent tweet, Kiyosaki addressed the question posed by market participants. The influencer said Bitcoin is at a bargain now and it is the right time to scoop up Gold, Silver and BTC, ahead of the upcoming crash in the market.While Kiyosaki urged traders to buy Bitcoin, Steve Miller, a stock market veteran and host of a financial show, criticized the author’s pick. Miller argued that gold and silver have the potential to appreciate in value, however, Bitcoin’s value is more likely “to be cut in half.”Meanwhile, Miles Deutscher, another crypto analyst made an observation that long-term Bitcoin holder supply has hit its all-time high. This class of market participants have consistently accumulated and the percentage of Bitcoin held by long-term holders is about to break it's all-time high shortly. Bitcoin long-term holder supply vs priceAccording to Deutscher, we are currently in a bear market and this is the time when BTC moves from weak to strong hands, meaning, from traders to holders or long-term investors. At the time of writing, Bitcoin price is $27,075, up 4.74% over the past week.
Nvidia Stock Forecast: NVDA trades lower ahead of interest rate announcement

Nvidia Stock Forecast: NVDA trades lower ahead of interest rate announcement

FXStreet News FXStreet News 20.09.2023 16:18
Nvidia is trading lower at the start of Wednesday’s session.NVDA is more than 13% off its August 24 all-time high.The Federal Reserve will make its interest rate decision at 14:00 EST.Taiwan Semiconductor announcement still weighing on sector. Nvidia (NVDA) stock is shedding weight once again on Wednesday despite broad market optimism ahead of the Federal Reserve’s interest rate decision. NVDA stock is trading 0.3% lower in the premarket at $433.89 at the time of writing.NASDAQ 100 futures on the other hand have edged 0.24% higher early on Wednesday. Dow Jones and S&P 500 futures have advanced slightly more as the market is gearing up for an expected pause from the central bank.Nvidia stock news: Interest rate pause should aid equity marketThe CME Group's FedWatch Tool gives the Fed a 99% chance of pausing rates in the 5.25% to 5.5% range. That would alleviate the market's fears as higher interest rates boost Treasuries and reduce the relative value of equities. Nvidia should be following in the market’s footsteps, but interest rates are not front of mind at the moment. While other competitors like Advanced Micro Devices (AMD) and Intel (INTC) see rising share prices on Wednesday, Nvidia is continuing its downward trend that began following earnings back in late August.As the leading stock in the artificial intelligence (AI) industry based on the supply of its advanced GPUs, Nvidia has garnered an industry-leading valuation. The stock is valued at 45 times forward GAAP earnings. If those profits fail to materialize, then shareholders are always at risk of a profound sell-off. Consensus earnings are expected to rise 224% this fiscal year, 48% the following year and 25% the year after that. Likewise, revenue is expected to spike 101% this fiscal year, 43% the following year, and 23% the year after that. A lot is then riding on Nvidia’s commercial performance to make this high valuation sensible.It didn’t help things then that Nvidia’s primary foundry partner, Taiwan Semiconductor (TSM), announced last Friday that it was delaying the delivery of equipment it had previously ordered from suppliers like ASML Holdings (ASML). Management blamed the delay on worries over demand from its customers, which was quite surprising.Ever since OpenAI released ChatGPT in late 2022, most semiconductor headlines have mostly concerned themselves with lack of supply. Demand was reported to be unquenchable, and rumors abounded of various companies and nations stockpiling Nvidia’s H100 GPUs. It is possible demand is only receding for Taiwan Semi’s other customers – such as Apple (AAPL) or Advanced Micro Devices – but Nvidia is certainly the foundry’s most famous client. Placing the blame on demand might also be a bait-and-switch tactic, since Taiwan Semiconductor recently shifted its start date for production at its new Arizona foundries by one year to 2025, blaming that delay on lack of manpower.In other news, the UK’s Competition & Markets Authority released seven principles for regulating artificial intelligence on Monday. The regulatory authority named Nvidia by name as one of the corporations it would be holding discussions with on the matter.Nvidia stock forecastNvidia has not made a new high since its August 24 earnings spike that immediately sold off. The next rally a week later failed to take, and NVDA has been moving lower ever since. Technically, to end its uptrend that begin this spring, Nvidia stock needs to sink below the August 14 low of $403.11.Based on the daily chart below, bulls and shareholders alike will hope it stops at the $420 support level that has reinforced price action in several sessions this year. Already trading below the 50-day Simple Moving Average, the 100-day SMA comes next and is currently trading just above $408. Below there is the $400 to $403 demand zone.On the other hand, a break back above the 50-day SMA will do wonders to re-engage bulls.NVDA daily chart
Federal Reserve Preview: Powell to propel US Dollar higher with hawkish tone

Federal Reserve Preview: Powell to propel US Dollar higher with hawkish tone

FXStreet News FXStreet News 19.09.2023 15:25
The Federal Reserve is widely expected to leave its rates unchanged at 5.25%-5.50% and signal a hike in November. Investors will also eye changes in the bank's projections for borrowing costs next year, which currently point to four cuts.Fed Chair Jerome Powell's tone will likely be hawkish, having the final say for the US Dollar.Making it up as they go – that is a less generous way to describe the Federal Reserve's declared data-dependent policy in recent months. Giving Fed Chair Jerome Powell and his colleagues more credit, the bank is slowing down its tightening campaign but has yet to declare victory on inflation, and for good reasons. This is why a hawkish tone is likely this time, favoring the US Dollar. Here is a preview of the Federal Reserve's decision on Wednesday, at 18:00 GMT.Fed worries about undefeated inflation, resilient consumerThe world’s most powerful central bank has been focused on fighting inflation for the past year and a half. Its efforts have had significant success. Inflation, as measured by the headline Consumer Price Index (CPI), has fallen from a peak of 9.1% YoY in June 2022 to a trough of 3% in June 2023. However, it has risen again to 3.7% YoY in August. US CPI inflation. Source: FXStreetThe Fed has more impact on costs related to other goods, services, and housing, and little impact on energy and food prices, which are set on global markets. The Core CPI, which excludes volatile items, is down from a peak of 6.6% YoY in September 2022 to a fresh cycle low of 4.3% in August. Nevertheless, the Washington-based institution aims for levels around 2%. The recent 0.3% rise in Core CPI MoM causes unease as it exceeds the previous months' increases. . It shows price pressures have not been crushed, not yet. Core CPI inflation MoM. Source: FXStreetUncertainty dominates other data points as well. Apart from inflation, the Fed is mandated with pursuing full employment. The most recent Nonfarm Payrolls reports show a moderation in job growth, but wage growth is still elevated at 4.3% YoY.Consumers, which are responsible for roughly 70% of the US economy, have yet to halt their shopping sprees. The past two retail sales reports showed healthy expansion rates – 0.6% in August and 0.5% in July.House prices are down by 1.2% YoY, according to the Case Shiller House Price Index (HPI) for June, but the data beat estimates for the fifth time in a row. The Federal Reserve increased interest rates to a range of 5.25%-5.50%, but has been tapering down the pace of hikes, pausing in June for the first time in over a year. It then raised borrowing costs in July, in what seems like an unofficial shift to hiking every other meeting for the remainder of the year.The rate decision and hints for the next meeting in November is one of three things to watch out for.Three market-moving factors in Fed decision1) No rate hike, but probably a hint for one in NovemberThe Fed is extremely likely to leave interest rates unchanged at 5.25%-5.50%, as that is what it signaled to markets, as it usually does. Chair Powell and company refrain from surprising investors. A no-hike scenario is fully priced in.However, the next move is uncertain, and the "dot plot" is critical here. The September meeting includes new projections, officially called "Summary of Economic Projections” or "dot plot" in the jargon. Each member of the Federal Open Markets Committee (FOMC) puts down estimates for economic growth, employment, inflation and interest rates. Markets digest numerical data faster than words, and the interest rate expectation for the end of 2023 is critical. In the last Fed projections back in June, the median hit 5.6%, two rate hikes above the level back then. With one hike done in July, leaving the figure at 5.6% would signal the bank is not done yet – or at least not willing to admit it now. Bond markets project only a 30% chance of a hike in November:Bond market pricing of interest rates, as of September 19, Source: CME GroupIf the projection for 2023 remains unchanged, there is room for a bump up in yields, pushing the US Dollar up, and weighing on stocks and Gold. I expect Powell to keep the door open to another move, especially after the recent upbeat economic data.2) Fewer cuts in 2024 may add to US Dollar oomphThe Fed and investors are already looking at next year, when they expect lower inflation and a slower economy to trigger interest rate cuts. The June dot-plot pointed to a median borrowing cost of 4.6%, a full percentage point – or four standard 25 bps cuts – from the bank's peak projection for 2023.June SOMP. Source: Federal ReserveHere, investors and the Fed are more aligned. Bond markets price the first cut for July 2024, the fifth of eight decisions. That allows for four consecutive cuts in the second half of the year. Will the Fed's median rate remain at 4.6% in its new projection for 2024? I expect a small bump up, perhaps to 4.8%, which would scare investors. An unlikely decrease to 4.3%, as seen in the dot plot in March, would cheer markets. I want to stress what Powell will emphasize – these projections are not commitments, and the further they are in the future, the less they matter. Nevertheless, markets need to act with certainty despite uncertainty. 3) Fed Chair Powell's tone will likely be hawkishThe Fed announces its decision and releases an accompanying statement at 18:00 GMT, with the dots set to overshadow any changes to the text. These were minor last time. The last word belongs to Chair Powell, who starts his press conference at 18:30 GMT.Circling back to the beginning of this preview, the almighty central banker will likely insist on being dependent on incoming economic data, opening the door to hiking or cutting rates as needed.Nevertheless, his tone is set to make a difference. A focus on battling inflation would weigh on sentiment, sending stocks and Gold lower, while boosting the US Dollar. If Powell expresses concerns about the economy – mentioning weakness in the Chinese economy, downward revisions to past employment gains or S&P Global's soft PMIs – the US Dollar would be the sole loser. I see this as unlikely. Most figures have been upbeat of late, including reemerging inflation in services and housing.Here is one last hawkish chart. The most respected forward-looking indicator for the largest sector, the ISM Services Purchasing Managers' Index (PMI), also shows signs of bottoming out. It signaled accelerating growth with a score of 54.5 in August. ISM Services PMI. Source: FXStreet.Final thoughtsThe Federal Reserve is set to leave its rates unchanged, but it is also expected to signal one last move this year and slower cuts next year. This willingness to squeeze inflation – even at a high cost – will likely hit markets and boost the US Dollar.
Bitcoin price likely heads into volatile territory with Federal Reserve interest rate decision on Wednesday

Bitcoin price likely heads into volatile territory with Federal Reserve interest rate decision on Wednesday

FXStreet News FXStreet News 19.09.2023 15:25
Bitcoin price is making steady gains, heading toward the $27,000 level after bearish August.BTC holders are closely watching the Federal Reserve interest rate decision at the FOMC meeting that concludes on September 20.Bitcoin price could benefit from upside volatility if there is no change in rates, but rate hike could increase selling pressure on BTC.Bitcoin price action of late has fueled optimism among traders as the asset climbs toward $27,000 after a weak performance throughout August and the first two weeks of September. BTC holders are likely watching the Federal Open Market Committee (FOMC) meeting on Wednesday closely for cues on where the asset’s price is headed next. The US Federal Reserve’s interest rate decision could act as a potential volatility driver for the asset as macroeconomic factors have had an impact on BTC prices throughout 2023. Bitcoin price eyes $27,000 ahead of Fed rate decisionBitcoin price is heading into a volatility-filled week with the Federal Reserve meeting on Wednesday. This event is key to BTC as the US Central bank will make a decision on interest rates, a macroeconomic factor that has typically influenced the cryptocurrency’s price.Market participants do not expect the Fed to pivot from its stance on interest rates. CME’s FedWatch Tool has gathered a 99% probability of no hike and a 1% probability of an increase to 5.5% to 5.75%. Target rate probabilities for Fed’s interest rate decision on September 20No interest rate hike could result in Bitcoin price recovery gaining strength. An interest rate hike on the other hand could spring a surprise on BTC holders and increase the selling pressure on Bitcoin. Additionally, hawkish rhetoric may increase the odds of a hike later this year and thus lead to a sell-off in crypto assets.The knee-jerk reaction in the past to interest rate hikes by the US Central bank has been a downside surprise to BTC price as market participants rapidly pull capital out of risk assets like cryptocurrencies.Traders’ focus will be on the Summary of Economic Projections (SEP), a consensus among Fed governors for how the economy will shape up during the current calendar year and the next two years. This forecast is likely to set the tone for the rest of 2023 and help determine the direction in which BTC price is headed for the end of the year. Whales sit on the sidelines, await FOMC outcomeBased on data from crypto intelligence tracker Santiment, as of Tuesday, Bitcoin’s large wallet investors are sitting on the sidelines. The surge in Bitcoin address activity and the short-lived price rally in response to the US CPI report acted as volatility drivers for BTC in September.The Whale transaction activity chart shows relatively low movement ahead of the FOMC decision. Whale transaction count vs BTC priceAs the FOMC approaches, on-chain analysts at Santiment highlight the need of a catalyst to drive BTC price recovery. In the short-term, there has been an increase in profit-taking among cryptocurrencies with large market capitalization.Among these assets, BTC has recorded the highest ratio of profit vs. loss since the first week of July. This is typically considered a warning sign of an upcoming decline in BTC. The interest rate decision by the US Federal Reserve could alleviate BTC holders’ concerns,while the absence of an interest rate hike could drive the asset’s price higher and aid recovery.
Shiba Inu whales move 1.52 trillion SHIB overnight, meme coin gears for recovery

Shiba Inu whales move 1.52 trillion SHIB overnight, meme coin gears for recovery

FXStreet News FXStreet News 18.09.2023 15:48
Shiba Inu has registered a spike in large volume transactions in the last 24 hours.SHIB tokens worth $11.11 million were moved in whale transfers, signaling increase in user activity. SHIB price climbed nearly 5% since September 11 low of $0.00000695.Shiba Inu, one of the largest meme coins in the crypto ecosystem, seems to be gearing towards a price recovery, according to the latest on-chain developments. Large volume transfers initiated by whales moved 1.52 trillion SHIB tokens in the past 24 hours.Shiba Inu large transaction volume likely to fuel volatility in SHIBLarge transaction volumes are typically associated with volatility in the asset’s price, particularly in days of thin trading. In the case of SHIB, based on data from crypto intelligence tracker IntoTheBlock, the total volume of token transfer in the last 24 hours accounts for 1.52 trillion SHIB. Large transaction volume in Shiba InuSHIB tokens worth $11.11 million were moved across the chain. Such moves signal an increase in user activity, which in thinly traded days can bring a spike in volatility in the asset’s price in either direction. In Shiba Inu’s case, it is possible that the price reaction is to the upside as the meme coin has gained 5% from September 12, when it posted a three-month low of $0.00000695.The meme coin’s price has been in a downward trend since August 12. At the time of writing, SHIB price is below its three long-term 10-day, 50-day and 200-day Exponential Moving Averages (EMA) at $0.00000738, $0.00000795 and $0.00000890, respectively. Events like the relaunch of the Shibarium network after the botched first attempt and the mass burn of SHIB tokens have failed to catalyze a recovery in SHIB price. The spike in large transactions by whales could push the meme coin higher, supporting a decisive break out of the downward trend.
S&P 500 Forecast: Instacart IPO, Fed interest rate decision lead weekly calendar

S&P 500 Forecast: Instacart IPO, Fed interest rate decision lead weekly calendar

FXStreet News FXStreet News 18.09.2023 15:48
S&P 500 closes lower for second week in a row.Federal Reserve will make interest rate decision on Wednesday.US Building Permits, Housing Starts, Existing Home Sales lead week on data front.S&P Global Manufacturing & Services PMIs are released on Friday.Instacart is expected to IPO on Tuesday at a valuation above $9 billion.The S&P 500 sank for the second week in a row last week as the utility sector led the index by gaining 2.7%, while the information technology sector’s 2.2% pullback caused the index as a whole to slide 0.16% despite a large advance midweek. The S&P 500 is now trading below the 50-day moving average and is yet to retest the summer’s July 27 range high. This week the Federal Reserve’s (Fed) meeting on Wednesday, September 20, occupies much of the headlines early on, although the market already thoroughly expects interest rates to remain stable. Tuesday’s Instacart initial public pffering (IPO) should also boost sentiment as the market was rewarded the previous week for its trust in the Arm Holdings (ARM) IPO. A number of other significant economic indicators litter the calendar this week, including Housing Starts, Existing Home Sales and a survey of the US manufacturing and services sectors. NASDAQ 100 futures lead the pack on Monday morning, but all three major US indices are marginally in the black.S&P 500 News: Fed expected to keep rates fixed at 5.25% to 5.5%The CME Group’s FedWatch Tool gives the Fed a 99% chance of keeping rates fixed in their current range of between 5.25% and 5.5%. The US Consumer Price Index (CPI) did see headline inflation for August tick higher last week on the back of a surge in oil and gasoline prices, but annualized core inflation still managed to fall. The August Producer Price Index (PPI) also showed a worrisome rise in wholesale prices, but the market does not think data is strong enough to change the central bankers’ minds.Most investors, portfolio managers and traders have concurred that July’s 25 basis point hike was the end of the hiking cycle this year and that the Fed will likely sustain rates at this nexus for another six months or so until inflation has been truly bested. The equity market won’t likely move on another rate pause, but stocks could trade up or down depending on how Fed Chair Jerome Powell characterizes the economy, especially labor. Any statement to the effect that the governors of the bank are contemplating further hikes will most certainly send stock prices lower.Instacart IPO to raise as much as $660 millionInstacart boosted its share price range by $2 from $26 to $28 a share to $28 to $30 a share last Friday. This will raise approximately $660 million for the digital grocery delivery business and value the company between $9.3 billion and $9.9 billion.With the company watching how Arm Holdings’s IPO last week was oversubscribed by 10x, it would be unsurprising if the price range moves even higher this week. 2023 has witnessed few significant IPOs year to date, so a successful Instacart IPO will provide more evidence that equity optimism is back.According to the firm’s S1 filing, Instacart’s Q2 results demonstrated double-digit revenue growth that reached $716 million alongside a net income of $114 million. The IPO, which prices on Monday and begins trading on Tuesday, will see the issuance of 22 million shares with an additional 3.3 million shares available if book runners have the demand.Heavy focus on housing in this week’s economic indicatorsThough many traders are keeping one eye out on Detroit this week – where the Biden administration is attempting to bring the United Auto Workers union to the table with General Motors (GM), Ford (F) and Stellantis (STLA) as the partial strike is in its fourth day – a host of fascinating indices and surveys will be released this week on the US housing market, the manufacturing sector and the services sector.First, August Building Permits on Tuesday are forecast to arrive at 1.445 million, slightly higher than the previous month. Simultaneously, August Housing Starts data will be released, with the market expecting 1.44 million, slightly below July’s figure.Then on Wednesday, Existing Home Sales for August are expected to rise by 30,000 MoM to 4.1 million. Friday sees the preliminary S&P Global Manufacturing & Services PMI for September come to light. The market expects readings of 47.8 and 50.3, respectively, a tad below August’s readings.Earnings of the weekMonday, September 18 - Stitch Fix (SFIX)Tuesday, September 19 - AutoZone (AZO), Investcorp Credit Management BDC (ICMB)Wednesday, September 20 - FedEx (FDX), KB Homes (KBH), General Mills (GIS)Thursday, September 12 - Darden Restaurants (DRI) What they said about the market – Wells FargoNews over the weekend leaked that Disney (DIS) CEO Bob Iger has already held preliminary talks with Nexstar Media Group (NXST) to sell ABC. Iger had previously made comments about his interest in monetizing some of Disney’s waning media properties. Wells Fargo analysts think ABC is worth about $4.5 billion. Separately, businessman Byron Allen is said to have offered $10 billion last week to buy ABC and a number of other cable channels from Disney."We think investors are in favor of DIS shedding these lower-growth linear assets even though sales multiples would be below DIS at 12x EV/EBITDA."S&P 500 forecastThe S&P 500 index appears to be in a downtrend since reaching 4,607 on July 27. A top trendline (black) since then shows that the index has sold off on two occasions since retouching that descending trendline – September 1 and September 14. The index is now trading below the 50-day Simple Moving Average (SMA). With last Friday’s -1.22% performance, odds are that the index could continue lower in search of support. The 100-day SMA is a suitable candidate since it coincides with the lows of August 21 and August 25 near 4,360. However, if the Instacart IPO goes off as planned or the Fed delivers optimistic chatter on Wednesday, a break of that top trendline will send bulls piling back in to push the index back to the 4,590 to 4,637 resistance range.S&P 500 daily chart
Euro clings to daily gains around 1.0660, Dollar remains offered

Euro clings to daily gains around 1.0660, Dollar remains offered

FXStreet News FXStreet News 15.09.2023 13:28
The Euro keeps the bid bias unchanged against the US Dollar.Stocks in Europe maintain the firm tone on Friday.EUR/USD appears to have met decent support near 1.0630.The USD Index (DXY) partially trims the earlier pessimism.The ECB seems to have entered an impasse regarding rate hikes.Industrial Production and Consumer Sentiment data will take centre stage in US.Following Thursday’s drop to multi-month lows, the Euro (EUR) managed to pick up some upside traction against the US Dollar (USD) on Friday, encouraging EUR/USD to retake the area above 1.0650 at the end of the week.The improvement in sentiment surrounding the pair comes pari passu with firmer results from the Chinese economic docket published during early trade, which helps risky assets to regain some poise.On the flip side, the Greenback recedes from recent multi-month tops around 105.40 when tracked by the USD Index (DXY) against the backdrop of further gains in US yields across different time frames.The monetary policy landscape in the US remains broadly unchanged, with investors steadfast in their anticipation of potential interest rate cuts by the Federal Reserve (Fed) taking place at some point in the second quarter of 2024.Shifting our attention to the European Central Bank (ECB), following the dovish rate hike on Thursday, market participants have begun to factor in an extended pause. This shift in sentiment is driven by the continuing deterioration of key economic indicators in Germany and the wider eurozone. Furthermore, inflation in the region continues to exceed the bank's target. The concerns of excessive tightening, along with mounting worries of stagflation, further support this outlook.Back on the domestic calendar, final inflation figures in Italy showed the CPI rose 0.3% MoM in August and 5.4% over the last twelve months. In addition, the trade surplus in the broader eurozone narrowed to €6.5B during July.Back to the ECB, President Christine Lagarde said at her speech at the ECOFIN meeting in Spain that the Council did not discuss rate cuts at the bank's event on Thursday. She also reiterated that interest rates need to be as restrictive as necessary to bring inflation down to the target in a timely fashion.Across the Atlantic, all the attention will be on the release of August's Industrial Production readings ahead of the preliminary gauge of the Michigan Consumer Sentiment survey for September.Technical Analysis: Euro's outlook remains bearish below the 200-day SMAEUR/USD seems to have met initial contention around the 1.0630 region, or March lows.If EUR/USD manages to breach its September low at 1.0631 (September 14), it might enter a phase where it retests the March low at 1.0516 (March 15). Breaking through this level could trigger a potential review of the 2023 low at 1.0481 (January 6).Conversely, the main focus is on reaching the crucial 200-day SMA at 1.0827 on the upside. Surpassing this level could initiate a bullish momentum, leading to a challenge of the interim 55-day SMA at 1.0926, followed by the weekly peak at 1.0945 (August 30). Exceeding the latter could open the door for an advance towards the psychological level of 1.1000 and the weekly top of 1.1064 (August 10). If the pair successfully clears this region, it may potentially aim for another weekly peak at 1.1149 (July 27), followed by the 2023 high at 1.1275 (July 18).It's important to note that as long as the EUR/USD remains below the 200-day SMA, there is a possibility of a sustained decline in the pair.
Ethereum celebrates first anniversary of ETH Merge with 99.9% drop in energy usage

Ethereum celebrates first anniversary of ETH Merge with 99.9% drop in energy usage

FXStreet News FXStreet News 15.09.2023 13:28
Ethereum network’s energy usage reduced by 99.9% after its transition from proof-of-work to proof-of-stake through the Merge. Ethereum developers included EIP-7514 in its Dencun upgrade to work on a better validator reward scheme for stakers. ETH tokens worth more than $488 million at current prices have been burned since the Merge and the total supply reduced by 0.25%.The great Ethereum Merge completes its first anniversary on Friday, September 15. The network’s energy usage has dropped drastically over the past year since Ethereum’s transition away from proof-of-work to proof-of-stake.The blockchain network’s core developers concluded their “all core devs” call early on Friday, with some key changes like the inclusion of a new Ethereum Improvement Proposal, EIP-7514. Ethereum Merge completes year of dramatic decline in energy usageThe Ethereum Merge, the transition from proof-of-work to proof-of-stake, reduced energy usage by 99.9% on the blockchain. The Merge occurred on September 15, 2022, and since then over 300,000 ETH worth $488 million has been burned. Based on data from Ultrasound.money, at the current rate Ethereum’s supply has reduced 0.25% in a one-year time frame.ETH supply since MergeThe Merge marked a key upgrade in the largest altcoin network’s blockchain. Ethereum core developers concluded the “All core devs” call early on Friday. Developers made progress on discussing the next important update in Ethereum, called Dencun.Developers have included EIP-7514 in the Dencun upgrade to slow down the growth of the ETH staking rate. The concept is to utilize the time to design a better validator reward scheme.The next discussion is scheduled for September 28.Ethereum price since the MergeEthereum price remained nearly unchanged since the Merge. ETH price on September 15, 2022 was $1,635. At the time of writing, ETH is exchanging hands at $1,629 on Binance. The altcoin’s price did not undergo major changes a year after the Merge. However, the impact on metrics like energy usage and supply is more significant.ETH holders had hopes riding on a dramatic price increase a year past the Merge. However, macroeconomic factors and crisis events in crypto like lawsuits and bankruptcies have played a role in the inflow of capital to the chain.
MATIC price climbs as Polygon outlines proposals for 2.0 upgrade

MATIC price climbs as Polygon outlines proposals for 2.0 upgrade

FXStreet News FXStreet News 14.09.2023 15:45
Polygon network developers published three proposals to implement the transition to Polygon 2.0. The proposals include the creation of a POL token to replace MATIC as the native gas and staking token of the ecosystem. MATIC price has climbed nearly 6% from Monday’s intraday low of $0.4910.Ethereum network’s largest scaling solution, the Polygon network, officially proposed on Thursday three key changes ahead of its Polygon 2.0 upgrade. The proposals, which still have to be approved by the community, include the creation of a new POL token, which will replace the current MATIC token.Polygon’s upgrade announcements are likely to support MATIC price, which has seen a recovery this week.Bye MATIC, Welcome POLWith the upgrade to version 2.0, Polygon developers aim to establish a network of interconnected Layer 2 chains. These blockchains will be powered by zero-knowledge (zk) proofs. Zk proof algorithms power information transfer between parties without revealing sensitive data. This eliminates several security weaknesses associated with password enabled authentication protocols.In this quest, developers behind the Ethereum scaling project released on Thursday three Polygon Improvement Proposals (PIPs), according to an announcement on the network’s official X accountWith the upgrade to the Polygon 2.0 architecture, the project also intends to replace the MATIC token by a new one: POL. POL will be used as the network’s native token to pay transaction fees and staking in the MATIC ecosystem. The three proposals (PIP-17, PIP-18 and PIP-19) outline the different phases of Polygon 2.0, the implementation of POL token and the upgrade of the native gas token from MATIC to POL, respectively. Developers are awaiting an approval of the proposals, before Polygon 2.0 upgrade. Implementation will begin in Q4 if the community endorses the changes, which are unlikely to affect end users, Polygon said. It is still unclear when the vote will occur.MATIC price recovery likely fueled by Polygon plansMATIC price has climbed nearly 6% from Monday’s intraday low of $0.4910 to $0.5212,. In the last 24 hours, the token yielded 1.48% gains for holders. Polygon network’s announcement could further support a price increase in MATIC.
Nvidia Stock Forecast: NVDA gains alongside NASDAQ Thursday as focus turns to Arm IPO

Nvidia Stock Forecast: NVDA gains alongside NASDAQ Thursday as focus turns to Arm IPO

FXStreet News FXStreet News 14.09.2023 15:45
Nvidia has purchased a chunk of the Arm Holdings IPO. The market is advancing early due to excitement over Arm’s first day of trading.NVDA moves above $460 in Thursday premarket.NVDA stock is having trouble holding onto daily rallies. Nvidia (NVDA) stock has gained 1.2% in Thursday’s premarket to just above $460 on general excitement over the Arm Holdings (ARM) IPO. NASDAQ futures have added 0.5% at the time of writing.Nvidia is buying a stake in Arm Holdings alongside a number of tech heavyweights, including Alphabet (GOOGL), Intel (INTC) and Advanced Micro Devices (AMD). The deal was priced on Wednesday and distributed to institutional investors but begins trading on Thursday.Nvidia stock news: The one that got awayThe nearly dozen major tech companies have agreed to purchase about $735 million worth of the $4.87 billion Arm Holdings IPO. Arm, a designer and licenser of specialized computer chips used especially in cell phones, has issued 95.5 million shares at a price of $51 per share. This gives the overall company a market cap of about $54 billion.The reason the market is excited about Arm’s IPO is that the IPO market has been rather tepid over the past 18 months following the covid boom. So much so that Arm Holdings’ offering was oversubscribed by about 10 times, according to Bloomberg. Investment banks initially thought they needed two days to sell all the shares but instead finished handing them out on the first day. The Arm IPO is significant for Nvidia CEO Jensen Huang, because it is the one that got away. Nvidia announced its intention to buy Arm from its majority owner, Japan’s Softbank, exactly three year ago to the month for $40 billion. Eventually, Jensen gave up in 2022 as it appeared that regulators in multiple countries were not accepting of the move. Many competitors were worried that it would give Nvidia insurmountable power in the advanced semiconductor realm.Arm’s revenue and earnings have stagnated over the past year, but its estimated market share has risen from 42% to 49% since the start of 2021. Bank of America Securities AI Conference hosted Nvidia’s General Manager and Vice President of Accelerated Computing, Ian Buck, on Monday. When peppered with questions from Bank of America analyst Vivek Arya about the heavy costs associated with large language models (LLMs), Buck responded that the problem was already easing.“One thing that is – NVIDIA is spending and investing billions in R&D to optimize for generative AI for training and inference scale,” Buck said. “And with every generation of our GPU, with every generation of our interconnect and InfiniBand and CX networking technology, with every innovation of NVLink, those things [...] increase performance dramatically and also bring down the cost of training.”Nvidia stock forecastNvidia stock is trading below both the 9-day and 21-day Simple Moving Averages (SMA), which gives it the profile of a downtrend rotation. Any major sell-off should push shares back to the $420 or $400 level at which the stock has discovered support on a number of occasions.The Moving Average Convergence Divergence (MACD) indicator has rolled over in bearish fashion and could foreshadow further downward pressure. To change the forecast, bulls need to push NVDA stock above the 9-day SMA at $467.58.NVDA daily chart The weekly chart below still shows plenty of room on the upside if you follow the long-term top trendline going back to 2020. The Fibonacci Extension indicator coincides with that idea in that NVDA could run up to $620 at some point in the medium term at the 161.8% Fibo level. NVDA weekly chart
Australian Jobs Preview: Weakening global economy set to hit labor market, hurt Aussie

Australian Jobs Preview: Weakening global economy set to hit labor market, hurt Aussie

FXStreet News FXStreet News 13.09.2023 16:41
Australia is expected to report an increase of 23,000 jobs in August after a drop in July. Slowing Chinese demand and accumulated job growth imply a weaker outcome.The Australian Dollar has shown weakness in recent months and has further room to decline.Has Australia's labor market peaked? The Unemployment Rate is hovering around historic lows, leaving little room for improvement and opening the door for further job losses. Market consensus expects an increase in jobs for August but thre is room for a downside surprise, which would mean a second consecutive month of declines, may hurt the already vulnerable Australian Dollar (AUD). Here is a preview of the Australian jobs report, due on Thursday at 01:30 GMT. Australian Employment peaks as China strugglesIn the past 12 months, Australia's jobs reports have exceeded estimates six times, a balanced record for economists. However, when they surprised to the upside, these were significant positive shocks. Australia's economy gained 76,500 positions in May, more than five times the early estimates. In March, the land down under added 60,000 positions, tripling early estimates. Australian Employment Change. Source: FXStreetAll in all, hiring has been hot, with occasional dips proving shallow. The robust employment market was also reflected in the rock-bottom Unemployment Rate, which hit 3.7% after failing to dig below the trough of 3.4% achieved earlier this year. Australia lost 14,600 jobs in July, and economists expect it to have been another temporary dip, projecting an increase of 23,000 positions in August. However, the accumulation of employment in recent months means there is room for a second consecutive drop, as seen in December 2022 and January 2023. Another reason to expect a weak report comes from China. Australia's main trading partner is still struggling to create growth as its property sector suffers from an immense debt crisis. China consumes raw metals such as iron and copper from Australia, as well as other goods. Prospects for a weaker economy may have deterred employers from hiring.Australian Dollar positioning The Aussie has been under pressure for long weeks due to downbeat Chinese fortunes and a lack of oomph in the US stock market. Bears are in control, and even if the number of jobs created tops market forecasts, I expect the currency to turn down.The Reserve Bank of Australia (RBA) has all but ended its rate hiking cycle. Michele Bullock, the new governor, is unlikely to enact radical changes – she is an insider. Raising rates seems especially irrelevant when China is flirting with deflation. Final thoughtsAustralia's jobs report has a significant chance of missing expectations, weighing on the Australian Dollar. Even in the less-likely scenario of positive employment growth, the Aussie has room for an eventual decline.
US CPI annual inflation comes in above expectations at 3.7%, Bitcoin price rests above $26,000

US CPI annual inflation comes in above expectations at 3.7%, Bitcoin price rests above $26,000

FXStreet News FXStreet News 13.09.2023 16:41
US headline Consumer Price Index (CPI) rose by 3.7% on a yearly basis in August, exceeding expectations.Core CPI annual inflation came in at 4.3%, in line with forecastsBitcoin price hovers above $26,000, with most of the crypto market noting a minor decline.United States Consumer Price Index (CPI) data was released by the US Bureau of Labor Statistics (BLS). While the market was expecting an increase in inflation on a yearly basis, it was taken by surprise as the actual CPI rate exceeded the forecasts. Bitcoin price noted a slightly bearish initial response, as did most of the top altcoins.US CPI exceeds expectationsThe headline inflation measured by the CPI came in at 3.7% against the predicted 3.6% year-on-year, rising from July’s 3.2% rate. Core CPI annual inflation – which excludes food and energy prices – took a downturn to 4.3%, in line with forecasts, against 4.7% in July. The larger-than-expected rebound in prices leaves room for a hawkish message from the Federal Reserve, according to FXStreet analyst Matias Salord. This could potentially impact the decision-making of the Federal Open Market Committee (FOMC) meeting scheduled next week. Higher interest rates could be on the cards, although hikes might not take place soon.Bitcoin price stands mostly unaffected Bitcoin price, at the time of writing, continued to hover above $26,000. The initial reaction was expected to be bearish since higher inflation usually translates to lower demand for riskier assets. This would impact BTC negatively, potentially pushing it below $26,000.BTC/USD 1-day chartHowever, the initial reaction was rather neutral, with slight bearishness in the past hour. Altcoins showed a similar reaction, as most of the declines remained within the 1% mark. Of the topmost alts, only Polygon’s native token MATIC observed the largest change, declining by 0.73% to trade at $0.5115.Going forward, if the skepticism of the market rises, Bitcoin price is expected to take a downturn, potentially falling below $24,578 and even declining to $21,468. However, if the market surprises and continues its streak of green candlesticks to breach $26,430, BTC could initiate a recovery rally and invalidate the bearish thesis.
Mullen Automotive Stock Forecast: MULN jumps more than 16% following Romeo deal

Mullen Automotive Stock Forecast: MULN jumps more than 16% following Romeo deal

FXStreet News FXStreet News 12.09.2023 16:21
Mullen announced the decision to acquire battery equipment and IP from Romeo Power. MULN stock gained more than 5% on Monday. CEO David Michery is in the middle of an appeal to remain listed on the NASDAQ exchange.MULN stock could be delisted as soon as September 15. Mullen Automotive (MULN) stock jumped more than 16% at the open on Tuesday to above $0.51. MULN has finally begun to develop an uptrend following the $3.5 million purchase of battery manufacturing equipment from Romeo Power, which was announced on Monday.A statement from the company says the deal gives Mullen “equipment, inventory, and intellectual property for high-volume EV (electric vehicle) battery pack and module production.”Mullen stock news: Romeo Power deal could lead to better production momentumThe agreement gives Mullen access to equipment that will help it increase battery pack assembly lines, as well as increase its battery research & development capabilities.“Purchasing the Romeo assets is consistent with our battery pack production path and previous announcements for our high voltage facility in Monrovia. Overall, this purchase further enhances our capabilities for battery pack production right here in California and the US,” said David Michery, founder, chairman and CEO of Mullen.The EV company will integrate the new equipment with its ongoing facility in Monrovia, California. The company already builds battery packs and modules in Monrovia but says the new equipment will allow it to become less reliant on third-party supply chains.The company has recently been reeling from NASDAQ’s announcement that it has chosen to delist MULN common stock from its exchange due to the well-telegraphed criterion that listed companies need to keep their share price above $1.00.Mullen leadership knew since May of this year that it needed to maintain the $1.00 threshold for the 10 sessions leading up to the September 5 cutoff date last week. Instead, the share price dropped precipitously from the $1.00 price level down to below $0.50 during that time period. Mullen has appealed for an extension from the NASDAQ committee that governs delistings, which could give it as much as 180 days to comply with the listing criteria. However, if the appeal fails, then MULN stock might end up trading on the pink sheets on or after September 15.Mullen stock forecastMULN stock added 5.8% on Monday and is advancing 2.3% in Tuesday’s premarket. This is a rather good sign as the NASDAQ 100 futures are down 0.3%, so this has nothing to do with the overall market sentiment. Mullen stock could be in the early innings of a resurrection in share price. Thus far, it has managed to remain above the August 23 low at $0.39. The 9-day Simple Moving Average and the 21-day SMA need to be conquered at $0.48 and $0.65, respectively. From there, an overthrow of the $0.90 support level from June will bring bulls back into the trade.MULN daily chart
European Central Bank Preview: Lagarde set to create lose-lose situation for Euro

European Central Bank Preview: Lagarde set to create lose-lose situation for Euro

FXStreet News FXStreet News 12.09.2023 16:21
The European Central Bank is set to leave interest rates unchanged in its September meeting.ECB President Christine Lagarde will likely leave the door open to increasing borrowing costs again.Investors are set to interpret any pause as a victory for doves, downing the Euro.Stagflation is coming – after a scorching hot summer in the Mediterranean, winter is not the worst fear in the old continent. Policymakers at the European Central Bank (ECB) fear the toxic mix of sticky inflation and growth stagnating at best, and it is unclear how they will react in September. I expect any hesitance to be treated as weakness.Here is a preview for the European Central Bank decision on Thursday at 12:15 GMT.ECB in a conundrum as core inflation refuses to crumbleThe ECB aims for a headline inflation rate of around 2% YoY. While the latest Consumer Price Index (CPI) read for August stood at 5.3%, it is a remarkable halving from 10.6% recorded in October 2022. However, this is mostly a result of tumbling energy prices, and bringing price rises from 5.3% to 2% is far harder. Core CPI, which excludes volatile prices of food and energy, is also at 5.3% YoY, and in this case, it is only 0.4% below the peak of 5.7% recorded in April this year. Eurozone Core CPI. Source: FXStreetWhy is underlying inflation so sticky? Many European workers are unionized, with wages indexed to inflation. Collective bargaining is one part of the story, and another is labor shortages seen all over the world. Salary growth is harder to slow, contrary to goods inflation.Sticky services inflation is a reason to raise rates, but what the Frankfurt-based institution has already done is a reason to halt. The main lending rate has risen from 0% to 4.25%, and the deposit rate from -0.50% to 3.75%. Some of this is still making its way to mortgages and lending. Source: FXStreetPolicymakers are unsure about the time it takes for changes in interest rates to hit the real economy, and it is hard to separate the ECB's impact from weakening Chinese growth and other factors. Nevertheless, there are signs of stagnation. The eurozone economy grew by only 0.1% in the second quarter of 2023, the same rate as in Q1 and after shrinking by a marginal 0.1% in Q4 2022. This is a far cry from the fast expansion after covid.Moreover, prospects look grimmer by the day. The EU Commission has cut the area's Gross growth forecasts, and it sees Germany, its largest economy, in a recession. This leaves the ECB, and especially its hawkish German members, in a conundrum. Further raise rates to battle inflation or pause to think? With 20 countries represented around the table, the result will likely be a "euro-fudge" of sorts, and it may turn into a lose-lose for the common currency. ECB Scenario 1: Hawkish holdIn this outcome, the bank leaves borrowing costs unchanged for the first time since early 2022, citing slowing price rises and growing uncertainty. However, it strengthens its language about tightening its policy if needed, and refers to fighting inflation in a more furious tone. I see such a compromise as the more likely scenario, as it would also be following other central banks. The US Federal Reserve (Fed) has already paused once and is likely to repeat the same feat in September. The knee-jerk reaction would likely be a weaker Euro in response to the unchanged rate, with a quick bounce after algorithms and investors digest the hawkish language. Nevertheless, I expect ECB President Christine Lagarde to fail to convince markets that another hike is on the cards, leading to a gradual decline in the Euro. Worries about a European recession as a part of a global slowdown, will likely prevail.ECB Scenario 2: Dovish hikeIn this outcome, hawks have their last hurrah, pushing the bank's Governing Council to setting the deposit rate at the round 4% level. Nevertheless, they would have to compromise for a softer language on future moves, basically sealing the deal on any further rate hikes. The Euro would likely rise on the rate news, then fall on the softer language. Further down the line, worries that the ECB is adding to the recession risks by choking the economy would further push the common currency down. I see this scenario as less likely, as hawks are unlikely to relinquish their optionality. Nevertheless, the outcome for the Euro after several hours is similar. Additional considerationsThe ECB also publishes its updated growth and inflation forecasts at this junction. The figures will likely show lower estimates on both economic gauges. With recession worries hanging in the air, a significant downgrade in growth would hurt the Euro more than any change in inflation projections. If the ECB surprises with optimism, there could be a small boost to the upside. The timetable is also worth noting, especially for those who trade EUR/USD. The ECB announces its decision and forecasts at 12:15 GMT, and Lagarde meets the press at 12:45 GMT.In between, the US releases weekly Initial Jobless Claims figures, which have had a greater impact in recent weeks. Claims data may distort any ECB-related EUR/USD trade..Final thoughtsThe old continent is at a sensitive spot, and the ECB is stuck between a rock and a hard place. I expect the bank to err on the side of caution, refraining from raising rates, and practically ending the tightening cycle, even without officials admitting it, sending the Euro down. The event is complex and full of twists and turns. I urge trading with care around it.
Vitalik Buterin could have fueled Shiba Inu price rally by burning $1.7 billion in SHIB

Vitalik Buterin could have fueled Shiba Inu price rally by burning $1.7 billion in SHIB

FXStreet News FXStreet News 08.09.2023 15:51
Vitalik Buterin burned 90% of SHIB sent to his wallet by creator Ryoshi in 2021.Shiba Inu burn statistics tracker explains how the Ethereum creator could have fueled a rally through a timely SHIB burn.SHIB burn rate declines nearly 40% overnight, while meme coin’s price is in an upward trend.Back in 2021, Vitalik Buterin, the co-founder of Ethereum, received nearly 505 trillion SHIB from Ryoshi, the creator of the Shiba Inu project. Buterin donated 10% of the tokens to a Covid-19 relief charity and sent 90% to a dead-end wallet address. Shiba Inu’s burn statistics tracker shared insights into how Buterin’s actions could have fueled a rally in SHIB price in May 2021.Vitalik Buterin’s SHIB token transfer could have fueled a rallyShibburn.com, Shiba Inu’s burn tracker informed the SHIB holder community in a recent tweet that Buterin’s SHIB transfer in May 2021 was likely ill-timed. The Ethereum creator moved 90% of the SHIB tokens received from Ryoshi to a dead-end wallet, when the price of the tokens was nearly $1.7 billion.Burning 90% of the SHIB tokens did not appear to have a significant impact on the meme coin’s price at the time. However, the team behind the burn tracker argues that a similar move, nearly two weeks before the transfer, would have amounted to $6.7 billion worth of SHIB. Burning or removing this value of SHIB tokens from circulation likely positively influenced the meme coin’s price via supply-demand dynamics.Buterin added a note to his transfer made to the charity and said that he would prefer creators of crypto projects donate to charities, instead of offering him “the locus of power.”Shiba Inu price is in an upward trajectory this weekShiba Inu price climbed to $0.00000779 early on Friday. The meme coin is recovering from its August 17 intraday low of $0.00000725. The Shiba-Inu-themed meme coin needs to erase its losses from the past three weeks to make a comeback to $0.00000993, the price at which SHIB developers announced the launch of Layer 2 chain Shibarium.
Mullen Automotive Stock News: CEO David Michery attempts to stall NASDAQ for time

Mullen Automotive Stock News: CEO David Michery attempts to stall NASDAQ for time

FXStreet News FXStreet News 08.09.2023 15:51
NASDAQ exchange sent Mullen notice of delisting.The delisting of MULN could happen as soon as September 15. Mullen is attempting to appeal the delisting decision and gain six months to comply.Failing to maintain the MULN share price above $1 is the reason for the delisting. Mullen Automotive (MULN) stock has gained 1.7% in Friday’s premarket in sharp contrast to the leading equity indices. Part of the reason appears to be encouragement that Mullen management is fighting back against NASDAQ’s delisting announcement by attempting to appeal the decision.NASDAQ 100 futures are falling in Friday’s premarket for the third session in a row. The equity futures are off 0.2% one hour before the open, while the S&P 500 and Dow futures are down just 0.1%.Mullen stock news: Michery attempts to gain NASDAQ extensionMullen management announced on Thursday that they had appealed the delisting decision to the Nasdaq Listing Qualifications Panel. The electric vehicle maker stated that they may obtain as much as 180 days to bring MULN’s share price back into compliance.All the way back in the spring time, the NASDAQ exchange had given Mullen six months to comply with the guidelines that require listed companies to keep their share price above the $1.00 mark. Instead of immediately complying, management led by CEO David Michery diluted the stock by about 10X in order to raise more than $200 million for Mullen’s production ramp-up. With the MULN stock price trade down near $0.11, in early August the board of directors gave CEO David Michery the authority to perform the stock’s second reverse stock split of the year. This action gave each shareholder one share for every nine shares held previously. This moved the share price back to $1.00 in time to meet the NASDAQ requirement that MULN trade above the threshold for 10 consecutive sessions prior to September 5. Why Michery did not perform a 1-for-20 reverse split to be on the safe side is anyone’s guess. The chief executive even admitted at the time that his lawyers and executives wanted him to go for a 1-for-50 ratio.In May of this year, the company had already completed a 1-for-25 reverse split to raise its share price value. That reversal pushed the share price from $0.06 to about $1.50. The NASDAQ Listing Qualifications Panel “has broad discretionary public interest authority, which includes the discretion to grant the Company up to an additional 180 calendar days from Sept. 5, 2023, to regain compliance,” a Mullen spokesperson said in a statement. “The Panel can also exercise that authority to apply additional or more stringent criteria for the continued listing of the Company’s common stock or suspend or delist securities. Ultimately, there is no guarantee that the Panel will grant an extension of the compliance period.”Mullen stock forecastMullen stock is at the very least holding steady above $0.39. That was the price where MULN discovered support on August 23. There is no reason to think that the share price will recover since it has mostly been in a downtrend for the past five years.However, expect the share price to increase unnaturally if management is once again given an extension by NASDAQ’s committee. Michery will certainly use it to perform another reverse split. MULN daily chart
Bitcoin options traders are selling bear spreads without fear, eyeing BTC rally to $30,000

Bitcoin options traders are selling bear spreads without fear, eyeing BTC rally to $30,000

FXStreet News FXStreet News 07.09.2023 16:53
BTC options traders are selling $22,000 put trades in BTC to buy calls above $25,000 and near $30,000. The move by nearly a quarter of the total volume of BTC options traders implies that large players expect Bitcoin to close the month profitably. Traders are selling bear spreads without fear while predicting a swing of 10% or higher in Bitcoin price in September.Options market data can typically offer insights into price movements of Bitcoin. BTC options allow traders to speculate the price of Bitcoin and use the investment product to leverage or hedge their existing trading positions. Analysts at options trading tool Greeks.live evaluated BTC options data recently.Early on Thursday, the platform noted large put options (right to sell at a predetermined price) transactions in Bitcoin and shared insights on the same. The data implies that large players in the BTC options market are safely selling bear market spread and expect the asset to close September at a profit.Bitcoin options data reveals bullish sentiment among tradersAnalysts at Greeks.live have noted two types of large put option transactions in BTC, as of Thursday:Selling $22,000 put to buy a call (right to buy at a predetermined price) above $30,000Selling $22,000 put to buy a put (right to sell at a predetermined price) near $25,000The above two type of transactions currently account for nearly a quarter of the BTC options trade volume monitored by the tool. These insights from BTC options data imply that traders expect Bitcoin price to rise from the current level ($25,673 on Binance) and close September at a profit. BTC option flowsAdam, a macroeconomic researcher at Greeks.live believes that the above data reflects that large investors believe that a possibility of a decline in Bitcoin price is relatively small in September. With this confidence in Bitcoin price recovery, traders are selling their bear market spread and puts at $22,000 for $25,000 and $30,000.The researcher shared his personal opinion that market makers are trying to save cost while closing puts at $22,000 and expect a 10% or higher gain in Bitcoin in September. A rally in Bitcoin would turn these traders’ positions profitable this month.
GameStop Earnings News: Market impressed by narrowing loss, but macro picture sinks GME

GameStop Earnings News: Market impressed by narrowing loss, but macro picture sinks GME

FXStreet News FXStreet News 07.09.2023 16:53
GameStop leapt on a successful Q2 reported late Wednesday.GME shares are trending lower on Thursday due to the macro picture.Losses narrowed from $109 million one year ago to less than $3 million.Revenue rose 2% YoY, and SGA costs were kept to a minimum. GameStop (GME) stock jumped above $20 initially in Wednesday’s post-market when its second-quarter results were released to great fanfare. The video game retailer cut its ongoing losses down to smidgin and offered up the possibility of futures profits. In Thursday’s premarket, however, the weight of a global sell-off in equities is weighing on GME’s share price. NASDAQ 100 futures fell more than 1% in the premarket, and S&P 500 futures are off 0.6%. Barclay’s released a client note on Thursday arguing that the global economy is beginning to slow down. Barclay’s stated that 2023’s worldwide economic growth rate of 2.8% would fall to 2.3% next year. A number of Europeans countries, as well as China, have seen their service sectors begin to stall out this week, based on August data. "The global economy should slow a little, as the US downshifts from the strong pace of early Q3 to a mild slowdown, though not a material recession,” said the Barclay’s report.GameStop earnings newsGameStop lost $-0.03 per share in adjusted terms, which was 11 cents better than Wall Street consensus. Revenue of $1.16 billion, up 2% YoY, also bested the average forecast by $20 million.GameStop has been holding on for dear life since covid hit and is finally starting to see real results. Growth in GameStop’s software segment made up for falling sales elsewhere. Software sales of $397 million rose 25.5% YoY. Hardware sales, still the largest segment, were flat on an annual basis, while collectible revenue of $170 million declined 24% YoY.By holding down expenses, GameStop was able to curtail its expected quarterly loss from nearly $109 million one year ago to just under $3 million in the quarter ending in July. This was contributed to by holding Selling, General and Administrative (SGA) costs down. SGA topped 34% of sales one year ago, but GameStop pushed that percentage to below 28% this time around."During the first quarter of fiscal 2023, we began the process of exiting our operations in Ireland, with all stores in the region closing in the second quarter of fiscal 2023,” the company said in a statement. “While we expect our cost containment efforts to yield reductions in SG&A expenses in the long term, we have incurred and may continue to incur severance and other non-recurring costs related to these efforts in the short term."GameStop stock forecastGameStop stock was already trending upward in the lead up to Wednesday earnings announcement. The Moving Average Convergence Divergence (MACD) indicator has crossed over in bullish fashio, and the 9-day Simple Moving Average (SMA) is narrowing its gap with teh 21-day SMA. GME has been recovering from a downtrend that began in mid-June and only began to reverse in late August. GameStop bulls are gunning for GME to overtake either the $20 or $22 level. Both prices have acted as support before, so they are necessary for overcome in order to prepare for a broader setup. Any success there will lay the groundwork for a run at the $27 to $30 resistance range.January and March’s support at $15.50 looms below, but investors will hope that those valleys are over and done.GME daily chart
USD/CAD whipsaws after BoC holds rates steady, keeping a hawkish tone

USD/CAD whipsaws after BoC holds rates steady, keeping a hawkish tone

FXStreet News FXStreet News 06.09.2023 16:27
USD/CAD reacted with volatility, hitting a daily high of 1.3676 after the Bank of Canada kept rates unchanged but maintained a hawkish stance on inflation.Despite a -0.2% annual contraction in Canada’s Q2 GDP, the BoC expresses concerns about the “persistence of underlying inflationary pressures.”Technical outlook suggests further upside if the pair reclaims its daily high; downside support lies at the 200-HSMA at 1.3584 and the week’s low of 1.3575.The USD/CAD trades volatile earlier in the North American session after the Bank of Canada (BoC) decided to hold rates unchanged at 5%, though it maintained a hawkish tone in its monetary policy statement. At the time of writing, the major trades in a wide 1.3620/70 range.Bank of Canada holds rates unchanged at 5.00%; USD/CAD remains steadyGiven that last week’s Canadian Gross Domestic Product (GDP) shrank annually by -0.2% in Q2, triggering market participants’ expectations, the BoC would keep rates unchanged.In its statement, the BoC Governing Council said that excess demand is cooling. Still, they kept their options open, as they remain concerned about “the persistence of underlying inflationary pressures,” as mentioned in the monetary policy statement.The BoC added that measures of core inflation remain high, with major global central banks focused on restoring price stability. BoC policymakers added the economy entered a period of weaker growth, which is needed to alleviate price pressures.USD/CAD Reaction to the BoC’s decisionThe USD/CAD reacted to the upside, reaching a daily high of around 1.3676 before retreating somewhat towards the 50-hour Simple Moving Average (SMA) at 1.3627. Further upside is seen if the major reclaims the daily high, which could pave the way towards 1.3700. On the flip side, if the USD/CAD dives below the 50-HSMA, the next support emerges at the 200-HSMA at 1.3584 before testing the current week’s low of 1.3575.USD/CAD Price Action – Hourly chart
Dogecoin likely in the accumulation phase with 20% DOGE wallets sitting on unrealized profits

Dogecoin likely in the accumulation phase with 20% DOGE wallets sitting on unrealized profits

FXStreet News FXStreet News 06.09.2023 16:27
Dogecoin wallets sitting on unrealized profits climbed to 20.73%, analyst noted a strong accumulation on the monthly chart.DOGE price range between $0.05 and $0.093 is likely an accumulation phase for the next bullish breakout in the meme coin.Crypto analyst Poseidon has set a target of $0.18 for DOGE, based on the weekly price chart.Pseudonymous technical analyst, Poseidon, concluded that Dogecoin price is likely in its accumulation phase after analyzing the monthly, weekly and daily charts. On-chain metrics from IntoTheBlock reveal that 20.73% of DOGE wallet holders are profitable at the current price level.Dogecoin is in the accumulation phase according to PoseidonTechnical analyst, Poseidon, noted a strong accumulation in DOGE. Poseidon considers the range between $0.093 and $0.05 as the key range for the meme coin. DOGE’s price movement in this range is likely the accumulation phase for the next period in the meme coin’s trajectory. Poseidon explains that Dogecoin has exhibited strong accumulation despite its sideways price movement, when compared to Layer 1 and other tokens in the crypto ecosystem. On the monthly price chart, the analyst marks the $0.048 level as key for DOGE. Every DOGE token bought between $0.025 and $0.010 is considered cheap and likely to yield 10x gains in the long run, according to Poseidon’s analysis. DOGE/USDT weekly price chart on BinanceOn-chain metric Global In/Out of the Money (GIOM) from crypto intelligence tracker IntoTheBlock supports the thesis of long-term price gain in DOGE, presented by Poseidon. The analyst’s target for DOGE is $0.18. DOGE wallets sitting on unrealized profits limited to 20%The GIOM metric estimates the volume or percentage of the wallets holding the token that are currently sitting on unrealized profits or losses. If the average price at which these wallets acquired the asset is below the current price, the wallet is sitting on unrealized profits; if the acquisition cost of the wallets is above the price of the asset, it is sitting on unrealized losses.Based on the chart from IntoTheBlock, 20.73% of the wallets holding DOGE are currently sitting on unrealized profits. Wallets that are profitable are likely to engage in “profit-taking” and this would increase the selling pressure on DOGE. However, these addresses are currently limited to 20.73% against 73.72% that are underwater. DOGE wallet addresses that are profitable or underwaterAs long as the count of wallets facing unrealized losses exceeds the profitable ones, DOGE is more likely to continue its recovery and resume an upward trajectory. At the time of writing, DOGE price is $0.063 on Binance.
Bitcoin price rally likely in around six to twelve months: Arthur Hayes

Bitcoin price rally likely in around six to twelve months: Arthur Hayes

FXStreet News FXStreet News 05.09.2023 15:34
Bitcoin bull market started in March with the collapse of the Silicon Valley Bank, according to Arthur Hayes. The former BitMex CEO says that the Federal Reserve’s $25 billion program to revive the US banking system pushed traders towards Bitcoin. Hayes gives a timeline of six to twelve months for the market to respond to the ongoing Bitcoin bull market.Bitcoin price is up 26% year-to-date. This rally likely originated on March 10 and is likely to continue in the next six to twelve months, former BitMEX CEO Arthur Hayes said Tuesday in a speech at the Korea Blockchain Week, according to a Cointelegraph report.Contrary to popular belief in the crypto community, Hayes said that the Federal Reserve’s injection of liquidity in the US banking system in March kicked off the BTC bull run.Also read: Ethereum whales accumulate ETH as researchers explore scaling beyond EIP-4844Bitcoin bull run likely kicked off after Silicon Valley Bank collapseArthur Hayes addressed the audience at Korea Blockchain Week and said that the Bitcoin bull market started on March 10, when the Federal Deposit Insurance Corporation took over Silicon Valley Bank (SVB).Hayes said that the Federal Reserve announced its $25 billion Bank Term Funding Program (BTFP) in response to SVB’s collapse. Through this program, the US central bank offered loans of up to a year in return for banks posting “qualifying assets” as a collateral.According to Hayes, this program was a turning point as the Federal Reserve’s liquidity injection made investors turn to fixed-supply assets like Bitcoin.Bitcoin price has yielded 26% gains, since the beginning of 2023. While traders might argue that the market does not behave as a typical Bitcoin bull market does, Hayes said investors are likely to catch up with the trend in the next six to twelve months.The BitMEX CEO commented on the Federal Reserve’s likely upcoming rate hike and said that irrespective of whether the central bank continues hiking rates or printing money, Bitcoin is likely to perform well.
ISM Services PMI Preview: Strength may spook markets, boosting US Dollar

ISM Services PMI Preview: Strength may spook markets, boosting US Dollar

FXStreet News FXStreet News 05.09.2023 15:34
Economists expect the ISM Services PMI to remain above 50, a sign of persisting expansion.Growth in America's largest sector implies "sticky" inflation is strong and more rate hikes are needed.Stocks may sink and the US Dollar could rise unless the data shows softening price pressures.Shop until you drop – the restless US consumer should never be underestimated, and fresh strength from services activity, America's largest sector, also warrants caution. The Federal Reserve (Fed) fears an acceleration of "sticky" inflation, and any positive surprise in the sector’s performance may spook the bank and markets. For the US Dollar, it may mean another boost.Here is a preview for the ISM Services PMI, due on Wednesday at 14:00 GMT.Why is ISM Services PMI important? The services sector is roughly 70% of the US economy – the world's largest. The Institute for Supply Management (ISM) publishes a highly regarded Purchasing Managers' Index (PMI) for the sector every month, providing a forward-looking view on the economy. The data is based on a survey of supply executives in the US services sector, who are asked to assess the conditions of their business in the reporting month. When the data is released before the Nonfarm Payrolls (NFP) report, it tends to serve as a leading indicator toward it. This time, jobs figures will have been out for five days, giving the ISM Services PMI its own space. The sector has been expanding in 37 of the past 38 months, scoring over 50 points in the ISM Services PMI. The single dip came in December 2022, and since then it has been hovering above that threshold, scoring 52.7 points in the last read for July. August’s figure is expected to be almost identical – 52.6 points. ISM Services PMI in the past year. Source: FXStreet.The indicator is not only important due to the sector's size, but also because of the current focus of the Federal Reserve. The world's most important central bank is busy fighting inflation, and more specifically, "non-shelter core services" price rises. In plain words, everything except manufacturing and housing.These are usually labor-intensive areas, where higher wages tend to hold up after jumping, and refuse to fall down. That is what makes inflation stemming from services "sticky". Only a greater moderation – or even a mild recession – could bring prices back in line. The key ISM Services Prices Paid subindex, which came at a strong 56.8 in July, will be key to see how persistent price pressures are. Economic activity in the sector remains stubbornly high, meaning sticky inflation is hardly retreating. If economists' projections are right and the ISM Services PMI holds up above 52 points, rate cuts will likely have to wait for longer. Markets will not like it.While companies want a strong economy to thrive, their stocks need lower interest rates to become more attractive. For the US Dollar, there is room for further gains, as it would show that the American economy continues outperforming.ISM Services PMI scenarios to considerMy baseline scenario is for expectations to materialize and for markets to shiver. Still, there are other scenarios to consider. The happy path for investors would be a drop toward 50 points, the "Goldilocks" zone, which would signal that services activity is cooling but not freezing. This scenario would lift stocks and weigh on the US Dollar. A big plunge below 50 and especially under 48 – highly unlikely – would scare investors as it would show a rapid deterioration in business activity. In this case, funds would likely flock to the US Dollar as a safe haven.The other extreme scenario is a jump to 55 or even above that level, an outcome with a low probability. In such a case, the moves described in the baseline scenario would be amplified – an even quicker stock plunge and a more rapid rally for the US Dollar. Final thoughtsThe ISM Services PMI has a tendency to catch traders off guard, triggering significant volatility, which is already elevated. Any surprise may cause massive moves.
Gold price consolidates due to extended weekend, higher Fed pause bets

Gold price consolidates due to extended weekend, higher Fed pause bets

FXStreet News FXStreet News 04.09.2023 17:00
Gold price juggles below the $1,950.00 resistance as the focus shifts to the US Services PMI.US markets will remain closed on Monday on account of Labor Day.Cooling labor market conditions boost the Fed’s hopes of a soft landing.Gold price (XAU/USD) traded back and forth from the past four trading sessions even though cooling labor market conditions boosted the Federal Reserve’s (Fed) soft landing hopes. A softening job market could mean that the Fed’s interest rate hike in July was the last one in the current policy tightening spell. The precious metal remains calm, but a power-pack action is expected after the release of the Services PMI data on Wednesday.US markets will remain closed on Monday on account of the Labor Day holiday, so a lackluster performance is widely anticipated due to thin trading conditions. Going forward, investors hope that both price and the US Dollar can deliver gains as strength in the US Dollar would shift from the Fed’s tight policy to the vulnerable economic outlook of other G7 economies.Daily Digest Market Movers: Gold price drops as US Dollar attempts recoveryGold price trades sideways below the $1,950.00 resistance even as cooling labor market conditions boost the Federal Reserve’s soft landing hopes.The precious metal delivered a volatile action after Friday’s Nonfarm Payrolls report for August but remains above the crucial support of $1,940.00.US employers added 187K new payrolls in August, higher than expectations of 170K and July's reading of 157K. The Unemployment Rate rose sharply to 3.8% against the consensus and the prior release of 3.5%.Cleveland Fed Bank President Loretta Mester said on Friday that demand and supply in the labor market is coming into a better balance but the job market is still strong. She further added that while job growth has slowed and job openings are down, the Unemployment Rate is low.Wage growth slowed in August as employees appear to be shifting their focus towards staying at one job rather than switching frequently.Average Hourly Earnings expanded at 0.2% on a monthly basis, a slower pace than the expected 0.3%. In July, earnings grew by 0.4%. On an annual basis, earnings growth decelerated to 4.3% against the consensus and the former print of 4.4%.Slower wage growth might cut the real income of households and weigh on consumer spending momentum. In July, both the headline and core monthly Personal Consumption Expenditure (PCE) Price Index grew at a steady pace.Investors hope that the US labor market will continue to cool down due to hefty interest rate hikes, prompting the Fed to keep interest rates unchanged for the remainder of the year.As per the CME Group Fedwatch Tool, as much as 93% of chances are in favor of steady interest rates in the September meeting. For the November meeting, the chances of an unchanged interest rate decision have increased to 62%.The US manufacturing sector seems to be stabilizing, but the PMI came in below the 50.0 mark, signaling a contraction in activity. The PMI increased to 47.6 in August from July’s reading of 46.4. The index has remained below the 50.0 threshold for 10 consecutive months.The US Dollar Index declined from a four-day high of 104.30 even though a cooling labor market boosted Fed pause bets.While the majority of economies are experiencing a vulnerable real estate sector, the US Commerce Department said on Friday that construction spending rose 0.7% as outlays on single-home projects rose due to limited supply.Investors should note that US markets will remain closed on Monday on account of Labor Day.This week, investors will keep focus on the ISM Services PMI for August, which will be published on Wednesday at 14:00 GMT. The PMI is expected to be broadly steady at 52.6.Developing economies could face the wrath of higher interest rates for a longer period as IMF First Deputy Managing Director Gita Gopinath expects that interest rates will remain higher for a quite long time.IMF Gopinath warned that external conditions had become more challenging for emerging markets due to rising geopolitical fragmentation, tightening financial conditions, and the growing costs of climate change.Technical Analysis: Gold price skids below $1,940Gold price continued to auction in the $1,934-$1,949 range for the past four trading sessions after a significant recovery. The precious metal stabilizes above the 20- and 50-day Exponential Moving Averages (EMAs), which indicates that the medium-trend has turned positive. The Relative Strength Index (RSI) (14) hovers around 60.0, A decisive break above this level will likely activate the bullish impulse.
Shiba Inu price lags as traders are cautious in deploying capital on Shibarium

Shiba Inu price lags as traders are cautious in deploying capital on Shibarium

FXStreet News FXStreet News 04.09.2023 17:00
Shiba Inu price is yet to catch up with the rising on-chain activity on Layer 2 chain Shibarium. The total value of assets locked on Shiba Inu’s scaling solution is lagging behind, while a million SHIB wallets engage with Shibarium’s bridge.SHIB price has yielded 4% losses for holders over the past week.Shiba Inu price is struggling to catch up with the activity on its Layer 2 chain Shibarium. After a botched launch of the scaling solution Shibarium, there has been a lag in the total value of assets locked (TVL) on the chain.At the time of writing, TVL is $1.04 million, down from $1.27 million on August 28, based on data from DeFiLlama.Also read: Three cryptocurrencies likely to witness bullish breakouts like Stellar: Toncoin, Monero and ArbitrumShiba Inu price and TVL lag behind wallet activity on ShibariumShibarium was first launched on August 17. The launch turned out to be botched, with nearly $2 million in Ethereum and BONE locked on the Shibarium bridge. The team worked on scaling the Layer 2 chain with the help of Unification and Polygon and relaunched Shibarium on August 28.Post the relaunch, there has been a rise in wallets interacting with the Shibarium bridge. Based on data from Shibariumscan.io, daily transactions have climbed to 99,060 as of September 3. Daily transactions on ShibariumNearly a million wallets have interacted with Shibarium’s bridge, marking a key milestone in the Layer 2 chain’s journey. Despite these bullish statistics, TVL and SHIB price have failed to catch up. As seen in the chart below, TVL is $1.04 million, having declined consistently since the beginning of September. TVL is a key metric since it represents the volume of assets that traders lock in the chain.It is likely that the botched launch of Shibarium and the general rug pull and pump and dump concerns surrounding meme coins like PEPE have dampened the sentiment among the SHIB community of holders.Traders in the Shiba Inu ecosystem are reluctant to engage with the SHIB bridge, resulting in the likely TVL decline.TVL of SHIB as seen on DeFiLlamaSHIB price is $0.00000770 at the time of writing, up 0.13% on the day. Over the past week, SHIB price declined 4.35%.
Nvidia Stock Forecast: NVDA sinks 1% despite good news from NFP release

Nvidia Stock Forecast: NVDA sinks 1% despite good news from NFP release

FXStreet News FXStreet News 01.09.2023 16:51
Nonfarm Payrolls for August provided data showing Fed may not require more hikes.NVDA stock has been issuing Doji candles late this week that demonstrate uncertainty among bulls.Intel's Gaudi 2 chip is being called a competitor to Nvidia's H100.Samsung signs deal to begin supply high bandwidth memory chips to Nvidia.Nvidia’s (NVDA) stock price edged 1% lower a half hour into Friday's main session despite US Nonfarm Payrolls data that reduced the need for further rate hikes from the Fed. August Nonfarm Payrolls arrived at 187K. That figure was higher than the 170K expected but lower than the 200K that the market did not want. More significantly, July's NFP results were revised down from 187K to 157K, and the Unemployment Rate rose from 3.5% to 3.8%. A higher unemployment rate and overall reduced hiring means that the Federal Reserve has less reason to raise interest rates at its September or November meetings as the labor market has become a bit more relaxed than earlier in the year.NVDA stock has equivocated over the past two sessions and appears uncertain ahead of Friday’s Nonfarm Payrolls release as well. NVDA added 0.98% on Wednesday and 0.18% on Thursday, but the daily candlesticks show hefty wicks on either end and closes toward the center of the price action. This type of trading hints at bulls exiting their long positions and could mean that Nvidia stock is in for another pullback.Nvidia stock has dropped to $488 after trending up above $497 earlier in the day. The NASDAQ Composite has drifted 0.2% so far in the session.Nvidia stock news Nvidia has closed a deal with Samsung to buy the Korean company’s HBM3 memory chips for use with its artificial intelligence-focused platforms and data centers. Samsung’s stock advanced 6% in the Korean stock market as the report said Samsung would likely supply as much as 30% of Nvidia’s High-Bandwidth Memory needs in 2024.Until now, Nvidia has relied on SK Hynix for all its HBM3 chips used its A100 and H100 GPUs built for use in generative AI technologies. Another rumor says that executives from Samsung’s foundry division are also in talks with the upper echelon of Nvidia to offer chip packaging services to the leading AI chip maker. Nvidia has been largely using Taiwan Semiconductor (TSM) for all its chip packaging demand, but the latter foundry is fully booked at the moment with hefty demand for AI-related chip manufacturing.In a first broadside against Nvidia’s lead among AI-focused semiconductors, Intel’s (INTC) Gaudi 2 chip is being touted as a possible competitor. Hugging Face, the machine-learning platform provider, recently tested the Gaudi 2 chip against Nvidia’s H100. While they determined that the H100 still wins on average across a broad range of AI workloads, they wrote in a blog post this week that the Gaudi 2 is as much as 41% faster when fine tuning vision-language models. This is because the Gaudi 2 utilizes in-chip hardware-based decoders to help the CPU in managing its workload before the computations are sent to the AI accelerator. Hugging Face’s test shows that Nvidia may be leading the pack, but it will not be the only game in town for long.Nvidia stock forecastIn a similar way to what happened one month ago, Nvidia is a gain seeming to crest higher at quite small intervals. Take a look at the two circles on the daily chart below. These types of candlesticks are typically called Dojis, and they are normally thought to show equivocation.When three Doji-type candles happened in a row between July 28 and August 1, exactly one month ago, NVDA stock happened to fall from near $467 to $403 over the next two weeks. Though the Relative Strength Index (RSI) is not yet at overbought levels, a similar pullback trade could be in the offing. Take care.NVDA daily chart
Bitcoin Weekly Forecast: BTC correlation to DJIA hits 2021 peak levels amid ETF hype

Bitcoin Weekly Forecast: BTC correlation to DJIA hits 2021 peak levels amid ETF hype

FXStreet News FXStreet News 01.09.2023 16:51
Bitcoin price trades around the $26,000 level after undoing Grayscale gains.The US SEC delays major spot BTC ETF applications, leaving investors on edge until the next deadline in October.The spike in Bitcoin correlation to the DJIA could reintroduce volatility to crypto markets during Friday’s Nonfarm Payrolls event.The NFP report came in at 179,000, slightly higher than forecasted number of 170,000.Bitcoin price undid Grayscale gains after the US Securities and Exchange Commission (SEC) has decided to postpone its spot Bitcoin Exchange-Traded Fund (ETF) decision on eight applications. BTC slid from $28,000 down to $26,000, where it currently trades.In addition to the SEC’s involvement, Bitcoin’s correlation to the stock market has increased considerably, leaving it at the mercy of the Greenback and the macroeconomic drivers that move traditional markets. Also read: Could US Nonfarm Payrolls provide directional cues Bitcoin needs?Bitcoin correlation to the US stock market gushes higherBitcoin’s correlation with the US stock market shot up after the COVID-19 crash in March 2020. Since then, BTC has been sensitive to the US Federal Reserve’s decisions on macroeconomic policies.After being consistently high in the first half of 2023, the correlation started to decline in April, hit a low point in June and then reached a lower low in August. However, correlation has climbed again with no pullbacks over the last month. Currently, the correlation with the Dow Jones Industrial Average (DJIA) has hit early 2021 levels of 0.92. With S&P 500 and Nasdaq 100, the correlation is at a lower level, around 0.69 and 0.53, respectively. A careful observation shows that the downtrend in correlation hit a bottom and began to bounce back in the second week of June, when the BlackRock spot Bitcoin ETF was filed. One could say that the correlation ebbs and flows, and the recent spike is likely to remain higher throughout the third quarter and into the fourth quarter of 2023.BTC correlation to S&P 500, Nasdaq 100 & DJIAThe US NFP is the next key event to watchBitcoin price is highly sensitive to macroeconomic policies from the Fed. And the Fed pays close attention to labor market indicators to gauge inflation trends, with the upcoming Nonfarm Payrolls (NFP) taking center stage. The payrolls came in at 179,000 which is higher than the forecast of 170,000. But since the deviation is not huge, the markets are unlikely to be swayed by the jobs report.Regardless, investors need to note that Fed Chair Jerome Powell has already hinted that another rate hike could be a possibility should the data suggest a slowdown in inflation. So, investors need to wait until September 20 to know if the Fed will raise interest or pause. At the time of writing, however, the CME FedWatch Tool shows that there is a 93% chance that the Fed does not increase interest rates. Read more: Could US Nonfarm Payrolls provide directional cues Bitcoin needs?Bitcoin price nosedives after SEC delays ETF decisionBitcoin price rallied nearly 8% after Grayscale’s win against the SEC, but this uptick was soon undone as the regulator delayed the ETF decision on August 31. Investors are now waiting with bated breath for the next deadline, which is in the second week of October. As seen in the Bitcoin price chart below, the delay from the SEC has pushed the pioneer crypto down sharply. In case, BTC/USDT 4-hour chartAlso read: Here's what to expect in crypto this week after Grayscale's victory against US SEC
Bitcoin traders exercise caution ahead of US Core PCE Price Index release

Bitcoin traders exercise caution ahead of US Core PCE Price Index release

FXStreet News FXStreet News 30.08.2023 16:55
Bitcoin price winds around $28,000 as traders anticipate the release of US Core PCE Price Index data on August 31.The consensus is that the Core PCE inflation will rise by 0.1% and come in at 4.2% for July.Being the Fed's preferred gauge of inflation, PCE numbers could influence expectations of further rate hikes in the US.Bitcoin price rallied to $28,100 on Tuesday, in response to Grayscale’s victory against the Securities and Exchange Commission (SEC) in its spot Bitcoin ETF lawsuit. Since then, BTC price wiped out its gains, declining to $27,300 as traders exercised caution ahead of the August 31 release of US Core PCE Price Index for July.The data could make or break Bitcoin’s run up to the $30,000 level as US Core PCE is considered the Federal Reserve’s preferred inflation gauge and the market expectation is for an annual rate of 4.2% for July, against Fed’s 2% target for inflation.Also read: Whales push AAVE, COMP, CRV market caps higher, kick off week with extreme activityFed’s preferred inflation gauge could determine the direction of Bitcoin price trendThe US Bureau of Economic Analysis (BEA) is set to release Core Personal Consumption Expenditure (PCE) Price Index on Thursday, August 31 at 12:30 GMT. As we move closer to the data release, the market’s expectation is a 0.1% increase to send Core PCE YoY rate for July to 4.2%.An increase above market expectations adds to the likelihood of an interest rate hike by the Fed in September. If the increase in Core PCE rate is 0.1% or lower, it points at a slowdown in inflation and less likelihood of interest rate hikes.Bitcoin traders are likely to benefit from a slowdown in inflation, as leverage becomes cheaper and capital inflow to BTC and risk assets increases.Bitcoin price rally to $30,000 therefore relies on the data release, as crypto traders continue to closely monitor macroeconomic indicators.At the time of writing, BTC price is up 5% over the past week and noted a 1.27% drop on the day, on Binance.
Dow Jones Industrial Average Forecast: DJIA outperforms NASDAQ, S&P 500 at Wednesday open

Dow Jones Industrial Average Forecast: DJIA outperforms NASDAQ, S&P 500 at Wednesday open

FXStreet News FXStreet News 30.08.2023 16:55
Dow Jones index gained 0.85% on Tuesday, breaking above ascending triangle topline.DJIA lost 2.65% over the previous two weeks.US Treasury yields rise across the curve, especially longer maturity.3M settles $6 billion lawsuit with US military personnel over faulty earplugs. Market awaits US PCE, Nonfarm Payrolls on Thursday and Friday. Dow Jones Industrial Average (DJIA) is outperforming the NASDAQ Composite and the S&P 500 on Wednesday morning. A half hour into the session, the Dow Jones has gained 0.44%, while NASDAQ Composite and S&P 500 are up 0.3%.Before the opening bell, another preliminary GDP print for the second quarter showed an annualized rate of 2.1%. This was lower than the prior 2.4% preliminary reading for the quarter ending in June and gave more credence to the belief in a soft landing for the US economy. Higher inflation readings from Germany and Spain early on Wednesday sent the S&P 500 and NASDAQ 100 futures lower, but the GDP print picked them back up.The Dow index registered its best outing on Tuesday since August 7 as the 30-strong stock index rose 0.85%. The buoyant market developed in response to lower-than-expected JOLTS Job Openings data for July that showed a greater than 300K drop in US employment openings. Job Openings were at their lowest level in about two-and-a-half years.Dow Jones News: 3M puts second major lawsuit behind itA long-time constituent of the Dow – added in 1976 and now bearing an approximate 2.4% weighting – 3M Company (MMM) helped the index rise this week after the industrial’s board agreed to a $6 billion settlement stemming from US military veterans suing the manufacturer for combat earplugs they allege led to hearing loss.3M stock rose 6.2% over the past week, and on Tuesday Wolfe Research upgraded the Dow constituent from Underperform to Peer Perform on the settlement. The research firm had earlier expected a settlement exceeding $10 billion and as high as $20 billion.The earplug settlement comes after June’s $12.5 billion tentative settlement for the so-called “forever chemicals” known as PFAS that 3M developed and manufactured for years. The settlement would give cash payments to municipal water providers that alleged injury from the chemicals. That settlement was given preliminary approval by a judge on Tuesday, but other US states and individuals are yet to settle their suits. By one estimation, there are more than 10,000 individuals represented by multiple law firms seeking restitution for PFAS-related injury. Some plaintiffs and observers have questioned whether the maker of Scotch tape and inventor of Post-It notes can remain solvent due to all its liabilities.3M is already planning to spin off one of its healthcare units in order to free up cash to deal with settlement costs. The general consensus is that the company has made solid headway in dealing with the litigation so far. MMM stock has lost 50% of its value over the past five years.Nonfarm Payrolls, PCE data fill up end of week scheduleUS Personal Consumption Expenditures (PCE) data for July arrives on Thursday, and the market is hoping a preferred drop in inflation will boost confidence in the Federal Reserve stalling rate hikes for the rest of the year. The market was already fairly certain that the central bank would keep interest rates stable at the September meeting, but as recently as early Tuesday, the majority believed a 25 basis point hike would arrive at the November meeting. Following the JOLTS data, however, the CME Group’s FedWatch Tool shows a 51% chance that rates remain unchanged in November as well. This was good news for markets and helped the Dow add 0.85% on Tuesday. The US Bureau of Economic Analysis’s Thursday release of PCE data should undergird the JOLTS data. Everyone knows the PCE is the Fed’s favorite gauge of inflation. It has an outsized role in determining the central bank’s policy. Wall Street expects 0.2% core growth in the price index compared with June and 4.2% on an annualized basis. That annual figure is slightly higher than June’s 4.1% figure.On Friday, August Nonfarm Payrolls for the US could upend the situation if they arrive above the consensus 170K figure. June’s 187K print arrived below consensus and heartened the market. Earlier prints in the year showed a red-hot job market that threatened to force the Fed’s hand into continuing its rate hikes. A figure below 170K could lead to a rally for the Dow index since it would seem to express the market’s wish for a soft landing narrative.What they said about the market – Rod von LipseyUBS Private Wealth Management strategist Rod von Lipsey warned investors earlier this week to move away from mega cap tech stocks that have already produced huge gains this year. Better options could be found in less sexy and often ignored sectors of the market, he added."For investors looking to put new money to work in the stock market, we prefer areas of the market that have lagged in performance so far this year, which includes sectors like energy and consumer staples.”Dow Jones Industrial Average forecastThe Dow Jones index broke above the 34,712 resistance barrier that stems from the range high on December 13, 2022. Equally important the DJIA blasted through the topline of the ascending triangle that formed on August 16 of last year. The index already broke above that point on July 18 but then melted back below on August 17. The triangle formation has lost its significance, but a move above the top trendline is another reason to think this rally could continue.Next up is the 35,200 level that forms the bottom of the supply zone that lasts through 35,750. This area had importance from October 2021 through April 2022. Below there is another demand zone that could support the index if another sell-off ensues. It runs from 34,250 to 34,600 and hails from the second half of 2022.The Moving Average Convergence Divergence (MACD) indicator shows the index looks prepared to register a bullish crossover. Tuesday’s rally halted at the 21-day moving average, so a break above it on Wednesday should usher in further bullish price action.Dow Jones Industrial Average daily chart
Gold price strengthens on softer job vacancies

Gold price strengthens on softer job vacancies

FXStreet News FXStreet News 29.08.2023 16:55
Gold price recovers strongly to near $1,920.00 as pressure builds on US Dollar and Treasury yields.Fed’s September policy action will be highly guided by August labor market data.US Raimondo and China’s Wang Yi agree to launch a platform on export control information.Gold price (XAU/USD) strengths as US firms invited applications for lower job openings in July. Fresh job vacancies in July were 8.827M against June’s reading of 9.165M while investors anticipated 9.465M openings. Weak job openings data indicate that the US labor market is losing its resilience.Jerome Powell reiterated at the Jackson Hole Symposium that the central bank will remain data-dependent. Powell added that inflation has become more responsive to the labor market, so upcoming JOLTS and other job-market-related data later this week are set to be crucial to determining the Fed’s next steps.US employment and ISM Manufacturing PMI data will remain on investors’ radar. The weightage of August labor market data is expected to remain high as it will provide a base for September’s interest rate decision. Investors hope that hiring momentum slows as US firms are banking on lower operating capacity due to a delicate economic outlook. Also, factory activity is expected to contract for the ninth straight month.Daily Digest Market Movers: Gold price capitalizes on soft JOLTS Job Openings dataGold price climbs perpendicularly to near $1,930.00 after the US Bureau of Labor Statistics posted weaker-than-anticipated JOLTS JOb Openings for July.US firms invited fresh applications for 8.827M vacancies against June’s reading of 9.165M while investors anticipated 9.465M openings.The recovery move in the Gold price is also backed by a subdued US Dollar and declining US Treasury Yields. The US Dollar Index (DXY) struggles to climb above 104.00, while 10-year US bond yields drop to near 4.18%.The US Dollar comes under pressure as Fed Chair Jerome Powell reiterated at the Jackson Hole Symposium that further policy action will depend on economic data.Jerome Powell kept doors open for further policy tightening as the achievement of price stability has a long way to go. Two months of lower inflation levels is just the beginning of what the central bank wants to build.Cleveland Fed Bank President Loretta Mester supported one more interest rate hike in 2023 this week to ensure that the goal of price stability is achieved before 2026.After the hawkish Powell commentary, investors shifted focus to the Automatic Data Processing (ADP) Employment Change data for August, which will be published on Wednesday at 12:15 GMT.The central bank has evidence that inflation is getting more responsive to labor markets. Powell said that further signs of a tightening job market could warrant more Fed action.Powell’s commentary about the job market has increased the significance of August employment data as it will provide a base for September’s monetary policy.For the ADP data release, the US private sector is expected to have added 195K jobs in August, significantly lower than July’s reading of 324K.Before US ADP Employment data, investors will focus on JOLTS Job Openings for July, which will be released at 14:00 GMT. As per estimates, US firms posted fresh 9.465M vacancies, lower than June’s job openings figure of 9.582M.Apart from the labor market data, investors will also keep the ISM Manufacturing PMI data for August on their radar, which will be released on Friday.US factory activity is expected to contract for a ninth consecutive month, according to estimates. The ISM Manufacturing PMI is seen at 47.0, slightly higher than July’s reading of 46.4. Still, a figure below the 50.0 threshold signals a contraction in activity. The New Orders Index, a widely followed leading indicator, is expected to drop to 46.3 from 47.3.On Monday, the Texas Manufacturing Outlook Survey reported that a key measure of state manufacturing conditions fell six points to -11.2, its lowest level since May 2020.Investors are keenly focusing on US Commerce Secretary Gina Raimondo's visit to China. Raimondo said the administration is aware of challenges and optimistic about US-China ties.Raimondo and China’s Foreign Minister Wang Yi agreed to launch a platform on export control information.Technical Analysis: Gold price jumps vertically to near $1,930Gold price climbs to near $1,930.00 as fresh job vacancies in June were significantly lower than anticipated. The precious metal climbs above the 20- and 200-day Exponential Moving Average (EMA), which indicates a solid recovery attempt. In spite of this revival move, the yellow metal has to pass through some more filters for a sustained reversal.
Nio Stock Earnings: NIO slips 8% on poor Q2 showing but recovers from worse sell-off

Nio Stock Earnings: NIO slips 8% on poor Q2 showing but recovers from worse sell-off

FXStreet News FXStreet News 29.08.2023 16:55
Nio loses 8.1% at Tuesday openQ2 results showed revenue dropping 15% YoY.Q2 adjusted EPADS missed estimated by $0.04.Vehicle margin improved from Q1 but was cut in half from a year ago.Q3 delivery outlook calls for 55K to 57K, more than double the year before.Nio (NIO) stock has been recovering from a major gap down on Tuesday's open. Due to poor second-quarter results released early Tuesday, Nio fell as low as $9.46 after the open but has recovered up to $10.05 or -8.1% about 45 minutes into the session.Nio, the Chinese EV automaker, reported Q2 earnings and revenue that missed analyst expectations for the second quarter. Nio reported adjusted earnings per average diluted share (EPADS) of $-0.45 on revenue of $1.21 billion. Wall Street analysts’ consensus had been EPADS of $-0.41 on revenue of $1.27 billion.Nio missed revenue and GAAP earnings consensus in the first quarter as well. During that quarter, reported in June, Nio’s revenue of $1.55 billion had missed expectations by about $80 million.Nio stock earnings news: Q2 was dismal, but Q3 outlook improves drasticallyRevenue fell 15% YoY as vehicle deliveries, vehicle sales and margin all slipped. Deliveries in the quarter dropped 6% YoY to 23,520. Vehicle sales plunged 25% to $991 million. Vehicle margin declined from 16.7% one year ago to 6.7%, although that figure was better than Q1’s 5.1%.Part of this slide in margin can be attributed to customers opting for less pricey sedans rather than SUVs. Deliveries of SUVs fell 23% YoY, while sedan deliveries grew nearly 14%. Vehicle margin dropped drastically during Q4 of last year when SUV sales began dropping off precipitously. SUV deliveries were reported at 13,595 in Q2 2022 but just 10,492 in the current second quarter. Sedan deliveries rose from 11,464 in the quarter last year to 13,028 this year.NIO SUV/Sedan deliveries by quarterAn important caveat here is that Nio’s second quarter ended on June 30, and the following month of July saw deliveries of 20,462 that nearly overtook the entirety of the second quarter. While Q2 was a bust, the third quarter looks quite promising. Management is guiding for deliveries between 55,000 and 57,000 in Q3, which is an increase of about 150% from the second quarter.July’s large-scale increase in deliveries has “propelled Nio to the top position in China's premium electric vehicle market for vehicles priced above RMB300,000,” said CEO and Chairman William Bin Li.Based on disclosures in the press release, the government of Abu Dhabi – one of the seven members of the United Arab Emirates or UAE – now owns about 7% of Nio. During the second quarter, Abu Dhabi purchased an approximately $739 million stake directly from Nio and about $350 million in common stock from a subsidiary of Tencent (TCEHY). Nio stock forecastNio’s share price has been beset by a dismal second quarter, but opportunistic traders will hope to enter here in order to benefit from third-quarter results. August deliveries, for instance, will likely be reported on either Friday or Monday.NIO stock has descended back from its early August high just above $16 per share to a former supply/resistance zone ranging from $10.15 to $11.30. This would be a good spot to enter since the projected healthy delivery report for August should see NIO burst up to the $13 to $14 resistance range in short order. A break of $10.15, however, will produce more selling that sends the Nio stock price down to earlier resistance-turned-support at $9.50.NIO daily chart
South Korea requires crypto exchanges to set aside at least $2.3 million in reserves for customer protection

South Korea requires crypto exchanges to set aside at least $2.3 million in reserves for customer protection

FXStreet News FXStreet News 28.08.2023 17:01
Korea Federation of Banks requires crypto exchanges in South Korea to hold minimum reserves of 3 billion won, local media reports.Upbit and Bithumb are on track to comply with the requirement outlined in guidelines titled Virtual Asset Real-Name Account Operation Guidelines.The reserves will be used to fulfill the liability of damage to the exchange’s users. The Korea Federation of Banks is a bankers’ association, similar to the American Bankers Association. Its members are banks and financial institutions and it sets guidelines in lieu of protecting customer funds.The association recently issued guidelines for crypto exchanges, requiring a sum of 3 billion won or 30% of the average daily deposits to be set aside as reserves. This reserves would be used to make customers whole in the event of an event that results in a loss of funds for users.Also read: XRP price poised for recovery on popularity with South Korean traders and SEC lawsuit developmentSouth Korean crypto exchanges required to maintain $2.3 million in reserves South Korea has ramped up efforts to protect crypto traders from loss of funds at the behest of crypto exchanges. In its latest effort, the Korea Federation of Banks issued guidelines titled “Virtual Asset Real-Name Account Operation Guidelines,” according to reports by a local news agency News1.The guidelines require crypto exchanges operational in South Korea, like Upbit and Bithumb, to set aside reserves of $2.3 million (3 billion won) or higher, capped at $20 billion won. The actual value of reserves to be maintained is a minimum of $2.3 million or 30% of the exchange’s daily average deposits by users, starting September.According to the Federation, the funds from these reserves will come in handy when the exchange owes “damages” to users or has a liability for damage.After the collapse of exchanges like Samuel Bankman Fried’s FTX in November 2022, South Korean institutions and regulators have turned their attention to the protection of customer funds while setting guidelines for crypto exchanges operating in Korea. The move is likely to instill confidence in users and drive adoption of crypto trading across exchange platforms.
S&P 500 News: After Powell, PCE, Nonfarm Payrolls, Lululemon earnings beckon

S&P 500 News: After Powell, PCE, Nonfarm Payrolls, Lululemon earnings beckon

FXStreet News FXStreet News 28.08.2023 17:01
S&P 500 made first weekly gain of August after three straight weekly declines.China halves stamp duty on stock trading, sending market higher.Inflation data favored by the Fed arrives on Thursday.Jobs data will be released on Friday.Salesforce, CrowdStrike, Broadcom and LuluLemon Athletica release earnings this week.The S&P 500 has opened higher on Monday to start the week as investors look forward to a week of economic data prints and earnings, while they put the Jackson Hole speech from Federal Reserve Chair Jerome Powell behind them. In an attempt to backstop their equity markets, the Chinese central government has cut in half the stamp duty required for stock trading on the mainland. Chinese stocks traded in the US have all swung higher on the news.Equities initially went south on Friday during Powell’s speech, but the S&P 500 closed up 0.67% on the day and 0.82% on the week. This week traders will see if they can capitalize on last week’s end to August’s severe sell-off. The index lost 2.27%, 0.31% and 2.11% in the first three weeks of August, respectively.The market is mostly waiting on Thursday’s Personal Consumption Expenditures data for July and Friday’s Nonfarm Payrolls report for August. Both will have major ramifications for the index as lower inflation and new hiring would please the market in that it would make it less likely The S&P 500 opened the week up 0.5% in conjunction with the Dow Jones Industrial Average, while the NASDAQ Composite gained 0.75% initially.S&P 500 News: PCE, Nonfarm Payrolls ring in SeptemberIt is uncanny that the market is advancing on Monday morning now that expectations for another rate rise in November have now taken the majority. Belief in a higher terminal rate should have a negative effect on the index, since it would increase the cost of capital and reduce valuation multiples.CME Group’s FedWatch Tool tells us there is now a 57% chance that the Fed raises rates at the November meeting despite the figure being 33% just a month ago. although the market still largely thinks the September meeting will witness a pause. This splits off into a 48% chance that the central bank hikes 25 basis points and a 9% chance of a 50 basis point hike.In comes the Nonfarm Payrolls data for August and the Personal Consumption Expenditures (PCE) data for July to provide the market with more insight into the Fed’s thinking. Last Friday Powell reiterated that he was still open to more rate hikes but that the central bank under his leadership had already shown broad success. On Thursday, the US Bureau of Economic Analysis will unveil its PCE reading for July. This is the Fed’s preferred gauge of inflation, so it has more predictive power for the market. Wall Street expects 0.2% core growth in the price index compared with June and 4.2% on an annualized basis. That annual figure is slightly higher than June’s 4.1%.Salesforce, LuluLemon and other major tech companies report quarterly resultsMonday is free of important S&P 500 companies reporting, but later in the week a slew of them emerge. The most significant may be Wall Street favorite Lululemon Athletica (LULU) – who is expected to report $2.54 per share on $2.17 billion in sales. About two-thirds of analysts have revised earnings expectations higher for the quarter.Customer relationship management kingpin Salesforce (CRM) reports on Wednesday alongside security juggernaut CrowdStrike (CRWD). Wall Street expects Salesforce to report $1.90 in adjusted earnings per share (EPS) on revenue of $8.53 billion. Crowdstrike is expected to report $0.56 in adjusted EPS on revenue of $724.5 million.On Thursday, the $350 billion behemoth, Broadcom (AVGO), is expected to earn $10.43 in adjusted EPS on $8.86 billion in revenue. Most analysts have revised profits higher in the last few months.Earnings of the weekTuesday, August 29 - NIO (NIO), Best Buy (BBY), JM Smucker (SJM), Bank of Montreal (BMO), HP (HPQ)Wednesday, August 30 - Salesforce (CRM), CrowdStrike (CRWD), Brown-Forman (BF.A)Thursday, August 31 - Campbell Soup (CPB), Broadcom (AVGO), UBS Group (UBS), VMware (VMW), Dell Technologies (DELL), Lululemon (LULU)What they said about the market – Michael DardaChief economist Michael Darda of Roth MKM has taken note of the high yields at the front of the Treasury curve. Darda warned last week that short-term Treasury yields had given the S&P 500 a negative equity risk premium – something that has not happened in about 20 years."With Treasury bill yields now pushing about 5.5%, we now have a negative equity risk premium on the S&P 500 if we use the rates on risk-free cash assets as a discount rate, something that has not been seen since the early 2000s. [...] When this has been the case, major equity market corrections have ensued and short rates have come down."S&P 500 forecastThe S&P 500 found support back on August 18 at 4,335, and so far that is the lowest the index has moved during August’s setback. Only a break of 4,325 or 4,300 will worry traders. If either support level breaks, expect a swift move back to the top end of the 4,100 to 4,200 former supply zone. The S&P 500 index remains in a short-term downtrend as the 9-day moving average is trending below its 21-day counterpart. A break above the 21-day average will see day traders pounce and send the index back toward 4,500.S&P 500 daily chart
Breaking: Jerome Powell repeats at Jackson Hole they are prepared to raise rates further

Breaking: Jerome Powell repeats at Jackson Hole they are prepared to raise rates further

FXStreet News FXStreet News 25.08.2023 17:28
Jerome Powell, Chairman of the Federal Reserve System (Fed), said that they are prepared to raise rates further if appropriate in his opening remarks at the annual Jackson Hole Economic Symposium. Key takeaways from Jerome Powell's speech at the Jackson Hole Symposium"We intend to hold rates at restrictive level until confident inflation is moving sustainably down to 2%.""Fed will proceed carefully when deciding to hike again or hold steady.""Economic uncertainty calls for agile monetary policy-making.""Fed will decide next rate moves based on data.""Fed is attentive to signs the economy not cooling as expected.""Inflation remains too high, the process of bringing down inflation still has a long way to go, even with more favorable recent readings.""Two months of good data are only the beginning of what we need to build confidence on inflation path.""There is substantial further ground to cover to get back to price stability.""Need sustained progress on goods inflation.""Slowing rents point to slowdown in housing inflation, will continue to watch.""Need some further progress on nonhousing services inflation.""Policy is restrictive but Fed can’t be certain what neutral rate level is.""Fed will not change 2% inflation target. "Fed is mindful monetary policy faces risks on both sides.""Above trend growth could warrant more Fed rate rises.""Getting inflation back to 2% likely requires below trend growth.""Lowering inflation also likely to require softer labor markets.""Signs job market not cooling could also warrant more Fed action.""Seeing evidence inflation is becoming more responsive to labor markets.""July PCE seen at 3.3%, core at 4.3%."Market reactionThe US Dollar Index fell sharply with the initial reaction but quickly erased its losses to turn flat on the day at around 104.00 during Powell's speech. US Dollar price todayThe table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.This section below was published as a preview of FOMC Chairman Jerome Powell's speech at the annual Jackson Hole Symposium.Fed Chairman Jerome Powell will deliver a speech on the US economic outlook at the Jackson Hole Symposium.Powell’s comments on monetary policy and interest rate path will be scrutinized by markets.US Dollar could show significant reaction to Powell’s speech on the last trading day of the week.Jerome Powell, Chairman of the Federal Reserve System (Fed), will deliver opening remarks at the annual Jackson Hole Economic Symposium on Friday, August 25. Powell’s speech – titled “Economic Outlook” – is expected to offer important clues on the Fed’s next policy step and ramp up market volatility heading into the weekend.Following the Fed decision to hike the policy rate by 25 basis points (bps) to the range of 5.25-5.5% at the July policy meeting, Powell said in the post-meeting press conference that they have not made any decisions about any future meeting and reiterated the data-dependent approach. "We believe monetary policy is restrictive,” Powell told reporters and caused investors to refrain from pricing in another rate increase in September.Since the July meeting, however, macroeconomic data releases from the US fed into expectations that the Fed could still opt for one more rate hike before the end of the year. The real Gross Domestic Product (GDP) of the US expanded at an annualized rate of 2.4% in the second quarter, compared to the market expectation of 1.8%, while the annual Consumer Price Index (CPI) inflation rose to 3.2% in July from 3% in June. Although Nonfarm Payrolls rose less than 200,000 in June and July, strong wage inflation readings and the historically low Unemployment Rate of 3.5% reaffirmed that conditions in the labor market remain tight.According to the CME Group FedWatch Tool, investors see a more than 40% probability of the Fed lifting the interest rate one more time by 25 bps before the end of the year. The market positioning suggests that the US Dollar (USD) faces a two-way risk heading into the Jackson Hole event.In an interview with Yahoo Finance on the sidelines of the Jackson Hole Symposiu on Thursday, Boston Federal Reserve President Susan Collins said that the may be at a place where the Fed can hold the policy rate steady. Similarly, "right now I think that we've probably done enough and with monetary policy in a restrictive stance" Federal Reserve Bank of Philadelphia President Patrick Harker told CNBC.When is Powell speech at Jackson Hole and how could it affect the USD?Fed Chairman Jerome Powell is scheduled to deliver a keynote speech titled “Economic Outlook” on the second day of the annual Jackson Hole Symposium. Powell’s speech is scheduled to start at 14:05 GMT. In case Powell leaves the door open for one more rate hike, citing sticky core inflation and tight labor market, the US Dollar could start gathering strength against its rivals with the initial reaction. On the other hand, Powell could emphasize the data-dependency and adopt a more cautious tone regarding the growth outlook. Investors are likely to see that as a dovish sign given Harker and Collins' comments from the day before, triggering a USD selloff.Economists at Deutsche Bank don’t expect Powell to comment on the near-term policy outlook and explain:“The overall title this year is “Structural Shifts in the Global Economy”, and Chair Powell’s speech on Friday is simply given the heading “Economic Outlook”. Our US economists don’t expect Powell to send strong signals about the near-term policy path. However, recent years have seen Powell deliver some important longer-term policy messages. In particular, last year saw him deliver a fairly short and direct message on the importance of price stability, which left little doubt as to the Fed’s resolve to return inflation to target.”It’s worth mentioning that experts have already started to forecast Fed rate cuts as early as the second quarter of 2024. A recently conducted Reuters poll showed that a majority 80% of 110 economists do not anticipate any further interest rate hikes by the Fed this year. Moreover, a majority of the respondents expect the Fed to cut interest rates at least once next year, by the end of the second quarter.Even if Powell doesn’t offer any clues regarding the next interest rate step, he could push back against the rate cut expectations in 2024. In that scenario, the USD could regather strength even if it weakens against its rivals with the initial reaction.
Palantir Stock Forecast: PLTR gains on Friday open heading into Jackson Hole event

Palantir Stock Forecast: PLTR gains on Friday open heading into Jackson Hole event

FXStreet News FXStreet News 25.08.2023 17:28
Palantir stock lost 7.6% on Thursday.PLTR has traded lower on Friday ahead of Powell’s Jackson Hole speech.Key executives have been shedding stock-based compensation en masse this week.A large break to $10.25 support is likely at this juncture. Palantir (PLTR) stock gained 1.3% at the open on Friday despite trending lower in the premarket. The NASDAQ Composite, Dow Jones and S&P 500 index all rotated higher between 0.25% and 0.5%. Palantir, a leading data analytics company, witnessed its share price dive on Thursday. PLTR stock dropped 7.6% to close at $14.14. There is general uncertainty in the leadup to Friday’s keynote speech from Fed Chair Jerome Powell at the Jackson Hole economic forum. Adding to fears though are a string of Palantir executives selling partial stakes in the artificial intelligence-based software provider. Palantir stock news: Powell speech follows insider sellingAt 14:00 GMT (10:00 EST), Jerome Powell will provide Jackson Hole with the three-day forum’s primary event. The market expects Powell to continue touting his sermon on keeping interest rates elevated until the Federal Reserve is certain that core inflation is under control. The fed funds rate is in a range from 5.25% to 5.5% following the July hike, and the market largely thinks the terminal rate has been achieved.Any hint to the contrary should lead most tech stocks like Palantir much lower as growth stocks perform much better during low interest rate environments. The NASDAQ 100 index sold off 2.19% on Thursday as investors positioned for bad news out of Jackson Hole.If an upside surprise were to occur, it would likely come from Powell announcing interest rate cuts sooner rather than later. The Fed Chair has not provided color thus far as to when rates will decrease. Goldman Sach released a note this month predicting that rates won’t drop until May 2024. Adding to the unease in the market is this week’s string of insider selling filings. Of course, tech companies like Palantir provide executives with a good deal of stock-based compensation, so insider selling is not necessarily a major sign that the C-suite sees storm clouds on the horizon. Most often, executives just need to diversify their portfolios, pay off debt or make a major purchase like a home. However, five important insiders filed sales documents with the Securities & Exchange Commission (SEC) this week, so it’s not surprising that the influx of supply has dented the share price of Palantir. CEO and co-founder Alex Karp sold 325,000 shares on Wednesday at an average price of $15.40 – or about $5 million in total. He still owns over 6.4 million common stock shares.Chief Revenue Officer Ryan Taylor sold 30,049 shares on Thursday after selling 147,827 PLTR shares on Monday. Chief Financial Officer David Glazer sold 376,90 Palantir shares between Monday and Wednesday, cutting his share count from 658K to about 380K. Chief Accounting Officer Heather Planishek sold nearly 23K PLTR shares this week but still owns just under 800K. Chief Technology Officer Sankar Shyam sold 650,330 PLTR shares from Monday through Wednesday. Due to several new allotments of stock-based compensation, however, Shyam still owns more than 750K shares. Palantir stock forecastIt’s been more than two weeks since Palantir stock broke below the $17 support-turned-resistance level. With the 9-day Simple Moving Average (SMA) breaking below the 21-day SMA, PLTR stock is clearly in at least a short-term downtrend. In fact, Palantir stock is already down about 30% since topping out on August first near $20. If PLTR breaks below $13.56, and I think this is likely, then expect a swift move toward the bespoke support at $10.25. The Moving Average Convergence Divergence (MACD) indicator has fallen below the zero threshold, which often means a more drawn-out downtrend is in the cards.PLTR daily chart
Gold price tends to remain volatile as focus shifts to Jackson Hole

Gold price tends to remain volatile as focus shifts to Jackson Hole

FXStreet News FXStreet News 24.08.2023 16:57
Gold price recovers sharply, supported by Greenback’s correction as the US economy appears to lose resilience.US firms start to operate at lower capacity in line with a deteriorating demand environment.Jerome Powell at Jackson Hole might outline the benefits of higher interest rates for a longer period.Gold price (XAU/USD) recovered confidently as the US Dollar and Treasury yields faced selling pressure after S&P Global reported weak preliminary PMI data for August. Lower factory activity and bleak service sector growth raise concerns over the resilience of the US economy and strengthen hopes of a neutral commentary from Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole Symposium.Investors remain worried about the financials of US firms as rising interest rates and higher inflationary pressures force them to scale down their operating capacity in accordance with a deteriorating demand environment. If this situation persists, labor market conditions are likely to deteriorate.Daily Digest Market Movers: Gold price remains sticky ahead of Jackson HoleGold price continues its winning streak on Thursday as the US Dollar remains subdued and Treasury yields edged down ahead of the Jackson Hole Symposium.The precious metal strengthens as preliminary US PMI data for August released by S&P Global on Wednesday indicated that the economy is losing its resilience.The preliminary Manufacturing PMI came in at 47.0, underperforming expectations of 49.3 and July’s reading of 49.0. The Services PMI decreased to 51.0 against estimates of 52.2 and the former release of 52.3.Weak PMI figures signal the hit of tight monetary policy by the Fed on the economy.Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said: “A near-stalling of business activity in August raises doubts over the strength of US economic growth in the third quarter. The survey shows that the service sector-led acceleration of growth in the second quarter has faded, accompanied by a further fall in factory output.”The US central bank has raised interest rates aggressively to 5.25%-5.50% in a war against stubborn inflation. Inflation has come significantly lower to 3.2%, but investors are worried about how the Fed will reach the 2% desired rate as price pressures persist.Meanwhile, investors will focus on the commentary from Fed Chair Jerome Powell at the Jackson Hole Symposium.Jerome Powell is expected to underpin the need to keep interest rates higher for a longer period rather than opting for further tightening of the monetary policy.In July’s monetary policy meeting, Powell commented that more hikes were on the cards if economic data remained encouraging.Any comment about rate cuts by Powell at Jackson Hole will improve the risk-taking ability of market participants.Apart from the interest-rate guidance, the outlook on inflation and the US economy will be keenly watched.The US Dollar Index rebounds sharply despite the US Census Bureau reporting weaker than expected Durable Goods Orders. The economic data contracted by 5.2%, swinging from the 4.6% increase recorded in June. Investors anticipated a contraction of 4%.The 10-year US Treasury yields extended their correction to 4.19% after the PMI data suggested that the US economy is losing its resilience.Contrary to that, St. Louis Fed President James Bullard said the US economy faces risks of stronger growth. This could elevate the need for more interest-rate increases from the central bank to keep up the fight against inflation.Technical Analysis: Gold price juggles near two-week highGold price extends its four-day winning streak, supported by a correction in the US Dollar and Treasury yields as the PMI data prompted investors to question the resilience of the US economy. The recovery move in the precious metal pushes it above the 200-day Exponential Moving Average (EMA), suggesting that the long-term trend is turning bullish again. The yellow metal also climbs above the 20-day EMA but a closing above the same is highly required to keep the upside momentum.
Mullen Automotive Stock News: MULN plunges 28% following 68% rally

Mullen Automotive Stock News: MULN plunges 28% following 68% rally

FXStreet News FXStreet News 24.08.2023 16:57
Mullen failed to keep its share price above $1 for ten consecutive sessions. NASDAQ will delist MULN stock on or soon after September 5.Management handed its officers and CEO stock-based compensation on August 21. MULN stock rallied 68% on Wednesday following CEO shareholder letter. Mullen Automotive (MULN) stock slid 28% at the opening bell on Thursday. The stock is trading near $0.58 a day after MULN shares rallied hard after the chief executive released a shareholder letter.Mullen stock is destined for the pink sheets. The stock needed to achieve a close above $1.00 by the close of the regular session on Tuesday, August 22, and hold that threshold every session through September 5 (ten consecutive trading sessions) in order to retain its NASDAQ listing. Instead, MULN stock closed at $0.48 on Tuesday, and now shareholders can look forward to trading in the less liquid OTC market sometime after September 5.MULN stock shot up more than 68% on Wednesday after CEO David Michery released a statement about Mullen’s stock price struggles, but shareholders were already out of time. Mullen is again failing to benefit from Thursday’s equity market excitement following Nvidia’s (NVDA) record-breaking quarter. NASDAQ futures have gained 1.3% at the time of writing, while Mullen stock is trading more than 5% lower.Mullen stock news: Shareholder letter rallies the troops too lateCEO David Michery attempted to assuage the feelings of shareholders on Wednesday with his public letter. “I am very disappointed by the performance of our stock,” Michery wrote. “As I have previously publicly stated, I do not believe the trading price of our stock even closely resembles the Company’s actual value. It is evident that, regardless of meeting significant corporate milestones (i.e., vehicle production completion within projected timelines), stock traders continue to place downward pressure on the stock, causing the price to fall.”An interesting missing detail in the statement was that Michery did not disclose whether he had attempted to use the board’s entire $25 million allotted for buybacks in order to revive the share price. Beginning on August 16, the company repurchased 3.7 million shares of MULN stock for $3,626,000.Of course, it did not help the situation when the company filed documents with the Securities & Exchange Commission (SEC) on Monday to register 52 million new shares of common stock based on a 2022 equity incentive program. Additionally, the company awarded Michery with 14 million new shares based on a 2022 performance stock award agreement and 16 million shares for a 2023 performance agreement.Taken together, these incentive and performance awards should dilute existing shareholders by approximately 34%. So it’s not surprising that Mullen’s stock price is down roughly 20% since a week ago. Mullen management has mistreated shareholders for years due to near-constant dilution, so it’s unsurprising that shareholders were not there for them when they needed to hold onto their NASDAQ listing. Mullen stock forecastDon’t expect MULN stock to magically regain shareholder confidence as it gears up for its demotion to the pink sheets. Just look with awe at the value destruction from the monthly chart below. If you had purchased $1 million worth of MULN stock at its August 2020 high – only three years ago – it would now be worth $177.07. MULN monthly chart
Dow Jones Industrial Average Forecast: DJIA loses long-term support ahead NVDA earnings, Jackson Hole

Dow Jones Industrial Average Forecast: DJIA loses long-term support ahead NVDA earnings, Jackson Hole

FXStreet News FXStreet News 23.08.2023 16:47
Dow Jones shed about half a percentage point on Tuesday. DJIA lost 2.21% last week and has now broken below trendline support from September 2022.Mortgage Bankers Association releases data showing contraction in mortgage applications.Nvidia earnings call in Wednesday post-market excites equity futures.Market still broadly in suspense ahead of Fed Chair Powell speech on Friday at Jackson Hole.The Dow Jones Industrial Average (DJIA) has advanced 0.2% in Wednesday's first hour of Wall Street trading ahead of Nvidia’s (NVDA) heavily-anticipated earnings call in the post-market. Nvidia’s major beat-and-raise announcement back in May led to greater optimism among tech stocks, most of which rallied through July. The feeling is that outsized demand for Nvidia’s supply-constrained chips used in artificial intelligence applications could lead to another burst of energy.Otherwise, the Dow Jones index has lost about 0.6% so far this week, following last week’s -2.21% performance. Broadly speaking, the market is poised for negative headlines coming from Federal Reserve Chair Jerome Powell’s speech on Friday morning at the Jackson Hole, Wyoming, central bank event. Pundits expect more “higher for longer” talk to weigh on sentiment.At the time of writing in Monday’s premarket, Dow Jones, S&P 500 and NASDAQ 100 futures have all advanced close to 0.2%.Dow Jones News: Powell speech at Jackson Hole remains focusArriving in the middle of the three-day Jackson Hole event that runs from Thursday through Saturday, Fed Chair Powell’s speech remains the primary focal point of the week. Powell and other Fed governors seem to have finally gotten through to 2023’s buoyant equity markets that elevated interest rates will last into 2024. This is the whole “higher for longer” schtick that everyone keeps muttering about.The market spent the first half of this year ignoring Powell and company by expecting that the central bank would cut rates toward the end of the year. But Powell raised the fed funds rate by 25 basis points in July and said he was open to further hikes, albeit while striking a considerably more dovish tone. The CME Group’s closely watched FedWatch Tool puts the odds of a September rate hike at less than 14% and a November hike at less than 37%. Goldman Sachs strategists released a client note earlier this month, predicting that the central bank would not begin trimming rates until the second quarter of 2024. That means a rate-cutting environment would not be on the table for about nine more months, and this realization has finally begun to sober up markets. The Dow Jones is already down 3.57% in August, the largest monthly drop since February.If Powell suggests that another rate hike is needed before the year is out, then expect the Dow and other indices to experience a steep sell-off on Friday.Housing stats show signs of weaknessEarly on Wednesday the Mortgage Bankers Association (MBA) released its weekly Mortgage Applications data with a reading of -4.2%. This is the fifth week in a row that the data has been negative, and this week’s print was much worse than last week’s -0.8%.It would seem that 30-year mortgage rates that have climbed above 7% in the US market are having a severe impact on lending and demand for housing. On Tuesday, Existing Home Sales data in the US showed a 2.2% decline in July. This reading followed the 3.3% decrease recorded in June.The housing market in the US is keenly watched as a proxy for the overall economy, and at least some institutional investors may be getting cold feet as they watch the mortgage market begin to stall.Economic indicators that may also color the Fed Chair’s speech are Wednesday’s S&P Global Manufacturing and Services PMIs (Purchasing Managers’ Index) – which arrive after the opening bell – and Thursday’s Durable Goods Orders. Market consensus has the August Manufacturing PMI improving 40 basis points to 49.4 and the Services PMI remaining flat at 52.3. July Durable Goods Orders are expected to arrive at -4% compared with June’s 4.6%.What they said about the market – Chris HarveyWells Fargo’s Chris Harvey says the top 10 largest stocks in the market are likely the best place to be right now. This is because they are poised for further upside but could also be seen as safe havens if the market goes south. These stocks include: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Berkshire Hathaway (BRK.B), Meta Platforms (META), Tesla (TSLA), UnitedHealth (UNH) and Johnson & Johnson (JNJ)."The group has a unique potential payout structure. The stocks should do well during periods of economic uncertainty due to their growth, risk, and balance sheet attributes. But if there is a 'melt up' into year-end, the group probably catalyzes the rally due to its index weight."Dow Jones Industrial Average forecastThe Dow Jones index broke through the bottom trendline of an ascending triangle formation that began at the end of September 2022. That means this trend worked for nearly all of the past 11 months. Important to note, however, is that the index actually briefly broke through the trendline back at the end of May of this year.Still, breaking below that significant trendline should give investors pause. It could signify a further deterioration that leads the DJIA down to support at 33,700 – a mere 1.7% drawdown. Just as well, it’s possible that the 34,250 prior resistance level reinforces the index.However, a more sober reading of the tea leaves might predict a much more serious drop to the 32,500 to 32,800 range. The Relative Strength Index (RSI) has descended to a level (36) not seen since March, and a retouching of oversold levels (30 and below) may be in the cards.Dow Jones Industrial Average daily chart
Bearish crypto markets fear hawkish Powell at Jackson Hole: Scenarios for Bitcoin

Bearish crypto markets fear hawkish Powell at Jackson Hole: Scenarios for Bitcoin

FXStreet News FXStreet News 23.08.2023 16:47
Bitcoin suffered a sharp sell-off last week, sending BTC price to the $25,000 level. BTC price has typically reacted negatively to developments in the Jackson Hole Symposium over the past four years. With 88.3% of short-term Bitcoin holders sitting on unrealized losses, BTC price is likely to remain under pressure this week.Federal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday has the potential to trigger volatility for Bitcoin price and more broadly cryptocurrency markets, which have recently recorded sharp falls alongside other risk assets.Bitcoin price sustains above the key $25,000 level, broadly unchanged since the sharp decline seen on August 18 as investors appear to be cautious ahead of the key meeting, to be held between Thursday and Saturday.Papers shared in the symposium will shed light on the rapidly shifting monetary policy stance and the Fed’s policy response and its aftermath, in the context of the next decade. But the main focus will be on Powell’s speech, expected on Friday at 14:05 GMT. Fed Chairs generally use this meeting to signal policy shifts, but it is uncertain what Powell will do this time.Bitcoin investors are expecting interest rates to be higher for longer, partly explaining the selling pressure on the asset and its struggle to recover to the key psychological level of $30,000. If Powell asserts a hawkish message and reinforces expectations for additional rate hikes, BTC price could plummet lower in response.However, a scenario in which Powell welcomes the slowdown in inflation and signals that interest rates don’t need to be lifted any more, would likely increase demand for risk assets, including Bitcoin.Still, minutes from the Federal Reserve’s two-day July meeting showed that a majority of officials are in favor of further interest rate hikes. This suggests that the Fed’s job isn’t done, supporting the thesis of a hawkish stance from Mr. Powell.Also read: S&P Index edges lower as investors brace for Jackson HoleBitcoin doesn’t seem to like Jackson HoleAn historic analysis of Bitcoin price within a week of the symposium between 2018 and 2022 suggests that the Jackson Hole meeting strongly influences both S&P 500 and crypto prices.Typically, Bitcoin price has reacted negatively to the symposium each year.Bloomberg Intelligence put together a chart with Markets & Mayhem, showing a consistent increase in stock prices in the week following the symposium. However, in 2022, the S&P 500 marked its worst performance since 2001. This clear deviation from the regular response of the index has raised questions on what to expect in 2023. Bloomberg Intelligence’s chart for reaction of S&P 500 to the symposium Between 2019 and 2022, Bitcoin price has dropped between 3.5% to 10.5% in response to the developments in the symposium. In 2018, Bitcoin price yielded 7.72% gains, in positive correlation with the S&P 500 index.Bitcoin’s reaction to Jackson Hole Symposium 2018-2022 on BTC/USDT one-day price chartA hawkish stance from the Fed Chair’s and expectations of interest rate hikes tend to sting Bitcoin and cryptocurrency prices. While the S&P 500 has largely reacted positively to the Symposium over the past two decades, Bitcoin price wiped out its gains four out of five times in the week following the Policy Symposium.Bitcoin price has sustained above $25,000 after suffering a massive drawdown from the $29,000 level.An on-chain metric that explains Bitcoin’s recent price decline is the profitability of BTC among the short-term holder cohort. The short-term holder cohort is key because it comprises traders and investors that are more price sensitive compared to long-term holders. Usually, these investors’ holdings are likely to be sent to exchanges more quickly to realize profits or losses.In its recent report, on-chain analysts at the on-chain intelligence tracker, Glassnode, noted that 88.3% of BTC short-term holders are sitting on unrealized losses. This factor is likely to increase the selling pressure on BTC this week.Bitcoin short-term holder supply as seen on Glassnode An important question to answer Crypto investors are likely to look for signs on whether high interest rates in the US are likely to stay for a long time or if the central bank has plans to cut rates in 2024. With the Bitcoin halving approaching in 2024, the crypto ecosystem is awaiting the start of a new price cycle for the asset.A dovish stance from Powellcould act as a bullish catalyst for risk assets like Bitcoin and altcoins. An expectation of interest rate cuts in 2024 could further cement bullish hopes for the asset’s price rally post-halving.
Gold price surrenders gains as cautious market mood improves US Dollar appeal

Gold price surrenders gains as cautious market mood improves US Dollar appeal

FXStreet News FXStreet News 22.08.2023 16:46
Gold price falls back vertically as US Dollar delivers V-shape recovery.A tight US labor market could be a restricting factor for achieving price stability.Fed Powell’s speech at Jackson Hole is the key event this weekGold price (XAU/USD) faces selling pressure after failing to sustain above the crucial resistance of $1,900.00. The US Dollar recovers strongly as investors hope that higher interest rates by the Federal Reserve (Fed) for a longer period will impact risk-perceived assets. The precious metal recovers as investors seem confident that the Fed is not planning to raise interest rates further but also admit that rate cuts are unlikely to be under discussion this year.The US economy continues to remain resilient as the country’s labor market is extremely tight. Fed Chair Jerome Powell is likely to provide guidance on interest rates and the economic outlook in his speech at the Jackson Hole Economic Symposium. It will be worth watching whether Jerome Powell mentions the possibility of a recession due to restrictive monetary policy. On the economic data front, Durable Goods Orders data for July will be watched this week.Daily Digest Market Movers: Gold price faces pressure as US Dollar recoversGold price extends its recovery to near the crucial resistance of $1,900 as the US Dollar Index (DXY) corrects after failing to climb above the 103.50 hurdle.The precious metal strengthens as investors remain confident about the Fed keeping interest rates unchanged in its September monetary policy.US Treasury Yields struggle to extend upside, providing a level field ahead of the Jackson Hole Economic Symposium.Investors will keenly watch Fed Chair Jerome Powell’s commentary at Jackson Hole. Powell is likely to provide a roadmap over how to shred the ‘last mile’ of inflation and achieve price stability.Market participants are expecting that the commentary from Jerome Powell will not come with a warning of additional interest rate hikes. However, a strong message suggesting the possibility of higher interest rates for a longer period cannot be ruled out.Apart from the interest rate guidance, Powell’s outlook on the labor market and broad economic activity will be keenly watched.Morgan Stanley said a possible shift in thinking on the neutral rate deserves attention because it would imply a shift in the expected path for the policy rate and thereby the yield curve as a whole.Before the Jackson Hole event, investors will focus on the S&P Global PMI and New Home Sales data, which will be published on Wednesday.According to estimates, the Manufacturing PMI is expected to increase to 49.3 in August from 49.0 in July. The Services PMI is seen declining slightly to 52.2 from 52.3a a month earlier.Monthly New Home Sales for July are expected to increase despite higher mortgage rates.A major economic dataset will be US Durable Goods Orders for July, which will be released on Thursday at 12:30 GMT. Orders are expected to contract by a sharp 4.0%. In June, Durable Goods Orders expanded by 4.6%.The market mood turns cheerful despite the fact that Moody’s and S&P Global have downgraded the credit ratings of US commercial banks, citing risks of rising outflows in a high-interest rate environment.The US economy is expected to remain resilient as the labor market is extremely tight and construction spending is increasing despite higher interest rates.Fed policymakers say that the growth rate could slow down for a few quarters amid the agenda of achieving price stability.A survey conducted in July by the National Federation of Independent Business (NFIB) shows small businesses are much less worried about the health of their bank than they were in the immediate aftermath of this spring's bank failures, including that of Silicon Valley Bank.The NFIB survey conducted further shows that 52% of small-business owners say the economy is already in a recession. The percentage is down from the 55% recorded in April.Technical Analysis: Gold price drops to near $1,890Gold price delivers a two-day consolidation breakout but fails to maintain strength. The precious metal drops vertically as the US Dollar resumes its upside journey, providing a level field ahead of the Jackson Hole Symposium. The yellow metal rebounds after printing a fresh five-month low of around $1,885.00, but still trades below the 200-day Exponential Moving Average (EMA), which indicates that the long-term trend is bearish.
Baidu Earnings: BIDU rises 4% following 43% increase in adjusted earnings

Baidu Earnings: BIDU rises 4% following 43% increase in adjusted earnings

FXStreet News FXStreet News 22.08.2023 16:46
Baidu beat Wall Street consensus for the second quarter.BIDU stock jumped more than 4.5% on the news.Revenue rose 15% YoY at the Chinese search giant.Executives intimated their strong belief in utilizing new generative AI technology. Baidu (BIDU) stock surged in Tuesday’s premarket following the Chinese search giant’s release of a major earnings beat for the quarter ending June 30. Despite trading sideways all year due to a faltering Chinese economy, Baidu was able to raise revenue 15% YoY and witnessed a 43% increase in adjusted earnings per average diluted share (EPADS).Baidu stock has increased 4.5% to $130.50 at the time of writing, while NASDAQ 100 futures have gained 0.7%. Baidu stock newsBaidu reported $3.11 in adjusted EPADS in the quarter, beating Wall Street consensus by $0.78. In the Chinese currency Renminbi (RMB), this meant a rise from 15.79 RMB to 22.55 RMB YoY. Sales of $4.7 billion beat the consensus estimate by $130 million.“The improvement in profit and margins as well as strong cash generation were primarily driven by revenue acceleration and efficiency gain," said CFO Rong Luo.Luo said that core adjusted operating profit grew by 27% YoY as Baidu’s adjusted operating margin expanded from 22% to 25% over that time period."Generative AI and large language models hold immense transformative power in numerous industries, presenting a significant market opportunity for us,” said co-founder and CEO Robin Li. “To stay ahead of the game, we keep upgrading our models to generate more creative responses, while improving training throughput and lowering inference costs. Our latest foundation model, ERNIE 3.5, has been well recognized by our cloud customers, AI developers and industry experts.”In just the past month, it was reported that Baidu had ordered more than $1 billion worth of leading-edge AI chipsets from Nvidia (NVDA) for building its own generative AI systems, particularly ERNIE.Baidu’s iQIYI on-demand video platform grew revenue 17% YoY as well. However, the platform’s average daily number of total subscribing members fell nearly 14% from the first quarter while still rising 13% from a year ago.Baidu stock forecastBaidu stock has fallen severely in August after it reached the $154 to $161 resistance zone – which has remained significant for more than a year – on July 31. Having drifted sideways for the better part of two years, BIDU stock is now trading well below both its 50 and 100-day Simple Moving Averages (SMAs). At 27, the Relative Strength Index (RSI) is oversold, so this earnings rally should make a good entry point for bulls. The 100-day SMA sits near $136, and its 50-day counterpart is higher, close to $143. This means that despite sinking so swiftly in August, Baidu stock technically remains in a medium-term uptrend. Bulls will need to regain that 100-day SMA soon in order to keep it going.Support levels come at $125 and $117, although the daily chart shows that BIDU traded below the $125 level on Monday.BIDU daily chart
XRP price rally to $0.60 likely with recovery fueled by developments in SEC vs Ripple lawsuit

XRP price rally to $0.60 likely with recovery fueled by developments in SEC vs Ripple lawsuit

FXStreet News FXStreet News 21.08.2023 16:56
XRP price recovered over the weekend with no new filings from the regulator or Ripple in the SEC vs Ripple lawsuit. SEC addressed XRP as a “digital asset security” in its first lawsuit but is now taking a different approach.The financial regulator argues digital assets have no inherent value and are nothing but computer code.The ongoing SEC vs Ripple saga had no new updates over the weekend, and the XRP community of holders watched and waited as experts analyzed where the financial regulator is headed next. The Securities & Exchange Commission (SEC) said in its recent motion for interlocutory appeal that digital assets do not have an inherent value and are nothing more than computer code. The statement made by the financial regulator is in stark contrast to the beginning of the lawsuit where the SEC referred to XRP as a “digital asset security.”The shift in the SEC’s stance has fueled hope, of Judge Torres’ ruling on XRP being a “non-security” remaining intact. The regulator appears focused on the programmatic sales of the altcoin by payment giant Ripple.Also read: SEC vs Ripple, the legal battle intensifies as XRP holders expect new changes from SEC appealSEC appeal likely focused on programmatic sales of XRP, not its security statusExperts in the crypto and XRP community utilized the weekend to analyze the news of SEC’s motion for interlocutory appeal being accepted by the court. As both parties prepare to file new motions and responses by the scheduled deadlines, experts note the shift in the regulator’s stance. The SEC had initially maintained that XRP, the native token of XRPLedger, is a “digital asset security,” in its lawsuit against Ripple. The regulator states that digital assets have no inherent value and are nothing more than computer code in its latest filing.In its filing, the SEC reveals that the regulator did not argue that the asset underlying the investment contract was necessarily a security and it does not seek an appellate review of any holding relevant to the same in its case against Ripple.SEC motion for filing of interlocutory appealThe interpretation of the SEC’s stance by Fox Business reporter Eleanor Terrett and pro-XRP attorney John Deaton ushers relief in the community of XRP holders.With no new filings from the SEC or Ripple over the weekend, XRP price recovered from its decline and climbed past resistance at $0.55. At the time of writing, the altcoin is trading at $0.5291 on Binance. XRP price has rallied 25% from last week’s low of $0.4228 (Aug 17) to by early Monday.
Gold price comes under pressure as US Dollar rebounds

Gold price comes under pressure as US Dollar rebounds

FXStreet News FXStreet News 21.08.2023 16:56
Gold price falls back as the focus shifts to the Jackson Hole Economic Symposium.The US Dollar continues to enjoy liquidity amid caution about China’s economic outlook.United States August economic calendar could have a significant impact on the Fed’s September monetary policy meeting.Gold price (XAU/USD) surrenders gains and slips back below the crucial support at $1,900 as investors shift their focus towards the Jackson Hole Economic Symposium, which will start on Thursday. Investors will likely take clues from the event about the Federal Reserve’s (Fed) roadmap of achieving price stability without deviating from a low Unemployment Rate.Fears of a recession in the United States economy have receded amid tight labor market conditions and strong consumer spending momentum propelled by steady wage growth. Fresh predictions about Fed’s interest rate guidance signal that the central bank will keep interest rates at high levels until March 2024.Daily Digest Market Movers: Gold price faces sell-off as US Dollar reboundsGold price’s downside momentum fades after stabilizing below the crucial support of $1,900.00. However, more downside seems favored.The precious metal continues to face a sheer sell-off as the US Dollar Index (DXY) delivers a five-week winning streak.The appeal for the US Dollar improved last week as investors turned cautious about China’s economic outlook.Deflation risks are high in the Chinese economy due to weak demand and declining exports.The Chinese authorities are expected to deliver more fiscal support to uplift growth prospects and elevate hiring momentum.On Monday, the People’s Bank of China (PBoC) cut its one-year Prime Lending Rate (PLR) by 10 basis points (bps) to 3.45%, while the five-year PLR was left unchanged at 4.20%.The scale of the one-year PLR cut by the PBoC was lower than the 15bps expected cut.The US Dollar trades sideways on Monday as investors shift focus toward the Jackson Hole Economic Symposium, which will begin on Thursday.10-year US Treasury Yields jump to 4.3% as investors expect the Fed to further increase interest rates in the context of still high inflation.Federal Reserve chair Jerome Powell is expected to deliver the economic outlook and the interest rate guidance for September monetary policy at Jackson Hole.Investors are keen to know how the Fed expects to get rid of the ‘last mile’ of stubborn inflation to achieve price stability and keep the Unemployment Rate at low levels.Federal Open Market Committee (FOMC) minutes for July’s policy meeting indicated that the central bank will be more dependent on the incoming data for further action.The majority of Fed policymakers expect that interest rates haven’t peaked yet as labor market conditions are still tight and strong wage growth has increased the disposable income of households.A Reuters poll conducted between August 14-18 showed that the Fed will keep interest rates steady in September and will not cut rates before March next year. Meanwhile, the odds of a recession have dropped to 40%, the lowest in a year.Receding recession fears, tight labor market, and stubborn ”last mile” inflation could force the Fed to keep interest rates higher for a longer period.Technical Analysis: Gold price sets for further downsideGold price turns back-and-forth after recording a fresh swing low marginally below $1,885.00 on a daily time frame. For the past three weeks, each pullback move in the precious metal has been capitalized as a selling opportunity by market participants. The yellow metal trades below the 200-day Exponential Moving Average (EMA), which indicates that the long-term trend has turned bearish.Momentum oscillators suggest that a bearish impulse is extremely strong, which will keep volatility on the higher side.
Mullen Automotive Stock Forecast: MULN rises less than 1% despite need to attain $1.00

Mullen Automotive Stock Forecast: MULN rises less than 1% despite need to attain $1.00

FXStreet News FXStreet News 18.08.2023 16:13
MULN stock must maintain a share price above $1 for 10 consecutive sessions by September 5.Mullen announced on Thursday that it began repurchasing MULN shares on Wednesday.Mullen has already purchased $3.6 million worth of shares out of its $25 million mandate.Closing Thursday at $0.79, MULN stock needs to rise 26.6% to reach $1.00 – the threshold for retaining its NASDAQ listing. Mullen Automotive (MULN) has its work cut out for it as the date for meeting the NASDAQ’s listing requirements is just days away. MULN stock – closing Thursday at $0.79 after selling off an astounding 19.4% – has just three sessions left to regain the $1.00 threshold for remaining listed. This means MULN needs to rally at least 26.6% by the close of Tuesday, August 22.Thus far, MULN stock has gained 0.75% in Friday’s premarket as NASDAQ 100, S&P 500 and Dow futures all lose ground before the opening bell. NASDAQ 100 futures have receded 0.85% alone and are leading the other indices.Mullen stock news: MULN repurchases begin with $3.6 million buybackOn Thursday, Mullen announced that it had already used $3.626 million to repurchase 3.7 million shares of MULN stock. The repurchases began on Wednesday, August 16, but it has not stopped the share price from losing one-fifth of its value. Additionally, CEO David Michery also bought 102,040 shares for an average price of $0.9842 on Wednesday. Following Mullen’s 1-for-9 reverse stock split on August 11, the company had somewhere around 71.5 million shares outstanding. With the repurchase policy in effect, there should be fewer than 68 million shares outstanding already.NASDAQ Listing Rule 5810(c)(3)(H) states: “If a Company fails to meet the [Minimum Bid Price requirement], compliance is generally achieved by meeting the requirement for a minimum of ten consecutive business days.”Since the market is closed on September 4 for the Labor Day holiday, this means that MULN stock must maintain a share price above $1.00 for every session between August 22 and September 5. After that, it is up to NASDAQ’s discretion. NASDAQ staff can take into account how far above the $1.00 threshold the shares trade at, average trading volumes and trend direction.The Mullen board gave the leadership $25 million to spend on buybacks through the end of the year, so Mullen should have $21.4 million left to continue repurchasing. Expect MULN stock to move higher toward $1 over the next three sessions as management makes a last-ditch effort to retain its NASDAQ listing. If management fails to do so, then MULN stock will almost certainly slump drastically in September.Mullen stock forecastWhen you’re desperately trying to maintain a listing price threshold, it’s not a good thing to hit a new all-time low. But that is just what MULN stock did on Thursday. Mullen stock broke below the $0.90 support level to close at $0.79.The 21-day Simple Moving Average (SMA) sits at $1.10, so bulls or desperate shareholders better shoot for that level at least in order to maintain a safe distance from the $1 threshold. With a market cap of $56.5 million, the more than $21 million available for repurchases could do serious damage and possibly even inflict a short squeeze. According to data from the end of July, just under 20% of shares were sold short at that time.MULN daily chart
Bitcoin Weekly Forecast: More BTC liquidations than during FTX fallout, what’s next?

Bitcoin Weekly Forecast: More BTC liquidations than during FTX fallout, what’s next?

FXStreet News FXStreet News 18.08.2023 16:13
Bitcoin price decline on Thursday caused more crypto positions to get liquidated than during the FTX collapse in November 2022. The sharp move after weeks of stagnation has caught many investors off guard. The drop comes before Grayscale’s ETF decision, scheduled to take place on August 18 at 15:00 GMT.Bitcoin price crashed 15.70% from Monday’s open to the weekly low. But Thursday’s daily candlestick hit a low of 14% from its open, which is what caught many investors off-guard. As a result of this sudden shock, $855 million in long positions and $194 million in short positions were wiped out. Also read: Bitcoin price dips to the $25,100 range with $820 million long positions liquidated across the marketAs seen in the chart below, total BTC liquidations numbers are far greater than when the FTX exchange collapsed in November 2022. Nearly $2 billion in open interest evaporated in the last 24 hours.BTC liquidations chartDue to the consolidation, this downtick was not a surprise to a few traders, but the majority of crypto market participants seem to have been blindsided by the crash. Regardless, investors need to be cautious as the US Securities and Exchange Commission (SEC) is set to provide its decision over Grayscale’s Exchange Traded Fund (ETF) application on August 18 at 15:00 GMT. A positive response from the SEC will likely spur crypto markets to retrace their steps and recover losses. Due to an already largely negative outlook, a rejection or delay from the regulator might not have much effect on Bitcoin price.Read more: SEC delays decision on Grayscale's GBTC to ETF conversion after Ark Invest remissionBitcoin price breaches key support levelsBitcoin price has finally rid itself of bulls expecting BTC to clear $30,000 as it crashed nearly 14% on August 18. This move has the pioneer crypto trading around the $26,000 level, resting below two critical support levels – $25,205 and $24,300. The former was tagged in the recent crash, which was followed by a quick 7.29% upside retracement. In the coming days, these levels are likely going to be tagged, especially if the Grayscale ETF is rejected. From a technical perspective, however, the midpoint of the 2023 rally at $23,666 is a key level for accumulation. But considering the bearish outlook of the market and the breakdown of the 2023 bull rally’s market structure, a recovery that contests the bears is highly unlikely.The Relative Strength Index (RSI) and the Awesome Oscillator (AO) on the three-day chart show a grim outlook. The RSI has already slipped below the 50 level, signaling a takeover from bears amid declining bullish momentum. Additionally, the AO indicator has consistently produced reducing red histogram bars, suggesting an increase in bearish momentum as the possibility of a flip below the zero line grows higher. In such a case, BTC could drop down to the $21,313 support level. BTC/USDT 3-day chartOn the other hand, if Bitcoin price recovers above the $29,247 hurdle and flips it into a support floor, it will signal that the crash was a flush to quell early bulls and to trap short-sellers. In such a case, BTC needs to follow up and flip the $31,845 hurdle into a support floor to invalidate the bearish thesis.This move could further propel Bitcoin price to the next resistance level at $35,260, which is a confluence of key hurdles. Also read: Bitcoin likely to remain in red through the next quarter if history is any indication
Ripple opposes SEC motion to file an appeal, waits for final verdict in SEC vs Ripple lawsuit

Ripple opposes SEC motion to file an appeal, waits for final verdict in SEC vs Ripple lawsuit

FXStreet News FXStreet News 17.08.2023 16:26
Ripple and its executives opposed the SEC’s motion to file an appeal in the lawsuit.Ripple argues that there is no legal rule to back the SEC’s contention that the court reached the wrong result in applying the Howey Test to XRP.SEC vs. Ripple lawsuit cannot be terminated by appeal as payment giant says that ruling on XRP’s institutional sales still pending.The SEC filed a motion for an interlocutory appeal against Judge Torres’ ruling, citing the impact on the regulator’s other lawsuits.Ripple filed a motion asking the court to deny the SEC's request to file an interlocutory appeal. The payment giant explains that the SEC required the Howey Test to be applied to the Ripple lawsuit since the beginning of the legal battle, once its application resulted in an outcome that affects the SEC's other lawsuits, the regulator decided to file an appeal. There is no legal rule, according to the motion, to support the SEC's application for an appeal at this point in the case, ahead of the final ruling in the lawsuit.According to XRPL Layer 2 project builder and former lawyer Scott Chamberlain, the SEC “won on the law front and lost on the case facts.” Ripple and its executives argue that this does not justify an appeal ahead of a final verdict in the SEC vs Ripple lawsuit.Also read: XRP price likely to rally as Ripple gears up to hand US SEC a crushing defeat, according to pro-XRP attorneyRipple opposes SEC motion to appeal XRP rulingRipple, a cross-border payment remittance firm, filed a motion to oppose the financial regulator’s application to appeal the XRP ruling. Since the beginning of the SEC’s lawsuit against Ripple, the regulator insisted that the court apply the Howey Test to facts and determine whether XRP is an investment contract. Upon successful application of the Howey Test, Judge Analisa Torres determined that XRP in itself is not a security. The ruling handed Ripple a partial win against the SEC, and this outcome has influenced the regulator’s lawsuits against Coinbase and other cryptocurrency firms and projects. The SEC has applied to file an interlocutory appeal, asking the court to revisit the ruling and application of the Howey Test. In its filing, Ripple states that there is no legal rule backing the SEC’s request to file an interlocutory appeal. Further, the final verdict in the SEC vs. Ripple lawsuit could influence the outcome of the appeal. At the time of writing, XRP price is $0.5892 on Binance, recovering from the weekly low of $0.5717.
Coinbase Global Stock Forecast: COIN drops another 2% despite futures trading approval

Coinbase Global Stock Forecast: COIN drops another 2% despite futures trading approval

FXStreet News FXStreet News 17.08.2023 16:26
Coinbase trades lower for the sixth consecutive session.The National Futures Association approved Coinbase’s crypto futures trading plans on WednesdayCOIN stock has been in a downtrend since July 14.Support for Coinbase stock comes at $76, about 4% below the current price. Coinbase Global (COIN) stock has now traded lower in six straight sessions as of Wednesday, and Thursday might make it seven. COIN stock lost 2% to trade at $77.45 in the first half hour of the regular session on Thursday. The overall market is mixed as the Dow Jones index advances slightly and the NASDAQ Composite pulls back gingerly.The crypto exchange announced Wednesday that it had received regulatory approval to launch crypto futures, and COIN shares initially advanced nearly 4% on the news before worrying FOMC Minutes sent the overall market and COIN into a tailspin.The FOMC Minutes from last month’s Federal Reserve meeting showed that a majority of governors thought further tightening would be required to get a handle on core US inflation. However, the CME FedWatch Tool gives only an 11% chance that the central bank raises rates at its September policy meeting and a 33% chance it does so at the December meeting.Coinbase stock newsCoinbase received approval for its futures platform from the US National Futures Association (NFA), a self-regulatory institution designated by the Commodity Futures Trading Commission (CFTC). The approval gives Coinbase the right to become a futures commission merchant."Coinbase will now be the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures, on an integrated trading solution for our verified customers," a company spokesperson said in a statement.Coinbase executives began the process of seeking futures permission back in September 2021, so the whole ordeal took nearly two years to bear fruit. Last year Coinbase purchased the regulated derivatives exchange FairX and changed its name to Coinbase Derivatives Exchange. “The global crypto derivatives market represents ~75% of crypto trading volume worldwide and is a critical trader access point,” Coinbase said in a statement. “The ability to trade using margin gives customers leverage and access to the crypto market with less upfront investment than traditional spot trading.”Already this year alone, Coinbase reports that $4.7 billion in notional value of Bitcoin futures have been traded on the platform. Additionally, $2 billion worth of Ethereum futures have exchanged hands. In other news, filings from prominent hedge fund Coatue Management show it sold 637K class A shares of Coinbase during the second quarter.Coinbase stock forecastCoinbase stock has been trending lower since the July 14 range high at $114.43. On August 3, COIN’s 9-day Simple Moving Average (SMA) broke below its 21-day SMA counterpart, foreshadowing further downside movement. Last week, COIN broke through the significant $85 level that served as staunch resistance in both February and March. The next level to tackle comes at $76. That level also proved to be stubborn resistance in July through October of 2022 and then separately as support in early July 2023. Coinbase is already slightly below the 50-day SMA, and the 100-day SMA sits near $70. COIN stock could soon enter into oversold territory as it has reached 39 on the Relative Strength Index (RSI). Typically, an RSI reading below 30 means an entity is oversold.COIN daily chart
Dow Jones Industrial Average Forecast: DJIA advances, while NASDAQ slides

Dow Jones Industrial Average Forecast: DJIA advances, while NASDAQ slides

FXStreet News FXStreet News 16.08.2023 16:37
Dow Jones shed more than 1% on Tuesday. Intel ends plans to buy China’s Tower Semiconductor.Dow component The Home Depot spiked on consensus earnings beat on Tuesday.Cisco reports earnings after Wednesday close, Walmart reports earnings results on Thursday.July US Retail Sales on Tuesday showed strong gains compared to June. The Dow Jones Industrial Average (DJIA) is advancing cautiously on Wednesday morning after major retailer Target (TGT) strongly reversed its recent quarterly reports by this time offering up a 27% consensus beat on the bottom line. TGT shares jumped 9% on the news.Also helping the index are US Treasury yields, which are falling all along the yield curve. The DJIA dropped a full percentage point on Tuesday when yields trended strongly in the opposite direction. The negative sentiment stems from the People’s Bank of China (PBoC) offering a surprise cut to interest rates in order to shore up its faltering economy. The world’s second-largest economy might fail to reach a 5% growth target this year. On Tuesday, July US Retail Sales came in above expectations, once again showcasing a strong US economy in the face of a high interest rate environment. The economic indicator gained 0.7% on a monthly basis, far exceeding the 0.4% consensus forecast and leading some economists to predict a 3% annualized GDP growth rate for Q3.That was a good leading indicator for the week since the stock market sees a number of major retailers deliver their Q2 earnings results in parallel. These include Dow Jones components The Home Depot (HD) and Walmart (WMT).At the time of writing in Monday’s premarket, the S&P 500 has gained about 0.1%, while the NASDAQ Composite drifts 0.15% lower. This generally means value and large-cap stocks are gaining while growth stocks are fading.Dow Jones News: Home Depot, Walmart, Cisco, IntelDow Jones member The Home Depot (6.3% weighting) initially saw its share price spike quite a bit after releasing earnings early Tuesday. The home improvement retailer reported $4.65 in GAAP earnings per share (EPS), a 4.5% consensus beat, on $42.92 billion in sales, which surpassed the average forecast by nearly $690 million.Cisco Systems (CSCO) (1% weighting) will report after the close on Wednesday. Wall Street expects adjusted EPS of $1.06 on revenue of $15.05 billion as analysts have unanimously revised upward this quarter’s profit prospects.Then Walmart (3% weighting) reports on Thursday with what is the most-anticipated earnings release of the week. Analysts have a consensus forecast of $1.71 in adjusted EPS on sales of $159.3 billion. Target’s successful but mixed results portend a decent showing for America’s largest brick-and-mortar retailer. Target handily beat on the earnings portion of its results but missed the consensus sales forecast by $460 million.Intel (INTC) (0.6% weighting) has axed its plan to acquire China's Tower Semiconductor (TSEM) after failing to receive the necessary approvals from Chinese regulators. Intel now has to pay a $353 million termination fee to Tower Semiconductor. INTC stock shed 2.6% on Tuesday but is slightly ahead in Wednesday's premarket.Building permits, Housing starts, FOMC minutes arrive WednesdayThey may not be quite as significant as the standout US Retail Sales data from Tuesday, but further economic indicators this week could affect the index in sum total.The US Census Bureau released data on July’s Building Permits and Housing Starts before the bell on Wednesday. Both indicators served up beats to consensus. Building Permits rose 0.1% MoM compared with the -1.7% reading expected. Housing Starts arrived at 1.452 million, above the 1.448 million that had been forecast.Later in the afternoon on Wednesday, 14:00 EST, the Federal Reserve is slated to release the minutes from its most recent FOMC meeting. The market expects the Fed to pause interest rate hikes at its September meeting, so special interest will be given to any details that counteract that narrative.Thursday’s report on Initial Jobless Claims for the week ending August 11 has analysts expecting 240K, slightly below the 248K reading from a week earlier.What they said about the market – Marko Kolanovic JPMorgan’s Marko Kolanovic argued in an investor note on Monday of this week that it is “too early to declare victory on inflation.” Kolanovic blamed a return to strong economic growth and rising commodity prices for the situation. His line of thinking portends a longer period of central banks keeping interest rates elevated.“The coming months should see core goods inflation slide, but we believe it is unlikely that this impulse will prove sustained with the global industrial sector set to return to growth and commodity prices now moving higher, and core services inflation is likely to prove sticky.”Dow Jones Industrial Average forecastThe Dow Jones index broke well below its short-term moving averages on Tuesday, while the 9-day Simple Moving Average (SMA) also crossed below its 21-day SMA. Both of these events foreshadow a continuing downtrend.The most recent range high for the index came on August 1 at 35,679 – squarely within the 35,200 to 35,750 resistance zone that traders had been watching. Since the DJIA recently broke through the top trendline of an ascending wedge formation on July 18, that trendline might turn into support for the index. It comes at 34,712 and is in line with the range high on December 13, 2022.If that trendline fails to serve as support, then the Dow Jones index may descend to the ascending lower trendline of the wedge formation near 34,400. The Moving Average Convergence Divergence (MACD) has crossed over bearishly and gestures toward a longer-lasting downtrend.Dow Jones Industrial Average daily chart
Coinbase gets approval to offer crypto futures trading to eligible US customers

Coinbase gets approval to offer crypto futures trading to eligible US customers

FXStreet News FXStreet News 16.08.2023 16:37
Coinbase becomes the first crypto-native exchange to receive approval to roll out Bitcoin and Ethereum futures to eligible US customers, alongside spot trading. The National Futures Association granted Coinbase approval to operate as a Futures Commission Merchant. Coinbase’s Chief Legal Officer welcomed the decision while the SEC lawsuit is underway.Coinbase, one of the largest cryptocurrency exchanges, said Wednesday that it has received regulatory approval to roll out crypto futures trading in the US, becoming the first crypto-native exchange to offer these services alongside crypto spot trading on its platform.The approval, secured by the National Futures Association (NFA) – an entity overseen by the Commodity Futures Trading Commission (CFTC) – represents a key milestone for Coinbase in its path to offer regulated crypto trading to eligible US customers. It also comes at a time when the exchange faces a lawsuit from the US Securities & Exchange Commission (SEC).Also read: XRP price likely to rally as Ripple gears up to hand US SEC a crushing defeat, according to pro-XRP attorneyCoinbase secures approval to offer Bitcoin, Ethereum futures The exchange had filed an application with the NFA in September 2021 to register as a futures commission merchant, a license that allows investors to buy and sell futures on Coinbase.In a statement, Coinbase said that the approval represents “a critical milestone” for the company, which will become “the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures."Coinbase recently made headlines for the lawsuit brought forward by US financial regulator, the SEC, against the exchange for allegedly operating as an unregistered securities exchange. The exchange’s Layer 2 chain BASE also suffered its second rugpull within days of launch. Find out more about it here.Paul Grewal, Coinbase’s Chief Legal Officer, welcomed the approval and thanked the CFTC for providing regulatory clarity.Grewal acknowledged that the exchange’s legal team is still working on making headway in the lawsuit brought against Coinbase by the US SEC. Why is future trading important? In its official announcement, Coinbase notes that the global crypto derivatives market represents around 75% of the total crypto trading volume worldwide. In 2022, Coinbase acquired a CFTC-regulated futures exchange, FairX,known as the Coinbase Derivatives Exchange.The derivatives exchange is open to third-party brokers, futures commission merchants and market makers. In 2023, Coinbase established a deep liquidity pool on this platform with $4.7 billion in Bitcoin and $2 billion in Ethereum futures.The approval sets the pace for rollout of these services and products to eligible US customers and bring them alongside crypto spot trading on its exchange, Coinbase said.
Nvidia Stock News: NVDA makes gains despite market pullback

Nvidia Stock News: NVDA makes gains despite market pullback

FXStreet News FXStreet News 15.08.2023 16:52
Nvidia climbed 7.1% on Monday as NASDAQ gained 1%.UBS raised its price target on NVDA to $540 early Tuesday.July US Retail Sales strongly surpassed consensus.NVDA stock is about 9% off its all-time high from July 14. Nvidia (NVDA) stock, up 1% in the early Tuesday session, is running against market direction after UBS raised its price target on the leading maker of computer chips for the artificial intelligence industry. The stock rose more than 7% on Monday.July US Retail Sales failed to lift US equities despite a noticeable beat. Released one hour before the opening bell on Tuesday, the data revealed a 0.7% MoM growth rate in July. The consensus forecast had been 0.4%, already an improvement over June’s 0.2%. The market is selling off on Tuesday as US Treasury yields continue their march higher. The Dow Jones Industrial Average, the S&P 500 and the NASDAQ Composite are all down about 0.8% at the time of writing.Nvidia stock news: UBS raises price target to $540UBS analyst Timothy Arcuri wrote in a client note on Monday that investors should “stay the course” with Nvidia ahead of Q2 earnings that arrive on August 23, next Wednesday.Arcuri raised his NVDA price target from $475 to $540, saying that short-term supply constraints on Nvidia’s H100 and A100 GPUs should lead to better profitability. Recent news emerged that Saudi Arabia and the United Arab Emirates are both stockpiling thousands of the expensive chips for their own generative AI plans. Arcuri suggested that Nvidia will raise its outlook on the August 23 earnings call, and he now posits Nvidia CEO Jensen Huang will guide for $14.5 billion in third-quarter revenues following the last earnings call’s hefty raise to $11 billion in Q2 sales.The UBS analyst says to expect $10 in earnings per share (EPS) for Nvidia this year and $17 for next year. This would mean that Nvidia is only trading for less than 26 times next year’s earnings, which would make it much cheaper than it currently looks.Wall Street consensus for the second quarter is $11.06 billion in revenue on $2.08 in EPS.Nvidia’s major turnaround on Monday thrust the share price back up to the 9-day Simple Moving Average, which just crossed below its 21-day SMA counterpart in the previous week. The premarket price is also close to retesting the 21-day SMA. A break above here in the regular session will signify that the rally is back on.The overall market has been trending lower in August, but expect NVDA price to rise as the August 23 earnings date nears. Traders will want to be positioned well in case another gap up occurs like it did at the Q1 earnings call three months ago. The Moving Average Convergence Divergence (MACD) has turned bearish, but expect this indicator to also flip positive ahead of next Wednesday.NVDA daily chart
RBNZ Interest Rate Decision Preview: Holding on the hold

RBNZ Interest Rate Decision Preview: Holding on the hold

FXStreet News FXStreet News 15.08.2023 16:52
The Reserve Bank of New Zealand is expected to keep the OCR unchanged at 5.5% in August.The Kiwi is poised for stability but could react sharply to any surprises.NZD/USD maintains a bearish bias but appears to be setting up for a potential correction.On Wednesday, August 16th, the Reserve Bank of New Zealand (RBNZ) will announce its decision on monetary policy. It is expected to keep the Official Cash Rate (OCR) unchanged at 5.5%. The central bank will release its Monetary Policy Statement, including new macro forecasts, and there will be a press conference with Governor Adrian Orr and other members of the Monetary Policy Committee.Official Cash Rate - Source: RNBZAt the last meeting on July 12th, the RBNZ left the OCR unchanged at 5.5% as widely expected. It was the first hold since the bank started its tightening cycle in 2021. The statement contained little changes from the previous one. It noted that interest rates "are constraining spending and inflation pressures as anticipated and required." The central bank acknowledged that the outlook for the housing market "has become more balanced" and house prices "have returned to more sustainable levels." The RBNZ reiterated that "interest rates will need to remain at a restrictive level for the foreseeable future to ensure consumer price inflation returns to the 1 to 3% target range while supporting maximum sustainable employment." During the second quarter, the inflation rate reached 6.0% (annual), in line with the central bank's projection of 6.1%. For now, the questions regarding the RBNZ are not when it can raise or cut rates, but for how long rates will remain at the peak. The central bank is expected to keep rates unchanged on Wednesday and at the next meeting. The interest rate market shows less than a 10% probability of a rate hike in October and around 30% for November.What happens if the RBNZ surprises?The RBNZ is unlikely to make changes, and any surprise could come from the statement and a change in the forward guidance or the macroeconomic forecasts. At this point, the surprise could be in either direction, with optimistic or pessimistic forecasts, or by offering a hawkish or dovish interest rate outlook.A positive for the Kiwi would be if the RBNZ opens the door to a rate hike or makes an implicit commitment to further monetary policy tightening. Such a scenario should temporarily strengthen the New Zealand Dollar against its main rivals.If the RBNZ suggests that the time for cutting rates has approached or anything close to that, the Kiwi will likely suffer significantly, considering the current context for the currency and the divergence with what other central banks are doing.NZD/USD outlook with the Reserve Bank of New ZealandThe NZD/USD weakened modestly after the July RBNZ decision, but ended the day sharply higher on the back of a weaker US Dollar following the US Consumer Price Index reading for June. The pair peaked two days later at 0.6411, the highest level since February, and then started a descending move that is still ongoing.The pair has recently broken below 0.6030 and is testing levels under 0.6000, trading at the lowest since November of last year. A recovery above 0.6030 would alleviate the bearish pressure. The Kiwi would need a daily close above 0.6120 (20-day Simple Moving Average) to gain support for a significant recovery. On the contrary, while under 0.6000, more losses seem likely, with the next strong support around 0.5870. Technical indicators are starting to turn to the upside, suggesting some correction or consolidation might be on the cards. In the unlikely scenario of a surprise from the RBNZ, the correction could either be averted or fueled.
UK Employment Preview: Good news could be bad news for the BoE

UK Employment Preview: Good news could be bad news for the BoE

FXStreet News FXStreet News 14.08.2023 16:46
The BoE Monetary Policy Committee will pay extra attention to wage growth on Tuesday.The UK Consumer Price Index will be released 24 hours after employment data.GBP/USD dangerously close to the neckline of a Head&Shoulders formation.The United Kingdom (UK) will publish its monthly employment report on Tuesday, August 15, and financial markets are anticipating some good news. The announcement will be made 24 hours ahead of the July Consumer Price Index (CPI), which means both releases could define the Bank of England's (BoE) next steps.Shedding light on future BoE’s decisionsThe BoE was the first central bank that understood and said out loud that the economy would likely face a recession amid monetary tightening to fight inflation. Still, the central bank’s current rate stands at 5.25%, pretty much matching the Federal Reserve (Fed) and among the highest rates between major economies. At its latest meeting, the Monetary Policy Committee (MPC) voted for a 25 basis points (bps) hike and ruled out the likelihood of a recession while clarifying their decision mainly as a result of wage growth.Average Hourly Earning Excluding Bonus are expected to have risen by 7.4% in the three months to June, higher than the 7.3% previous. Including bonuses, average hourly earnings are foreseen at 7.3% in the same period, up from 6.9% in the prior reading. At the same time, the ILO Unemployment Rate is foreseen steady at 4%, while financial markets anticipate the Claimant Count Change for July will be down by 15K, following an increase of 25.7K in June. Bottom line, the labor market is expected to remain tight while inflationary pressures are seen increasing. In the meantime, the UK economy lacks impulse, and so does the Pound.At the same time, the UK CPI inflation rate stood in June at 7.9% YoY, outpacing wage growth, and is foreseen at 6.8% over the year to July.The anticipated figures for employment and inflation mean the Bank of England would need to stay on the tightening path, which in the end, fuels the odds of a steep economic setback.The British Pound could benefit from easing wage growth and from an uptick in the Unemployment Rate, while the opposite scenario could boost speculation of higher rates and hence, a higher risk for a recession.GBP/USD technical outlookFrom a technical perspective, GBP/USD seems on the brink of a bearish breakout. The daily chart shows a Head&Shoulders formation, with the neckline standing at around 1.2600. The top of the figure is July's monthly high at 1.3140, roughly 540 pips above the mentioned neck and the extent of the potential slump once the latter is pierced. It is worth adding that the second shoulder is higher than the first one, usually strengthening the formation.Additionally, the same chart shows that the 20 Simple Moving Average (SMA) has accelerated north well above the current level as GBP/USD approaches a mildly bullish 100 SMA, providing dynamic support at 1.2610, further reinforcing the critical support area. At the same time, technical indicators turned sharply lower within negative levels, although still far from oversold readings, leaving plenty of room for a downward extension.
S&P 500 Forecast: Index drops on Monday open with Target, Walmart, Home Depot earnings ahead

S&P 500 Forecast: Index drops on Monday open with Target, Walmart, Home Depot earnings ahead

FXStreet News FXStreet News 14.08.2023 16:46
S&P 500 has given up 2.72% so far in August. The index is in an official short-term downtrend.Target, Walmart and Home Depot release quarterly earnings this week.US Census Bureau reports July US Retail Sales on Tuesday.S&P 500 opened Monday lower alongside other major indices.The S&P 500 traded off about 0.1% in the first half hour on Monday. The NASDAQ Composite pulled back a similar level, while the Dow Jones Industrial Average contracted 0.2%.The S&P 500 declined last week for its second week in a row, down 0.31%. Monday, August 7 witnessed an impressive rally, but the optimism quickly dissolved as mega cap stocks pulled back amid higher US Treasury yields. Friday’s hotter-than-expected Producer Price Index (PPI) did not help things as traders digested data showing that inflation was more sticky than previously thought.This is the week of retail for S&P 500 earnings in the second calendar quarter. Home and construction retail giant The Home Depot (HD) reports earnings on Tuesday. Home Depot earnings will then be followed by Target (TGT) and Walmart (WMT) on Wednesday and Thursday, respectively. Tuesday will also see the release of US Retail Sales for July, which nicely complements the market’s theme. Analysts expect the data to improve at a better clip than June.S&P 500 News: Home Depot, Walmart, Target, Cleveland-CliffsSome of the biggest names in US retail report results this week. First up is The Home Depot. The dividend stalwart is expected to unveil earnings of $4.44 (“you’re crazy for this one, Rick”) on revenue of $42.19 billion.That is quite the pullback from a year ago when The Home Depot earned $5.05 per share on sales of $43.79 billion, and analysts (all 28) have uniformly revised their profit expectations lower for the hardware chain over the past three months. In the first quarter (quarter ending in April), The Home Depot missed revenue consensus by more than $1 billion.Target is yet another retailer that has faced obstacles this past year, including plenty of organized theft that is estimated to be costing the company in the hundreds of millions annually. This quarter Wall Street expects adjusted earnings to arrive at $1.43 per share on $25.26 billion. This would amount to a great increase coming off Target’s profitability lowpoint the same quarter one year ago but would still mean a fall from year-ago revenues of $26.04 billion or a 3% decline.Earnings beats from either The Home Depot or Target could usher in more optimism for the entire S&P 500 basket of stocks as big box retailers have caused plenty of negativity this year. Target’s share price is down 13.6% YTD, while The Home Depot has only recently reached positive territory but still underperformed the S&P 500 index by a large margin.Walmart is the major retailer thought to have the best chance of beating earnings this week. Analyst were mixed in their earnings revisions this quarter, but a slight majority raised its outlook on Sam Walton’s empire. Consensus for the second quarter comes to $1.70 in earnings per share on revenue of $159 billion – not bad but still down from $1.77 one year ago. In addition, much talk has been generated from US Steel’s (X) dismissal of Cleveland-Cliffs (CLF) acquisition offer. On Sunday, the latter said its cash and stock offer amounting to approximately $32.53 a share made on July 27 was rebuffed by US Steel.The admission has still caused US Steel’s share price to jump more than 27% in Monday’s premarket as the company said it had begun a strategic review and might be open to further offers. Cleveland-Cliffs management says the combined company would become a top-ten global steel producer and create synergies of $500 million.US Retail Sales forecast for uptick in JulyThe US Census Bureau will unveil July US Retail Sales an hour before Tuesday’s market open. Quite optimistically, Wall Street consensus is expecting a 0.4% MoM rise in retail consumption growth, double the 0.2% figure from June. If the results are in line, expect Walmart, The Home Depot and Target, among others, to rally on the news.Not as significant but still watched will be Thursday’s report on Initial Jobless Claims for the week ending August 11. Analysts expect 240K, slightly below the 248K uptick a week earlier.Earnings of the weekMonday, August 14 - Rumble (RUM), SNDL (SNDL)Tuesday, August 15 - Home Depot (HD), On Holding (ONON), and CAVA Group (CAVA).Wednesday, August 16 - Cisco (CSCO), TJX Companies (TJX), Target (TGT), JD.com (JD)Thursday, August 17 - Walmart (WMT), Applied Materials (AMAT), Ross Stores (ROST)Friday, August 18 - Deere (DE), Palo Alto Networks (PANW)What they said about the market – Jan HatziusGoldman Sachs’ revered chief economist Jan Hatzius wrote in a note on Monday that he does not expect the Federal Reserve to wait for a growth scare in order to begin cutting interest rates. This places his in the ever-enlarging "soft landing" camp. However, Hatzius went on record to say that those cuts are unlikely until the second quarter of 2024. That’s about 10 months away (but who’s counting?)."We expect core PCE inflation to have fallen below 3% on a year-on-year basis and below 2.5% on a monthly annualized basis, and wage growth to have fallen below 4% year-on-year."S&P 500 forecastThe S&P 500 is in a downtrend. It started on July 27, when the index caved after reaching the 4,590 to 4,637 resistance zone. Then last Wednesday, August 9, the 9-day Simple Moving Average (SMA) finally crossed below the 21-day SMA, and the index has continued to drift lower. There is some historical support at 4,400, but more ample support exists at 4,300 and 4,325. That is the most likely entry point for bulls. If not, the 4,200 resistance level may turn into support as well.The Relative Strength Index (RSI) has just crossed below 50, a level it has not seen since March. The daily chart RSI has not touched the accepted oversold level of 30 since last September, so it is unsurprising that the market has decided to hit the breaks. If short-term Treasury yields continue to drift higher, expect the index to experience a deeper pullback than otherwise.S&P 500 daily chart
Bitcoin and altcoin prices could benefit from cooling inflation, US PPI for July exceeds expectations

Bitcoin and altcoin prices could benefit from cooling inflation, US PPI for July exceeds expectations

FXStreet News FXStreet News 11.08.2023 16:44
US PPI for July 2023 grows by 0.8% YoY, exceeding the expectations of market participants. Bitcoin price continued to range below the $30,000 level, after wiping CPI gains. Risk assets are likely to see an increase in volatility and a rally in prices as numbers suggest inflation is cooling off.The US Producer Price Index (PPI) measures the cost of goods from the producers' perspective. This implies that higher PPI numbers signify higher inflation, which could lead to interest rate hikes. Bitcoin price ranges below $30,000 in response to US PPI data release Risk assets like Bitcoin typically see a spike in demand from investors in response to rising inflation. In general, inflation tends to devalue a currency in the long term, and applying the same here, it acts as a bullish catalyst for Bitcoin and altcoin prices.Moreover, it's important to note that the price impact and magnitude of the rally in risk assets also depends on other economic indicators and catalysts in the ecosystem.The US PPI inflation rate was expected to rise from 0.1% to 0.7% YoY in July, but it exceeded market expectations by a slim margin coming at 0.8%. This number is likely to convince the US Federal Reserve that inflation is under control and there is no necessity for future interest rate hikes.The PPI data reveals costs are cooling mainly in line with market expectations and Bitcoin has shown bullishness around the numbers. If the US Federal Reserve has less need for aggressive interest rate hikes, it is a bullish sign for BTC holders and traders. Just as higher interest rates are known to bring BTC price rallies to a grinding halt, the opposite is true.Bitcoin price could make a comeback above the $30,000 level in the week following the release, in the presence of other catalysts in the markets.
Mullen Automotive Stock Forecast: MULN crashes over 8% despite reverse split

Mullen Automotive Stock Forecast: MULN crashes over 8% despite reverse split

FXStreet News FXStreet News 11.08.2023 16:44
Mullen Automotive initiated a 1-for-9 reverse split that begins trading at new post-split price on August 11. MULN share price closed at $0.1130 on Thursday but opens Friday at post-split price.Mullen stock needs to remain above $1 for at least 10 consecutive trading sessions to remain in compliance with NASDAQ exchange rules.Mullen has begun manufacturing class 3 commercial EVs in Mississippi. Mullen Automotive (MULN) stock plunged 8.6% at Friday's open after debuting its new reverse split-adjusted share price. MULN has so far failed to achieve the $1 price tag necessary to keep its listing on the NASDAQ exchange despite the 1-for-9 reverse stock split.MULN stock traded down 8.6% to $0.93 soon after Friday's open. The NASDAQ Composite is likewise down 0.8% at the time of writing due to July's Producer Price Index coming in slightly above expectations.Mullen stock news: Second reverse stock split puts MULN above $1This is already the second reverse split Mullen enacted in 2023. Back in early May, Mullen went through with a 1-for-25 split that briefly pushed the share price up to $1.60. But CEO David Michery and the company immediately began a massive share sale policy at that time to raise money for the fledgling electric vehicle (EV) company that pushed the share price back down near $0.10.Since Mullen’s board won the right to enact a reverse split at its recent shareholder meeting of between 1-for-2 and 1-for-100, it is somewhat surprising that the board did not lunge for a higher post-split share price. The post-split price is only narrowly above NASDAQ’s compliance threshold of $1. Mullen needs to keep the share price above $1 for at least 10 consecutive trading days but no more than 20. In a press release, the company readily admitted this was the case.“There is no guarantee the Company will meet the minimum bid price requirement,” the statement released on Thursday reads.NASDAQ listing rule 5810(c)(3)(H) has other caveats as well. Rule 5810(c)(3)(H) states: “Staff may, in its discretion, require a Company to [maintain a bid price of at least $1.00 per share] for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance. In determining whether to require a Company to meet the [minimum $1.00 bid price standard] beyond ten business days, Staff will consider the following four factors: (i) margin of compliance (the amount by which the [bid price is above the $1.00 minimum standard]); (ii) trading volume (a lack of trading volume may indicate a lack of bona fide market interest in the security at the posted bid price); (iii) the Market Maker montage (the number of Market Makers quoting at or above $1.00 and the size of their quotes); and, (iv) the trend of the stock price (is it up or down).”This gives the NASDAQ exchange a whole lot of leeway in determining Mullen shareholders’ fate. On the bright side, management reiterated its earlier announcement that it plans to begin buying up to $25 million worth of shares once it files its next 10Q, so that policy should push up the share price to a safer level.Some existing shareholders will also gain additional equity since Mullen has decided not to issue any fractional shares and instead “round up” units of less than nine shares to the next whole share figure. For example, shareholders with 100 shares on August 10, will be given 12 shares on August 11 instead of 11.1 shares (i.e. 100/9).In other news, Mullen announced this week the start of production for its Mullen Three EV semi truck cab. Mullen has already received $79 million worth of purchase orders for 1,250 Mullen THREE class-3 EV trucks from Randy Marion Automotive Group and MGT Lease Company, and the first batch will be delivered later this month.The class-3 commercial vehicle is being built at Mullen’s Tunica, Mississippi plant. The Mullen Three has an MSRP of $68,500 before tax subsidies.Mullen stock forecastMullen stock continues in its long-term downtrend. To reach an uptrend, MULN stock needs to overtake or close above the July 6 high at $2.89. The first sign of any bullish breakout will be a move above the 21-day moving average, which is now at $1.20. Historical support remains at the $0.90 level, which held up MULN shares at the start of July.MULN daily chart
Nvidia Stock Forecast: NVDA reverses above 50-day SMA on July CPI result

Nvidia Stock Forecast: NVDA reverses above 50-day SMA on July CPI result

FXStreet News FXStreet News 10.08.2023 16:56
NVDA stock tracked below the 50-SMA on Wednesday following Biden semiconductor export limits.US CPI for July shows core inflation continuing to recede.NASDAQ 100 futures rose 1.1% early Thursday on CPI beat.Chinese tech giants have at least $9 billion worth of orders for Nvidia’s A800 GPU. Nvidia (NVDA) stock reversed course and moved above the 50-day Simple Moving Average (SMA) after closing below it on Wednesday for the first time since early January. NVDA stock is trading up 2.2% near $435 a half hour into Thursday's session.The leading semiconductor designer dropped 4.7% on Wednesday following news that US President Joe Biden has signed an executive order to limit investment by US corporations in specific hi-tech industries.The July US Consumer Price Index (CPI) came in below expectations on Thursday morning, which largely boosted tech stocks. The NASDAQ Composite jumped 1.6% on the news. Core inflation rose 4.7% YoY, and headline inflation gained 3.2% YoY. Both readings were 10 basis points below consensus. Nvidia stock news: Biden administration to limit Chinese investmentWednesday afternoon the Biden administration adopted an executive order that would limit US corporations from investing in the semiconductor, microelectronic, quantum information technology, and artificial intelligence industries of China. The latter’s foreign ministry decried the new stringent regulations."This program will seek to prevent foreign countries of concern from exploiting U.S. investment in this narrow set of technologies that are critical to support their development of military, intelligence, surveillance, and cyber-enabled capabilities that risk US national security," the White House said in a written statement.The Financial Times simultaneously reported that Chinese heavyweights in the consumer internet sector have ordered more than $5 billion worth of Nvidia chips in an attempt to stockpile them ahead of a more restrictive environment. Those tech companies include Alibaba (BABA), Tencent (TCEHY), Baidu (BIDU) and ByteDance – which all have orders for upwards of $1 billion worth of A800 GPUs with delivery timelines in 2023. For 2024, they have at least another $4 billion worth of orders already penciled in.Nvidia designed the A800 last year in order to circumvent rules from Washington regarding state-of-the-art semiconductor technology headed to China. The A800 has a slower transfer rate than the A100 it is modeled on that is used in data centers to deal with the heavy compute required for training large language models and other generative AI technologies.On Monday, a Morgan Stanley team released a client note arguing that the AI rally this year is in its “later innings”. Noting that Nvidia and other prominent AI-related stocks have more than tripled their share prices year to date, the team captained by equity strategist Edward Stanley said that this rally had already surpassed other niche bubbles that on average see gains of 150% over a three-year period.Citi reiterated its Buy rating and $560 price target on NVDA stock on Wednesday following Nvidia’s unveiling of its GH200 Grace-Hopper superchip. The chip platform comes with triple the bandwidth and memory of the most recent generation of chips and is designed to deal with heavier generative AI workloads at data centers.Nvidia is slated to report second-quarter earnings on August 23. After the company raised its outlook last quarter, Wall Street analysts now expected adjusted earnings per share (EPS) of $2.07 on revenues of $11.06 billion.Nvidia stock forecast: A break of 50-day SMA speaks volumesAs previously mentioned, NVDA stock closed below the 50-day SMA on Wednesday. It has traded above this moving average since January 9, so that works out to roughly an 8-month uptrend.Nvidia stock had to consolidate at some point, and there are plenty of support levels nearby that might serve as decent entries for longs. It is now trading right near the $420 price level that served as both resistance (May 30) and support (June and July). The $400 level worked as support on several occasions from May 30 through June 26, and below there comes the demand zone stretching from $373 to $378. The Moving Average Convergence Divergence (MACD) began its bearish turn lower in late June and it could soon trend below the zero threshold, which would be a much stronger bearish warning for bulls. In mid-July, Nvidia stock ran into stubborn resistance just around $480.NVDA daily chart
US Consumer Sentiment Preview: Higher prices at the pump could irritate consumers, hit markets

US Consumer Sentiment Preview: Higher prices at the pump could irritate consumers, hit markets

FXStreet News FXStreet News 10.08.2023 16:56
Economists expect the University of Michigan's Consumer Sentiment Index to marginally decline in August.The long-term inflation expectations component may have exceeded estimates due to rising Oil prices.Markets may slide in response to worrying data, but this may serve as a buying opportunity.Even a mere 0.1% surprise in a sub-component of a soft indicator matters – if it is related to inflation. The publication also has the last word of the week, giving it an additional impetus. Here is a preview of the University of Michigan (UoM) preliminary Consumer Sentiment Index for August, and its all-important 5-year Consumer Inflation Expectations, due out on August 11, at 14:00 GMT. Consumer Sentiment, politics and the one component that Fed Chair Powell mentionsThe University of Michigan's Consumer Sentiment Index earned its reputation through years of publications and also thanks to its early release. The preliminary index is out in the middle of the current month, while the competing Conference Board's figure is out only at the end of the month. That gives UoM an advantage. On the other hand, sentiment is heavily impacted by politics. Democrats have been more optimistic than Republicans since Joe Biden entered the Oval Office, while the opposite was true under his predecessor. General news media cares about sentiment and politics, but markets look away.What investors do care about is what the Federal Reserve watches. Fed Chair Jerome Powell and his colleagues occasionally mention long-term inflation expectations as reflected in private-sector surveys. In one instance, Powell singled out the 5-year Consumer Inflation Expectations from UoM.An increase in expectations means consumers may buy more now in fear of higher prices later on – making their expectations a self-fulfilling prophecy. That has not happened yet. In the past few months, it has been hovering around 3%, above the Fed's desired 2% level, but far from alarming.UoM 5-year Consumer Inflation Expectation. Source: FXStreetHow University of Michigan inflation expectations are set to move the US DollarWhile the Consumer Price Index (CPI) is the king of market volatility, the importance the Fed gives the inflation expectations to the figure and the release just before markets close triggers high volatility. After hitting exactly 3% last month, I expect a small uptick in long-term inflation expectations. Why? Consumers do not conduct in-depth calculations on future price developments before answering a surveyor's phone call. Their answer about future inflation comes from their recent experiences.The most significant factor impacting inflation expectations comes from gasoline stations. The price at the pump is blasted on big billboards, and any price change shapes the mood. Global Oil prices have risen in the past two months, reaching pumps across America. That is why I expect an increase in inflation expectations. Gas prices are what Americans see with their eyes, and it has a bigger impression than headlines about falling inflation.The US Dollar may get a small uplift from a result of 3.1% or 3.2%, which I expect. A surprising drop in long-term inflation expectations to 2.9% or 2.8% would weigh on the Greenback.Any move will likely be short-lived. CPI data and comments from Fed officials – speaking non-stop since the latest decision – have more impact than the survey. While Consumer Sentiment is a forward-looking figure, CPI is hard data documenting what happened, not a survey. Final thoughtsThe UoM Consumer Sentiment should's inflation expectations are important, but their impact is short-lived. In case US CPI misses estimates while the UoM figures beat them, the US Dollar's rise would likely be temporary. That would imply a trading opportunity.
US CPI Preview: Upside surprises likely to boost US Dollar sharply

US CPI Preview: Upside surprises likely to boost US Dollar sharply

FXStreet News FXStreet News 09.08.2023 16:47
The July Consumer Price Index is expected to show more evidence of softening inflation, despite a rebound in the annual rate.The annual inflation rate is seen advancing from 3% to 3.3%.The US Dollar is set to rally if the numbers surprise to the upside.The US is scheduled to release the Consumer Price Index (CPI) for July on Thursday, August 10 at 12:30 GMT. This report is expected to be the most significant economic release of the week. Additionally, the weekly Jobless Claims report will be published simultaneously. Furthermore, more inflation data will be available on Friday with the release of the Producer Price Index (PPI).The market consensus is for the CPI to have risen 0.2% in July, with the annual rate increasing from 3% in June (the lowest since March 2021) to 3.3%. This would mark the first increase in the annual rate since June 2022, when it peaked at 9.1%, the highest in 40 years.Equally important is the Core CPI, which is expected to increase by 0.2% on a monthly basis. The annual Core CPI rate is anticipated to remain at 4.8%.Numbers above expectations will indicate that the recent deflationary trend is starting to face difficulties, and concerns about persistent inflation may resurface. Conversely, if the figures align with estimates, it could suggest that inflation pressures are normalizing. In both scenarios, inflation would remain below the 2022 peak but above the Federal Reserve's 2% target.Turn for the data to speak Last week, the Fed raised its key interest rate by 25 basis points. The market expected this to be the last hike of the cycle. For that expectation to materialize, the first requirement is for inflation to continue declining. Therefore, the upcoming CPI number will be crucial.If the figure shows that inflation remains above expectations or rises more than anticipated, the likelihood of another rate hike before year-end will significantly increase. Despite Fed’s tightening, the US economy has demonstrated resilience. During the second quarter, GDP grew at a 2.4% annualized rate, surpassing the estimated 2%. Labor data indicates a softer labor market, but job creation persists and provides little evidence of a recession. Payroll numbers are decreasing to normal levels, while wage growth exceeded expectations in July.A few months ago, analysts were concerned about the possibility of a US recession. However, the current forecast indicates a shift towards a successful soft landing. Lower inflation readings would further bolster this outlook, and would be favorably received by the Fed. Such figures would enable the central bank to maintain its current stance and take time to evaluate the effects of its measures.Before the next FOMC meeting, there will be additional inflation reports, including the August CPI. Therefore, there is still a long way to go. One other factor to consider is Crude Oil. The price of WTI Crude Oil has reached its highest level since November 2022, surpassing $83.00 per barrel after rising 15% over the past 45 days. If the rally continues, it could add pressure to energy prices and push up CPI in general. How could the Dollar react? The US Dollar awaits the upcoming data looking strong, primarily supported by the latest round of US economic data, particularly indicators related to growth and employment. Suppose the CPI surpasses expectations by a significant margin. In that case, a sharp rally in the US Dollar is likely to occur, as it would increase the probability of another rate hike by the Fed. In such a scenario, the stock market could experience a decline, while US yields would rise, providing additional momentum to the USD.If the data aligns with expectations, the US Dollar could experience a decline, considering the positioning leading up to the report. Even if it meets estimates, volatility is likely to rise along with trading volume.Another possibility is that the annual CPI rate slows unexpectedly. Such a scenario would increase the likelihood that the Fed has concluded its tightening cycle. While this could harm the Dollar in terms of interest rates and bond yields, the decline may be limited as it could be viewed as a positive development for the US economy. In this case, it could trigger a rally in Wall Street, thereby restraining the demand for the Dollar.DXY’s rally needs fuel The US Dollar Index (DXY) has been moving upward since mid-July, recovering from its lowest levels in over a year, and the short-term bias remains to the upside. However, the DXY remains within a downward channel.During the upward move, the DXY encountered resistance below the 103.00 area and around the 55-day and 100-day Simple Moving Averages (SMAs). If the DXY manages to break above this resistance, it would likely continue its ascent and test the 200-day SMA at 103.45, followed by the upper trendline of the downward channel at 103.75.On the other hand, a key support level lies at 101.90. Below this support, it could expose the 20-day SMA at 101.35. If consolidation continues below this level, it would confirm the continuation of the downward channel, potentially exposing the next support at 100.90.DXY Daily chart
Dow Jones Industrial Average Forecast: DJIA flat on Wednesday ahead of Disney earnings

Dow Jones Industrial Average Forecast: DJIA flat on Wednesday ahead of Disney earnings

FXStreet News FXStreet News 09.08.2023 16:47
Dow Jones flat on Wednesday as S&P 500, NASDAQ Composite sink.DJIA looks to be rotating lower on the daily chart with 34,257 a possible target for support.Disney will report FQ3 earnings after the close on Wednesday.Inflation data from CPI, PPI arrive on Thursday and Friday. The Dow Jones Industrial Average (DJIA) opened flat on Wednesday, performing much better than both the S&P 500 and the NASDAQ Composite. That latter two both traded lower at the open, especially the growth-heavy NASDAQ. The DJIA index reversed course on Tuesday (-0.45%) following Monday’s 1.16% gain.The broad equity market in the US is stutter-stepping ahead of significant inflation data that appears later in the week. On Thursday morning, the US Consumer Price Index (CPI) for July arrives, and on its heels the Producer Price Index (PPI) gets released Friday morning. The results of both will help to determine the outlook for interest rate policy at the Federal Reserve’s (Fed) September policy meeting.Dow Jones Industrial Average News: Market will turn on inflation dataThe US Bureau of Labor Statistics is set to release July’s Consumer Price Index data an hour before the market opens on Thursday. Wall Street consensus is projecting core inflation to arrive at 4.7% YoY, a slight improvement from June’s reading of 4.8%. Expectations for July’s monthly core CPI is right in line with June’s rate at 0.2%.Headline CPI that includes the more volatile food and energy prices is forecast to rise due to elevated Oil prices. The economic indicator is expected to advance from June’s 3% reading to 3.3% on an annual basis in July. West Texas Intermediate (WTI) has climbed from the low $70s to the low $80s over the past month as Saudi Arabia and Russia have extended their production cuts. Then on Friday the Producer Price Index (PPI) data for July is expected to rise 2.3% YoY, down from 2.4% in June. If either of these inflation readings come in above consensus, it will give the Dow Jones index an excuse to sell off. The market is worried that stubbornly high inflation could force the Federal Reserve’s hand in raising interest rates at its September meeting. At the moment, the odds are better than 80% that the Fed will pause rates in September, per the CME Group’s FedWatch Tool.Disney to report FQ3 results after Wednesday closeThe Walt Disney Company (DIS) has been part of the Dow Jones since 1991 and accounts for a little under 2% of the overall index. The entertainment powerhouse ran into some difficulties during the pandemic, cutting its dividend in the process, and the market has pretty much ignored it for the past year.Disney – back in the hands of long-time CEO Bob Iger – is expected to report adjusted EPS of $0.99 and GAAP EPS of just $0.05. Revenue is expected to arrive at $22.53 billion.Iger returned to Disney last November, but in an interview in July he admitted to CNBC that his two-year turnaround plan for the conglomerate was looking more like a four-year phase. The company’s Disney+ and Hulu streaming segments have been popular with consumers but require heavy investment.“The challenges are greater than I anticipated,” Iger told CNBC.In remarks he made at the Sun Valley Conference in mid-July after laying off more than 7,000 employees, Iger hinted that Disney’s television assets like ABC, The Disney Channel, FX and National Geographic may be on the chopping block. Expect executives on the earnings call to address any possible sale of assets. Disney stock has dropped by more than half since its pandemic peak and is down 19% over the past year.What they said about the economy – New York FedThe Federal Reserve Bank of New York released its Quarterly Report on Household Debt & Credit that looked at American consumers’ use of credit card debt during the second quarter. The number of total credit card accounts rose to 578.4 million in the quarter, and for the first time ever, consumers carried a balance of more than $1 trillion. "Despite the many headwinds American consumers have faced over the last year - higher interest rates, post-pandemic inflationary pressures, and the recent banking failures - there is little evidence of widespread financial distress for consumers."Dow Jones chart forecastThe Dow Jones index briefly dropped below the 21-day moving average on Tuesday but quickly righted the ship. The index has been flirting with a rotation back below the top trendline of the wedge formation it just escaped in previous weeks. The 35,200 to 35,750 resistance zone has appeared to temper the market’s animal spirits, and the DJIA seems poised to consolidate back toward support. That support could arrive near 34,257 – which is both the lower end of a prior resistance zone and the lower trendline of the aforementioned wedge formation. Based on the Relative Strength Index (RSI), buyers will likely emerge once the indicator shares a reading below 50. The DJIA index has been trending higher since last October, and bulls need a better entry point at present.Dow Jones Industrial Average daily chart
PayPal’s stablecoin launch on Ethereum fails to catalyze ETH price rally for this reason

PayPal’s stablecoin launch on Ethereum fails to catalyze ETH price rally for this reason

FXStreet News FXStreet News 08.08.2023 16:38
XRP and Ethereum prices fail to rally despite recent bullish catalysts, experts conclude that BTC drives the crypto market. PayPal’s PYUSD issuance on Ethereum and XRP’s regulatory clarity failed to drive a rally in the altcoins’ prices. Attorney John Deaton argues that Bitcoin influences the state of the crypto ecosystem and sentiment among market participants.PayPal issued a US Dollar-pegged stablecoin PYUSD on the Ethereum blockchain. PayPal’s stablecoin issuance failed to catalyze a recovery in ETH price as the altcoin continues to trade below the $1,900 level.Also read: When is EIP-4844, and why is it considered the biggest game changer for Ethereum?Why Ethereum and XRP prices fail to rally despite recent bullish catalystsEthereum and XRP noted key bullish catalysts within the past month. In the case of XRP, Ripple’s partial win against the US Securities and Exchange Commission (SEC), was expected to catalyze an XRP price rally and send the altcoin to a new all-time high.In the case of Ethereum, PayPal’s issuance of a USD-pegged stablecoin, in association with Paxos, on the ETH blockchain was considered a bullish announcement. Unlike market participants’ expectations, these events failed to push the prices of these altcoins higher.XRP price climbed to a multi-month peak, and Ethereum continued to linger below the $1,900 level, post the bullish announcements. John Deaton, a pro-XRP attorney and leading cryptocurrency expert, has an explanation for this phenomenon.Deaton argues that Bitcoin, the largest crypto asset by market capitalization, determines the direction of the price trend for most altcoins. For XRP price to hit its all-time high or Ethereum to rally in response to PayPal’s announcement, the ecosystem needs a Bitcoin bull market. Bitcoin price has remained largely unchanged, and the market is uneventful as BTC traders wait and watch or engage in accumulating the asset. This has acted as a barrier for altcoins to witness massive price rallies in the ongoing market cycle.Bitcoin dominance has climbed by nearly 2% over the past two months, according to CoinGecko. At the time of writing, BTC dominance is 46.96% and the asset is trading at $29,582.95, below the key psychological barrier of $30,000.
Palantir Stock Earnings: PLTR tanks day after in-line results fail to impress

Palantir Stock Earnings: PLTR tanks day after in-line results fail to impress

FXStreet News FXStreet News 08.08.2023 16:38
Palantir stock loses ground after reporting Q2 earnings.Results were in-line with Wall Street consensus but showed slow growth.CEO Alex Karp announced a $1 billion buyback program.If PLTR stock breaks below $17, then $13.56 is back in business.Palantir (PLTR) stock plunged more than 9% at Tuesday's open following quarterly results following the previous session. PLTR stock is trading $1.50 lower near $16.50 at the time of writing. Late Monday, Palantir announced second-quarter earnings that came in precisely in-line with Wall Street consensus. Despite the added benefit of a $1 billion buyback scheme, PLTR pulled back immediately.Part of the negativity follows headlines that Moody’s has downgraded a number of major US banks due to worries over near-term profitability during a time of higher interest rates and a hurting commercial real estate sector. The Dow, S&P 500 and NASDAQ Composite all sold off around 1% at the start of Tuesday's session.Palantir stock earnings: Decent, but worth 19 times sales?It may finally be dawning on investors that Palantir’s level of growth is out of step with its high valuation. Revenue of $533 million in the quarter places Palantir on the road to a full-year sales figure circa $2.2 billion. But with a $38 billion market cap, this means the AI-leveraged data company trades at 18 to 19 times sales.Revenue in the second quarter grew slightly below 13% YoY – hardly in the realm of top-tier growth stocks. Adjusted earnings per share (EPS) of $0.05 matched consensus perfectly, and Palantir once again (same as Q1) earnings $0.01 in GAAP EPS.“We still have immense opportunity for growth, both through expansion within these industries and growth in our existing customer relationships,” said CEO Alex Karp. “For example, we’re beginning to see this growth come to fruition in both healthcare and transportation, which grew 93% and 129% YoY, respectively.”The company announced a $1 billion buyback program that will run for the next year. Of course, it may seem strange to repurchase shares now that the share price has run up 181% year to date. But if the share price decline in the second half of the year, the buyback program might retire about 3% of shares outstanding. Long-term, this would be quite good for shareholders.Palantir’s separate accounting for government and commercial contracts showed a strong divergence in the quarter. As it concerns government contracting, Palantir saw growth from foreign governments far outstrip growth in its more mature relationships with US government agencies. Its commercial platform, however, flipped this relationship on its head as US corporations grew Palantir’s revenue at about twice the rate of its foreign commercial segment.Palantir’s overall commercial revenue grew 10% YoY to $232 million, whereas US commercial revenue grew 20% from a year ago to $103 million. Overall, government revenue grew 15% YoY to $302 million, while foreign government revenue gained 31% YoY to $76 million.Palantir grew its customer count by 38% YoY to 161 total partners.Palantir stock forecast: Consolidation back to $13.56 likelyPalantir stock dropped below the 9-day Simple Moving Average (SMA) on Monday but recouped much of its losses by the close. PLTR bounced higher mid-session off the $17 bespoke resistance-turned-support level from June. The post-market and premarket collapse in the Palantir stock price is once again flirting with lower values, however, on Tuesday. Part of Tuesday's premarket was spent down near $17.30.A break of the $17 level and the 30-day moving average at $16.75 would send the share price tumbling back to the June 23 support of $13.56. With the Relative Strength Index (RSI) correctly dropping from overbought territory to its current reading near 55, this type of consolidation seems fairly likely. PLTR daily chart
S&P 500 News: Inflation readings lead week after worst performance in five months

S&P 500 News: Inflation readings lead week after worst performance in five months

FXStreet News FXStreet News 07.08.2023 16:35
S&P 500 lost 2.27% last week, its worst performance since early March.S&P 500 index broke below the 21-day moving average on Friday.Disney, Eli Lilly, Alibaba, UPS and Palantir release quarterly earnings this week.July CPI will be reported on Thursday, analysts expect 4.7% YoY core inflation.US Producer Price Index comes out on Friday morning.The S&P 500 experienced its worst performance in about five months last week. The index lost 2.27% – the largest pullback since the week of March 6. The culprit was Fitch downgrading the US government’s credit rating from AAA to AA+ based on governance issues and a general disinterest from the political class in tackling the federal deficit.This week will see the market getting another look at the inflation picture. The US Consumer Price Index (CPI) for July arrives on Thursday morning; and the Producer Price Index, the following day. Analysts expect prices to continue disinflating, so an uptick in inflationary pressure from either of these data sets could send the index lower still. At Monday’s open, the market seems more optimistic. The S&P 500 advanced 0.5%, while the NASDAQ Composite gained 0.12% and the Dow Jones Industrial Average tacked on 0.8%.S&P 500 News: Inflation data to tip Fed’s hand for SeptemberThe US Bureau of Labor Statistics will release July’s Consumer Price Index data one hour before the market opens on Thursday. Analysts expect the all-important core inflation reading to come in at 4.7% YoY. This compares to June’s reading of 4.8%. July’s monthly core CPI is expected to grow at 0.2%, in line with June’s rate.Headline CPI, which contains the more volatile food and energy prices, is expected to tick higher from June’s 3% YoY rate to 3.3% in July. This is because Oil prices have been making steady headway since early July. In the past month, West Texas Intermediate (WTI) has climbed from the low $70s to the low $80s, adding costs to producers and suppliers throughout the US economy. On Friday comes Producer Price Index (PPI) data for July. Wall Street consensus expects the core data to rise 2.3% YoY, down from 2.4% in June.The inflation data is important, because institutional investors are worried about sticky inflation forcing the Federal Reserve to raise interest rates at its September meeting. Right now, the market feels confident that the central bank will keep rates flat. In fact, the CME FedWatch Tool gives an 84.5% chance the central bank keeps rates flat.Higher rates would spook the equity market and assuredly lead to a sell-off in the S&P 500, and the only way that happens is if the inflation data on Thursday and Friday come in hot.Disney, UPS, Eli Lilly, Alibaba offer biggest earnings chatterThe second-quarter earnings season is coming to an end, but several quite important companies are yet to report. Chief among them are the beleagured Alibaba (BABA), which has been trading at a depressed valuation for more than two years now. Then there is United Parcel Service (UPS), which has just completed a new deal with its carrier union but has been losing overall shipping market share for several years.Eli Lilly (LLY), which has been benefitting from the American consumers’ newfound love of weightloss drugs, and Palantir Technologies (PLTR) should both offer investors a decidedly upbeat outlook.Palantir will report earnings after the market closes on Monday. Wall Street is expecting $0.05 in adjusted earnings per share (EPS) on revenue of $533.9 million. On Tuesday, Eli Lilly is expected to unleash adjusted EPS of $2.00 on revenue of $7.61 billion. At the same time, UPS has a consensus for $2.50 in GAAP EPS on revenue of $23.12 billion in sales. Analysts have heavily revised expectations for the quarter much lower over the past three months.Two more large downtrodden stocks will bring in the rear of the week’s results. First, on Wednesday, Disney (DIS) – now back under the care of Bob Iger – is expected to report adjusted EPS of $0.99 but for broader GAAP EPS just $0.05. Revenue is expected to arrive at $22.54 billion. Then Alibaba results come before the market open on Thursday. Wall Street expects $2.02 in adjusted EPS on $31.48 billion.Earnings of the weekMonday, August 7 - Tyson Foods (TSN), Lucid Group (LCID), Paramount Global (PARA), Palantir Technologies (PLTR).Tuesday, August 8 - Eli Lilly (LLY), United Parcel Service (UPS), Coupang (CPNG), Li Auto (LI), Datadog (DDOG).Wednesday, August 9 - Disney (DIS), Trade Desk (TTD), Roblox (RBLX), Wynn Resorts (WYNN), Brookfield Asset Management (BAM).Thursday, August 10 - Alibaba (BABA), Ralph Lauren (RL).What they said about the market – Stephanie RothJPMorgan Private Bank senior markets economist Stephanie Roth, in an interview with Yahoo, said that the market’s lack of concern in the summer and general optimism could end up hurting investors over the near term."Expectations are on the more optimistic side. So any small thing could rattle investors [...]. There are a long list of things that are potentially surprising to markets. Everybody is generally complacent. So it could be any negative news that would scare investors."S&P 500 forecastThe S&P 500 broke below the 30-day Simple Moving Average (SMA) last Friday. This was unexpected as the index has been rising above its 9-day counterpart for a while now, and traders might have expected the index to find support at 4,500. The 50-day SMA closer to 4,400 now seems like a reasonable level to test. Further support lies at 4,325 and 4,300.Even a move down to the 4,100 to 4,200 volume range could be in the cards. The Moving Average Convergence Divergence (MACD) has already turned bearish by rolling over below the orange signal line. The blue MACD line at 34 will spook traders if it breaks below the zero threshold, but a lot would probably have to go wrong for that to happen.S&P 500 daily chart
Bitcoin’s quarterly chart simplifies confusion, 15% crash likely before $40,000, $50,000 or new all-time high

Bitcoin’s quarterly chart simplifies confusion, 15% crash likely before $40,000, $50,000 or new all-time high

FXStreet News FXStreet News 07.08.2023 16:35
Bitcoin price could crash anywhere from 15% to 26%, as seen on a three-month chart.Two out of three inefficiencies have been balanced almost completely, further adding credence to the bearish outlook.If this seller-favored scenario plays out, BTC could retest $24,777 and $21,473 levels. From a long-term holder perspective, the aforementioned levels are perfect buying opportunities.Bitcoin price could have formed a potential local top in the second quarter, putting an end to the 2023 rally. After a mere 7.05% return in the second quarter, BTC has flipped negative with a -4.52% performance. As suggested by historical data, the third quarter is relatively bearish and would provide opportunities for long-term holders to accumulate. Read more: Will altcoin investments pay out in third quarter of 2023?Bitcoin price on the lookout for a footholdBitcoin price returned 7.05% in the second quarter producing a local top at $31,500. This high was quickly swept for buy-side liquidity, signaling a potential trend reversal. Rightfully so, BTC has slid 8.70% from this top and currently trades at $29,078.A quick look at the three-month Bitcoin price chart shows that the 2023 rally was initially aimed at rebalancing the inefficiency produced in the second quarter of 2022, extending from $25,200 to $32,853. The inefficient structure termed Fair Value Gap (FVG) is formed when there is an imbalance in the order flow, i.e., dominated by buyers or sellers.From the start of 2023 to sweeping the second quarter higher, Bitcoin price has all but rebalanced the said 2022 inefficiency and now looks to do the same with the rest of the FVGs. The 93% rally that was responsible for filling up the 2022 FVG created another imbalance, extending from $24,777 to $21,473.Read more: Bitcoin Weekly Forecast: Can BTC reach $40k or $25k first?Hence, a drop in Bitcoin price is logical, considering that BTC has not only rebalanced the FVG to the upside but also collected the buy-stop liquidity. Hence, the only remaining direction for BTC to head would be south. In such a case, a 15% to 26% drop is likely for the pioneer crypto. BTC/USDT 3-month chartWhile the short-term correction, ranging from 15% to 26%, might seem a lot, it would be a buying opportunity for long-term holders. But a breakdown of the $15,443 swing low would invalidate the bullish thesis by producing a lower low. Such a development would also invalidate the bullish thesis and potentially trigger a correction to $13,000 and $11,898 levels. The short-term bearish outlook will also go kaput if Bitcoin price extends its 2023 bull rally and sweeps the buy-side liquidity resting above $47,448 and $48,200.
Nonfarm Payrolls Analysis: Weak job market? Wages advance, Fed hawks and US Dollar set to push back

Nonfarm Payrolls Analysis: Weak job market? Wages advance, Fed hawks and US Dollar set to push back

FXStreet News FXStreet News 04.08.2023 16:58
US job growth slowed to 187,000 in June, on top of a downward revision.Wage growth remained elevated at 4.4%, better than expected. Ongoing inflationary pressure may prevent the US Dollar from falling.For the labor market, the narrative is straightforward – normality at last. For markets, it is somewhat more complicated. Nonfarm Payrolls failed to provide a straightforward narrative for investors, and not for the first time. The US Dollar is set to fight back after the initial blow. Starting with the economic picture, American hiring has normalized. An increase of 187,000 jobs after a downward revised 185,000 last month is just around pre-pandemic levels. After nearly three and half years, job growth is normal. That is what the Federal Reserve wanted to see – cooling rather than a crash.The US Dollar fell in response to the data, which came out below expectations, and on top of downward revisions. If the Fed gets what it wants, it does not need to act – no more hikes. On the other hand, wage growth is higher than it was before March 2020 – at 4.4% YoY, salaries continue driving underlying price pressures higher. That means a rate hike in September cannot be fully ruled out. There is another Nonfarm Payrolls report and two Consumer Price Index (CPI) figures until the next decision.The opposite report was needed for decisive US Dollar falls – robust job growth with falling wages. As it has not happened, there is room for the US Dollar to fight back in the short term. Next week's CPI figures will probably be more decisive. I expect them to show ongoing disinflationary pressures, hurting the Greenback. Markets do not take summer holidays, but lower liquidity may lift volatility even without a significant data point like the NFP coming out.
Bitcoin price holds above $29,000 after below-expectations US NFP data

Bitcoin price holds above $29,000 after below-expectations US NFP data

FXStreet News FXStreet News 04.08.2023 16:58
Nonfarm Payrolls in the US rose by 187,000 in July, against the expectation of 200,000. The reading came in below the market consensus, supporting the likelihood of a recovery in risk assets like Bitcoin and Ethereum. An increase in selling pressure on the US Dollar could catalyze a rally in Bitcoin, pushing the asset past the psychological barrier at $30,000.Bitcoin price is currentlytrading near a six week low. Post the US NFP data release for July, the asset sustained above the 29,000 level, showing likelihood of price recovery in August. NFP in the US came in below the expectations of market participants, at 187,000 and the Unemployment Rate dropped to 3.5%. The macroeconomic outlook is likely shifting in favor of risk assets, however it remains to be seen whether the selling pressure on the US Dollar rises.Also read: Breaking: US Nonfarm Payrolls increase 187,000 in July vs. 200,000 expectedBitcoin remains steady above $29,000, eyes comeback to $30,000Bitcoin price eyes a comeback to the $30,000 since it consistently declined over the past six weeks. Market participants have been awaiting a catalyst in the asset, like the US Securities and Exchange Commission’s approval of a spot Bitcoin Exchange Traded Fund (ETF). However, US regulatory uncertainty and the regulator’s crackdown on crypto continues, and Bitcoin price is struggling to resume its uptrend.Amidst the DeFi crisis and regulatory crackdown on crypto exchanges, the US economy added 187,000 Nonfarm Payrolls in July. Bitcoin price is in a multi-month uptrend, a definitive close below the $27,700 level would imply a bearish trend reversal is likely. As seen in the price chart below, key resistance for BTC price is the $27,300 level, at the confluence of the 10 and 50-day Exponential Moving Averages (EMAs).BTC/USDT one-day price chart on BinanceThe 200-day EMA at $27,042 is a support for the asset in the event of a decline in BTC price.At the time of writing, the US Dollar came under modest selling pressure. An increase in selling pressure on the USD could act as a catalyst for risk assets like Bitcoin, Ethereum and altcoins.
Shiba Inu gears up to compete with DeFi tokens, unveils plans for digital ID verification

Shiba Inu gears up to compete with DeFi tokens, unveils plans for digital ID verification

FXStreet News FXStreet News 03.08.2023 16:51
Shiba Inu developers plan to tie digital identity services to all SHIB platform applications to strengthen the utility of the project. The project aims to be viewed more legitimately by serious investors, a Shiba Inu representative told CoinDesk.SHIB price climbed nearly 5% over the past week as the DeFi ecosystem tokens tackle Curve-exploit-induced crisis.Shiba Inu, a crypto project that gained popularity as a meme coin, is gearing up to find utility among serious investors. A representative of the Shiba Inu blockchain told CoinDesk that SHIB has plans to implement digital identity verification for applications in its ecosystem. This could bring SHIB to par with its peers in the DeFi ecosystem.Interestingly, DeFi is currently tackling the crisis situation of Curve Finance’s exploit and the subsequent liquidity crisis faced by the CRV token. While DeFi projects and crypto influencers pool their resources to tackle the downfall of the entire ecosystem, Shiba Inu developers are working to compete for higher adoption.Also read: Could whale activity in AAVE, APE, COMP, IMX and LDO lead to a steep correction or a new rally?Shiba Inu eyes Self-Sovereign Identity concept, moves away from meme coin statusIn an attempt to drop the “meme coin” status associated with its identity and compete with DeFi projects on a wider scale, Shiba Inu’s developers are gearing up to assign a digital ID verification feature to applications in its ecosystem.The project has chalked plans for wider adoption and finding utility among governments and serious investors, through an identity verification feature, inspired by the Self-Sovereign Identity (SSI) concept.SSI is the digital counterpart of identity-related documents like passports. It is said to enhance user control over their data and its distribution in the digital world.Shiba Inu lead developer, Shytoshi Kusama, told CoinDesk that the team is laying the groundwork for a new global standard in international identity verification. The SHIB ecosystem currently has BONE, TREAT and LEASH tokens for applications built on its Layer 2 network.The timing and nature of these developments are key to Shiba Inu emerging as a contender to DeFi tokens and blue chips in the market. The entire DeFi market is reeling from the aftermath of the Curve Finance exploit and the dwindling liquidity of the CRV token. The token is used in several liquidity pools throughout the ecosystem and pledged as collateral for DeFi loans. CRV’s massive price decline and shrinking liquidity have therefore emerged as key concerns for market participants.During DeFi’s crisis, users are likely to adopt new contenders like Shiba Inu, with features like identity verification and higher privacy/decentralization compared to most other projects.Shiba Inu is trading at $0.00000820 at the time of writing.
Palantir Stock Forecast: PLTR loses ground at start of Thursday trade

Palantir Stock Forecast: PLTR loses ground at start of Thursday trade

FXStreet News FXStreet News 03.08.2023 16:51
Palantir stock reports earnings on Monday, August 7.PLTR stock climbed as much as 161% from its May 8 close.Wedbush Securities’ Ives gave PLTR a $25 price target. Fitch's US downgrade has caused the indices to fall for a second straight day. Palantir (PLTR) stock fell about 1% at Thursday's open after losing 5.1% on Wednesday as the broad equity market contracted from the bearish news that Fitch had downgraded the US government’s credit rating. Indices are down across the board on Thursday, with the Dow Jones Industrial Average (DJIA) losing 0.2%, the NASDAQ Composite dropping 0.3% and the S&P 500 giving back 0.4%.Palantir stock is trading near $18.78 at the time of writing.On the daily chart, Palantir suffered a bearish candle on Wednesday that could signify a technical end to the rally that began all the way back on May 9 and added as much as 161% to Palantir’s share price. Still, bulls remained eager to buy up what bears were selling on Wednesday, so this story stock (artificial intelligence) still has a lot going for it, not to mention nearby support levels.Palantir Stock News: Macro sentiment negative, but quarterly results arrive soonThe macro picture seems to be taking a turn for the worse for equities. Fitch’s downgrade of the US government’s credit rating from AAA to AA+ on Wednesday led to a broad sell-off that included Palantir stock. The ISM Manufacturing PMI on Tuesday arrived short of consensus, with the sector in contraction for the ninth month in a row. Wednesday’s ADP Employment Change data for July also showcased a tighter US labor market, which makes hawkish Federal Reserve policy more likely.With all that said, Palantir’s quarterly earnings results arrive next Monday, August 7. Investors are not unwise to hold out for a successful earnings call. The PLTR rally over the past three months was kick-started by the Q1 earnings report that showed the artificial intelligence (AI) company offering up its first GAAP profit ever, albeit a single penny per share. Still, the market was spurred on by an optimistic outlook that should show up in this latest quarter’s results.Wall Street analysts have placed consensus for the second quarter at a repeat of Q1’s earnings results and revenue of $534.3 million – a mere 1.7% growth over the prior quarter that should be easy to beat.Well-known Tesla (TSLA) and tech booster Dan Ives, a prominent analyst for Wedbush Securities, initiated coverage on Palantir last Friday with a bullish $25 price target on the stock. The price target is now the highest on the Street, but Ives defended it by calling Palantir the “Messi of AI”. “In a demand environment that looks to evaluate the legal, ethical, and trustworthy effects of AI deployment, Palantir’s existing relationships with secure organizations such as the CIA, DoD, JPM, Cisco, AWS, Google and MSFT among others, validate PLTR’s excellence in security and compliance demonstrating the company’s ability to provide trusted solutions in sensitive environments,” Ives wrote in a note to clients.Ives’ Outperform rating on Palantir stock is well off the mainstream view, however. The average Wall Street analyst price target is $13.50, based on forecasts taken from the past three months. The most common view is just that Palantir is overvalued based on PLTR trading for a $40 billion market cap while generating slightly in excess of $2 billion in annual sales.Palantir stock forecastWednesday’s bearish candle bears with it a long lower wick. After PLTR stock’s morning sell-off, bulls rushed into the market around lunchtime and pushed the stock from near $18.20 back close to $19 – as luck would have it, the range high from July 19.A push back above $19 would give bulls the leeway to make a further move to $20.55 – a prominent support level in both March and July of 2021 that may prove resistant this time around. Longer-term resistance arrives in a broad range from $26 to $29. The Relative Strength Index (RSI) has moved back to neutral territory at 64, which does give us some kernel of negative sentiment toward the future of price action. Both the 9-day Simple Moving Average (SMA) at $17.61 and the 21-day SMA at $17.04 undergird the PLTR price action for now, but if they both fall, then PLTR will officially be in a downtrend. This calendar year then provides supportive levels at $17, $16 and $13.56.PLTR daily chart
Ripple's partial victory against the US SEC is tainted, here's where XRP price is headed

Ripple's partial victory against the US SEC is tainted, here's where XRP price is headed

FXStreet News FXStreet News 02.08.2023 16:11
XRP price hovers around the $0.70 level, down 28% from its recent top of $0.965. The fate of the remittance token has been pulled from safety after Judge Jed Rakoff rejected the distinction made in the Ripple case.Investors can expect a 25% crash in the near term if the SEC decides to appeal Judge Torres’ decision. Ripple landed a historic partial win against US financial regulator, Securities and Exchange Commission (SEC). The outcome of the SEC vs. Ripple lawsuit ensured that the community of XRP holders is in the safe zone, with regards to their trades across exchange platforms. The recent proceedings in the SEC vs. Terraform Labs case raised questions on the SEC vs. Ripple victory.Read more: XRP partial victory threatened as SEC vs Terraform Labs ruling offers a stinging rebuke of the Ripple decisionDue to the developments over the last 24 hours, XRP price could easily drop and undo last month's gains if the Securities & Exchange Commission (SEC) decides to appeal the ruling in Ripple’s lawsuit.XRP price and the worst-case scenario In the event that the SEC appeals Judge Analisa Torres’ decision on the XRP token, its holders could be in trouble. XRP price is down 28% from the SEC vs. Ripple lawsuit decision-based rally that propelled it by 100% to $0.965 on July 13. Also read: XRP retail holders made biggest winners from Torres' decision, technology policy expert saysSince then, the remittance token continues to consolidate between the $0.965 and $0.666 levels. The recent rug pull of BALD meme coin combined with the Curve Platform’s hack was soon followed by a nearly two percent drop in Bitcoin price. A rug pull is when the developer in charge of a project pulls all the liquidity from the decentralized exchange, causing it to freefall to zero. Regardless, the recent market developments have had very little effect on Bitcoin and other cryptocurrencies' prices. However, if the ruling in the SEC vs. Ripple lawsuit is called into question formally, then XRP price could break out of the range and easily shed 25%.Such a move would knock XRP price to the next stable support level of $0.520. In a dire case scenario, the altcoin could dive as low as $0.392 and collect sell-side liquidity resting below equal lows.XRP/USDT 1-day chartOn the other hand, if the SEC does not appeal or the appeal gets rejected, XRP price could continue its rangebound movement. In a conservative scenario, the remittance token could revisit the range’s midpoint at $0.761. Experts believe Ripple ruling is in trouble after this court decision in the SEC v. Terraform Labs caseJudge Jed Rakoff rejected Judge Analisa Torres' ruling from July 13, in which Torres declares that Ripple did not violate securities laws by selling XRP on crypto exchanges. Experts and attorneys on crypto Twitter analyzed Judge Rakoff's comments and stated that the Ripple ruling is in trouble. In the SEC v. Terraform Labs case, Judge Rakoff has specifically rejected Judge Torres' application of the Howey test and argued that the test makes no distincting between secondary market purchases and institutional purchases of XRP. Judge Torres' ruling and Ripple's partial victory are likely in jeopardy, it remains to be seen whether the SEC appeals to the second circuit and whether Judge Torres' ruling is overturned.
Dow Jones Industrial Average Forecast: DJIA drops 0.5% at Wednesday open on Fitch downgrade, ADP surprise

Dow Jones Industrial Average Forecast: DJIA drops 0.5% at Wednesday open on Fitch downgrade, ADP surprise

FXStreet News FXStreet News 02.08.2023 16:11
Dow Jones futures fall 0.3% after Fitch downgrades US credit rating to AA+.DJIA is overbought on daily RSI as it trends higher near 35,750 resistance level.US July ADP Employment Change arrives at 324K, way above 189K expectation.Analysts expect Friday’s July Nonfarm Payrolls data to decline to 200K.The Dow Jones Industrial Average (DJIA) opened half a percentage point lower on Wednesday after Fitch downgraded the US federal government’s credit rating. Since the market is risk-off, the Dow is tracking better than the riskier indices. The S&P 500 index has fallen 0.8% at the same time, while the NASDAQ Composite reversed 1.2%However, the ADP Employment Change data for July arrived before the opening, and they provided a big surprise to the upside. The July data showed a positive change of 324K new jobs, well above the 189K expected by analysts. This reading tracked with the 497K ADP estimate from June, which was also an incredible upside surprise.It is bad news for equity markets since it leads expectations higher for Friday’s Nonfarm Payrolls release. Higher employment gains lead to a tighter labor market and thus could provoke the Federal Reserve (Fed) to raise interest rates again in September.Dow Jones Industrial Average News: Fitch surprises market with US downgradeFitch pulled a play right out of S&P Global Ratings’ playbook on Wednesday, releasing its downgrade on US government debt during the European morning session. S&P famously downgraded the US after a debt standoff in Congress in 2011.Fitch dropped the US government one notch lower – from AAA to AA+. As it stands, this likely will not mean much for US Treasury yields since the US government borrows in its own currency. Still, the move has led to a sell-off at the riskier end of the market, and so relatively safer components of the Dow index are performing better than the tech and growth-heavy NASDAQ 100 index.The US government recently overcame a debt standoff with the Republican-controlled House of Representatives in late May. Republicans had refused initially to raise the debt ceiling, but the Democratic Party, led by President Joe Biden, resolved the conflict by agreeing to some budget cuts and an increase in military spending. Fitch blamed an “erosion of governance” in the US and an expanding budget deficit for the downgrade.IG Markets’ Alexandre Baradez told Bloomberg that she suspected the market was not all that worried about the rating cut but used it as an excuse to take profits. “I suspect that what’s currently being priced is the growing risk of an economic slowdown,” Baradez said. “The downward trend started to emerge yesterday on the back of disappointing Chinese and US data.”In the case of the US, Baradez is referring to a disappointing July Manufacturing PMI that arrived at 46.4, below the 46.8 reading that analysts expected. The reading demonstrates that US manufacturing remains in a contractionary phase, but it was a tick-up from June.Nonfarm payrolls could show soft landing or need for more hikesThe market has spent much of the week pondering whether the July Nonfarm Payrolls data will arrive as expected. Analyst consensus comes in at a flat 200K, just a bit below June’s 209K figure. A much higher reading threatens to upend the soft landing thesis that many in the market have adopted. Even Federal Reserve Chair Jerome Powell said at his press conference on July 26 that a recession seemed less and less likely based on the current data.A much higher NFP would suggest that the central bank might need to raise interest rates again to ensure that the US’s tight labor market does not lead this year’s pleasant disinflationary picture to end in favor of inflation stalling out near an annualized 4% rather than gradually tracking back to the Fed’s mandate for 2% core inflation.The market wants July’s fed funds rate hike to be the end of the hiking cycle, and a figure slightly below or in line with 200K consensus would reinforce that narrative.Additionally, analysts expect the Thursday release of July Services PMI to reflect a reading of 53, slightly down from June’s 53.9 figure. Service sector inflation has been harder for the Fed to control in 2023 than goods (manufacturing) inflation.Earnings of the weekWednesday, August 2 – CVS Health (CVS), Shopify (SHOP), PayPal (PYPL), Kraft Heinz (KHC), Humana (HUM)Thursday, August 3 – Apple (AAPL), Amazon (AMZN), Amgen (AMGN), AirBNB (ABNB)Friday, August 4 – Enbridge (ENB), Dominion Energy (D), fuboTV (FUBO)What they said about the market – JP MorganJPMorgan surprised many traders on Monday by releasing a client note that said the much-hoped-for “soft landing” was an unlikely outcome for the market. The investment bank said that the Fed and other central banks were likely to keep interest rates high for longer than expected, which would likely hurt weaker companies on the periphery."We remain skeptical of this outcome, however, anticipating the inflation decline to prove incomplete, leaving restrictive policies in place that should increase private sector vulnerabilities and end the global expansion."Dow Jones chart forecastThe Dow Jones index advanced 0.66% last week and, through Tuesday of this week, has already added 0.48%. In the middle of the resistance zone ranging from 35,200 to 35,750, the Dow looks poised to at least reach the top of the range or even break through it.The index already broke through the top trendline of the ascending wedge formation on July 20. In a word, it seems unbothered by technical resistance levels. The index has severely underperformed the NASDAQ 100 and S&P 500 indices so far in 2023, and many traders view it as a means of keeping one foot in the market without adopting risk-on positions.A break of 35,750 will send bulls stretching for the next profit-taking range of 36,500 to 36,952. However, the Relative Strength Index (RSI) is again witnessing overbought levels, and the market may decide to trim soon. Levels of support are nearby at 34,712 and 34,590. Dow Jones Industrial Average daily chart
Nio Stock Forecast: NIO drops below $15 despite terrific July delivery data

Nio Stock Forecast: NIO drops below $15 despite terrific July delivery data

FXStreet News FXStreet News 01.08.2023 16:44
Nio loses ground in Tuesday’s premarket, falling below $15.July deliveries reach 20,462, a 91% increase from June.Li Auto has bested all the other EV newcomers in China with two months in a row of 30,000+ deliveries.XPeng sees July deliveries drop 5% YoY, XPEV declines on news. Nio (NIO) stock has lost 2.7% after 45 minutes of trading in Tuesday session despite releasing quite successful data regarding deliveries for July. The Chinese electric vehicle (EV) purveyor delivered 20,462 vehicles to customers in July. This was more than double the figure one year ago.The EV stock traded down to $14.90, while NASDAQ futures shed 0.2%.Nio stock forecast: Li Auto deliveries overshadow Nio, XPengNio’s delivery figures for July put to bed a poor prior showing in June when the company delivered just 10,707 units. July’s deliveries rose 91% MoM by comparison and nearly 104% from a year ago.Still, it was no match for Li Auto (LI), whose July deliveries clobbered both Nio and EV competitor XPeng (XPEV). All three EV startups used to be in sync with around 10,000 deliveries a month apiece just one year ago. But for the second month in a row, Li Auto delivered more than 30,000 units.Li Auto delivered 34,134 vehicles in July, most of which are hybrid vehicles rather than Nio and XPeng’s fully electric offerings. Li Auto is following in the footsteps of BYD (BYDDY), the top EV maker in China that heavily promotes its hybrid offerings. Li Auto’s delivery figure for July rose 228% YoY, while XPeng’s 11,008 deliveries actually fell 5% YoY although they increased 28% from June. XPeng shares dropped 4% in the premarket.Nio’s July delivery figure is comprised of 14,066 SUVs and 6,396 sedans. The major piece of the puzzle leading to Nio’s MoM surge in deliveries was the debut of its revamped ES6 electric SUV.On July 26, Volkswagen announced a $700 million investment in XPeng, which spurred a rally in Nio’s stock price.Nio stock forecastNio stock easily made it through the thicket within the $13 range, and now bulls have their sights set on the $16s. That price level (from $16 to $17) has plenty of historical volume from the April through October of 2022 time period.If $17 can be overcome, then the market will look to $22 as their next price target. That’s the resistance level from September 2022, right before the EV maker shed 50% over the following several months.With a reading just shy of 84, the Relative Strength Index (RSI) is severely overbought, meaning that a consolidation period would make the most sense at this juncture. Support should be found in the area between $13 and $14.NIO daily chart
Litecoin price coils less than 1,000 blocks away from the LTC halving event

Litecoin price coils less than 1,000 blocks away from the LTC halving event

FXStreet News FXStreet News 01.08.2023 16:44
Litecoin price sustained above key support at $90, with the LTC halving event closing in. The altcoin is less than 1,000 blocks away from the halving that is set to occur at block height 2,520,000. LTC dolphin and shark addresses have aggressively accumulated LTC since June 14, in anticipation of a possible post-halving price rally.Litecoin is inching closer to the most anticipated event, its halving, scheduled to occur on August 2. The altcoin’s price sustained above the $90 psychological barrier, ahead of the mining reward being slashed in half.LTC halvings have typically resulted in a price rally in the altcoin. LTC holders and large wallet investors anticipate a similar outcome this time around and have consistently accumulated the token since mid-June 2023.Also read: Ethereum buying spree likely in August as DAI whale holdings climb higherLitecoin halving is less than 1,000 blocks away, counting downHalving events in Bitcoin and Litecoin have long been considered typical bullish catalysts for the assets. BTC and LTC prices tend to rally in the weeks and months following the halving event, with a considerable decline in circulating supply and selling pressure on the assets across exchanges.According to data from a halving countdown tracker at Nicehash, the LTC halving is set to occur at block height 2,520,000, less than 1,000 blocks away.Litecoin halving countdown on Nicehash.comInterestingly, crypto intelligence trackers have noted an increase in LTC holdings in the portfolios of large wallet investors.Litecoin wallet accumulation as seen on July 30, 2023 The above chart from crypto intelligence tracker Santiment has recorded the addition of 205,400 LTC tokens between June 14 and July 30. These traders scooped up large volumes of LTC ahead of the halving, anticipating an upcoming rally in the altcoin across exchanges.The consistent demand for the altcoin is one of the factors that helped the price sustain above the key psychological level of $90. Why some analysts are bearish on LTC priceA pseudonymous crypto analyst behind the handle @cryptokaleo is short on Litecoin despite the upcoming halving. Kaleo argues that he wouldn’t be surprised to see a bounce in LTC price, however, he is “short” on Litecoin in the long term.The analyst explains his stance through the events that followed the previous halving on August 5, 2019. While the event was hyped as a bullish one for the asset, LTC price declined in the aftermath of the halving. LTC/USD price chart Kaleo’s bearish thesis stems from the likelihood that halvings close to the local top of the altcoin are typically bearish for the asset in the long term, and the analyst expects LTC price to rally for a week or two before correcting lower by the end of 2023.
John Deaton calls Ripple XRP case “the most significant non-fraud SEC enforcement action in modern history”

John Deaton calls Ripple XRP case “the most significant non-fraud SEC enforcement action in modern history”

FXStreet News FXStreet News 31.07.2023 16:31
Pro-XRP attorney John Deaton recently commented on the SEC’s request to Coinbase to halt trading of all tokens except Bitcoin.Deaton believes that the US financial regulator has an anti-crypto stance and the XRP ruling protected the ecosystem from the SEC’s full force.Deaton argues every coin is in danger and the XRP ruling is significant to all market participants and projects in crypto.XRP holder community is awaiting the US Securities and Exchange Commission’s (SEC) next steps to appeal versus Judge Torres’ ruling on XRP status as a security. Amidst the anticipation surrounding the ruling, pro-XRP attorney John Deaton has made more comments on the recent information about the SEC lawsuit against Coinbase.Deaton explained the relationship between the XRP ruling and the crypto ecosystem, arguing that no cryptocurrency is safe from the SEC’s anti-crypto stance.Also read: XRP Ledger notes monumental transfer of 54.3 billion Palau Stablecoin, network effect could boost XRP priceXRP ruling and its impact on cryptocurrencies listed on CoinbaseCoinbase CEO Brian Armstrong told the Financial Times in an interview that the US SEC requested the exchange to halt trading for all cryptocurrencies except Bitcoin. Armstrong said that the SEC believes every asset other than Bitcoin is a security and that the regulator refused to explain how the agency arrived at such a conclusion. The request was to delist from the biggest cryptocurrency exchange in the world every asset other than Bitcoin. Deaton used these words by Armstrong to remind the XRP community how important Judge Torres’ ruling is. According to Deaton, all cryptocurrencies in the ecosystem are “in danger” of the full-force of the SEC coming at them, if XRP was proven to be an investment contract/ security. The ruling makes it clear that XRP is not a security in itself, however the altcoin can be considered as a security depending on the circumstances of the transaction or sale. Deaton believes that this XRP ruling is a win for the crypto ecosystem and that the SEC vs Ripple case is “the most significant non-fraud SEC enforcement action in modern history”, since 1946. Deaton’s argument for why “every coin is in danger”John Deaton had already warned the crypto community nearly a year ago that the SEC’s lawsuit against Ripple could emerge as a groundbreaking one, as the regulator’s argument could be applied to every single asset. Deaton wrote to the SEC, asking the regulator to limit their claims against Ripple, in the way the firm sells XRP. The SEC filed its first amended complaint against Ripple on February 19, in the southern district of New York, and the regulator’s response was to refer to XRP as a “digital asset security.” This is where, Deaton explains, the regulator clarified their stance on cryptocurrencies and shifted its stance from 2013 to the present, referring to assets as “securities” instead of referring to the circumstances of sale of the asset.
S&P 500 News: Index flat as week begins with Apple, Amazon earnings in sight

S&P 500 News: Index flat as week begins with Apple, Amazon earnings in sight

FXStreet News FXStreet News 31.07.2023 16:31
Despite backlash on Thursday, S&P 500 gained 1.01% last week.S&P 500 reaches 4,590 to 4,637 resistance zone.The index has gained for nine of the last 11 weeks.July US Nonfarm Payrolls will be released on Friday.Amazon, Apple, Merck, AMD release quarterly results.The S&P 500 remained flat a half hour into Monday's first session of the week despite SoFi (SOFI) earnings pushing that neobank up more than 18% at the start of trading. The tech-focused NASDAQ Composite has fallen 0.15%, while the more value-oriented Dow Jones Industrial Index has made slight gains.The S&P 500 added 1.01% last week despite experiencing a serious plunge last Thursday. The much-watched index has now advanced in nine of the past 11 weeks and seems poised to keep going despite technical indicators calling it overbought.A flurry of major components of the index will release their second-quarter results this week, including Apple (AAPL), Amazon (AMZN) and Advanced Micro Devices (AMD). Additionally, the week will see the release of US Nonfarm Payrolls data for July.At the time of writing in Monday’s premarket, S&P 500 futures – as well as NASDAQ 100 and Dow Jones futures – are ahead 0.15%.S&P 500 News: Apple, Amazon arrive on ThursdayApple and Amazon are the biggest firms reporting this week. As luck has it, both release calendar Q2 results on Thursday – making that day the primary focus for many traders.Nearly half of the companies in the S&P 500 have already released their results over the past three weeks, and the news for investors has been quite positive to date. There is a clear trend in place. About 81% of reporting firms thus far have beaten their earnings consensus, while just 62% of firms have beaten revenue consensus forecasts.From a Societe Generale client note: “Surprise factor: average EPS beat of 5.8% vs sales beat of 1.3%; margins have surprised, most likely driven by cost cuts and potentially also interest income [...].”Hence, while overall sales appear to be down, margins have outperformed Wall Street analysts and given a boost to profitability writ large. Tech, communications and consumer-focused firms have performed the best this quarter, while banks and other financials are underperforming.Analysts have put out a quite mixed response for Apple’s upcoming earnings. Revisions to earnings per share (EPS) have been upward in 10 instances and down in 16 instances over the past 90 days. Wall Street expects Apple to earn $1.19 per share on revenue of $81.82 billion when it reports after the close on Thursday.Amazon has received vastly more upward revisions to earnings forecasts than downward revisions over the past 90 days. Analyst consensus is at $0.34 a share on $131.34 billion in sales.Nonfarm Payrolls expected to reach 200k on FridayJuly’s US Nonfarm Payrolls (NFP) data will tell the equity market whether job hiring is continuing to slow down. June saw 209,000 new hires, which was well below the 225,000 figure that economists expected but still healthy.For July, economists expect the NFP to arrive at 200,000. The market will most likely react positively to a lower number since it would give more weight to the belief that the Federal Reserve is already getting what it wants and, thus, will decide not to raise rates at its September policy meeting.The central bank raised interest rates by 25 basis points last week, but the equity market responded well since Fed Chair Jerome Powell seemed wishy-washy concerning any future hikes this year. The CME FedWatch Tool now gives just a 20% chance of a 25 bps hike in September, and many pundits think the long rate-hiking cycle may really be over. Still, a higher NFP number may lead enough traders to begin trimming their positions since a tight labor market could conjure further inflation ahead. Traders will also pay attention to Average Hours Earnings in the report, which consensus expects to drop from last month’s 4.4% YoY reading to 4.2% YoY.Earnings of the weekMonday, July 31 – Western Digital (WDC), Arista Networks (ANET), Yum China (YUMC)Tuesday, August 1 – Merck (MRK), Pfizer (PFE), Advanced Micro Devices (AMD), Caterpillar (CAT), Starbucks (SBUX), Uber (UBER), and Altria (MO).Wednesday, August 2 – CVS Health (CVS), Shopify (SHOP), PayPal (PYPL), Kraft Heinz (KHC), Humana (HUM)Thursday, August 3 – Apple (AAPL), Amazon (AMZN), Amgen (AMGN), AirBNB (ABNB)Friday, August 4 – Enbridge (ENB), Dominion Energy (D), fuboTV (FUBO)What they said about the market – Michael WilsonMorgan Stanley equity strategist Michael Wilson is a noted bear, but even he is suggesting that 2023 looks a whole lot like 2019. That was a banner year for the index when the S&P 500 returned 29%. Wilson says the Fed pausing rate hikes and then trimming helped equities in 2019 – a similar pattern to what is happening this year."The data we have today suggests to us that we are in a policy-driven, late-cycle rally."S&P 500 forecastThe S&P 500 has reached the 4,590 to 4,637 resistance zone that pushed the index lower back in February and March of 2022. The Relative Strength Index (RSI) has reached 70 or the overbought stage on the weekly chart below, though bulls will note that the S&P 500 index has been largely overbought on the daily chart since early June. That said, it is still not safe to ignore. The last time the RSI reached 70 on the weekly chart in late November of 2021, the index followed one month later with the beginning of its -27%, 10-month decline.A break above 4,637 will have bulls pounding the table for a retest of the all-time high at 4,818. In case Michael Wilson’s worries come to fruition, support sits at 4,500 and 4,325.S&P 500 weekly chart
Mullen Automotive Stock News: MULN drifts lower ahead of shareholder meeting

Mullen Automotive Stock News: MULN drifts lower ahead of shareholder meeting

FXStreet News FXStreet News 28.07.2023 15:13
Mullen stock has lost 22.1% over the past month, 4.7% over past five sessions.New agreement announced with Shoshoni Native American Tribe.Majority-owned Bollinger Motors receives $3 million grant from Michigan.Market awaits August 3 shareholder meeting for further news. Mullen Automotive (MULN) stock has continued to cycle lower this week as investors wait for the outcome of the electric vehicle (EV) maker’s next shareholder meeting, scheduled for next Thursday, August 3.Mullen CEO David Michery has already stated shareholders will vote on a reverse stock split at a ratio between 1-for-2 and 1-for-100. The MULN share price has languished for much of the year below the $1 value that the NASDAQ exchange requires listing companies to retain despite having already instituted a reverse stock split at a 1-for-25 ratio back in May.A number of questions will be taken up at the meeting, including the ratio for another reverse stock split. MULN stock is trading down 1.4% in Friday’s premarket at $0.1228.Mullen stock news: Bollinger receives Michigan grantBollinger Motors, an EV development-stage company that Mullen owns a majority stake in, announced a $3 million grant from the state of Michigan on Wednesday. The grant will be dispatched upon Bollinger reaching several milestones in job creation.“Bollinger Motors is poised for growth and we’re proud to be focused on expanding our company’s operations as we approach start-of-production,” said Bollinger’s founder and CEO, Robert Bollinger.Bollinger recently made headlines when it began pilot production on its all-electric, class-4 chassis cab. Named the B4, it can carry a payload of 7,080 lbs and has a battery range of 185 miles. The semi-trailer truck will compete directly with the Mullen Three model, potentially making Mullen one of the leading producers of electric commercial vehicles in the semi truck category. Bollinger plans to complete production of 20 units by the end of the third quarter.Tesla (TSLA) is already underway with limited production of its own Tesla Semi model. The battery pack surpasses both the Mullen and Bollinger models with an expected range of 500 miles. At the moment, the Tesla Semi is being tested by Pepsi (PEP).In other news, Mullen has entered into another pilot program with the Shoshoni Native American Tribe of Northern California, which will begin testing the Mullen One cargo van and its Mullen CAMPUS delivery vehicle at the Harrah’s Northern California Resort & Casino property. This is just one of a number of recent pilot programs in which organizations can test Mullen vehicles before making purchases.“Our tribe’s vision to transition to electric-powered vehicles and sustain green initiatives is in line with the National EV Initiative for Tribal Nations,” said Chief William Bills, the CEO and president of the Shoshoni tribe. Mullen stock forecastMullen stock has continued to drift lower after topping out on July 6 at $0.3212. The penny stock is down 22.1% over the past month and 4.7% over the last five sessions.The short ratio for MULN stock is not terrible at 12%, but that figure comes from the most recent data on July 15. A little over 75.3 million shares were sold short on that date. Earlier this year, the short ratio had topped 20% for a time. At just 0.4 days to cover, the ratio does not seem high enough to make a short squeeze a no-brainer, but the number of shares sold short did double from late June.Shareholders are hoping that the $0.10 level holds before positive news arrives from the shareholder meeting. MULN daily chart
Binance files motion to dismiss US CFTC lawsuit, calls it agency overreach

Binance files motion to dismiss US CFTC lawsuit, calls it agency overreach

FXStreet News FXStreet News 28.07.2023 15:13
Binance filed a motion in response to the US Commodity Futures Trading Commission’s lawsuit against the crypto exchange platform. The exchange said in the motion that the CFTC is overreaching in suing Binance and CEO Changpeng Zhao. The CFTC alleges that the exchange offers unregistered crypto derivatives products, directing US customers to evade compliance controls through the use of VPNs.Binance responded to the US Commodity Futures Trading Commission (CFTC) lawsuit against the exchange and its executives Changpeng Zhao and Samuel Lim in a recent filing. The crypto trading platform labels the CFTC’s charges as overreach in its motion to dismiss the independent agency’s lawsuit against Binance.Amidst the intensifying regulatory crackdown on the exchange, the BNB Chain report for Q2 was released, highlighting the blockchain’s dominance with an average market share of 46.5% for verified smart contracts.Despite the SEC and CFTC’s ongoing lawsuits against Binance, the exchange’s native blockchain has outperformed Ethereum with its massive market share acquisition. Binance responds to CFTC lawsuit in new motion filingBinance, one of the largest cryptocurrency exchanges in the ecosystem, has been hit by one lawsuit after another in 2023. The exchange is currently battling charges brought by the US Securities & Exchange Commission (SEC) and the CFTC.In March the CFTC alleged that Binance had offered unregistered crypto derivatives products and directed US customers to evade compliance controls through the use of VPNs. In its lawsuit the regulator charges Binance with violation of laws around offering futures transactions and illegal off-exchange commodity options among other charges. Binance’s motion to dismiss the CFTC lawsuitThe exchange has responded to the CFTC’s allegations in its July 27 filing, stating that the agency has no regulatory authority over spot trading in the United States or overseas. The exchange’s motion to dismiss states that the issues posed by the CFTC’s complaint are not relevant since Binance․com had already begun to restrict and off-board potential US users in 2019. Binance’s BNB chain performance is unaffected by legal woesIn BNB Chain’s Q2 report, it is clear that Binance’s legal trouble has failed to negatively influence the native blockchain’s market share and performance. BNB Chain dominated Ethereum in Q2 among blockchains with verified smart contracts, outperforming Ethereum's 31.3% market share by 15 percentage points.The SEC and CFTC lawsuits against Binance have had, therefore, little to no negative impact on the exchange’s native blockchain and its performance in the second quarter .
USD/JPY climbs above 140.50 as US GDP expanded at stronger pace in second quarter

USD/JPY climbs above 140.50 as US GDP expanded at stronger pace in second quarter

FXStreet News FXStreet News 27.07.2023 16:25
USD/JPY surpasses 140.50 as US Dollar Index discovers strength after upbeat US GDP and Durable Goods Orders data.US GDP expanded surprisingly at a higher pace of 2.4% and Durable Goods Orders data rose extremely higher by 4.7%.The BoJ is expected to deliver a strong message that the end of YCC is not far.The USD/JPY pair jumps above the crucial resistance of 140.50 as the United States Bureau of Economic Analysis reports that the economy remained resilient in the second quarter. The asset discovers strength as the US Dollar Index (DXY) has rebounded swiftly after diving to near 100.60.US Gross Domestic Product (GDP) was expanded surprisingly at a higher pace of 2.4% vs. 2.0% recorded for the first quarter. Investors were expecting that GDP expanded at 1.8% on an annualized basis. In addition to that, Durable Goods Orders data for June rose extremely higher by 4.7% against expectations of 1.05 and May’s figure of 1.8%. This indicates that the economic outlook of the US economy is extremely strong.Also, weekly jobless claims for July 21 remained below expectations. For the week ending July 21, 221k claims were received from first-timers while expectations were of 235K. Tight labor market conditions and US economic resilience could force the Federal Reserve (Fed) to announce one more interest rate hike in September.Fed Chair Jerome Powell mentioned in his commentary that September’s monetary policy will be largely dependent on economic data and upbeat economic indicators could open doors for one more interest rate hike, which will push interest rates to 5.50-5.75%.Meanwhile, the US Dollar Index is marginally far from a two-day high of 101.58, prompted by upbeat economic data. S&P500 is expected to open on a bullish note following positive cues from overnight futures.The Japanese Yen is expected to remain on tenterhooks ahead of the interest rate decision by the Bank of Japan (BoJ), which will be announced on July 28. Economists at Credit Suisse expect the FX market is clearly pricing in a significant probability of a hawkish development such as widening the YCC trading band for the 10-year JGB or sending a strong message that the end of YCC is not far.
Palantir Stock Forecast: PLTR rises alongside NASDAQ 100, Meta Platforms

Palantir Stock Forecast: PLTR rises alongside NASDAQ 100, Meta Platforms

FXStreet News FXStreet News 27.07.2023 16:25
Palantir stock benefits from neutral Fed meeting.Fed Chair Powell says economy unlikely to crash this year.Meta Platforms has lifted other tech stocks with its earnings beat.NASDAQ 100 rises 1.2% in Thursday premarket. Palantir (PLTR) stock traded up 2.4% a half-hour into Thursday's regular session. The stock initially broke above the $17.06 resistance point, reaching a high of $17.19, but later edged back to $16.84. The stock is being lifted on the coattails of the NASDAQ 100. The tech-heavy index rose 1.7% on Thursday following impressive earnings results from Meta Platforms (META) and a “neutral” press conference by Federal Reserve Chair Jerome Powell.Before the bell on Thursday, US GDP data for the second quarter was released, showing a 2.4% annualized growth rate. This was much higher than the 1.5% rate that analysts had expected on average.Palantir stock news: Was this the last rate hike?Palantir, one the market's most popular artificial intelligence (AI) stocks, is benefiting from two events aiding nearly all tech stocks. First, the Federal Reserve’s Federal Open Market Committee (FOMC) finished its two-day July meeting on Wednesday and voted to raise the fed funds rate range by 25 basis points as predicted.Chair Powell followed up with his press conference afterwards, and most observers seemed to think he purposefully struck a “neutral” tone. This left many in the market thinking another rate hike at the next meeting in September was probably off the table. Others speculated that one more hike could come at the November FOMC meeting, but the market as a whole is hopeful that the steep hiking cycle that began in mid-2022 has ended."Chair Powell seemed intent on delivering a neutral meeting and for the most part succeeded,” wrote Veronica Clark, an economist for Citi, following the speech. “The well-expected 25bp rate hike was delivered. The September meeting was left 'live' for a rate hike, but Powell gave the impression the next hike would more likely come later this year, if at all, similar to market pricing."Indeed, the CME Group’s FedWatch Tool now has odds of only 20% that the Fed hikes rates in September.Additionally, Powell said a recession now appears less likely than it did earlier in the year.“My base case is that we will be able to achieve inflation moving back to our target without the kind of really significant downturn that results in high levels of job losses that we've seen in some past,” Powell said. “You'd stop raising [rates] long before you got to 2% inflation, and you'd start cutting before you got to 2% inflation too."This left some economists speculating that the central bank will begin cutting rates by March of next year. Lower interest rates are better for all businesses but especially for newer tech companies that normally focus on revenue growth before near-term profits.Palantir stock news: Meta beats and raisesOne of the larger holdings in the NASDAQ 100 index (3.5%), Meta Platforms stock soared more than 8% on Thursday following better-than-expected earnings results late Wednesday. GAAP earnings per share (EPS) reached $2.98, beating analyst consensus by about 2%. Revenue of $32 billion also beat consensus and rose 11% YoY. Less than a year after CEO Mark Zuckerberg saw META’s share price drop below $90, the owner of Facebook and Instagram now trades above $329. Zuckerberg has mostly abandoned the company’s expensive metaverse strategy, saving the company billions of dollars in the process, and the company’s Reels product is now a $10 billion revenue driver just a year after being monetized."Consumer internet stocks rarely go on this kind of a run, but we think we are only at halftime and as noted above, the multiple barely assigns value to what META is doing," wrote Barclays analyst Ross Sandler in a note to clients.Barclays raised its price target from $320 to $410. This type of euphoria around one of the largest stocks in the market has spread to other tech stocks. The vast majority of the leading tech stocks, Palantir included, are thus benefiting on Thursday. Palantir’s stock price plunged in 2022 alongside Meta Platforms, but the META’s extreme turnaround is leading traders to mutter the axiom “Don’t bet against tech”.Palantir stock forecastPalantir stock is climbing off its Wednesday retest of support at the 20-day Simple Moving Average (SMA). A close above the $17.06 support-turned-resistance level will lead bulls to take over price action once again.That leaves the $20.55 former support level as the next likely point of resistance. The $17.06 level supported PLTR stock in May 2021, and the $20.55 level formed support in both March and July of that year.The negative detail from the daily chart below is reflected by the Moving Average Convergence Divergence (MACD) indicator that has turned bearish. Further support exists at the 50-day SMA, which is merging at $15, and the June 23 bottom at $13.56.PLTR daily chart
GBP/JPY looks vulnerable above 181.00 as odds of a tweak in BoJ policy accelerate

GBP/JPY looks vulnerable above 181.00 as odds of a tweak in BoJ policy accelerate

FXStreet News FXStreet News 26.07.2023 14:58
GBP/JPY is expected to deliver more downside below 181.00 as the BoJ could tweak its ultra-dovish interest rate policy.The IMF said on Tuesday that the BoJ should look for moving away from supportive monetary policy.A survey from Reuters showed that interest rates in the UK economy would peak around 5.75%.The GBP/JPY pair is expected to face more sell-off and will continue its downside move below the immediate support of 181.00 in the European session. The cross is facing pressure as market participants have turned mixed about the Bank of Japan’s (BoJ) monetary policy, which will be announced on July 28.Wages in Japan are rising after a change in corporate behavior, which has also changed the situation of stubborn deflation. Higher disposable income in households has improved the overall demand and support to keep inflation steadily above 2%. Therefore, investors are hoping that the BoJ could tweak its ultra-dovish interest rate policy this time.The International Monetary Fund (IMF) said on Tuesday that the BoJ should look for moving away from supportive monetary policy.Apart from the BoJ policy, guidance about inflation will also be in focus. Meanwhile, the Japanese government is out with its outlook on the country’s inflation, noting that inflation is seen staying around 0.7% in the longer term. “Wages are projected to increase by 2.5% in FY24, following a 2.6% jump in FY23,” the government said.The Pound Sterling is failing to find support despite expectations of a hawkish interest rate decision by the Bank of England (BoE), which will be announced on August 03. Inflation in the United Kingdom economy is highest in comparison with G7 economies, which assures that more interest rate hikes from the BoE are in the pipeline.A survey from Reuters showed that interest rates in the UK economy would peak around 5.75%, which indicates that three more small interest rate hikes are still favored. It would be worth watching whether UK PM Rishi Sunak would fulfill his promise of halving inflation to 5%.
Bitcoin price flirts with $30,000 level as US Federal Reserve expected to resume rate hikes

Bitcoin price flirts with $30,000 level as US Federal Reserve expected to resume rate hikes

FXStreet News FXStreet News 26.07.2023 14:58
The US Federal is likely to raise its benchmark lending rate on July 26, as the monetary policy meeting concludes on Wednesday. Bitcoin price is range bound below the psychological barrier at $30,000 as the rate hike looms on market participants. The CME FedWatch tool is forecasting a 98.9% probability of a quarter point increase in interest rates.Bitcoin price is ranging below $30,000, a key psychological barrier for the asset, ahead of the US Federal Reserve’s rate decision on Wednesday. Crypto market participants are closely watching the Fed’s next move to predict whether risk assets will get derailed from their rally in the ongoing alt season in July.Rate decision likely to influence Bitcoin, altcoin pricesMarket participants are confident of the US Federal Reserve’s 0.25 percentage point rate hike on Wednesday. The rate hike has been baked in for a while as further increases were already signaled during the US central bank's last meeting in June, when policy makers decided to hold rates steady.Projections in June showed a base case of two additional rate hikes before the end of 2023. Fed Chair Jerome Powell talked about “additional policy firming,” implying June was just a mere pause before further rate hikes. In his July 13 speech, Fed Governor Christopher Waller said,I see two more 25-basis-point hikes in the target range over the four remaining meetings this year as necessary to keep inflation moving toward our target.The CME Group Fedwatch tool places the probability of a 25 basis point hike in July at 98.9%, at the time of writing. CME Fedwatch tool estimates for July 26 Fed meetingBased on the Fed’s June projections, two committee members favor no further rate hikes, four favor just one more and twelve are seeking two or more hikes before the end of 2023. A consensus is therefore unlikely in the current Fed meeting and market participants are watching the decision closely with some balls in the air.An interest rate hike is likely to influence Bitcoin and risk asset prices negatively, triggering a drawdown in BTC price and slowing the asset’s recovery to the $30,000 level. Moreover, July 2023 is the alt season, according to the index by Blockchaincenter.net. A decline in crypto prices could wipe out alt season gains for altcoins ranking in top 50 cryptocurrencies by market capitalization. AI-based prediction suggests Bitcoin price could tank after rate hikeAccording to Chain of Demand (CoD), an analytics platform that uses Artificial Intelligence (AI) to predict Bitcoin price action, the estimate for BTC price after Wednesday’s meeting is bearish. The team at CoD identified that Open Interest on Binance Perp Futures for BTC is a great leading indicator for BTC price action the day after the FOMC meeting.This pattern was accurate for 10 out of 11 previous FOMC meetings and based on the current tracking of Open Interest, Bitcoin price is likely to correct on Thursday.
ECB Preview: Another hike, but what next?

ECB Preview: Another hike, but what next?

FXStreet News FXStreet News 25.07.2023 15:42
Following the Fed, the ECB will be the next central bank to decide on interest rates.A 25 basis point interest rate hike is expected, along with a hawkish tone.The focus is on what the ECB will do after July.On Thursday, July 27th, the European Central Bank (ECB) will announce its monetary policy decision at 12:15 GMT. Later, at 12:45 GMT, ECB President Christine Lagarde will hold a press conference.At the June meeting, the ECB raised its key interest rates by a quarter of a percentage point. It was the eighth consecutive hike, with the Deposit facility rate rising to 3.5%, the Main refinancing operations up to 4.0% and the Marginal Lending Facility to 4.25% – their highest levels since May 2001. The hike took place despite reports suggesting evidence of contraction in most Eurozone countries but with inflation remaining elevated. At that meeting, Lagarde said that another rate hike at the July meeting was “very likely”.Even after the meeting Lagarde and other ECB members continued to indicate that another rate hike was likely. Markets listened, and came to expect the ECB to deliver another rate hike. This time, however, there has been no doubt about the size – whereas previously there had been speculation of a 50 basis point hike, this time markets foresee only a 25 basis point increase. The more pressing question for markets now is what the ECB will do after July.The key justification for the rate hike was reiterated in the June statement, where the ECB explained that “inflation has been coming down but is projected to remain too high for too long”.Euro-area prices rose 5.5% year-over-year in June (the lowest level since early 2022), below the 6.1% recorded in May and the 7% of April. The inflation trend is downward; however, it remains far from the ECB’s 2% target. While the CPI remains above the target and particularly at a level below key interest rates, the bias at the ECB will remain towards more tightening, considering the current context.Focus on the September decision With a 25 basis point rate hike practically guaranteed this week, the focus turns to the September 14 decision. The latest round of comments from Governing Council members shows that another hike is not a done deal, and the decision, as of now, looks to be a close call. While the minutes from the June meeting and comments mention that raising rates again in July is a “necessity”, what the ECB will do in September is not certain at the moment. Before the September meeting, there will be two inflation reports. The July data starts to come out this Friday, with preliminary readings from Spain and Germany. On Monday, July 31, Eurostat is scheduled to release the flash estimate of Eurozone inflation data for July. Before the September ECB meeting, the August inflation numbers will also be released.How much more the ECB can tighten its monetary policy is the outcome of the balance between high inflation and rising wages, on one side, and the evidence of weaker growth on the other. A pause in September would not necessarily mean it is the end of the hiking cycle. The end of the cycle requires more evidence of inflation slowing down toward the target (with inflation readings below interest rate levels) and a deterioration in the growth outlook. The central bank will be more data-dependent going forward. Positive for the EUR? The ECB wants to show a strong commitment to returning inflation to its target, and such a scenario is already expected. A hawkish surprise to lift the Euro would require at least Lagarde mentioning that a September hike 'is very likely' and talking with more determination about higher interest rates for longer – and markets would have to buy that message.The level of terminal rates is being debated among analysts. If the ECB offers signs of higher terminal rates, then the Euro could benefit across the board, sending Eurozone bond yields higher. An unlikely dovish response should trigger a rally in equity markets but would weigh on the common currency.However, what happens with EUR/USD over the next few days is most likely to be driven by US Dollar dynamics, with the FOMC decision on Wednesday and key data due on Thursday and Friday.The weekly chart shows the EUR/USD retreating from the year-to-date high, still above a short-term uptrend and well above the 20-week Simple Moving Average (SMA). If, after all the central bank meetings and economic reports of the week, the pair holds above current levels or higher, a resumption to the upside looks like a matter of time. A strong signal about more gains ahead would be provided by a weekly close above the 200-week SMA that currently stands at 1.1190. On the contrary, under 1.0950, the outlook for the Euro would deteriorate, exposing the 20-week SMA at 1.0900. A weekly close below that should add pressure to the downside.
Dogecoin price surges on rumors about becoming payment tool at X

Dogecoin price surges on rumors about becoming payment tool at X

FXStreet News FXStreet News 25.07.2023 15:42
Dogecoin price rallied to $0.078 as Elon Musk’s Twitter app rebranded to X.Dogecoin network’s large wallet investors bought three billion DOGE tokens over the past three weeks.The social dominance of the meme coin climbed, alongside whale accumulation of DOGE tokens.Dogecoin, the largest meme coin in the crypto ecosystem, is experiencing an increase in price and in other on-chain metrics such as social media dominance in light of Twitter’s rebranding to X. The Shiba-Inu-themed coin, which has Elon Musk among its supporters, seems to be taking the center stage due to rumors that it could be used as a payment method at X.Elon Musk’s Twitter rebranding catalyzes Dogecoin recoveryElon Musk, self-proclaimed Dogefather and one of the most influential proponents of the meme coin, recently announced Twitter’s rebrand to “X.” As the blue bird left the micro blogging platform to make way for X, bullish sentiments of DOGE holders resurfaced as some expect the meme coin could in some way be incorporated in the platform as a form of payment.Musk’s comments have typically catalyzed price rallies in the meme coin in the past. The rebranding effort has led to the speculation that X could soon start accepting DOGE tokens. Analysts on Twitter argue that advertisers could pay for ads and other services using DOGE tokens.These rumors are not completely unfounded as Tesla allows users to pay for goods in its store with DOGE tokens. Moreover, Musk has hinted DOGE payments on Twitter several times since his purchase of the social media platform.Find out more about the relationship between Twitter’s rebranding and DOGE here.Dogecoin price rallied 11.4% on Binance as market participants responded to the news of Twitter’s rebranding announcement in a context of a broad sell-off in the crypto market. The meme coin’s price rally was fueled by Musk’s interest in Dogecoin, speculation of DOGE tokens being used as payments on the app and bullish on-chain metrics.Experts analyzed DOGE price action and catalysts and predicted a 110% rally in DOGE price in the short term. For price targets and signs of a bullish recovery in DOGE, check this post.DOGE on-chain metrics turn bullishTwo key on-chain metrics for the meme coin, social dominance and volume of DOGE holdings of whales, have flipped bullish. Based on data from crypto intelligence tracker Santiment, DOGE has seen a rise in mentions across social media platforms.DOGE social dominance vs priceRising social dominance is typically associated with an increase in the asset’s price, as seen in the chart above.Moreover, whales anticipate a recovery in the meme coin’s price. This has driven large wallet investors to spend $225 million to acquire three billion DOGE tokens over a three-week period, as seen in IntoTheBlock’s chart below.Whale accumulation of DOGE tokensWhales owning between 1 billion and 10 billion DOGE tokens have recently increased their holdings of the Shiba-Inu-themed cryptocurrency. Accumulation by whales is typically a bullish sign for DOGE price. To find out why traders should pay attention to Dogecoin price and targets, check this post.
Pro-XRP John Deaton argues SEC vs Ripple ruling is sound, cites Celsius bankruptcy example

Pro-XRP John Deaton argues SEC vs Ripple ruling is sound, cites Celsius bankruptcy example

FXStreet News FXStreet News 24.07.2023 16:22
Attorney John Deaton cited the Celsius case as an example, arguing XRP holders did not suffer financial losses like the lenders’ creditors.Deaton explains that the bankrupt crypto lender’s case makes it clear there is no horizontal commonality with the Ripple ruling under the existing law. Deaton assuages XRP holders’ concerns and explains that Judge Analisa Torres’ decision in the SEC vs Ripple case is sound. Bankrupt crypto lender Celsius’ progress in bankruptcy court made the headlines last week as the firm finalized its strategy to repay creditors. Pro-XRP attorney John Deaton cited the Celsius bankruptcy case to explain that, unlike the bankrupt crypto lender’s case, XRP holders or traders did not lose their funds to Ripple, since many were unaware of the firm’s existence.Deaton believes several XRP holders acquired the token for its relevance and high market capitalization when compared to other altcoins. This argument weakens the Securities and Exchange Commission's (SEC) narrative of “common enterprise” and secondary market sales of XRP tokens are unlikely to be considered as securities transactions. Why Celsius bankruptcy does not share common ground with SEC vs Ripple lawsuitPro-XRP attorney John Deaton commented on the recent developments in the bankruptcy case of Celsius. The bankrupt crypto lender reached a settlement after year-long proceedings in the court.Celsius now has two settlements that are likely to make it possible for the lender to begin reimbursing creditors 105% of their claims. To find out more about the lawsuit and the court ruling check this post.The US financial regulator Securities and Exchange Commission (SEC) revealed its plans to appeal the ruling of Judge Analisa Torres in the SEC vs Ripple lawsuit in the Second Circuit. This increased the concerns among XRP holders and the community.Deaton addressed both the concerns arising from the recent Celsius lawsuit and the SEC’s plan to appeal Judge Torres’ ruling in his tweet:Deaton explains that, unlike Celsius, XRP holders did not lose their funds to payment remittance firm Ripple. Moreover, Deaton argues that most early traders were unaware of the relationship between XRP and Ripple, and the purchase of the token was made on cryptocurrency exchange platforms. These facts, according to Deaton, shed light on why the US SEC’s argument of “a common enterprise” is flawed and an appeal is unlikely to affect the fate of XRP holders.According to Judge Analisa Torres’ ruling, XRP token is not an investment contract or security in open-market sale transactions. The pro-XRP attorney explains this fact is likely to stay true and the ruling is unlikely to be overturned, even following the appeal by the regulator.XRP is trading at $0.6985 at the time of writing.
Silver Price Analysis: XAG/USD refreshes day’s low around $24.50 ahead of Fed policy

Silver Price Analysis: XAG/USD refreshes day’s low around $24.50 ahead of Fed policy

FXStreet News FXStreet News 24.07.2023 16:22
Silver price has refreshed the day’s low marginally below $24.50 as the focus shifts to Fed’s policy.Investors are hoping that the Fed will raise interest rates further by 25 basis points (bps) to 5.25-5.50%.Silver price has slipped below the 23.6% Fibonacci retracement at $24.53.Silver price (XAG/USD) has printed a fresh day’s low at $24.45 in the early New York session. The white metal has sensed immense pressure as bullions have come under pressure ahead of the interest rate decision by the Federal Reserve (Fed), which will be announced on Wednesday.S&P500 is expected to start the week on a positive note, following positive cues from overnight futures. The US Dollar Index (DXY) has tested the breakout of the consolidation formed around 101.00 after printing a high of 101.41. The 10-year US Treasury yields have dropped to near 3.81%.Investors are hoping that the Fed will raise interest rates further by 25 basis points (bps) to 5.25-5.50%. Analysts at Goldman Sachs, the Federal Reserve's widely-expected interest rate hike at its upcoming policy meeting next week will be "the last" of the US central bank's long-running tightening cycle.But before that, preliminary United States S&P Global PMI data for July will be in focus. As per the expectations, Manufacturing PMI is seen marginally expanding to 46.4 vs. the former release of 46.3. Services PMI is seen lower at 54.1 against the former release of 54.4. A figure below 50.00 is considered a contraction in economic activities.Silver technical analysisSilver price has slipped below the 23.6% Fibonacci retracement (plotted from June 23 low at $22.11 to July 20 high at $25.27) at $24.53 on a two-hour scale. The 20-period Exponential Moving Average (EMA) at $24.67 is acting as a barricade for the Silver bulls.Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00, which indicates that the downside momentum has been triggered.Silver two-hour chart
Ethereum price likely to reach $2,000, according to these bullish on-chain metrics

Ethereum price likely to reach $2,000, according to these bullish on-chain metrics

FXStreet News FXStreet News 21.07.2023 13:52
Returns of Ethereum long-term traders active over the past year have increased 14.9% on average.ETH trades at $1,895, below the psychological barrier of $2,000, while altcoins like XRP and Chainlink grab the spotlight. Less than 7% of Ethereum supply is on exchanges with a large percentage being held in self custody, reducing the selling pressure on ETH.Ethereum price has decreased around 5% in the last seven days despite the rally in other altcoins such as XRP and Chainlink (LINK). Still, several on-chain metrics point to an upcoming increase in ETH price, which is likely to revisit the $2,000 psychological threshold soon, according to analysts at intelligence tracker Santiment.Ethereum network’s bullish on-chain metricsEthereum price declined from its peak of $2,139.44 in April to $1,889 at the time of writing, within a three-month period. The $2,000 level is considered a key psychological support level and analysts at Santiment say traders are becoming increasingly optimistic about the altcoin. While discussions in social media about Ethereum among traders have declined to the 2023-low observed in mid-May, analysts are bullish on ETH price recovery. Ethereum social dominanceAnalysts note that the ratio of on-chain transaction volume in profit to loss is still favoring profit takes in Ethereum, though by a relatively small margin. If Ethereum price drops from the current level to $1,800, panic selling is expected. Santiment analysts said that price declines in response to panic selling would justify higher demand for the altcoin.Ratio of Ethereum’s daily on-chain transaction volume in profit to loss Ethereum long-term traders and holders, or those who have hold ETH for at least a year, are currently registering an average of 14.9% gains. However, ETH wallet addresses that have been active in the past 30 days are registering minor losses of 0.35%.Santiment analysts note that when these percentages are closer to zero than in extremely negative territory, it opens up profitable opportunities for ETH holders and reflects a bullish potential in the asset.Another key on-chain metric is the percentage of Ethereum tokens on exchanges and in self-custody. According to data from Santiment, less than 7% of Ether is on exchanges, meaning that the likelihood of a huge sell-off is lower than usual.This metric is considered one of the long-term bodes of confidence for Ethereum, paving the way for the altcoin’s return to the psychological level of $2,000.
Ethereum scaling solution Arbitrum passes improvement proposal AIP-2

Ethereum scaling solution Arbitrum passes improvement proposal AIP-2

FXStreet News FXStreet News 21.07.2023 13:52
Arbitrum Improvement Proposal AIP-2 has been officially passed by the community to simplify development of smart contract wallets. AIP-2 implementation would allow users to pay gas fees using any ERC-20 token, and outside entities could offer subsidized gas fees to users. Arbitrum’s update is likely to catalyze ARB price recovery in the short term.Arbitrum, a suite of Ethereum scaling solutions, has officially announced that AIP-2 was passed by the community. The protocol attempts to scale the Ethereum blockchain, and with its new update it addresses user concerns surrounding smart contract wallet usage and gas fees.Arbitrum officially passes AIP-2Arbitrum has officially launched an Arbitrum Improvement Proposal (AIP-2) tackling several user experience level challenges for market participants. Three key concerns of users are wallet recovery, payment of gas fees and bundling transactions together.AIP-2 tackles these challenges and provides the desired benefit to users through social recovery, payment of gas fees through any ERC-20 token (not just Ether) and more control over batched transactions through session keys. The Total Value of Assets Locked (TVL) in the Arbitrum network surpassed $2.747 billion, according to DeFi intelligence tracker DeFiLlama. During previous launches and releases from Arbitrum developers Offchain Labs, there has been a notable increase in the TVL and ARB price. ARB/USDT one-day price chart on Binance If history repeats, it is typical for Arbitrum price to climb in response to an AIP-2 approval by the community. At the time of writing, ARB price trades at $1.266 against USDT on Binance. The Ethereum scaling token is up 11.46% between June 21 and early on Friday. It is likely that ARB price rallies in the short term, yielding further gains for holders.
Tesla Stock Earnings: TSLA loses 4.2% afterhours despite double beat as gross margin slides

Tesla Stock Earnings: TSLA loses 4.2% afterhours despite double beat as gross margin slides

FXStreet News FXStreet News 20.07.2023 16:28
Tesla reported Q2 earnings late Wednesday that beat the analyst consensus.Q2 adjusted EPS arrived at $0.91 for the carmaker.Elon Musk's company reported revenue of $24.93 billion.Revenue rose 47% from the same quarter a year ago.Gross margin dropped to 18.2% in the second quarter. Tesla (TSLA) stock slid 4.2% afterhours to $279.07 on Wednesday evening as the electric vehicle industry's first-mover saw its gross margin slip to 18.2% in the second quarter. Analysts held a consensus going into Q2 that Tesla would retain a gross margin of 18.8% in its automotive division. Tesla's gross margin was down about 7 percentage points from a year ago. CFO Zachary Kirkhorn said at the beginning of the year that Tesla was aiming to keep its autmotive gross margin at or above 20%. Since then Tesla has cut prices across its offerings several times in a bid to boost market share.Tesla still beat Wall Street expectations on the top and bottom lines for the second quarter however. Tesla reported $0.91 in adjusted earnings per share (EPS), while revenue arrived at $24.93 billion. The earnings figure beat analyst consensus by 9 cents, and revenue bested the average forecast by about $200 million.Free cash flow rose from $441 million in Q1 to circa $1 billion in the second quarter. Capital expenditures of $2.06 billion were largely in line with the first quarter.In early July, the Elon Musk-run company already released data showing 466,140 deliveries in the second quarter, a 10% gain on the first quarter. While deliveries rose 83% YoY in Q2, revenue rose just 47% due to tighter margins. TSLA daily chart
What can crypto traders expect from Fed’s interest-rate decision?

What can crypto traders expect from Fed’s interest-rate decision?

FXStreet News FXStreet News 20.07.2023 16:28
Bitcoin price has recently lacked direction, leaving traders guessing its next move. With the Federal Reserve’s interest-rate decision scheduled to take place on July 26, volatility could make a comeback.With disinflation on the rise, the Fed might even opt for rate cuts by year-end, which could improve the crypto market narrative. Bitcoin price remains rangebound around the $30,000 psychological level. With volatility out of the picture, things are starting to get boring for crypto traders. However, the United States Federal Reserve (Fed) is set to make a decision on the interest rates, an event that could reintroduce volatility and give BTC a directional bias.Fed’s decision looks crucial for Bitcoin In the last Federal Open Market Committee (FOMC) meeting, The Fed signaled the possibility of two additional rate hikes by the end of the year. While the latest release of the Consumer Price Index (CPI) was relatively calm for crypto markets, the interest-rate decision set to take place on July 26 is likely to trigger a spurt of volatility.The CME Group FedWatch tool shows a 99.8% probability of a 25 basis point interest-rate hike. CME FedWatch tool While this hike might put a short-term strain on risk-on assets, it could also be a pivotal moment that kickstarts a rally for Bitcoin price. Many experts say that the Fed’s interest rate hike in July might be the last one of the current cycle. Following this, there might be a pause that leads to rate cuts, especially considering that the inflation rate, as measured by the Consumer Price Index (CPI), has dropped from a peak of 9.1% to 3.0%. Goldman Sachs has reduced the recession forecast for the US economy to 20%, partially due to the decline in inflation. Combining this macroeconomic development with a potential approval of a Bitcoin spot ETF, the crypto market outlook does look bullish. Bitcoin price and its short-term outlookBitcoin price has swept liquidity, resting below equal lows at $29,500, and is ready to rally to $30,861. This move would likely attract greedy bulls before smart money pushes BTC lower.The target for the short-term downtrend would include the $28,138 level, which is the midpoint of the 27% rally seen between June 15 and 23. In certain cases, BTC could drop to $27,330 and $26,767 levels, both of which are key accumulation levels for long-term holders. If the macroeconomic outlook improves as described above, Bitcoin price could bounce from the key support areas and hit $35,000 and $41,000 levels.BTC/USDT 4-hour chartOn the other hand, if the descent pushes Bitcoin price beyond the $25,000 level, it would shake investor confidence. This move would produce a lower low and invalidate the bullish thesis, potentially triggering a correction to the key support level at $21,313.
Ethereum founder Vitalik unveils account abstraction that could onboard billions of users

Ethereum founder Vitalik unveils account abstraction that could onboard billions of users

FXStreet News FXStreet News 19.07.2023 16:04
Ethereum creator Vitalik Buterin explained key innovations that could tackle the challenges facing the ETH blockchain. Account abstraction is one such catalyst that could entice a billion users to Ethereum. Buterin’s announcement at the EthCC conference in Paris could catalyze Ethereum price recovery in the long term.Ethereum founder Vitalik Buterin discussed a key concept that could revolutionize access and utility of wallets on the ETH blockchain. Buterin spoke about “account abstraction” – a technical concept that has been under development in some form or another since 2015. Additionally, Buterin discussed the challenges in implementing new features on the Ethereum blockchain.Ethereum account abstraction could act as a bullish catalyst For an Ethereum user, account abstraction means that technical details of interaction between ETH accounts are concealed, improving wallet design and user experience. Moreover, it reduces the complexity of using web3 applications with an Ethereum wallet.Creator Vitalik Buterin acknowledges this as a key feature that could catalyze Ethereum’s mass adoption. His view is that the Ethereum blockchain is likely to onboard a billion users in the long term with the account abstraction feature.Buterin announced the details of account abstraction at the EthCC conference in Paris. Buterin said account abstraction extensions, generally called “paymasters,” allow users to pay their fees with “whatever coins that they are transferring.” These abstraction extensions can also allow dApps to sponsor transactions for users.Developers need to overcome challenges for Ethereum’s mass adoptionButerin recognized that ETH developers need to overcome challenges alongside potential benefits of account abstraction for users. Ethereum Improvement Proposals (EIP) could be used to upgrade the externally-owned ETH accounts and turn them into smart contracts. This would ensure ETH wallets work similarly to Layer-2 solutions.Ethereum price is $1,909.91 on Binance at the time of writing. The altcoin has yielded a 10.5% gain over the past month for ETH holders.
Palantir Technologies Stock Forecast: PLTR ready to test prior support floor at $20.55

Palantir Technologies Stock Forecast: PLTR ready to test prior support floor at $20.55

FXStreet News FXStreet News 19.07.2023 16:04
Palantir Technologies (PLTR) has been on a tear this summer. Just since the beginning of May, the data analytics company has seen its stock rise 133%. Year to date, the stock is up 183%. It is nearly a month since Raymond James gave Palantir a downgrade based on its strong performance, but PLTR stock has continued to produce gains. Now Palantir stock seems poised to pop another 14% at least from here.Palantir stock gained 3.9% on Tuesday and 0.4% in Wednesday’s premarket. NASDAQ 100 futures are also ahead 0.2% at the time of writing.Palantir stock news: FedStart will distribute BloodHound Enterprise softwareOn Tuesday, Palantir announced a new partnership with software provider SpecterOps. The latter’s BloodHound Enterprise software is a cybersecurity tool that equips government agencies with the ability to quickly respond to attacks on their active directories (AD). “Designed to help organizations proactively and continuously identify, manage, and remediate millions of AD Attack Paths, [BloodHound Enterprise] gives IT Ops and SecOps professionals the tools needed to dramatically and measurably improve their AD security posture with minimal effort,” Palantir said in a statement.Palantir will use its FedStart platform to make BloodHound Enterprise available to a multitude of its existing US government agency clients. FedStart is an accredited platform that software makers can use to run their software offerings within. This is because FedStart has created a secure environment that is already FedRAMP and IL-5 compliant. Without FedStart, companies often have to spend an inordinate amount of money and time to become federally compliant. "We created Palantir FedStart with the goal of enabling companies to reduce friction and deliver solutions to the government at the speed of innovation," said Akash Jain, president of Palantir USG. "SpecterOps’ BloodHound Enterprise is one of those companies at the cutting edge of attack path management whose solutions should be in the hands of the government without delay."This announcement comes just a week after Palantir announced a separate partnership with Carahsoft Technology to distribute its Apollo platform to more state and local governments.Palantir stock forecastPalantir stock easily broke above the $17.06 support floor that comes from a major sell-off in May 2021. The next prior support level, which could turn into resistance, sits at $20.55. That floor held up in both March and July of 2021, so it has more significance than the $17.06 level. A retest at $20.55 would amount to a 14% gain from here.A break of $20.55 would give bulls a large open field to retest the $26 to $29 supply zone. This zone proved to be stubbornly resistant to a number of rallies during the first year after the stock’s IPO.Still, bears will note that Palantir stock is overbought on the weekly chart’s Relative Strength Index (RSI) and has been for much of the time since mid-May. If a consolidation phase is in order, then that $17.05 level might serve a supportive purpose once again. Otherwise, the 8-week Simple Moving Average (SMA) sits at $15.63.Palantir stock is currently trading around $18, which was the price target given by both Bank of America and Raymond James over the past month.PLTR weekly chart
AUD/USD renews day’s low marginally below 0.6800 despite US Retail Sales slows

AUD/USD renews day’s low marginally below 0.6800 despite US Retail Sales slows

FXStreet News FXStreet News 18.07.2023 16:15
AUD/USD has refreshed its day’s low a little below 0.6800 amid a recovery in the US Dollar.The US Dollar picked strength despite US Retail Sales landing below expectations at 0.2%.RBA minutes conveyed that further policy tightening could be done in August.The AUD/USD pair has printed a fresh intraday low marginally below the round-level support of 0.6800 in the early New York session. The Aussie asset has come under pressure as the United States Retail Sales data has failed to match expectations.US Census Bureau has reported that Retail Sales in June expanded at a pace of 0.2% while the street was anticipating an expansion of 0.5%. In May, US retail demand was expanded by 0.3%. Also, Retail Sales excluding automobiles have posted growth of 0.2% vs. consensus and the former release of 0.2%.After a sheer slowdown in inflation and easing labor market conditions, soft retail demand by US households might force Federal Reserve (Fed) policymakers to turn neutral on interest rates. One small interest rate hike from the Fed in its July meeting is highly expected but the central bank could hold interest rates at 5.25-5.50% till the end of the year.The US Dollar Index (DXY) has picked strength near 99.60, however, the downside bias has not faded yet. The yields offered on 10-year US Treasury bonds are hovering around 3.77%. Meanwhile, S&P is expected to open on a flat-to-negative note considering caution in overnight futures.On the Australian Dollar front, Reserve Bank of Australia (RBA) minutes released in Asia conveyed that further policy-tightening could be done in August. RBA policymakers are worried that higher interest rates dampening Australia’s economic prospects.Going forward, Thursday’s Employment data will be keenly watched. According to the estimates, the fresh addition of payrolls is seen at 17K, significantly lower than the former release of 75.9K. The Unemployment Rate is expected to remain steady at 3.6%.
Upstart Stock Forecast: After large rally, UPST loses ground on lower US Retail Sales

Upstart Stock Forecast: After large rally, UPST loses ground on lower US Retail Sales

FXStreet News FXStreet News 18.07.2023 16:15
Upstart stock reacts negatively to poor US Retail Sales reading.UPST stock is up 310% year to date.Arbor Financial Credit Union partnered with Upstart last week.Major historical resistance on the UPST daily chart ranges from $52 to $55. Upstart (UPST), the AI-inflected lending platform, lost more than 1% in Tuesday’s premarket after US Retail Sales for June came below Wall Street’s forecast. The stock is trending lower a few minutes into the regular session as well. Upwork stock has been experiencing its largest rally of the year. Last week saw UPST stock advance 26.8%, and Monday tacked on another 13.7% performance.NASDAQ 100 futures dropped 0.2% early Tuesday on the US Retail Sales miss, but UPST stock rebounded at the open only to sell off once again.Upstart stock news: AI names remain in focusJune US Retail Sales came in below the analyst consensus early Tuesday. The economic indicator grew 0.2% MoM in June compared with consensus of 0.5%. US Retail Sales ex-Autos also were reported at 0.2% MoM – below the 0.3% consensus.Upstart will likely be able to ignore this type of news, though the release did push the major indices lower early on Tuesday.Artificial intelligence remains a primary focus of equity investors this summer, and Upstart’s lending platform was using the term to describe its lending platform before ChatGPT revved up interest in the technology last winter. Basically, Upstart’s AI engine scours the internet for information about an applicant’s credit quality that it says allows it to render a more nuanced and accurate picture of credit worthiness.When inflation ticked up in 2022, many of Upstart’s lending partners fled the platform. But now that inflation appears to be subsiding, many of those same partners are returning. Arbor Financial Credit Union announced on July 12 that it is partnering with Upstart to supply credit for personal loans.“As part of the Upstart Referral Network, Arbor is able to attract new members and offer them its personal loans through an all-digital lending experience,” said Michael Lock, Upstart’s Senior Vice President of Lending Partnerships.Upstart stock forecastUpstart stock is now reaching the top end of a resistance level at $55. That resistance area ranges from about $52 and comes from a bullish reversal attempt in May and June of 2022. The stock has come a long way this year and is already up 310% year to date.Above $55, UPST faces a former support range that lasts from $71 to $75, which could turn into resistance. The major obstacle at this time is the heavily overbought Relative Strength Index (RSI), which reached 79 on Monday. A reading of 70 is normally when a stock is first assessed as overbought.Support can be found at the 9-day and 21-day Simple Moving Averages (SMAs) at $43 and $38. Longer-term support arrives near $30.UPST daily chart
USD/JPY rebounds sharply as US Dollar attempts recovery, spotlight shifts to US Retail Sales

USD/JPY rebounds sharply as US Dollar attempts recovery, spotlight shifts to US Retail Sales

FXStreet News FXStreet News 17.07.2023 16:55
USD/JPY has picked strength around 138.50 following the footprints of the US Dollar Index.Hopes of only one more interest rate hike from the Fed have elevated due to supportive economic indicators.S&P500 futures have discovered some losses in Europe, portraying a cautious market mood.The USD/JPY pair has recovered firmly to near 138.85 in the London session. The asset was demonstrating a non-directional performance amid an absence of a potential economic trigger. The recovery move has come following the footprints of the US Dollar Index (DXY). A power-pack action in the major would be propelled by the release of the monthly United States Retail Sales data.S&P500 futures have discovered some losses in Europe, portraying a cautious market mood. US equities are expected to face tough times as the second-quarter result season has kicked off. Investors will keep an eye on banking and technology stocks amid bleak economic activities due to higher interest rates from the Federal Reserve (Fed).The US Dollar Index (DXY) is making some serious efforts for delivering a break above the immediate resistance of 100.00. A decisive move would trigger a short-term recovery and might impact the appeal for the risk-perceived currencies. The yields offered on 10-year US Treasury bonds have dropped sharply to near 3.78%.Hopes of only one more interest rate hike from the Fed have elevated due to supportive economic indicators. June’s inflation report has softened sharply as prices of second-hand automobiles have dropped and was sufficient to offset a mild increase in gasoline prices. The tight labor market has released some heat as Fed remained aggressively hawkish and now investors are shifting their focus toward the US Retail Sales data.On the Japanese Yen front, the interest rate decision by the Bank of Japan (BoJ) will be keenly watched. Bloomberg reported that BoJ officials will likely raise their inflation forecast above 2% for this fiscal year at their July meeting, but their view for the following year is largely unchanged and may even be nudged down.Investors should note that Japanese markets were closed on Monday on account of Marine Day.
Celsius liquidates nearly $25 million in crypto after SEC charges lender and former CEO for fraud

Celsius liquidates nearly $25 million in crypto after SEC charges lender and former CEO for fraud

FXStreet News FXStreet News 17.07.2023 16:55
Celsius started liquidating holdings of LINK, BNB, 1INCH, BONE, ZRX among other cryptos after SEC brought charges against the lender.The $25 million worth of crypto liquidation is likely related to a US judge's authorization from bankruptcy court.The bankrupt crypto lender held approximately $164.5 million worth of altcoins on the Ethereum Virtual Machine chain.Bankrupt crypto lender Celsius Network started liquidating some of its assets on Monday after receiving authorization from the bankruptcy court as the US Securities and Exchange Commission (SEC) has charged the entity and its former CEO Alex Mashinsky for violation of federal securities laws.The firm has been accused by a former money manager of running a Ponzi scheme.Also read: Former Celsius CEO Alex Mashinsky arrested by DoJ and sued by SEC, CFTC and FTCCelsius begins crypto liquidations while battling SEC allegationsThe US SEC charged bankrupt crypto lender Celsius Network and founder Alex Mashinsky with the violation of the registration and anti-fraud provisions of the federal securities laws. The crypto lender is battling accusations of running a ponzi scheme, gross mismanagement of customer deposits and manipulation of crypto markets, among other charges.While tackling the legal challenges facing the firm, Celsius received authorization from bankruptcy court to start liquidating its crypto holdings starting July 1. The entity is likely to utilize these funds towards paying back creditors.Crypto intelligence tracker Lookonchain noted that Celsius has started liquidating its holdings, starting with $25 million worth of assets on Monday. On-chain analytics show that Celsius sold 1.27 million LINK worth $8.5 million, 2.83 million SNX worth $7.84 million, 12,597 BNB worth $3 million, 4.45 million 1INCH tokens worth $2.26 million, and 8.53 million ZRX tokens worth $1.9 million. Moreover, FTX and BONE tokens worth $948,000 were transferred to exchanges for liquidation. Celsius crypto liquidation SEC charges are geared towards Celsius Earn Interest programAccording to the US financial regulator’s complaint, from 2018 to June 12 2022, Celsius offered to investors a crypto lending product, the Earn Interest Program. This program allowed users to tender their crypto assets in exchange for interest payments.The regulator argues that the program constitutes the offer and sale of unregistered securities. Celsius is tackling the SEC’s charges against its firm and working on bankruptcy proceedings to return creditor funds.
Mullen Automotive Stock Forecast: MULN gains 5% on Friday as van production ramps up

Mullen Automotive Stock Forecast: MULN gains 5% on Friday as van production ramps up

FXStreet News FXStreet News 14.07.2023 16:45
Mullen completed production of 350 Class-1 EV vans.On Thursday, Mullen announced a new pilot program with the New York Power Authority.MULN stock gained 10.7% on Thursday.Mullen stock is in the green again on Friday.After faltering at the beginning of the week, Mullen Automotive (MULN) stock is making a comeback in the second half. Dropping more than 26% through Wednesday, MULN stock took back 10.7% on Thursday and has added as much as 5% in Friday’s first hour of trading.Mullen stock news: Production completed on 350 delivery vansMullen has been issuing press releases at a quickened pace of late. The announcement on July 5 that Mullen had obtained counsel to bring charges against alleged “naked short selling” led to MULN stock’s 200% surge in the first week of the month. Then Mullen whetted the appetites of bulls the following day with the announcement of a $25 million buyback program that runs through the end of the year. Unfortunately, the policy does not oblige the company to use the funds for buybacks but only gives them the option to do so. Mullen had $235 million on its balance sheet from selling shares during the second quarter, but much of it is required to fund the production of commercial vehicles at its Tunica, Mississippi assembly plant.“We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said David Michery, CEO and chairman of Mullen, at the time.On Thursday, Mullen announced a new pilot program with the New York Power Authority (NYPA). The NYPA, a large state-owned power generation and transmission company, will test Mullen’s CAMPUS delivery van at its headquarters in upstate New York. Following the testing period, the company will have the ability to purchase these vehicles.“The Mullen CAMPUS is a highly efficient electric van designed for low-speed, closed campus use [and] has all the same DNA as the Mullen ONE but was purpose-built to be an ideal delivery solution for micro-environments,” Mullen said in a statement.This pilot program is similar to another one Mullen has with a university in North Carolina, which is testing more than dozen of these vehicles. Six other pilot programs for the CAMPUS vehicle were previously reported at the end of June when Mullen booked its first official revenue ($308,000) from the sale of 22 of these vehicles to the Randy Marion commercial dealership.Now on Friday, July 14, Mullen announced that it has completed initial production of 350 Class-1 EV delivery vans at its Mishawaka, Indiana, facility and sent them for final assembly at its Mississippi plant.Despite all the negativity surrounding the heavy dilution to shareholders in the past two years, the production team is beginning to show results. That is why the market is bidding up MULN on Friday. The company is finally moving away from its long-time reputation as an EV maker forever in its development stage.Mullen stock forecast: Which way penny stock man?Mullen remains highly affected by headlines, but the company’s buyback policy could have immense upside power. Mullen’s entire market cap is just circa $100 million, so if the entire $25 million worth of firepower is used, it could produce serious uplift to the MULN stock price.Right now, Mullen stock is just escaping the oversold realm on the Relative Strength Index (RSI). Support remains at $0.1000, while the recent swing high creates a price target for bulls at $0.3212. With Mullen, anything could happen.MULN daily chart
Coinbase-SEC lawsuit unrelated to XRP non-security ruling, executives drop COIN stock like hot cakes

Coinbase-SEC lawsuit unrelated to XRP non-security ruling, executives drop COIN stock like hot cakes

FXStreet News FXStreet News 14.07.2023 16:45
SEC vs Ripple lawsuit outcome has little bearing on the regulator’s lawsuit against Coinbase.Investment bank Berenberg says that Judge Analisa Torres’ decision on XRP may have no relationship with COIN.Coinbase executives and institutional investors have consistently shed their COIN stock holdings over the past week.The SEC vs Ripple lawsuit outcome fueled a bullish sentiment in the crypto community. Experts are arguing that Coinbase is likely to land a win as the regulator’s argument against the platform’s sale of unregistered securities. Investment banking experts at Berenberg told CoinDesk that this is unlikely and the status of XRP as a non-security in secondary market sales may have little-to-no bearing on the lawsuit against the exchange. Coinbase executives have recently shed their COIN stock holdings, according to sources of insider trades. Also read: XRP update: Ripple win in landmark SEC case likely puts XRP and crypto market in jeopardy for these reasonsCoinbase shares rallied after court dismissed part of SEC’s case against RippleCoinbase (COIN) shares rose by double-digits on Thursday after the verdict of the SEC’s lawsuit against Ripple. Most influencers and experts believe that the SEC’s case against Coinbase is weakened by Judge Analisa Torres’ declaring XRP as a non-security in secondary market transactions. On the other hand, investment bankers at Berenberg told CoinDesk that the judge’s decision in the SEC vs Ripple case has small weight on the lawsuit against Coinbase. While XRP has been deemed as a non-security in secondary market sales, a complete reading of the ruling reveals that it is considered a security and an investment contract in other transactions, like sales made to institutional investors. Therefore, it does not help Coinbase’s defense against the SEC. There are tokens trading on the exchange that may be deemed a security under certain circumstances, and this would imply a sale of unregistered securities by the exchange. Berenberg analysts wrote in their report:The surge was driven in large part by investors who interpreted Judge Torres’ ruling as representing a rejection of the SEC’s argument in the lawsuit it filed against COIN on June 6 that many of the tokens bought and sold in secondary-market transactions on the company’s exchange are unregistered securities.Moreover, executives and institutional investors have been consistently shedding their COIN holdings, which raises concern in the community of holders. Coinbase executives and COIN holders drop the token like hot cakesAs of July 8, four top executives of Coinbase, including CEO Brian Armstrong, sold over $5.8 million in COIN stock. This was the largest sale of the week. COIN sales by Brian ArmstrongMoreover, trades by insiders were recorded. The Chief Accounting Officer and others have engaged in sales of COIN, as seen below:COIN sales by executives Cathie Wood of ARK Invest sold $12 million in COIN and her institutional fund currently holds 11.03 million COIN shares. These sales by institutional investors fuel the speculation that irrespective of Ripple’s win in the lawsuit, there is a likelihood of a different outcome in the SEC’s legal battle with Coinbase.
Pro XRP attorney John Deaton notes delay in SEC vs. Ripple lawsuit outcome, addresses XRP holders concern

Pro XRP attorney John Deaton notes delay in SEC vs. Ripple lawsuit outcome, addresses XRP holders concern

FXStreet News FXStreet News 13.07.2023 16:30
Pro XRP attorney John Deaton assures the altcoin’s holders that there is nothing strange in the delay of the SEC vs. Ripple lawsuit. Judge Torres hasn’t issued a ruling in the lawsuit since Ripple and the SEC filed their reply briefs seven months ago. XRP price has sustained above $0.4746 despite the delay in the lawsuit’s outcome. John Deaton, a pro XRP attorney associated with SEC vs. Ripple's lawsuit as an “amicus” or friend of the court, has assured the altcoin’s holders that the delay in the outcome is not “strange.” The presiding Judge Analisa Torres has not issued a ruling in the lawsuit in the past seven months, however, an outcome is expected soon.The final verdict in the SEC vs. LBRY case was released earlier this week, raising concerns in the community of XRP holders.Also read: XRP on-chain metrics predict explosive price rally in the altcoinJohn Deaton assures XRP holders that delay in SEC vs. Ripple verdict is “not strange”Speculation of the negative impacts of the delay in the verdict of the SEC vs. Ripple lawsuit flooded crypto Twitter. Deaton addressed the concerns of XRP holders early on Tuesday, in a recent tweet:Deaton explained how presiding Judge Analisa Torres has delayed the ruling by seven months, since both parties filed reply briefs in December 2022. The ruling is expected to act as a catalyst, determining the direction of XRP price in the future, given its impact on the altcoin’s holders. Deaton acted as amicus in the SEC vs LBRY case as well, and asked the presiding judge to clarify whether LBC token is a security in secondary market sales. Find out more details about it here. Deaton has shared his plan to pursue a similar path following the verdict in the SEC vs Ripple lawsuit. Deaton intends on asking Judge Analisa Torres for a verdict on secondary market sales of XRP, as this remains cause of concern for the token's holders.Decline in XRP social dominanceXRP’s on-chain metrics from crypto intelligence tracker Santiment reveal a decline in social dominance of the altcoin. Social dominance is a metric that measures the share of the asset among discussions on cryptocurrencies on social media platforms like Twitter. XRP social dominance vs. XRP priceA decline in social dominance is typically a sign of reduced demand for the altcoin among market participants. While this reduces the selling pressure on the asset, declining social dominance could be considered a precursor of a pullback or correction in the altcoin.XRP price has sustained above key support at $0.4700 despite the recent events. It remains to be seen whether on-chain indicators for the altcoin flip bullish in the short term, driving a recovery in XRP price.
Pepsi Stock Earnings: PEP sheds opening bounce early Thursday

Pepsi Stock Earnings: PEP sheds opening bounce early Thursday

FXStreet News FXStreet News 13.07.2023 16:30
Pepsi reported positive Q2 results before the bell on Thursday.Adjusted earnings arrived 13 cents ahead of consensus.Revenue came in nearly $600 million above consensus.Full-year core EPS guidance was raised to $7.47.PEP stock long-term uptrend could provide support. PepsiCo (PEP) stock initially surged up to $186.62 or 1.6% soon after Thursday's open after the food and soft drink purveyor easily bested Wall Street consensus for the second quarter when it released results during the premarket. A half hour into the session, however, PEP is back down to a more meager gain of 0.3%. It seems like bulls saw this as a good spot for profit-taking. PepsiCo stock had jumped 2.1% in the premarket when results were announced.PepsiCo reported adjusted earnings per share (EPS) of $2.09 or 13 cents ahead of analyst expectations. Revenue of $22.32 billion rose more than 10% YoY and beat consensus by nearly $600 million.PepsiCo earnings news: Guidance raised for second halfVolumes fell for both convenient foods and beverages in a number of locales and segments throughout the business, but Pepsi was able to overpower these obstacles through pricing power.“We are very pleased with our performance for the second quarter as our business momentum remains strong. As a result, we now expect our full-year organic revenue to increase 10 percent (previously 8 percent) and our core constant currency EPS to increase 12 percent (previously 9 percent),” said Chairman and CEO Ramon Laguarta. Volumes fell 5% and 4.5% on an annual basis at the North American operations of both the Quaker Foods and PepsiCo Beverages, respectively. The Africa, Middle East and South Asia division also performed poorly. On the other hand, European convenient foods and beverages in the Asia/Pacific division both witnessed growth. Europe as a whole saw profits rise 46% YoY, making it the best performing geography by far.Management reiterated its expectation for $6.7 billion in dividends for 2023 and share repurchases totaling $1 billion. Additionally, full-year guidance for core EPS was raised from $7.27 to $7.47. This would be a 10% gain from 2022’s $6.79.PepsiCo stock chartPepsiCo stock has recently turned over bearishly on the Moving Average Convergence Divergence (MACD) indicator, and the 9-day Simple Moving Average (SMA) is trading below the 21-day average. The second-quarter earnings spike may be enough to turn both indicators bullish however.If PEP stock bulls decide to build on the quarter’s solid beat-and-raise performance, then recent range highs at $188 and $196.88 will be the focus. PepsiCo stock has been in an incline for most of the time since the March 2020 low of the pandemic. The current bottom trendline provides support near $176.50, which is near enough to make bulls more courageous in entering at the current price level. PEP stock daily chart
Dow Jones Industrial Average Forecast: DJIA advances 0.73% on drop in June inflation

Dow Jones Industrial Average Forecast: DJIA advances 0.73% on drop in June inflation

FXStreet News FXStreet News 12.07.2023 16:22
The Dow Jones Industrial Average has gained 1.56% in the first two trading sessions this week.DJIA futures jumped 0.5% on Wednesday morning following CPI release.US CPI data lower than expected, stock market rallies across the board.DJIA trades within a symmetrical triangle pattern with bullish price target of 35,378.NASDAQ 100 rebalance could affect Dow Jones negatively.The Dow Jones Industrial Average (DJIA) advanced 0.73% at Wednesday's open following a better-than-expected June inflation release. The NASDAQ did even better, surging 1.22% at the open.The June core CPI arrived on Wednesday morning at 4.8% YoY. This was below the 5% forecast and is bullish for the stock market as a whole. Both core CPI and headline CPI rose 0.2% MoM, which was below the 0.3% consensus for both. YoY headline inflation of 3% arrived below the 3.1% consensus. Dow futures spiked from 0.1% to 0.5% on the news.The Dow Jones index has already added 1.56% this week, and Dow futures are ticking higher early Wednesday ahead of the Consumer Price Index (CPI) release for June. The NASDAQ 100 rebalancing announced this week may negatively affect the DJIA however, and it appears that traders are not yet factoring that headwind into their trading view. The weighting of Microsoft (MSFT) and Apple (AAPL) – both Dow holdings – will be reduced in the NASDAQ 100, which should lead to increased selling pressure over the next two weeks.Dow Jones news: June core CPI at 4.8% YoY, below expectations, stock markets celebrateUS CPI ex Food & Energy printed a 4.8% rise YoY in June, below 5.0% expectations. All inflation release numbers came below the consensus numbers, with both headline and Core CPI monthly at 0.2% below 0.3% expected and headline US CPI YoY at 3%, below 3.1% expected.The result is unlikely to lead to a change of view on whether the central bank raises interest rates on July 26. The market is near certain at this point that the Fed will raise the fed funds rate by 25 basis points to a 5.25% to 5.5% range at the FOMC meeting exactly two weeks from now.On Monday, the Federal Reserve Bank of New York's monthly Survey of Consumer Expectations reported that US consumers' one-year inflation expectation fell to 3.8% in June from 4.1% in May. This was the lowest result from the survey in more than two years.Dow Jones Industrials and the whole stock market are rallying on the back of this release. This is because it lowers the chances that the Fed will go forward with another rate hike after July’s FOMC meeting. In recent Congressional testimony, Fed Chair Jerome Powell stated that two more rate hikes were the most likely event following June’s pause. Last Friday’s Nonfarm Payrolls figure was greeted warmly by the market since new hiring fell below consensus for June. However, continued growth in hourly wages concerned those rooting for an immediate solution to the wage-price spiral. Dow Jones news: NASDAQ 100 rebalancing bodes poorly for Dow outlookEarlier this week, the leadership behind the NASDAQ 100 decided that the growth-oriented index had become too top-heavy. The so-called Magnificent Seven stocks – Apple, Microsoft, Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA) – exploded in the first half of the year to comprise 48% of the index. Market pundits believe this rebalancing will push these seven outliers back down to 40% of the total weighting. This means that Dow holdings Microsoft and Apple will both be sold off by a number of NASDAQ 100-following ETFs and funds like the $200 billion Invesco QQQ Trust (QQQ). Wells Fargo put out a research note saying that these two mega-cap stocks lead its “top up-sizers” list.Thus far, the NASDAQ 100 leadership have not released the precise weighting of the new index, but those figures will be released on Friday, July 14. The new weighting will take effect on Friday, July 21 before its trading debut on Monday, July 24."The upcoming NDX rebalance is reducing concentration risk but creating uber-cap selling pressure," Wells Fargo equity analyst Chris Harvey wrote on Tuesday.Wells Fargo forecasts that Microsoft stock will have its weighting reduced by 1.8 percentage points and that Apple’s weighting should decline by about 1.7 percentage points. Currently, Microsoft makes up 6.44% of the Dow Jones weighting, while Apple makes up 3.44%.Dow Jones forecastThe Dow Jones index begins Wednesday inside a resistance zone stretching from 34,200 to 34,600. This region has pushed prices lower at least seven times since December 2022. Bulls are still gunning to break above the 34,600 level and then shoot for the resistance range between 35,350 and 35,500. That latter range hearkens back to March and April of 2022.More significantly, the Dow finds itself trading within a symmetrical triangle formation. This pattern began its descending trendline on June 16 at a high of 34,588. The ascending bottom trendline began at the low of 33,610 on June 26. This pattern is neutral, and only a breakout in either direction will tell us which way the wind blows. A breakout in either direction has a price target equal to the distance between the high and low of the pattern’s beginning from the breakout point. The difference in this case is 978 points, and if we add that to a breakout estimate of 34,400, we get an expected price target of 35,378. On the downside, we get an expected bearish price target of 32,722.Though the index could breakout in either directions, to be clear, the Moving Average Convergence Divergence (MACD) indicator has crossed over negatively at the end of last week.Medium to longer-term support exists from 32,600 to 32,800 and from 31,430 to 31,805. DJIA daily chart
Bitcoin price hits $31,000, gears up for recovery with US annual inflation decline to 3% in June

Bitcoin price hits $31,000, gears up for recovery with US annual inflation decline to 3% in June

FXStreet News FXStreet News 12.07.2023 16:22
Bitcoin price rallied to $31,000 within minutes of US CPI release, on Coinbase as market participants rejoiced in a CPI reading below expectations.US inflation declined to 3% on a year-on-year basis in June, below the market expectation of 3.1%, according to the US Bureau of Labor Statistics (BLS) report.The CPI reading for June has provided a cool-off period to selling pressure on Bitcoin, the asset has the potential to recover in July.Inflation represented by the US CPI, came in below market expectations of 3.1% for June. With US CPI inflation rate falling within the projected range of 3% on a yearly basis, Bitcoin price spiked higher to hit the $31,000 mark.BTC and altcoins have the potential to begin recovery in July, as the lower-than-expected CPI figure fills market participants with enthusiasm.Also read: Breaking: US CPI inflation data declines to 3% in June vs. 3.1% expectedInflation in the US declines to 3% on yearly basis, paves way for Bitcoin recoveryThe US Bureau of Labor Statistics has released the report on US CPI data and the latest inflation numbers have been announced, on Wednesday. Market participants are closely watching the US Federal Reserve’s next FOMC meeting on July 25-26 for clues on direction in which risk asset prices are headed.Annual inflation declined to 3% in June and marked the twelfth consecutive month of declines. The knee-jerk reaction of Bitcoin traders was to push BTC higher, as a sign of interest and demand for the asset in the macroeconomic environment. CPI reading June as seen on FXStreetA lower-than-expected month-on-month and yearly figure has filled traders with optimism for risk assets like Bitcoin and altcoins. Bitcoin/USD five-minute price chart on CoinbaseAt the time of writing, Bitcoin price is $30,818, after its retracement from the $31,000 level, on Coinbase. BTC price is above its three Exponential Moving Averages (EMAs), 10, 50 and 200-day at $30,785.45, $30,742.40 and $30,664.10 respectively. These levels are expected to act as support in the event of a pullback in Bitcoin price. The $31,000 marks key resistance in Bitcoin’s recovery rally.
Nio Stock Forecast: NIO pulls back after conquering $11 level

Nio Stock Forecast: NIO pulls back after conquering $11 level

FXStreet News FXStreet News 11.07.2023 16:36
Nio stock has overtaken the March 30 range high.Last week’s EV price war truce came apart on Saturday.NIO stock closed up 7.9% on Monday.Consultancy AlixPartners says 2023 will see Chinese brands sell more than half of all new models in the country for the first time. UPDATE: Nio stock lost 1.8% in the first half hour on Tuesday after opening up as much as 2.5% higher at $11.05. The NASDAQ Composite is slightly lower at the same time due to news that the company will reduce the share of megacap stocks in its NASDAQ 100 index. Much of the positive year-to-date performance was due to the seven largest megacap stocks that include Amazon (AMZN), Apple (AAPL), Nvidia (NVDA) and Meta Platforms (META).Nio (NIO), the Chinese electric vehicle (EV) upstart, is certainly making a go of it this week. Nio stock leapt 7.9% on Monday to close at a five-month high. Now shares are bumping up against the $11 price tag in Tuesday’s premarket.The stock has been gathering steam following a price-war truce signed between 16 auto manufacturers in China last Thursday. Despite that truce falling apart over the weekend, investors still seem intent on boosting their stakes in this fallen EV company.Nio stock has advanced 2.5% in Tuesday’s premarket to $11.05, while S&P 500, NASDAQ 100 and Dow futures are all about 0.15% ahead at the time of writing.Nio stock news: The tale of a broken truceOn Thursday, July 6, the China Association of Auto Manufacturers (CAAM) welcomed a truce among 16 major automotive manufacturers in China to halt the unrelenting price war that has gone on since Tesla (TSLA) began cutting prices at the end of 2022. Besides Tesla, XPeng (XPEV), BYD (BYDDY) and Nio, among a host of others, all signed the truce. By Saturday, however, just two days later, the truce had already come undone. CAAM announced that it was retracting the truce since the agreement was in violation of China’s antitrust statutes. This agreement’s failure may have been spurred on by the fact that Tesla introduced a $500 referral fee to gain customers globally, including in China, and the Volkswagen (VWAGY) joint venture with SAIC also announced price cuts to its EV lineup on Friday. Volkswagen was not a party to the initial truce, but that seems to have been enough to result in complaints from the original parties to the agreement.A recent report by consultancy AlixPartners says that 2023 is the first year where Chinese brands will likely sell a majority of the vehicles in the world’s largest market for vehicles. A total of 167 companies are legally registered to produce EVs in China, a number that AlixPartners says will need to slim down in order to create a more healthy industry. The report predicts that only 25 to 30 companies will survive to the end of the decade at the current level of competition.The renewed interest in Nio is somewhat puzzling since the manufacturer saw a drop in sales during its just-finished second quarter. Nio delivered 23,520 units in Q2, which amounted to a 24% decline from the first quarter and a 6% drop YoY. This poor showing came as Tesla, BYD and Li Auto (LI) all experienced quite healthy YoY growth. Most analysts believe deliveries will pick up for Nio in the second half of the year, but it would be a stretch for the carmaker to reach its full-year goal of selling 250,000 units. As recently as March, Chief Financial Officer Steven Feng reiterated the quarter-million sales guidance.A lot of pressure will be placed on Nio’s new ES8 flagship SUV model that was released in late June, as well as updates to past models like the ET5 Touring sedan.Nio stock forecastNio stock is up 28% over the past month and 12% year to date. The real kicker here is that Monday’s surge overpowered the March 30 range high at $10.75. With that barrier in hindsight and the premarket showing that bulls have refused to take their profits, the next target for traders doesn’t come until $13. The range from $13 to $14 has worked as both support and demand from March 2022 through January of this year. It is the true obstacle to Nio regaining any sort of long-term uptrend. With the Relative Strength Index (RSI) near overbought territory, however, it would be unsurprising if NIO shares drifted sideways in a consolidation play before making a move toward $13.Support, in the meantime, can be found at the 9-day moving average at $9.90 and below there at the $9.50 price level that has flipped from support to resistance on a number of occasions in the first half of this year.NIO daily chart
US Inflation Preview: Buy the rumor, sell the fact? Three scenarios for critical Core CPI

US Inflation Preview: Buy the rumor, sell the fact? Three scenarios for critical Core CPI

FXStreet News FXStreet News 11.07.2023 16:36
Economists expect core inflation to have slowed to 0.3% in June. A precipitous fall in used-vehicle prices further lowered expectations, making a 0.2% desired for investors.Core CPI of 0.4% or higher would trigger a market sell-off.Less cash for clunkers – a plunge of 4.2% in costs of old vehicles in June has been lifting market spirits ahead of the all-important Consumer Price Index (CPI) release. That means that economists' expectations of a deceleration in underlying inflation to 0.3% MoM is no longer good news.Will markets sell the fact? That is one scenario out of three, in this preview for US CPI for June, due out on July 12 at 12:30 GMT.Why inflation and Core CPI are so important for marketsAfter years of focusing on the labor market, inflation lifted its ugly head in 2021, and central banks have focused on curbing it. The US Federal Reserve (Fed) has limited impact on energy and food prices, which are set on global markets, and focuses on Core CPI, which excludes these volatile items.While headline CPI decelerated to 4% YoY in May – and is expected to continue slowing down to 3.1% YoY in June – Core CPI remained stubbornly high, raising at 5.3% YoY, and expectations stand at 5% YoY for the upcoming release. The Fed aims for 2%.To check if progress is being made, the Fed and markets zoom in on the monthly change. After rising by 0.4% in May, the economic calendar shows a forecast for 0.3% in the upcoming read. That is still elevated, as a monthly read of 0.3% represents an annualized increase of roughly 4%. Core CPI developments:Source: FXStreetBased on data and statements from officials, bond markets are pricing a rate hike in the next Fed meeting on July 26, but the next moves are uncertain. The central bank's projections pointed to two increases in borrowing costs – as always, such a move depends on the data. Why markets are optimistic ahead of the inflation releaseOn Friday, the Nonfarm Payrolls report missed economists' estimates for the first time in 15 months, albeit still showing a decent increase of 209,000 new positions. Fed Chair Jerome Powell stressed the importance of labor-related inflation, and the cooldown in hiring encouraged investors. However, the stubborn increase of 0.4% in wages limited the party.And on Monday came Manheim. Source: ManheimManheim publishes America's most prominent index of used vehicles, and it showed a considerable drop of 4.2% in the cost of clunkers in June, and 10.3% YoY. Cars are big ticket items, having an outsized impact on the overall CPI and Core CPI.That shapes expectations for Wednesday's release. Three scenarios for the market reaction in the US Dollar, Gold and stocks1) As expected: An increase of 0.3% in Core CPI MoM is fully priced in, and would only serve as a confirmation of what markets had expected since Monday. I expect the US Dollar to jump, Gold to retreat and stocks to stumble.Will such a risk-off reaction hold? Probably not. A deceleration in prices is still good news, and investors will likely continue pricing out a second additional rate hike. The broad trend of the Greenback is down, and for stocks, it is up. A "buy the rumor, sell the fact" knee-jerk reaction could serve as an opportunity to join the overall trend. This is my baseline scenario. 2) Better than expected: A welcome slowdown of Core CPI to 0.2% MoM or weaker would be what markets are craving. It would provide firmer evidence that the inflation genie is getting back to the bottle. The US Dollar would fall in such a scenario, while Gold and stocks would advance. A 0.2% read would likely trigger a moderate move, and any number lower than that could result in euphoria. The probability is lower than the previous scenario. 3) Worse than expected: A read of 0.4% or higher would be disappointing, showing that while prices of goods such as cars are down, costs of labor-intensive services and even housing are refusing to come down. It would raise expectations for a second post-pause Fed hike.In such a scenario, the Greenback would stage a massive comeback, while Gold and stocks would suffer. It would cause a rethink. I see this scenario as the least likely, but it cannot be ruled out. Final thoughtsThe CPI report is critical for financial markets, often triggering more volatility than Nonfarm Payrolls. Manheim's report caused some market mania and clearly skewed expectations toward a lower, more favorable outcome. A 0.3% read on Core CPI MoM would trigger a temporary disappointment, while outcomes above or below this figure would also cause significant volatility. I suggest trading with care around the release, which tends to result in choppy price action.
AUD/USD stretches downside to near 0.6630 as Fed gets reason to resume policy tightening

AUD/USD stretches downside to near 0.6630 as Fed gets reason to resume policy tightening

FXStreet News FXStreet News 10.07.2023 16:45
AUD/USD has dropped heavily to near 0.6630 amid a solid recovery in the US Dollar Index.After upbeat US labor cost figures, investors are awaiting June’s CPI data.Post a skip in the policy-tightening spell the RBA is expected to elevate interest rates further to 4.35%.The AUD/USD pair has extended its downside significantly to near 0.6630 in the early New York session. The intense sell-off in the Aussie asset is inspired by a solid recovery in the US Dollar Index (DXY). The US Dollar Index has refreshed its day’s high at 102.56 as the sustainable addition of fresh payrolls in the labor market has strengthened hopes of more interest rate hikes from the Federal Reserve (Fed).S&P500 is set to open on a muted note following cues from the overnight futures. The US Dollar Index failed to pick strength as lower-than-anticipated payroll additions offset the impact of rising wage pressures. Meanwhile, the 10-year US Treasury Yields have dropped marginally to near 4.06%.After upbeat labor cost figures, investors are awaiting June’s Consumer Price Index (CPI) data, which is scheduled for Wednesday at 12:30. Fed policymakers are consistently reiterating that core inflationary pressures are extremely stubborn and more interest rate hikes are appropriate to maintain pressure.However, upbeat Average Hourly Earnings are sufficient for the Fed to accelerate interest rate hikes. Chicago Fed President Austan Goolsbee said two more interest rate hikes this year are well-favored.On the Australian Dollar front, after a skip in the policy-tightening spell, the Reserve Bank of Australia (RBA) is expected to elevate interest rates further to 4.35%. Knowing the fact that labor market conditions are tightening and inflation at 5.6% is far from the desired rate of 2%, RBA Governor Philip Lower would uplift policy rates.In China, consumer and Producer Price Index (PPI) are consistently decelerating as the overall demand by households is extremely weak. Dismantle of pandemic controls has failed to uplift economic prospects and has propelled fears of a slowdown.It is worth noting that Australia is the leading trading partner of China and bleak demand in China impacts the Australian Dollar.
Altcoin season looks unlikely until 2024 despite mass accumulation, expert says

Altcoin season looks unlikely until 2024 despite mass accumulation, expert says

FXStreet News FXStreet News 10.07.2023 16:45
Altcoins are in an accumulation period that is likely to last through Bitcoin halving.Crypto analyst Zero Ika says Bitcoin is more likely to outperform altcoins in the ongoing market cycle. Zero Ika recommends scaling from Bitcoin to altcoins towards the end of 2023, presenting an opportunity for profits in 2024.Investors are accumulating altcoins in the current market cycle and they are likely to keep doing so until the end of the Bitcoin halving in 2024, says Zero Ika, the expert behind the crypto handle @IAmZeroIka. This pattern suggests that an altcoin season looks unlikely this year and more probable in 2024, the analyst said on Twitter, adding that it looks like a good time to scale from Bitcoin to altcoins in order to capitalize on the upcoming opportunity.Also read: XRP social dominance explodes with likely price rally in the altcoinAltcoin season is likely only in 2024Based on the altcoin season index by BlockchainCenter.net, it is currently Bitcoin season. The index calculates whether it is a Bitcoin or altcoin season by evaluating the performance of the top 50 cryptocurrencies by market capitalization.An altcoin season occurs when 75% of the top 50 coins perform better than Bitcoin over a 90-day period in terms of price and market capitalization. Alt season indicatorAfter evaluating the altcoin season index, Zero Ika said that the current picture isn’t likely to change in the altcoin market until 2024.The analyst argues that an altcoin season is not likely before the next Bitcoin halving. Based on his analysis, Bitcoin is likely to outperform altcoins until the end of 2023. Zero Ika explains this offers traders an opportunity to accumulate more altcoins with no major movements until the end of 2023.The expert explained that the plan is to slowly scale in from Bitcoin to altcoins at the end of 2023 or the beginning of 2024. Zero Ika explains that the plan does not take into consideration the possibility of a new Bitcoin all-time high in 2023.Through a chart that tracks the market capitalization of assets excluding Bitcoin and Ethereum, the analyst proves “mass accumulation” among market participants. Crypto total market capitalization excluding Bitcoin and Ethereum As seen in the chart above, there has been accumulation of altcoins, excluding Bitcoin and Ethereum, by traders since mid-2022. According to Zero Ika, the next phase is expansion, starting April 2024, post Bitcoin halving.
Nonfarm Payrolls Quick Analysis: American salaries march forward, limiting USD losses and Gold gains

Nonfarm Payrolls Quick Analysis: American salaries march forward, limiting USD losses and Gold gains

FXStreet News FXStreet News 07.07.2023 16:48
The US economy has gained 209,000 jobs in June, less than expected.Wage growth remains healthy at 0.4% MoM, above 0.3% expected. Elevated expectations ahead of the event imply falls for the US Dollar, gains for Gold and stocks.The US has gained 209,000 jobs, within expectations – but the US Dollar loses ground. Is it all a game of expectations? Not in this case, as the details matter.ADP, America's largest payrolls software provider, shocked markets on Thursday by reporting an increase of 497,000 private sector jobs in June. Investors hastingly jumped from dismissing the report – which is poorly correlated with the official report – to leaping to adjust positions. The US Dollar jumped and stocks dropped, with the S&P 500 having the worst day in six weeks.It also shaped expectations leading to the Nonfarm Payrolls report. Real estimates stood at somewhere above 300,000 – perhaps even 350,000 rather than the 225,000 recorded beforehand. That is why the Greenback has room to fall, and stocks to recover. Yields on US 10-year yields reached the dizzying heights of 4%, and returns on 2-year bonds hovered around 5%. Markets went too far.The expectations game is also related to the upcoming Federal Reserve (Fed) decision on July 26. A 25 bps rate hike was mostly priced in. June's NFP all but confirms an increase in borrowing costs. Only a weak inflation report next week could change the minds of Fed Chair Jerome Powell and his colleagues. That is highly unlikely. Expectations are not everything – looking under the hood, but there is a reason to remain cautious. Why? Wages – Average Hourly Earnings are up 0.4% MoM, above 0.3% expected. In absolute terms, this is not a massive pay hike, but the refusal of salaries to decline keeps pressure on the Fed to raise rates and keep them high. This is the stickiest part of inflation. How the US Dollar, stocks and Gold are set to move after the Nonfarm PayrollsWhat is next? I expect the US Dollar to remain on the back foot, but to hold some of its ground. The mix of weak job growth and wages marching forward shifts the focus to next week's Consumer Price Index (CPI) report. For stocks, the NFP is far from the Goldilocks scenario – companies would like lower labor costs and many employees able to buy its products. The report shows the opposite: high costs and not-so-amazing job growth. I think shares will remain mixed. The story is similar for Gold – some gains, but no bullish turnaround – the trend remains down, especially with US 10-year yields holding above 4%. All in all, the American economy looks stable, not too hot nor too cold – leaving the next big market moves for the CPI data.
US NFP reaction: Bitcoin price wavers as investors reassess Fed expectations after jobs report

US NFP reaction: Bitcoin price wavers as investors reassess Fed expectations after jobs report

FXStreet News FXStreet News 07.07.2023 16:48
US NFP data for June is downbeat, with the addition of 209,000 Nonfarm Payrolls, below market expectations. The unemployment rate dropped to 3.6% as expected, raising doubts about further rate hikes by the US Federal Reserve.Bitcoin, Ethereum and risk assets are likely to climb higher with the US Dollar coming under renewed selling pressure.US Nonfarm Payrolls data for June revealed an addition of 209,000 jobs, below the market’s expectation of 225,000. The reading could imply fresh gains in Bitcoin, Ethereum and risk assets.Bitcoin price sustained above the key psychological level of $30,000 and Ethereum price steadied above $1,800 in response to the US NFP data release.Also read: US Nonfarm Payrolls Forecast: June NFP expected to show cooldown in job marketBitcoin and Ethereum prices coil ahead of fresh gainsBitcoin and Ethereum prices are coiling in response to the addition of 209,000 Nonfarm Payrolls in the US. US NFP data came in below market expectations for the first time since April 2023. The unemployment rate edged lower, meeting the expectation of 3.6%. These data points have reduced the likelihood of future rate hikes by the US Federal Reserve.Based on previous reactions to US NFP, a volatility-filled week lies ahead of market participants. Find out more about Bitcoin’s reaction to previous data releases here.The report has increased the selling pressure on the US Dollar, paving the way for fresh gains in risk assets like Bitcoin and Ethereum. At the time of writing, the US Dollar index is down 0.45% for the day. As seen in the chart below, Bitcoin price climbed to $30,405 before pulling back to $30,287. Ethereum price hit $1,872 and corrected to $1,866 at the time of writing. Bitcoin/USD five-minute price chart BinanceEthereum/USD five-minute price chart BinanceMarket participants are expecting the outcome of the US Federal Reserve’s interest rate decision in July. The probability of a hike could reduce, given cooling job creation. Still, the Fed will be watching the US Consumer Price Index (CPI) data to be published next week before its verdict on July 26.
Meta Platforms Stock News: META approaches $300 as its releases Twitter-competitor Threads

Meta Platforms Stock News: META approaches $300 as its releases Twitter-competitor Threads

FXStreet News FXStreet News 06.07.2023 16:14
Instagram has released a competitor to Twitter called Threads.Threads already had 10 million signups in its first seven hours.META stock faces strong resistance from $300 to $350.Zuckerberg and Musk are yet to schedule their “cage fight”. Meta Platforms (META) stock is advancing toward $300 in Thursday’s premarket after the owner of Facebook released a new social media platform to compete with Elon Musk’s Twitter.META stock has gained 1.6% early Thursday to trade at $299.Meta Platforms stock news: 10 million sign up to ThreadsFounder Mark Zuckerberg’s Instagram unit built and released the new Threads platform late Wednesday. The company released versions for iOS in the Apple Store and an Android version in the Google Play Store. Instagram says that 10 million people already signed up for Threads in the first seven hours it was made available to the public.Unlike Instagram’s photography-first layout, Threads is more akin to Twitter with its focus on text-based posting or “microblogging”. Some critics have already called the new platform a copycat version of Twitter. For his part, Elon Musk did not hold back from bashing the creator of Threads: One major drawback for Threads appears to be that users must already have an account with Instagram in order to sign up.Musk and Zuckerberg are supposedly going to duke it out in public combat later this year. In a Twitter thread discussing Zuckerberg’s intention to release a rival microblogging site in June, Musk suggested that he and the Meta Platforms CEO hold a “cage match”. Las Vegas has been suggested as a venue, but no official date has been announced yet.Although an aggressive tweeter, Musk is not known for his fighting capabilities, while Zuckerberg medalled at a Brazilian jiu-jitsu competition earlier this year.Meta Platforms stock forecast: $300 is a given, but what about $400?META stock is already up 136% year to date after the stock collapsed in 2022, and the stock has performed much better than that since the $88 bottom late last year.Meta stock has now reached a level with major psychological implications. The $300 level – besides being a big, round number – also served as resistance during the second half of 2020 three years ago. Particularly, this region was difficult to defeat in both August and November of 2020. This time, however, META stock is deep into the overbought region on the weekly Relative Strength Index (RSI). A pullback seems extremely necessary, and the $250 to $260 region has a history of realizing support.If Threads does prove popular enough to provide a boost to the stock, then expect META to move slowly through the $300 to $350 region. This area saw an enormous amount of volume in late 2021 and would appear to be a likely spot for profit-taking. Based on that viewpoint, $400 in META’s future seems unlikely for the rest of this year.META weekly chart
Shiba Inu price recovery is likely, on-chain metrics suggest

Shiba Inu price recovery is likely, on-chain metrics suggest

FXStreet News FXStreet News 06.07.2023 16:14
Shiba Inu witnessed a surge in market activity as the meme coin found new demand among crypto traders.SHIB token supply on top exchanges has declined over the past month to April 2021 levels. At the current price level of $0.000008, there is less selling pressure on the meme coin as nearly 60% addresses sit on losses.Shiba Inu has observed a surge in on-chain activity since the end of June, with a rise in demand for the meme coin among market participants. The token’s supply on exchanges has also declined considerably, signaling a potential upcoming trend reversal in Shiba Inu’s price.Also read: XRP price likely to rally to new all-time high of $9 says analystShiba Inu on-chain metrics signal recoveryShiba Inu, the second largest meme coin in the crypto ecosystem, saw a considerable decline in its price since early June, when the US Securities and Exchange Commission’s (SEC), the country’s financial regulator, enforced its crackdown on crypto. SHIB price nosedived 21% in the ten-day timeframe between June 5 and 15. SHIB price has recovered since then, climbing to $0.00000766 at the time of writing. On-chain metrics like daily address activity and supply on exchanges have likely contributed to the price rally in SHIB.Based on data from crypto intelligence tracker Santiment, daily active addresses (24-hour) consistently remained high for SHIB since the last week of June. This signals increasing demand for the meme coin and rising interest among market participants. Shiba Inu active addresses (24-hour)Moreover, the supply on exchanges, an indicator that is useful to measure whether an asset is under selling pressure or not, shows a remarkable decline. The current SHIB supply on exchanges is 86.53 trillion, a level not seen sinceApril 2021. A low supply on exchanges implies that wallet holders have held SHIB off exchanges, meaning higher accumulation and thus less selling pressure.If the supply on exchanges is low, there is less availability of SHIB to sell, translating to lower selling pressure and a wider room for a price recovery.SHIB supply on exchanges (current level previously seen in April 2021)Key metric that supports SHIB price recoveryAt the current levels, Shiba Inu price faces resistance at $0.000008, data from IntoTheBlock’s “In/Out of the money around price” (IOMAP) shows. At prices below $0.000008, 57.6% SHIB tokens held in wallet addresses are underwater, sitting on unrealized losses. These tokens are less likely to be sold at prices below $0.000008 because these addresses would realize a loss if they did so. 57.68% Shiba Inu tokens are currently underwaterAt the time of writing, SHIB price on Binance is $0.00000764. The meme coin has no significant resistances in its way to reach $0.000008. On a successful break past $0.000008, $0.000009 is the next level to watch out for.
Dow Jones Industrial Average Recap: DJIA falls ahead of FOMC minutes

Dow Jones Industrial Average Recap: DJIA falls ahead of FOMC minutes

FXStreet News FXStreet News 05.07.2023 16:29
The Dow Jones Industrial Average gained 2% last week.DJIA index retreats 0.2% on Wednesday morning.FOMC minutes for June 13-14 meeting arrive Wednesday afternoon.35,500 remains the primary Dow target for bulls.US June jobs report out on Friday with 225K the consensus.The Dow Jones Industrial Average (DJIA) edged down 0.2% on Wednesday morning as trading volumes normalized after the July 4 holiday. S&P 500 trades mostly flat, while NASDAQ 100 gains around 0.3%.The DJIA rebounded about 2% last week on positive economic data, and gains extended into Monday in a thinly traded session ahead of the holiday. The US market is largely focused on the Friday release of the June Nonfarm Payrolls report. At the moment, the market appears to be trending lower due to poor services sector data out of China. The Caixin Services Purchasing Managers Index for June gave a reading early Wednesday of 53.9. While that number is above 50 and thus shows an expansion, it was much lower than the previous month’s reading of 57.1. This is affecting the US market as it is viewed as another sign that the Chinese economy is failing to work its way out of last year’s pandemic-induced recession.AllianceBernstein argues in a client note on Wednesday that the market will likely find it difficult to find a definite direction in the third quarter. “From a market perspective, as we have observed in past quarters, a sustained period of below-trend growth argues for caution but not panic. Absent a hard landing, markets may struggle to sustain momentum in either direction.”Dow Jones news: FOMC minutes on Wednesday could direct Dow price actionThe minutes for the Federal Open Market Committee meeting – in which Federal Reserve governors chose to keep US interest rates unchanged on June 14 – will be released at 18:00 GMT on Wednesday. These notes will allow outsiders to parse the discussion between members about how they arrived at the decision in mid-June to keep the fed funds rate stationed in a range between 5% to 5.25%. That was the first meeting that rates remained stable since the central bank began raising interest rates in the prior ten consecutive meetings.Economist Derek Tang from LH Meyer expects the minutes to backstop the impression that the Fed will raise the fed funds rate at its July 26 meeting.“A July hike is not a given but pretty close, since it gets harder for [the Fed] to claim the hiking cycle is still alive if they don’t hike two meetings in a row,” Tang told Bloomberg.The much-followed CME FedWatch Tool currently gives an 87% chance that the central bank raises the fed funds rate by 25 basis points later this month. That expectation should have a sobering effect on equities due to the ability of higher interest rates to slow economic growth by raising financing costs.Dow Jones news: Nonfarm payrolls on tap for FridayThe June Nonfarm payrolls report is the largest focus on the economic indicator schedule this week for the US market. Analyst consensus expects a net 225,000 new jobs in June – a fairly large drop from May’s 339,000-job upside surprise. Consensus for May had initially been 190,000.With US Q1 annualized GDP growth being revised up from 1.3% to 2% late last week, another beat on the June jobs report seems somewhat likely. ADP will give the market a hint on Thursday ahead of Friday’s Nonfarm Payrolls release. The ADP Employment Change report for June has been revised higher this week. The consensus forecast was recently at 180,000, but it has since risen to 228,000. In May, ADP reported a positive gain of 278,000 jobs.The Institute for Supply Management (ISM) will also release its US Services PMI for June on Thursday. May’s 50.3 reading is expected to trend up to 51 for June. Thursday will also see the release of Initial Jobless Claims for the US in the week ending June 30. This figure is forecast at 245,000, up from the previous week’s 239,000.What they said about the market - Alex KingAlex King, an investment strategist at Cestrian Capital Research, expects the Dow to advance this week with some rotation toward legacy names in the index. He spoke about his market stance with Seeking Alpha at the end of June.“There are a great many single-stock names in the financial and other sectors that are forming accumulation patterns at the lows just as did tech stocks in Q3/Q4 2022 – we anticipate Big Money pushing these stocks into their markup zones in the next 2-3 quarters, dragging up the indices further as it happens.”Dow Jones forecastThe Dow Jones index begins Wednesday inside a resistance zone stretching from 34,200 to 34,600. This region has pushed prices lower at least seven times in the past seven months.A break of 34,600 will allow bulls to move on to the next target at 35,500. That level is the top of a resistance range extending from 35,350 that blocked upward price action in March and April of 2022. The Moving Average Convergence Divergence (MACD) indicator shows a slight bullish crossover that may predict an imminent move higher.In the meantime, medium to longer-term support exists from 32,600 to 32,800 and from 31,430 to 31,805. DJIA daily chart
FOMC Minutes to offer clues about Fed's next move

FOMC Minutes to offer clues about Fed's next move

FXStreet News FXStreet News 05.07.2023 16:29
The Federal Reserve will release the minutes of the June 13-14 FOMC meeting.During the meeting, the FOMC decided to maintain the interest rates within the range of 5-5.25%.Market participants will scrutinize the minutes for hints on the Fed's potential actions at the July meeting. The US Federal Reserve (Fed) will release the minutes of the Federal Open Market Committee’s (FOMC) June 13-14 policy meeting at 18:00 GMT on Wednesday, July 5. They will provide valuable insights into why the central bank decided to take a pause in its hiking cycle and what is the potential for more rate hikes in the near term. Traders and investors will scrutinize the minutes for any indications of what it would take for the Fed to tighten its monetary policy further. The Fed's views on inflation, economic growth, and interest rates are likely to have an impact on financial markets.At the June meeting, the FOMC decided to maintain the policy rate at 5.00% - 5.25%, which was in line with market expectations. This decision followed a cumulative increase of 500 basis points since March 2022. In its statement, the central bank stated that keeping the interest rate steady would allow them to evaluate additional information and its implications for monetary policy. The FOMC reiterated that despite recent declines, inflation remains elevated, and they remain committed to achieving the 2% inflation objective.According to the economic projections from FOMC members, the terminal rate projection for the end of 2023 was revised upward to 5.6% from 5.1% in March. These projections imply that there could be two more 25 basis point rate hikes before the end of the year. Fed Chair Jerome Powell has reiterated this forecast every time he has spoken publicly, including twice before the US Congress and during conferences in Sintra and Spain. This hawkish perspective has been bolstering the US Dollar.The Fed's forecast did not come as a surprise, but prior to the latest developments, markets had a different perspective that included a lower terminal rate and an increased likelihood of rate cuts before year-end. However, comments from Fed officials and the latest round of economic data from the US, particularly regarding the labor market, have brought market sentiment closer to the Fed's.According to the CME FedWatch Tool, the probability of a rate hike at the upcoming July 25-26 meeting is currently above 85%, and it also shows an increasing expectation of another rate hike before the end of the year. This represents a complete reversal from market expectations just months ago.Source: CME FedWatch ToolExpected hawkish minutes: Policymakers anticipate further rate hikesDuring the June post-meeting press conference, Powell stated that "nearly all policymakers view some further rate hikes this year will be appropriate." Therefore, the minutes are likely to reflect this perspective, which has been reiterated not only by Powell but also by other FOMC members, including some who are considered "dovish.”Powell also mentioned in June that reducing inflation "is likely to require below-trend growth, some softening of labor conditions." However, Q1 GDP and the latest jobs numbers have not yet indicated such a trend, leaving the door open for more rate hikes. Inflation has slowed down but remains above the target."By taking a little more time on tightening, we reduce the chance of going too far," mentioned the Fed's Chair, and the minutes are likely to contain similar comments. References to rate cuts are unlikely as Powell has explained several times that not a single member "wrote down a rate cut this year." The bond markets appear to have started to believe the Fed's stance that rate cuts this year "will not be appropriate," as Powell described.The minutes could offer clues about the Fed's next move, but they are unlikely to provide significant new information. The next meeting will probably focus on the jobs figures to be released on Friday and the Consumer Price Index (CPI) to be published next week. These are the last two high-impact reports that FOMC members will receive before the July 25-26 meeting.US Dollar Index: No clear signs The US Dollar Index (DXY) currently lacks a clear direction, as the Dollar overall. The hawkish expectations from the Fed have been offset by other central banks maintaining a similar stance and improving market sentiment.The DXY is hovering around 103.00, with no signs from technical indicators and the price near key moving averages. A drop below 102.70 would deteriorate the outlook and suggest a test of the 102.00 zone. On the contrary, if the DXY breaks above a downtrend line currently at 103.50, it could point toward Dollar strength ahead.The impact of the minutes is expected to be limited, considering that not much has happened since the meeting and that Powell has spoken in public several times. However, the minutes are always a document that markets scrutinize and look for hints, and they could contain some surprises. As usual, if those are hawkish, the Dollar could benefit moderately, and if they are (unexpectedly) dovish, they would likely have a more significant impact in weakening the Greenback.
Rivian Automotive Stock News: After 17% spike, can RIVN uptrend last through July? - 04.07.2023

Rivian Automotive Stock News: After 17% spike, can RIVN uptrend last through July? - 04.07.2023

FXStreet News FXStreet News 04.07.2023 16:45
Rivian stock closed 17.4% higher on Monday.Rivian raised its deliveries by 59% from the first quarter.The $22 level needs to be broken for RIVN stock rally to form long-term uptrend.RJ Scaringe reiterates guidance for 50k units in 2023. Rivian Automotive (RIVN) stock surged 17.4% on Monday to a more than four-month high on the back of delivery news that was strong enough to overshadow Tesla’s (TSLA) own Q2 delivery release. Elon Musk’s company added nearly 7% on Monday on the back of a 4.8% consensus beat on second-quarter deliveries, which led to an impressive performance across the electric vehicle sector.Rivian’s 11.9% beat of the Q2 delivery consensus lifted RIVN stock even higher since the much smaller electric pickup truck maker has spent much of the year at a depressed valuation. The market is closed for the July 4 federal holiday.Rivian stock news: 50,000 full-year delivery goal now a near certaintyRivian CEO RJ Scaringe began 2023 with an outlook for 50,000 deliveries. That guidance became less certain when the automaker delivered just 7,946 vehicles in the first quarter. On Monday, however, that goal became much more likely when Rivian announced Q2 deliveries of 12,640. That amounts to a 59% growth rate in just one quarter.Production also leapt from 9,395 in Q1 to 13,992 in Q2 – a 49% QoQ increase – at Rivian’s factory in Normal, Illinois. The difficulty of ramping up production was viewed as a major impediment to meeting the 50,000-unit delivery guidance earlier this spring, but management appears to be reaching its internal targets on the operational front.Total deliveries in the first half of the year amounted to 20,586. In other words, deliveries need to grow by just a little over 10% QoQ in each of the third and fourth quarters to achieve the goal. If that sounds achievable following a 59% ramp up in deliveries, then one can see why the stock exploded so meaningfully on Monday. The chance that Rivian exceeds the 50,000 figure has become quite likely.It is still hard to tell how much the greater production level will improve margins until management releases Q2 earnings results in a little over a month on August 8. Consensus was expecting a GAAP loss of $-1.53 on revenue of $957 million, but expect that consensus to improve this month once analysts return from the July 4 holiday. The two most recent analyst notes from Truist Securities and Canaccord Genuity on June 20 both reiterated Buy ratings for RIVN and handed it price targets of $28 and $40, respectively.Lucid (LCID), Fisker (FSKR), Li Auto (LI) and Nio (NIO) all rallied strongly on Monday on the coattails of Tesla and Rivian.Rivian stock forecast: RIVN needs to break $22 at all costsRivian stock’s impressive gap up on Monday reached as high as $19.70, a price level investors have not seen since February. After caving from an all-time high just below $180 in November 2021 following its IPO, Rivian stock lost 90% of its value over the ensuing year. Now Rivian is up nearly 13% year to date.To ensure that RIVN price does not collapse during the rest of the year, bulls need to force a close above $22. The $21 to $22 resistance window kept bulls at bay on a half dozen sessions during that early part of the year. RIVN stock has not closed above $22 a share since December 19 of last year. A break of that barrier is all that is needed to unleash a long-term uptrend in the back half of this year. Further resistance, however, should come in at $25, $31 and $40. Those price levels, many of which result from areas of support on Rivian’s long downtrend, would result in gains of between 25% and 100% from this point.On the other hand, the Relative Strength Index (RSI) currently provides an overbought reading of 75, so keeping an eye out for long-term support in the mid-$15s and at $12 could be wise. This is a stock that absolutely requires stop-loss orders. Failure to break and close above $22 will lead to many traders pocketing their recent profits.RIVN daily chart
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Could BTC make it to $35,000? - 04.07.2023

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Could BTC make it to $35,000? - 04.07.2023

FXStreet News FXStreet News 04.07.2023 16:45
Bitcoin price remains promising into the new week, toned by a modest foray above $31,000.Ethereum price eyes the zone above $2,000 as correlation with the flagship crypto continues.Ripple price eyes a deepening correction unless buyer momentum raises XRP above $0.491.Bitcoin (BTC) price seems to be coming out of its consolidation and heading higher very slowly. As BTC retests the $31,000 market, investors ponder if a retest of the $35,000 hurdle is likely. But, the lack of a proper catalyst will likely weigh in on the ascent. The king of crypto's optimism has Ethereum (ETH) price ablaze while Ripple (XRP) price continues to confuse traders as it is among those altcoins that have failed to breakout higher.Also Read: Will Bitcoin price face negative effects from Federal Reserve’s two rate hikes?Bitcoin price makes a modest foray above $31,000Bitcoin (BTC) price is trading with a bullish bias, up almost 5% since the new week started. The king of crypto has taken a subtle step above the $31,000 level, pointing to a growing buying activity after the start of the third quarter. The price action since June 15 has led to the appearance of a bullish flag pattern.The pattern is resolved considering that Bitcoin price broke out of the flag formation in the direction of the prevailing trend, which is bullish. A decisive break above the June 23 high of $31,458, however, would provide cast-iron confirmation of the pattern’s activation. Decisive would mean a long green candle breaking above the confirmation level and then closing near its high or a break by three green candles in a row.The target of the flag is estimated by measuring the length of the pole and extending it in the direction of the breakout. A common stop level is just outside the flag on the opposite side of the breakout.Based on this estimation, Bitcoin price could rally 24% in the long term toward the $40,000 level. Meanwhile, experts anticipate a strong upward trend, with conservative investors speculating a breach of the $35,000 area. Another possible target lies at $33,650, the 61.8% extrapolation of the flagpole higher.Optimism is bolstered by a positive assessment of the probabilities that the major financial institutions seeking regulatory approval for a Bitcoin Exchange Traded Fund (ETF). will be successful, according to $650 billion asset manager Bernstein, who said the US SEC will likely approve a spot Bitcoin, in a recent note.BTC/USDT 1-Day ChartConversely, early profit-taking could cut the rally short, sending Bitcoin price back into the fold of the flag pattern. In a dire case, BTC could lose the support offered by the lower boundary of the flag at $29,578 before a possible trend reversal.Also Read: Bitcoin options strategy: How to trade July’s Q2 earningsEthereum price eyes $2,000 amid positive correlation with BTCEthereum (ETH) price is on a course north, joyriding the Bitcoin rally. A sustained uptrend could see the largest altcoin by market capitalization cross into the $2,000 zone. The PoS token is up almost 10% from the June 29 correction, with signs of a continued ascent as technical indicators communicate optimism.The Relative Strength Index (RSI) faces north, suggesting rising momentum. Similarly, the Awesome Oscillators (AO) are above the midline with deep green histograms, further adding credence to the upside.An increase in buying pressure from the current level could see the Ethereum price rise around 2%, crossing into the $2,000 zone. In a highly bullish case, ETH could reprint the mid-April highs around $2,120, denoting a 7.95% ascent from the current price.ETH/USDT 1-Day ChartConversely, a rejection from the $2,000 level could send Ethereum price back to the 50- and 100-day EMA at $1,842 or $1,809, respectively. In the dire case, ETH could tag the 200-day EMA at $1,747, constituting a 10% downswing.Also Read: Ethereum eyes $2,000 target as institutional investors pour capital into ETH fundsRipple price could breach $0.491 unless buying momentum wanesRipple (XRP) price has regained momentum after a successful flip above the 50-day EMA at $0.485. The remittance token is up around 5% since the beginning of the new month as bulls push to breach the $0.491 resistance level.An increase in buying pressure could facilitate the 0.61% climb, clearing the hurdle for the remittance token’s foray above $0.500. A sustained bullish momentum could propel XRP up 10% from the current level to tag the $0.542 hurdle.This optimistic outlook draws support from the up-moving RSI and green-flashing AO histograms, suggesting increasing buying activity among XRP bulls.XRP/USDT 1-Day ChartOn the other hand, day traders looking to make a quick profit could interrupt the rally by selling XRP at its current market value. The ensuing selling pressure could send Ripple price back under the foothold of the 100-day EMA at $0.472 or lower, below the 200-day EMA at $0.456.Failure by the bulls to leverage these buyer congestion zones could see Ripple price head lower, breaking below $0.450 and approaching the $0.420 support level.Notice that the AO is still negative while the RSI is under 50, suggesting bears still have a grip on XRP.Also Read: Pro-XRP attorney John Deaton says SEC Chairman Gary Gensler could resign
Rivian Automotive Stock News: After 17% spike, can RIVN uptrend last through July?

Rivian Automotive Stock News: After 17% spike, can RIVN uptrend last through July?

FXStreet News FXStreet News 04.07.2023 16:44
Rivian stock closed 17.4% higher on Monday.Rivian raised its deliveries by 59% from the first quarter.The $22 level needs to be broken for RIVN stock rally to form long-term uptrend.RJ Scaringe reiterates guidance for 50k units in 2023. Rivian Automotive (RIVN) stock surged 17.4% on Monday to a more than four-month high on the back of delivery news that was strong enough to overshadow Tesla’s (TSLA) own Q2 delivery release. Elon Musk’s company added nearly 7% on Monday on the back of a 4.8% consensus beat on second-quarter deliveries, which led to an impressive performance across the electric vehicle sector.Rivian’s 11.9% beat of the Q2 delivery consensus lifted RIVN stock even higher since the much smaller electric pickup truck maker has spent much of the year at a depressed valuation. The market is closed for the July 4 federal holiday.Rivian stock news: 50,000 full-year delivery goal now a near certaintyRivian CEO RJ Scaringe began 2023 with an outlook for 50,000 deliveries. That guidance became less certain when the automaker delivered just 7,946 vehicles in the first quarter. On Monday, however, that goal became much more likely when Rivian announced Q2 deliveries of 12,640. That amounts to a 59% growth rate in just one quarter.Production also leapt from 9,395 in Q1 to 13,992 in Q2 – a 49% QoQ increase – at Rivian’s factory in Normal, Illinois. The difficulty of ramping up production was viewed as a major impediment to meeting the 50,000-unit delivery guidance earlier this spring, but management appears to be reaching its internal targets on the operational front.Total deliveries in the first half of the year amounted to 20,586. In other words, deliveries need to grow by just a little over 10% QoQ in each of the third and fourth quarters to achieve the goal. If that sounds achievable following a 59% ramp up in deliveries, then one can see why the stock exploded so meaningfully on Monday. The chance that Rivian exceeds the 50,000 figure has become quite likely.It is still hard to tell how much the greater production level will improve margins until management releases Q2 earnings results in a little over a month on August 8. Consensus was expecting a GAAP loss of $-1.53 on revenue of $957 million, but expect that consensus to improve this month once analysts return from the July 4 holiday. The two most recent analyst notes from Truist Securities and Canaccord Genuity on June 20 both reiterated Buy ratings for RIVN and handed it price targets of $28 and $40, respectively.Lucid (LCID), Fisker (FSKR), Li Auto (LI) and Nio (NIO) all rallied strongly on Monday on the coattails of Tesla and Rivian.Rivian stock forecast: RIVN needs to break $22 at all costsRivian stock’s impressive gap up on Monday reached as high as $19.70, a price level investors have not seen since February. After caving from an all-time high just below $180 in November 2021 following its IPO, Rivian stock lost 90% of its value over the ensuing year. Now Rivian is up nearly 13% year to date.To ensure that RIVN price does not collapse during the rest of the year, bulls need to force a close above $22. The $21 to $22 resistance window kept bulls at bay on a half dozen sessions during that early part of the year. RIVN stock has not closed above $22 a share since December 19 of last year. A break of that barrier is all that is needed to unleash a long-term uptrend in the back half of this year. Further resistance, however, should come in at $25, $31 and $40. Those price levels, many of which result from areas of support on Rivian’s long downtrend, would result in gains of between 25% and 100% from this point.On the other hand, the Relative Strength Index (RSI) currently provides an overbought reading of 75, so keeping an eye out for long-term support in the mid-$15s and at $12 could be wise. This is a stock that absolutely requires stop-loss orders. Failure to break and close above $22 will lead to many traders pocketing their recent profits.RIVN daily chart
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Could BTC make it to $35,000?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Could BTC make it to $35,000?

FXStreet News FXStreet News 04.07.2023 16:44
Bitcoin price remains promising into the new week, toned by a modest foray above $31,000.Ethereum price eyes the zone above $2,000 as correlation with the flagship crypto continues.Ripple price eyes a deepening correction unless buyer momentum raises XRP above $0.491.Bitcoin (BTC) price seems to be coming out of its consolidation and heading higher very slowly. As BTC retests the $31,000 market, investors ponder if a retest of the $35,000 hurdle is likely. But, the lack of a proper catalyst will likely weigh in on the ascent. The king of crypto's optimism has Ethereum (ETH) price ablaze while Ripple (XRP) price continues to confuse traders as it is among those altcoins that have failed to breakout higher.Also Read: Will Bitcoin price face negative effects from Federal Reserve’s two rate hikes?Bitcoin price makes a modest foray above $31,000Bitcoin (BTC) price is trading with a bullish bias, up almost 5% since the new week started. The king of crypto has taken a subtle step above the $31,000 level, pointing to a growing buying activity after the start of the third quarter. The price action since June 15 has led to the appearance of a bullish flag pattern.The pattern is resolved considering that Bitcoin price broke out of the flag formation in the direction of the prevailing trend, which is bullish. A decisive break above the June 23 high of $31,458, however, would provide cast-iron confirmation of the pattern’s activation. Decisive would mean a long green candle breaking above the confirmation level and then closing near its high or a break by three green candles in a row.The target of the flag is estimated by measuring the length of the pole and extending it in the direction of the breakout. A common stop level is just outside the flag on the opposite side of the breakout.Based on this estimation, Bitcoin price could rally 24% in the long term toward the $40,000 level. Meanwhile, experts anticipate a strong upward trend, with conservative investors speculating a breach of the $35,000 area. Another possible target lies at $33,650, the 61.8% extrapolation of the flagpole higher.Optimism is bolstered by a positive assessment of the probabilities that the major financial institutions seeking regulatory approval for a Bitcoin Exchange Traded Fund (ETF). will be successful, according to $650 billion asset manager Bernstein, who said the US SEC will likely approve a spot Bitcoin, in a recent note.BTC/USDT 1-Day ChartConversely, early profit-taking could cut the rally short, sending Bitcoin price back into the fold of the flag pattern. In a dire case, BTC could lose the support offered by the lower boundary of the flag at $29,578 before a possible trend reversal.Also Read: Bitcoin options strategy: How to trade July’s Q2 earningsEthereum price eyes $2,000 amid positive correlation with BTCEthereum (ETH) price is on a course north, joyriding the Bitcoin rally. A sustained uptrend could see the largest altcoin by market capitalization cross into the $2,000 zone. The PoS token is up almost 10% from the June 29 correction, with signs of a continued ascent as technical indicators communicate optimism.The Relative Strength Index (RSI) faces north, suggesting rising momentum. Similarly, the Awesome Oscillators (AO) are above the midline with deep green histograms, further adding credence to the upside.An increase in buying pressure from the current level could see the Ethereum price rise around 2%, crossing into the $2,000 zone. In a highly bullish case, ETH could reprint the mid-April highs around $2,120, denoting a 7.95% ascent from the current price.ETH/USDT 1-Day ChartConversely, a rejection from the $2,000 level could send Ethereum price back to the 50- and 100-day EMA at $1,842 or $1,809, respectively. In the dire case, ETH could tag the 200-day EMA at $1,747, constituting a 10% downswing.Also Read: Ethereum eyes $2,000 target as institutional investors pour capital into ETH fundsRipple price could breach $0.491 unless buying momentum wanesRipple (XRP) price has regained momentum after a successful flip above the 50-day EMA at $0.485. The remittance token is up around 5% since the beginning of the new month as bulls push to breach the $0.491 resistance level.An increase in buying pressure could facilitate the 0.61% climb, clearing the hurdle for the remittance token’s foray above $0.500. A sustained bullish momentum could propel XRP up 10% from the current level to tag the $0.542 hurdle.This optimistic outlook draws support from the up-moving RSI and green-flashing AO histograms, suggesting increasing buying activity among XRP bulls.XRP/USDT 1-Day ChartOn the other hand, day traders looking to make a quick profit could interrupt the rally by selling XRP at its current market value. The ensuing selling pressure could send Ripple price back under the foothold of the 100-day EMA at $0.472 or lower, below the 200-day EMA at $0.456.Failure by the bulls to leverage these buyer congestion zones could see Ripple price head lower, breaking below $0.450 and approaching the $0.420 support level.Notice that the AO is still negative while the RSI is under 50, suggesting bears still have a grip on XRP.Also Read: Pro-XRP attorney John Deaton says SEC Chairman Gary Gensler could resign
Pro-XRP attorney John Deaton says SEC Chairman Gary Gensler could resign

Pro-XRP attorney John Deaton says SEC Chairman Gary Gensler could resign

FXStreet News FXStreet News 03.07.2023 16:42
Crypto Twitter faced a false rumor of SEC Chairman Gary Gensler resigning from the regulatory agency.Pro-XRP attorney John Deaton said that Gensler’s resignation is possible in the near future.XRP price climbed over the weekend, sustaining above $0.4810. John Deaton, a pro-XRP attorney, addressed the rumors of Securities & Exchange Commission (SEC) Chairman Gary Gensler’s resignation from the agency. While word of Gensler’s resignation is just a rumor which turned to be false, Deaton says there is a likelihood that the SEC Chair resigns soon for political reasons.The SEC Chair has drawn criticism from crypto market participants, exchange platforms and legal teams defending firms against the financial regulator’s allegations. Binance’s Changpeng Zhao (CZ), Coinbase executives, or Ripple’s CEO Brad Garlinghouse have all criticized the SEC’s recent approach, which they call “regulation by enforcement”.Also read: Shiba Inu resists selling pressure from sale of 94 billion SHIB tokens by Poly Network hackersAttorney John Deaton says Gary Gensler could resign for this reasonAttorney John Deaton, an amicus or “friend of the court” in the SEC vs. Ripple lawsuit, believes that SEC Chair Gary Gensler could resign soon. Deaton commented on a widespread rumor on crypto Twitter regarding the agency Chair’s status. Deaton’s argument is that the upcoming political campaign could see Gensler’s resignation from the SEC after the agency’s crackdown on cryptocurrency exchanges and projects in the ecosystem. The SEC has been embroiled in a legal battle with Ripple for over two years now.The financial regulator recently filed lawsuits against Binance and Coinbase, two of the largest exchanges in the crypto ecosystem. In the lawsuit, the regulator labeled nearly five dozen cryptocurrencies being traded on their platforms as “securities”, which would mean that the exchanges were allowing the trading of unregistered securities – a serious offense.The SEC’s communication team denied the rumor over Gensler’s resignation, Fox business network Charles Gasparino said in a tweet.It was confirmed that the resignation rumor, which had been spreading over the weekend, is speculation.What Gensler’s resignation would mean for cryptoGensler was nominated by US President Joe Biden to serve as Chairman of the US financial regulatory agency SEC, and took office on April 17, 2021. Since then, Gensler has directed and shaped the agency’s approach towards cryptocurrencies, calling for regulation of a sector he described as the “wild wild west.” In a recent CNBC interview, former SEC Chairman Jay Clayton expressed his discontentment with Gensler’s approach towards cryptocurrencies. Clayton considers Gensler’s approach as one that is likely stifling businesses in the US and shifting the public’s perception of the regulatory agency’s role in the ecosystem.Gensler’s resignation could open doors to a different approach towards US-based crypto companies and projects and serve the interests of innovation in the blockchain and crypto sector overall.SEC vs. Ripple lawsuit updateXRP holders await judgment in the SEC vs. Ripple case. Judge Analisa Torres’ summary judgment in the lawsuit is expected to arrive by September, according to Ripple Labs CEO Brad Garlinghouse. Attorney Fred Rispoli, a pro-XRP lawyer, has predicted a ruling in the SEC vs. Ripple lawsuit by August 10. Rispoli deduced this from the statistics of previous summary judgements by Judge Torres. The altcoin has sustained above the $0.4810 level at the time of writing on Monday. XRP holders are waiting and watching the development of the lawsuit and Ripple’s next steps, while the altcoin continues its hopeful, upward trend.
S&P 500 Forecast: Index begins week flat but should advance toward Friday Nonfarm Payrolls report

S&P 500 Forecast: Index begins week flat but should advance toward Friday Nonfarm Payrolls report

FXStreet News FXStreet News 03.07.2023 16:42
S&P 500 closed up 1.23% last week to new 2023 high of 4,450.The trading week is shortened due to the July 4 holiday in the US.Tesla released Q2 delivery data that soared above expectations.The US June jobs report, out Friday, is the major data release of the week.UPDATE: The S&P 500 was flat a half hour into trading on Monday. The index started out the week in the red but has slowly moved back to even. The NASDAQ Composite has added 0.25%. Tesla stock has added 7.5% to trade above $281.The S&P 500 index begins the week at a new high for the year based on the June 30 close at 4,450. The index has been on a steady upward trajectory since mid-March and shows no signs of stopping.This quiet week will see a shortened trading schedule as the US Independence Day celebration on July 4 also means that the market will close at 1:00 PM EST on Monday, July 3, as well. With earnings out of the way, traders only have the June jobs report on Friday to look forward to. Monday should see trading begin on a positive note as on Sunday morning Tesla blew away the analyst class with strong delivery and production figures for the second quarter.At the time of writing in Monday’s premarket, S&P 500 futures are flat, while NASDAQ 100 futures have advanced 0.1%.S&P 500 News: Tesla delivers another surprisingly healthy quarterOn the back of Federal tax subsidies and CEO Elon Musk’s strategy of major price cuts, Tesla delivered an impressive 466,140 electric vehicles globally in Q2. This was about 5% higher than analysts’ consensus forecast for 445,000 deliveries. Based on the cross tabs, Tesla sold 446,915 lower-priced Model 3 and Model Ys and 19,225 higher-priced Model S and Model X vehicles.Maybe even more surprising, Tesla produced 479,700 vehicles in the quarter, which demonstrates how far management has ramped up capacity at its factories in Austin, Texas, Berlin and Shanghai. Tesla delivered 422,875 and produced 440,808 vehicles back in the first quarter of the year.The delivery figure was 83% higher than one year ago and 10% higher than the first quarter. It now seems that Elon Musk’s remark back in January that deliveries could reach 2 million in 2023 – an idea that seemed implausible at the time – might be achievable. If deliveries continue to rise 10% QoQ in the back half of the year, then Tesla will deliver 1,965,798 total vehicles for the year. A slight uptick in the growth rate would be all that is needed to reach the 2 million target. For now, consensus still sees full-year deliveries at 1.8 million, but we may see analysts begin to revise their forecasts upward this week due to the Q2 data. Already, Canacorrd Genuity has raised its price target on TSLA stock from $257 to $293.Tesla’s results could affect the entire market as it shows that consumer demand remains high at a time when many on Wall Street have been nervous about a looming recession. TSLA stock jumped 6.2% in Monday’s premarket to $278 on the news. With Tesla as a large component of its index, the S&P 500 will likely advance on Monday due to its outsized weighting and influence over other growth stocks.Friday jobs report the pinnacle of a slow data weekThe June Nonfarm payrolls report is the largest focus on the economic indicator schedule this week. The consensus calls for a net 200,000 job hires in June, far below the figure from May. Back in May consensus of 190,000 net hires was blown out of the water when the figure from the US Bureau of Labor Statistics reported 339,000 new jobs.Could the analysts have it wrong once again? That would seem quite likely since much of the recent economic data in June outperformed the average forecast. The outlook for New Home Sales, the Q1 GDP growth rate and the Consumer Confidence Index all had to be revised upward when data was reported last week. The counter narrative comes from economists, who, broadly speaking, see a tightening credit market and a Federal Reserve sticking to higher interest rates as a recipe for slowing growth.The day before on Thursday, July 6, ADP will give the market a hint. The company’s research arm will release its projection of the employment change in the US for June, which analysts have pegged at 180,000. The figure in May was 278,000.The Institute for Supply Management (ISM) will also release two significant data points this week. Its June Manufacturing PMI for the US arrives on Monday after the market closes, and on Thursday it will release its US Services PMI for June. Both indices are expected to improve from May’s numbers.Earnings of the weekThursday, July 6 - Levi Strauss (LEVI)What they said about the market – Michael GapenBank of America economist Michael Gapen acknowledged in an investor note that the US economy has performed better than expected in the first half of the year. This solid performance, however, does not mean the second half of the year will necessarily follow suit."We do not expect such robust prints to continue. Momentum in the economy should slow as the lagged effects of tighter monetary policy and financial conditions start to take hold."S&P 500 forecastThe S&P 500 is back at a new annual high after it rebounded last week from the previous week’s sell-off. With a close at 4,450 on Friday, the expectation will be for it to easily reach 4,500 this week. The index last reached this point when it worked as stubborn resistance in April 2022. Prior to then, the region loosely guarding 4,600 also pushed prices lower back in February and March of last year.The index is slightly overbought on the Relative Strength Index (RSI), but its sell-off two weeks ago did not last long. Only a severe drop in company earnings or a renewed bout of banking failures have the ability to push this index lower. If the mood does turn sour, then the 4,300 or 4,325 levels should provide it with short-term support. Medium and longer-term support are at 4,100 and 3,800, respectively.S&P 500 daily chart
Nike Stock News: NKE sinks on slight EPS miss despite healthy sales

Nike Stock News: NKE sinks on slight EPS miss despite healthy sales

FXStreet News FXStreet News 30.06.2023 16:45
Nike reported FQ4 earnings late Thursday that disappointed the market.Nike missed FQ4 adjusted EPS by one penny.NKE stock drops 3.6% in Friday premarket to $109.35.Margins slipped by 140 basis points due to higher input costs, transportation. Nike (NKE) reported mixed fiscal fourth-quarter earnings late Thursday that sent the stock into a moderate decline. The NKE stock price gave up 3.6% and is trading at $109.35 in Friday’s premarket. Nike missed Wall Street consensus for adjusted earnings as margins slipped, but revenue topped expectations by $240 million.At the time of writing, S&P 500 futures are ahead 0.1%, and NASDAQ 100 futures gain 0.3%. This demonstrates that the market is tilted toward growth stocks early on Friday.Nike stock news: Forex headwinds, higher COGS, growing transport costs trim marginNike reported adjusted earnings per share (EPS) of $0.66 in the quarter ending in May, missing consensus by a penny. Management said adverse forex valuations led to the shortfall, but it listed a number of other difficulties as well.Higher logistics and transportation costs also pushed the year-ago gross margin of 45% down to 43.6%. Additionally, Nike experienced increased input costs but could not make up for it with higher prices. Instead, to move inventory, the purveyor of the Swoosh increased its markdowns.Revenue of $12.83 billion was still well ahead of the forecast for $12.59 billion, but the fact that the athletic brand had to mark down a lot of products to reach that figure seems to have rubbed investors the wrong way.Revenue of $1.81 billion in China was much better than the $1.64 billion that analysts had expected. That country’s surplus, however, was counteracted by slower growth that ranged from 3% to 5% YoY in the rest of the world. “Nike inventory dollars are flat versus the prior year, with units down double-digits across both footwear and apparel,” said CFO Matthew Friend. “Apparel units are down more than 20% versus the prior year. Our mix of in-transit inventory has normalized, and days in inventory show improvement versus the prior quarter and the prior year.”Nike stock forecastNike stock is slouching back to the 21-day Simple Moving Average near $109. A break here would send Nike down to the $102 to $104 support range that tracked well last November and December and once again in early June. Nike stock does not appear to be in any sort of rally, although the Moving Average Convergence Divergence (MACD) indicator is moving in an upward direction. NKE stock needs to break through the $114 to $118.50 resistance zone to spark a renewed rally in the share price.NKE daily chart
Top 3 altcoins to buy for next alt season: PEPE, OP, BNB

Top 3 altcoins to buy for next alt season: PEPE, OP, BNB

FXStreet News FXStreet News 30.06.2023 16:45
With Bitcoin price moving sideways, altcoins are starting to pop. Apart from the meme coin Pepe, Binance Coin and Optimism are two other altcoins that are primed for a quick and volatile run-up soon.Macroeconomic conditions are slowly improving but investors need to be careful as downbeat data could trigger a sudden sell-off for the crypto ecosystem.With Bitcoin consolidating between $31,200 and $29,700, capital seems to be flowing to altcoins. As a result, some altcoins have shot up explosively. Bitcoin Cash (BCH), for example, has rallied 33%, Compound (COMP) has inflated by 48%, and Litecoin by 15%. But here are a few other altcoins that show promise of an incoming rally. Read more: What is alt season? Pepe price ready to climb higherPepe (PEPE) price continues to consolidate below the $0.00000164 resistance level. A breakout above this hurdle could trigger a 20% ascent that retests the $0.00000195 barrier. On the daily time frame, this level was a key support level that was flipped into a hurdle that prevented recovery for PEPE in early May.The Relative Strength Index (RSI) and the Awesome Oscillator (AO) are both edging closer to flipping above their respective mean levels at 50 and 0, making it an interesting opportunity for sidelined buyers.PEPE/USDT 4-hour chartThe bullish outlook for PEPE price is contingent on the altcoin breaching the $0.00000164 hurdle. However, a failure to exceed this level followed by a breakdown of the $0.00000147 support opens the door for a steep 13% correction to $0.00000127 to collect the sell-side liquidity. Also read: Top 5 cryptos traders are buying after SEC crackdown on $100 billion worth of assetsOptimism price kick-starts its uptrendOptimism (OP) price has already begun its journey north after the Momentum Reversal Indicator (MRI) flashed a buy signal on June 29. OP rallied 7% since then and is currently hovering around $1.25. On the daily timeframe, Optimism price needs to maintain its bullish momentum to continue its 38% ascent witnessed between June 19 and 22. A successful move could push the RSI and AO indicators above their respective mean levels, i.e., 50 and 0. The targets for Optimism price include $1.28, $1.36 and $1.49. OP/USDT 1-day chartOn the other hand, a breakdown of the $1.19 will invalidate the bullish thesis and trigger a correction to retest the range low at $0.87. Also read: Top 5 Chinese cryptocurrencies to buy after Hong Kong welcomes cryptoBinance Coin price provides buy signalsBinance Coin (BNB) price has flashed two buy signals – the Wave Trend indicator’s bullish crossover in the oversold region, followed by the bullish divergence with RSI. Coupled with the recent sell-off, the buy signals are good entry points from the short-to-mid-term outlook, not just for investors but also traders. The target for Binance Coin price is $268.9, which is the midpoint of the $220.4 to $317.3 range.BNB/USDT 1-day chartBut a breakdown of the range low at $220.4 will invalidate the bullish thesis and trigger a potential correction to retest the June 18 swing low at $183.4.
US PCE Preview: Three ways this inflation gauge impacts your income and summer plans

US PCE Preview: Three ways this inflation gauge impacts your income and summer plans

FXStreet News FXStreet News 29.06.2023 16:30
The US Personal Consumption Expenditure figure is a better measure of real-time inflation. Federal Reserve officials examine this report to make mortgage-impacting interest rate decisions.The US Dollar responds to this publication, influencing prices of imported goods and vacations.PCE data for May is set to show inflation remains stubbornly high. Isn't inflation data already out? Think again – the Consumer Price Index (CPI) is the report getting all the attention, but the less-known Personal Consumption Expenditure (PCE) Price Index is no less important and for three reasons.Here is why you should watch the PCE release and what to expect from the upcoming publication on Friday at 12:30 GMT. 1) Why PCE inflation is more meaningful for your pocketInflation is the change in prices of products and services people consume, where every item has a different weight according to the amount bought by Americans. Rent has a greater weight than a hotel stay, and a car has larger weight than furniture. Both the CPI and the PCE inflation indexes are based on such calculations. Still, the difference is in the frequency they are updated – economists responsible for the PCE update it more frequently, according to how people change their consumption patterns. For example, if the price of tomatoes leaps and people buy more cucumbers, the CPI will increase vegetable prices as driven by soaring tomato prices without considering that less tomatoes are being bought. However, the PCE will adapt to modified consumption patterns, giving cucumbers more weight and tomatoes a minor impact on vegetable prices.In the example above, PCE inflation would be lower than the CPI one, but this is not always true. Beyoncé is on tour, and fans cannot get enough of her shows – prices are rising and the PCE has adjusted in real-time to reflect higher ticket prices. In Sweden, her shows triggered a leap in hotel and restaurant prices, and some analysts say that this contributed to raising national inflation. The PCE is off the peak, but it advanced from 4.2% to 4.4% in April, contrary to CPI, which fell that month:Source: FXStreetPCE is expected at 4.6% in May, still too high, but more up-to-date than CPI. All in all, the former better reflects prices in real-time, so it is worth watching it more closely. 2) Federal Reserve officials watch Core PCE and that impacts mortgage and other lending ratesYou borrow money from your bank, and your bank's interest rates depend on the central bank, the Federal Reserve. If you want to buy a house or take out a loan to buy a new car, the Fed is worth watching – and it watches PCE inflation.More importantly, officials in Washington eye Core PCE. What is the difference? Economists separate between overall price changes, and those that are less volatile – excluding energy and food prices. While you need food to move on and your car needs gas to do the same, these are prices the Fed tends to look through when deciding on interest rates.Oil prices are set in international markets – impacted by output cuts in Saudi Arabia, Chinese consumption and not only US production and consumption. Food prices are also set globally, influenced by falling Ukrainian supply, droughts in faraway countries and how people consume it all over. Through interest rates, the Fed impacts the prices of everything else. If borrowing costs are high, people tend to save more and take out fewer loans, pushing demand and prices down. If rates fall, there is more money running around, boosting inflation. So, this chart of Core PCE matters to the Fed:Source: FXStreetCore PCE stood at 4.7% in April, and a repeat of this level is expected in the upcoming release for May. If it beats expectations, mortgage rates may rise. Likewise, lending costs could drop if it falls short of projections.3) PCE inflation impacts the US Dollar via Fed decisionsThe Federal Reserve watches PCE – so financial markets also examine it closely. The higher it goes, the greater the chance for further rate hikes and thus a stronger US Dollar. The Greenback would lose value against its peers on a lower read.Why does the value of the currency matter? If you buy goods made abroad, a stronger US Dollar makes them cheaper. It also makes your potential trip to Europe or other places a better bargain. If inflation falls, it may be good for day-to-day costs, but any such vacation or purchase of foreign-made products becomes more expensive. That is another reason to follow this publication, especially if you are on the verge of using your dollars outside the US. May's report is set to show inflation is stubbornly highLooking at the economic calendar, inflation as measured by the Core PCE is expected to remain at 4.7% YoY, or rise by 0.4% – too fast – monthly. That means your dollars are still losing value at a frustrating pace, but if you go for a summer vacation abroad, you're in for a better bargain. If the outcome is weaker, it would show that price rises are slowing, and your money goes further. A leap in PCE inflation would show the opposite – that real costs are re-accelerating. ConclusionConsumers tend to overlook PCE inflation – but there are good reasons that justify examining it closely. It is a better measure of price rises and has a stronger impact on the Fed, which influences interest rates and the US Dollar’s exchange rate. The upcoming release is set to show inflation is still sticky – not going down fast enough.
Mullen Automotive Stock Forecast: After losing 35% earlier in week, MULN jumps 9% at Thursday open

Mullen Automotive Stock Forecast: After losing 35% earlier in week, MULN jumps 9% at Thursday open

FXStreet News FXStreet News 29.06.2023 16:30
Mullen Automotive stock lost 19.5% on Wednesday.MULN stock has lost ground in each of the past ten weeks.CEO David Michery has signaled that the dilution will stop for the next six months.Mullen now has $135 million on its balance sheet for production operations.Mullen Automotive (MULN) stock gained more than 9% at the open on Thursday after shedding 35% in this week's first three sessions. The stock traded from Wednesday's close at $0.1101 to a session high on Thursday of $0.1270 before selling off lower for a gain near 9%.Mullen stock unsurprisingly lost 19.5% on Wednesday as the development-phase electric vehicle (EV) company – based in Brea, California – continues to see the sale of its shares explode until the current end date of June 30, 2023. MULN stock has lost 96% in the past three months.Mullen stock has advanced 1.6% in Thursday’s premarket to $0.1119 per share, while NASDAQ 100 futures had gained 0.37%.Mullen Automotive stock news: MULN may enter consolidation in H2 2023Last week on June 21, Mullen management announced that there would be a moratorium on further investor financing in the second half of 2023. The current round of investor options would need to be exercised by June 30. Before the cutoff date, existing holders of options need to exercise them as soon as possible.That is why this week has seen an incredible 35% drop in just three sessions. That is just par for the course in this dismal second quarter for shareholders. Over the past ten weeks, Mullen stock has lost ground every single time, and seven of the ten have seen losses exceeding 20%. The good news, if it turns out that way, is that Mullen has enough capital to finally end its furious rampage of investor dilution. The company now reports $135 million on its balance sheet, which should help it meet production goals on its Mullen Three Cab Chassis Truck at its factory in Mississippi.Mullen’s assets bear no debt besides a small $7.3 million outstanding liability that it says it has no problem paying back. Based on its current cash position, Mullen has a cash-per-share value of $0.38, about 3.5 times higher than its current share price.“We are in the best financial position in our Company’s history and remain fully committed and highly focused on producing, selling and delivering our vehicles to our customers prior to the end of 2023,” CEO David Michery said last week.On June 26, Mullen filed with the Securities & Exchange Commission (SEC) to register an additional 2.34 billion in common stock shares, although this number corresponds to a filing from back in February. Despite its minuscule current market cap of $26 million, Michery continues to highlight the company’s acquisitions in excess of $253 million spent last year for the assets and intellectual property of Electric Last Mile Solutions and Bollinger Motors.Michery sold more than 2 million worth of shares back on June 16.Mullen stock forecastThe steady, long-term sell-off in Mullen stock is so replete that chart indicators that usually forecast the future have ceased to offer any qualified outlook. Take, for instance, the Moving Average Convergence Divergence (MACD) indicator. It crossed over in a bullish fashion on March 30 earlier this year. This would usually indicate a good time to buy. Since then, however, MULN stock has lost 96% of its value in just three months.The 9-day moving average has remained below the 21-day moving average since February 21 – an extremely long time without a single short-term uptrend crossover. Possibly, now that the dilution should halt in the second half, MULN stock may consolidate for the next six months.MULN daily chart
Nio Stock Forecast: After 11% gain, NIO opens flat on Wednesday

Nio Stock Forecast: After 11% gain, NIO opens flat on Wednesday

FXStreet News FXStreet News 28.06.2023 16:30
Nio gained 11.2% to close at $9.34 per share on Tuesday.NIO stock traded lower in six consecutive sessions before Tuesday's pop.Hong Kong and Chinese stock markets both largely flat on Wednesday.Politician announces that Chinese economy will reach 5% growth rate in 2023.UPDATE: Nio (NIO) closed Tuesday's market session at $9.34. On Wednesday, NIO stock opened at $9.34 and, at the time of the writing, the company's shares are trading at $9.34 (+0%). The company led by William Li has found the price of its shares increase by $0 since Tuesday.Nio witnessed its share price add on 11.2% on Tuesday in a session that saw Wall Street clamber back into the market. The S&P 500 added 1.15% in the session, while the NASDAQ 100 surged 1.75%.Nio stock news: Turnaround arrives after six-session sell-offIt was high time for a Nio reversal as the EV firm sold off in all six sessions from June 16 to June 26. Tuesday witnessed a surge in nearly all EV stocks.Major rival Tesla (TSLA) gained 3.8% one day after Goldman Sachs handed it a downgrade, and Chinese rival XPeng (XPEV) closed 8.1% higher. The maker of the long-range Air sedan, Lucid (LCID), jumped 9.9%.Chinese equities like Nio largely advanced on Premier Li Qiang’s message at the World Economic Forum that the Chinese economy’s growth rate of 4.5% in Q1 would likely reach 5% for the full year. This positive forecast for Chinese GDP then met other positive data coming from the US market. On Tuesday, the Conference Board reported Consumer Confidence data demonstrating that the percentage of people expecting a recession over the next 12 months is falling. Additionally, the Durable Goods report for May showed a 1.7% expansion rather than the forecasted decline. The Richmond Fed’s Manufacturing Survey also improved from the previous month, and New Home Sales arrived well ahead of the forecast.The combination of positive US and Chinese news was enough to send the US market higher after a week or more of the equity downtrend. In fact, the NASDAQ Composite marked its best gain in over a month. On Wednesday, however, China and Hong Kong stock markets remained largely unchanged.On June 21, the Chinese government unveiled $72 billion worth of tax cuts to subsidize its homegrown EV industry. Thus far, the policy has not led to a rally in Chinese EV stocks since the tax cuts do not begin until 2024.Nio stock forecastNio stock broke out of its five-month downtrend on June 12. That same week it met its zenith on June 16 at $10.21 before entering the six-day downtrend. Bulls now need to break above that $10.21 level to ensure the rally continues. This would require a little more than a 9% gain, so it remains a distinct possibility.The $9.50 level, however, has been a thorn in the side of bulls for most of this year. If Nio stock powers through it and the $10.21 level, then bulls will make a run at the $13 to $14 resistance zone.NIO daily chart
XRP on-chain activity signals incoming price rally as holders await SEC vs. Ripple verdict

XRP on-chain activity signals incoming price rally as holders await SEC vs. Ripple verdict

FXStreet News FXStreet News 28.06.2023 16:30
XRP’s network activity spiked over the past week, a sign of an upcoming price rally. If history repeats itself, XRP price could jump between 10 and 40%.Ripple’s chief legal officer sees benefits from the SEC lawsuit and remains optimistic over a win against the regulator.XRP has registered a surge in on-chain activity over the past week, according to data from crypto intelligence tracker Santiment. Typically, a spike in transactions have acted as a precursor of a price rally in the altcoin. This was observed on three occasions recently, making it more likely that XRP price breaks into a rally soon. Also read: Pro Ripple attorney shows new evidence to support Ripple case against SECXRP on-chain activity increasesDaily active addresses in XRP increased nearly seven times, from 17,554 addresses to 142.38K over the past week, according to data from crypto intelligence tracker Santiment. This year, similar spikes were followed by rallies in the altcoin’s price, ranging from 10% to 40% gains within two to four weeks after the rise in network activity. Daily active addresses (XRP)If history repeats itself, XRP price could register a bullish breakout in the short term. As seen in the chart above, XRP daily addresses climbed on March 19, between May 27 and May 29, and from June 23. Other on-chain metrics paint a bullish picture XRP’s transaction count increased, as did transaction volume, over the past week. These are other bullish on-chain indicators that support the thesis of a price rally.Transaction count and volume in XRPAs seen in the chart above, spikes in transaction count have acted as a precursor to price rallies, similar to an increase in daily active addresses. These catalysts are expected to drive XRP price higher in the short term.For XRP price targets, check this post.
Pfizer Stock Forecast: PFE drops again after halting development of weight loss pill

Pfizer Stock Forecast: PFE drops again after halting development of weight loss pill

FXStreet News FXStreet News 27.06.2023 16:28
Pfizer ends lotiglipron clinical trials due to elevated liver enzyme levels.Drugmaker to focus on testing of danuglipron weight loss pill.PFE stock lost 3.7% on Monday after releasing the news.Hanging man candlestick foreshadows extended downtrend in Pfizer’s future.Pfizer (PFE) stock dropped again on Tuesday after a gap down in price action to start the week. PFE gave up 3.7% of its value on Monday after the drugmaker ended the development of a promising oral pill to induce weight loss. The Dow Jones Industrial Average, S&P 500 and NASDAQ Composite all rose between 0.3% and 0.6% at Tuesday's open.Pfizer stock news: Drugmaker puts all its chips on danuglipronOn Monday, Pfizer announced that it would halt the development of its once-daily diabetes and weight loss medication called lotiglipron. During early phase 1 clinical trials, Pfizer said some patients developed elevated levels of a liver enzyme called transaminases. None of the participants in the study reported negative side effects, but Pfizer decided to end its development of the drug altogether.Instead, Pfizer will invest everything in its twice-daily danuglipron pill, which is meant to inhibit appetite and thus cause weight loss in a similar fashion. Pfizer stock likely sold off since a twice-daily pill would most likely be less attractive to patients and doctors than similar once-daily oral medications being developed by Eli Lilly (LLY) and Novo Nordisk (NOVO). The latter two pharmaceutical firms already offer weight loss injection brands called Mounjaro and Wegovy, respectively.Morgan Stanley believes the new trend toward refashioning diabetes drugs for the purpose of weight loss could become a $54 billion market by the end of the decade. Other analysts have pushed that figure up to $100 billion since there is evidence that these drugs also inhibit cravings for alcohol and other addictive substances.Pfizer said in its statement that it seeks to create a once-daily version of danuglipron in the future, but investors may wonder if Pfizer’s alternative will arrive too late to take market share from first movers Eli Lilly and Novo Nordisk.Pfizer stock forecast: Hanging man candlestick a bad sign for PFEOn Monday, Pfizer stock halted near support at $36.17 before bulls pushed the stock higher. The weekly chart shows Monday’s unfinished weekly candle ( the same as the daily candle) as a hanging man candlestick. This happens when the market sends a stock down precipitously at the beginning of a session before bulls enter the price action to push the price up to a close near but below the open.A hanging man candlestick is normally treated as a bearish signal that bulls are beginning to lose control. The best bet is that Monday’s gap down will continue. If PFE stock breaks below $36.17 again, then expect another 10% drop to the $30 to $33.36 demand zone. This supportive region held Pfizer stock up on a number of occasions between August 2019 and March 2021.Weekly PFE chart
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC flatlines while altcoin bulls rethink their strategy

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC flatlines while altcoin bulls rethink their strategy

FXStreet News FXStreet News 27.06.2023 16:28
Bitcoin price is still in the transition period, trying to exit the bear market and re-enter the bullish part of the cycle above $31,800.Ethereum price could tag $2,128 upon a decisive daily candlestick close above $1,941.Ripple price is at risk of 15% losses to $0.40 unless XRP bulls fasten their grip.Bitcoin (BTC) price continues to resist falling under bears control as it hovers around the $30,000 psychological level. While the initial run-up in BTC benefitted altcoins like Ethereum (ETH) and Ripple (XRP), the current state of struggle for BTC has caused many altcoins to remain flat. Some altcoins even look primed for a correction as many sell signals erupt on the four-hour and daily time frames.Also Read: Week Ahead: Buy the dip or sit on your hands?Bitcoin contracts amid an overbought marketBitcoin (BTC) price contraction could be a good thing or spell doom for investors depending on how investors play their hand. The king of crypto soared 25% since June 15 to record an intra-day high of $31,431 on June 23 before pulling back 5% to the current price of $30,097.Based on the Relative Strength Index (RSI) trajectory after breaking below the 70 level, Bitcoin price is suffering in the wake of an overbought market, confirming a sell signal according to Well Wilder’s thesis. Nevertheless, as bulls look for an entry point, an increase in buyer momentum could see Bitcoin price break into the crucial zone between $31,800 and $35,300. Escaping this zone could clear the path for the flagship cryptocurrency to target higher levels.The up-facing Exponential Moving Averages (EMA) and the Awesome Oscillators (AO) above the midline suggest that the bulls are still in the lead.BTC/USDT 1-Day ChartConversely, BTC bulls failing to re-enter the market could see bears gain control, with the ensuing pressure sending the king of crypto to the 50- and 100-day EMA at $27,614 and $26,908 levels, respectively. In the dire case, BTC could break below the support confluence between the 200-day EMA and the uptrend line at $25,647, exposing it to the $24,000 lows seen in mid-March.Also Read: Bitcoin price breaches $31,000 as the IMF attests to the flagship crypto being unstoppableEthereum price tests the 50-day EMA supportEthereum (ETH) price is $1,852 at the time of writing, on course to test the 50-day EMA at $1,821. Unless the prominent altcoin breaks its current correlation to BTC and heads north, its fate is certain. A decisive daily candlestick close above $1,941 could clear the path for a rally to $2,128.This is plausible considering the AO indicator is still in the positive zone, and the largest altcoin by market capitalization is also enjoying robust support offered by the 100- and 200-day EMA at $1,794 and $1,736 in addition to the 50-day EMA.ETH/USDT 1-Day ChartOn the flip side, the down-facing RSI suggests fading momentum among ETH bulls, which could give room for bears to take over. Such an outcome could see the PoS token lose all the ground covered over the past two weeks.Also Read: China crypto narrative is alive as HSBC supports trade in Bitcoin and Ethereum Futures ETF in Hong KongXRP bulls must act nowRipple (XRP) price is trading with a bearish bias, having lost all the ground covered since June 17. The latest downtrend has seen the remittance token flip the 50-EMA support at $0.487 resistance, setting the tone for a continued downtrend.Amid falling buyer momentum indicated by the dropping RSI and growing overhead pressure as XRP keeps flipping support levels into resistances, Ripple price could break below the 100- and 200-day EMA at $0.471 and $0.454 to retest the $0.402 swing low. Such a move would denote a 15% slump.This outlook is bolstered by the AO, steadily edging farther away from the midline. XRP/USDT 1-Day ChartOn the flipside, Ripple price could correct if XRP bulls capitalize on the 100-day EMA support as an entry point, with the subsequent buying pressure restoring the payments token above the $0.495 hurdle. Nevertheless, the bearish thesis would only be invalidated upon a decisive candlestick close above the $0.550 resistance level. Also Read: XRP sees inflow of $240,000 in a week as crypto funds record largest influx of capital in 2023
Lucid Group Stock News: LCID jumps nearly 10% after announcing Aston Martin partnership

Lucid Group Stock News: LCID jumps nearly 10% after announcing Aston Martin partnership

FXStreet News FXStreet News 26.06.2023 16:29
Lucid inks deal with Aston Martin to share battery technology.Lucid stock surges 9.7% in Monday’s premarket to $6.LCID stock is down 30% over the past month.An agreement to supply Aston Martin with batteries and powertrains is worth more than $450 million to Lucid. Lucid Group (LCID) stock bounced 9.7% in Monday’s premarket after the Saudi Arabia-controlled electric vehicle company from California announced a lucrative partnership to supply the British sportscar manufacturer Aston Martin with its proprietary electric battery and powertrain technology.The deal calls for Lucid to share its technology and engineering prowess with Aston Martin in exchange for shares of the latter and phased cash payments. Lucid News: Aston Martin deals viewed as beginning of turnaroundLucid has been dealt a difficult past year. Production issues at the start of the year greatly curtailed overall production levels, helping losses to expand. Then the stock sold off severely in June after the company announced a new share sale to raise in excess of $3 billion in much-needed cash. Monday’s announcement of the partnership with Aston Martin is truly the first good news all year. Lucid management says its long-term deal with Aston Martin should be worth in excess of $450 million and will make Lucid a major shareholder in the famed British brand."This partnership will represent a landmark collaboration between Aston Martin, a storied marque with a rich history, including winning at Le Mans and its current successes in F1, and the very best of Silicon Valley innovation and technology from Lucid," said CEO and CTO Peter Rawlinson of Lucid. "In line with its strategy, Aston Martin selected Lucid, recognizing the profound benefits of adopting its world-leading electric drivetrain technology, exemplified by the breakthrough 516-mile EPA-estimated range achieved by the Lucid Air Grand Touring."Due in part to the Lucid Air’s competition-beating battery range, the vehicle won the 2023 World Luxury Car Award."The supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin," said Lawrence Stroll, Executive Chairman of Aston Martin. "Based on our strategy and requirements, we selected Lucid, gaining access to the industry's highest performance and most innovative technologies for our future BEV products."The agreement requires Lucid employees to aid Aston Martin with the integration of its twin motor drive unit, full battery technology, and onboard charging unit called the “Wunderbox” into Aston Martin’s own vehicle platform.In related EV news, Goldman Sach downgraded Tesla (TSLA) to neutral. The leading EV maker fell 1.5% in the premarket. Additionally, Chinese EV automaker XPeng (XPEV) announced that it will release its new G6 Ultra Smart Coupe SUV on Thursday, June 29.Lucid stock forecastLucid stock cratered in June, losing 30% of its value, after the company announced it would raise $3 billion from investors in a materially dilutive share sale. The stock reached an all-time low last Friday at $5.46 per share. It was good timing on Lucid management’s part as LCID stock just reached an “oversold” status on the Relative Strength Index (RSI). Reaching $6 in the premarket is a positive sign, but shares really need to overtake the $6.20 former support level to lead traders toward a sustained rally. That level fortified the share price around New Year’s and then again in mid-June. A solid rally could push LCID up to the resistance range between $8 and $8.28 or even the $8.69 resistance level from April 11 and 12.LCID daily chart
Week Ahead: Buy the dip or sit on your hands?

Week Ahead: Buy the dip or sit on your hands?

FXStreet News FXStreet News 26.06.2023 16:29
Bitcoin price slips below $30,000 after a relatively stationary weekend.A look at the big picture reveals investors need to be cautious in the third quarter.Long-term investors must look for buy-the-dip opportunities as bears will likely take over in the third quarter.With June nearing its end, we need to take another look at the big picture to remind us that we’re in it for the long run. So, in this newsletter, I will give you a perspective of what to expect from Bitcoin in the next two quarters and to better prepare for the same. Also read: Is Bitcoin’s 2023 bull rally at an end?Bitcoin’s monthly and quarterly returns As mentioned in a previous publication, historical returns are key to identifying what comes next. Like clockwork, Bitcoin price returned 68.55% in quarter 1 and 6.55% in the second quarter. Read More: Bitcoin likely to remain in red through the next quarter if history is any indicationAgain, from a historical standpoint, the third quarter is favorable for bears, with an average return of only 4.21%. To make matters worse, July, August, and September are the months with the least average BTC returns, as seen in the chart below. Lastly, the fourth quarter has an average return of 93.38%, with the highest average return observed in November.So, the takeaway is simple, sit on your hands or accumulate BTC on the dips for the next three months. After the dreadful third quarter is completed, Bitcoin price is likely to embark on a journey that will shun the first quarter returns and potentially attempt a move to retest the all-time highs at $69,000. Bitcoin quarterly and monthly returnsTop three Bitcoin readsThree reasons why Bitcoin’s 2023 rally is just startingBitcoin dominance hits two-year high at 51%, jeopardizing altcoin gainsRecent Bitcoin price crash triggers whales to scoop BTC at discountThe top three altcoins read Whales reveal their hand as they accumulate Optimism’s OP token in millionsDogecoin Price Prediction: DOGE edges closer to a 20% breakoutXRP price prints this exact bullish pattern again, 25% rally in store for Ripple bulls
Nvidia Stock Forecast: NVDA drops to $421 as market turns south

Nvidia Stock Forecast: NVDA drops to $421 as market turns south

FXStreet News FXStreet News 23.06.2023 16:54
Nvidia appears to be readying for a pullback at the moment.NVDA is still trading in overbought territory on the RSI.Fed Chair Powell’s testimony has depressed markets this week.Barclay’s named Nvidia its top AI pick on Thursday.Three days into this four-session trading week, Nvidia (NVDA) appears to be headed for a pullback. While last week the leading maker of advanced GPUs for the artificial intelligence industry advanced 10.1%, this week has seen an overall 0.8% gain from a mixed bag of price action. Despite a decent gain on Tuesday, Nvidia traded lower on Wednesday and Thursday as the tech-heavy NASDAQ Composite slid 0.43% on the week.NVDA stock is down 2% in Friday's first half hour, while the NASDAQ Composite declines 1.15%.Nvidia stock news: With Powell testimony, markets expect ‘higher for longer’ rate regimeThe overall market has been somewhat depressed this week after Jay Powell, the Chair of the Federal Reserve, testified before the two houses of Congress this week on keeping interest rates elevated for the foreseeable future.On Wednesday, Powell addressed a committee of the House of Representatives, and then on Thursday it was a banking committee at the Senate. Both occasions saw Powell stick to his guns on keeping rates high through the end of the year. The market sold off on both days as Powell reiterated his belief that the central bank would raise interest rates on two more occasions this year – this despite the market largely expecting the bank to either halt rate hikes altogether or apply a single hike sometime in the second half of 2023.The “higher for longer” interest rate regime that most expect to remain heading into 2024 should put downward pressure on growth stocks since the risk-free rate will remain high. Nvidia is chiefly valued around 40x sales, because Wall Street expects revenues to explode due to AI-based investment over the course of this decade. Higher rates, however, make future profits somewhat less valuable compared with a lower rate environment.Nvidia stock news: Barclays makes NVDA top AI pickOn Thursday, Barclays bank analysts said Nvidia was their top pick for the AI revolution over Microsoft (MSFT), which owns a majority share of ChatGPT-creator OpenAI. In a note to clients, Barclays wrote that while Microsoft’s expectation calls for AI to lead to a 1% gain in its Azure cloud business, Nvidia expects revenue to jump from $7.2 billion in the most recent quarter reported in May to $11 billion in the current quarter, the results of which will be reported in late August.“We believe that most of the near-term economic value attached to AI will accrue to a handful of key names in the foundational hardware segments of the AI value chain,” wrote Barclays. Indeed, analysts are already estimating that largely due to AI investment from hyperscalers, Nvidia revenue will top $42.8 billion this fiscal year and reach nearly $52.5 billion the following year.Nvidia stock forecastNvidia stock has made a rounding shape over the past five sessions that are similar to a bearish tower top, although the pattern is not a perfect rendition. The most popular reason to see a bearish setup for NVDA stock is the Relative Strength Index (RSI). It is true that the RSI has mostly been overbought (trading above the 70 level) since May 18, but at some point the stock needs to trade lower and let the RSI sink to normal, neutral levels – 50 at the least.NVDA stock is below $428 in the premarket. A break of $420 should see Nvidia stock pull back to $400 at least. That price level is a good round psychological level for traders, but it may not hold.If it fails to hold, then the $373 to $378 demand zone should provide the necessary support. This region held up from May 25 to June 8. With the overall market looking ready for a pullback – the NASDAQ 100 is also overbought on the daily RSI – it wouldn’t be unusual for a certain portion of traders to take profits.NVDA daily chart
Bitcoin Weekly Forecast: Will BTC take a break after $30,000?

Bitcoin Weekly Forecast: Will BTC take a break after $30,000?

FXStreet News FXStreet News 23.06.2023 16:54
Bitcoin price remains bullish on the longer-term timeframes, eyeing a push up to $35,290.The three-day chart for BTC is starting to flip bullish and hints at an extension of the 2023 rally.On the daily variant, however, the big crypto might form a range and retrace to $28,545 before attempting a new leg up.Bitcoin price remains highly bullish on all timeframes. The recent rally has pushed it to the $30,000 psychological level. With rising Bitcoin dominance, altcoins are likely going to be sidelined while investors pour capital into BTC, pushing the big crypto to scale higher heights.Also read: Bitcoin dominance hits two-year high at 51%, jeopardizing altcoin gainsBitcoin price from a weekly timeframeBitcoin price is currently hovering around the $30,000 region, with the weekend just around the corner. With a lack of trading volume, volatility is going to be absent. Additionally, the second quarter of 2023 is also coming to an end, which could potentially trigger a volatile move around the monthly close. But a question that many sidelined investors have is - “will there be a retracement?”To answer this question, let us take a look at Bitcoin from multiple timeframes. The weekly chart for Bitcoin price shows that it is very close to retesting $31,839, which is the midpoint of the range, extending from $48,192 to $15,487. From a long-term perspective, an ideal place for retracement would be after the retest of the $31,389 hurdle.In its attempt to tag the midpoint, Bitcoin price might retest the weekly inefficiency at $35,290, which could form a local top. As noted in previous publications, the Bearish Breaker’s midpoint on the weekly timeframe sits at $35,260, coinciding closely with the weekly inefficiency noted above. Hence, this confluence is most likely going to be a profit-taking area for short-term holders.BTC/USDT 1-week chartFor more information on the long-term outlook of Bitcoin price, what long-term holders are up to, and the state of key on-chain metrics, read this: Three reasons why Bitcoin’s 2023 rally is just startingBitcoin price from a three-day timeframeThe three-day chart for Bitcoin price paints a much more nuanced picture. While not a lot has changed from a price action perspective, the indicators are critical to understanding if BTC will rally or not. The Relative Strength Index (RSI) has created a double bottom at 42 and has recovered above the mean level at 50, suggesting a rise in bullish momentum.The Awesome Oscillator (AO) denoted a bearish regime as it produced red histogram bars below the zero-line. But the outlook is changing after the recent uptick in Bitcoin price, which has caused the histogram bars below the zero-line to turn green and attempt a crossover. A flip above the zero-line will add credence to the rising bullish momentum. Lastly, the Wave Trend indicator for Bitcoin price shows signs of a potential bullish crossover below the zero-line, hinting at the extension of the 2023 bull rally.All of these signs suggest that the bull rally for Bitcoin price on a three-day chart is yet to begin.BTC/USDT 3-day chartBitcoin price from a daily timeframeThe daily chart for Bitcoin price shows that the recent rally collected the buy-side liquidity resting above the swing highs formed between April 26 and May 6 at roughly $30,000. The chances that this uptrend continues are pretty low, considering that the weekend is around the corner. Therefore, investors can expect Bitcoin price to consolidate and form a range. A minor retracement to $28,545 seems plausible should short-term investors decide to book profits. But investors need to be patient trading in this timeframe. BTC/USDT 1-day chart
USD/TRY jumps past 24.00 to clinch new all-time high

USD/TRY jumps past 24.00 to clinch new all-time high

FXStreet News FXStreet News 22.06.2023 16:46
USD/TRY trespasses the 24.00 hurdle followed the CBRT hike.Markets perceives as insufficient the CBRT rate raise.The central bank hiked rates by 650 bps to 15.00%.It is never enough for the Turkish lira, is it not?On Thursday, the Turkish lira experienced a significant decline, reaching record lows against the US dollar and pushing USD/TRY well above the 24.00 level.USD/TRY ignores CBRT rate hikeThe Turkish currency's depreciation gained further momentum as the rate hike fell short of market participants' expectations. The CBRT raised the One-Week Repo Rate by 650 basis points to 15.00% during its event.It is important to note that there was a consensus among analysts that the first rate hike since August 2021 would be around 20%, especially after President Erdogan appointed M. Simsek as the Finance Minister and H. Erkan as the CBRT Governor following the May 28 elections.The central bank's objective with this move was to initiate the process of monetary tightening, establish a trajectory towards lower inflation, stabilize inflation expectations, and manage pricing behavior.The CBRT reaffirmed its commitment to the 5% inflation target and did not rule out the possibility of implementing additional measures for monetary tightening to achieve this target.Moreover, the lira faced additional selling pressure as domestic banks ceased interventions aimed at supporting the struggling currency.What to look for around TRYUSD/TRY now seems to have embarked on a consolidative phase in the upper end of the recent range.In the meantime, investors are expected to closely monitor upcoming decisions on monetary policy. By appointing Mehmet Simsek and Hafize Gaye Erkan, both former Wall Street bankers, to oversee the country's finances, President R. T. Erdogan seems to suggest a possible move away from heavy state intervention in favor of letting the market dictate the fair value of the currency.Although it remains uncertain whether Mr. Erdogan's preference for combating inflation through lower interest rates will allow Simsek and Erkan's orthodox approach to monetary policy to thrive, the news of their appointment has been so far cautiously welcomed by market participants. In a broader sense, price action around the Turkish currency is expected to continue to revolve around the performance of energy and commodity prices, which are directly tied to developments from the Ukraine conflict, broad risk appetite trends, and dollar dynamics.Key events in Türkiye this week: Consumer Confidence (Monday) – Capacity Utilization, Manufacturing Confidence (Wednesday) – CBRT Interest Rate Decision (Thursday) – Economic Confidence Index, Trade Balance (Friday).Eminent issues on the back boiler: Persistent skepticism over the CBRT credibility/independence. Absence of structural reforms. Bouts of geopolitical concerns.USD/TRY key levelsSo far, the pair is gaining 3.39% at 24.3105 and faces the next hurdle at 24.6139 (all-time high June 12) followed by 24.00 (round level). On the downside, a break below 20.5294 (55-day SMA) would expose 19.8125 (100-day SMA) and finally 19.2064 (200-day SMA).
Ethereum Price Prediction: ETH coils as bulls could trigger 45% upswing

Ethereum Price Prediction: ETH coils as bulls could trigger 45% upswing

FXStreet News FXStreet News 22.06.2023 16:46
Ethereum price consolidation has resulted in an ascending triangle setup.This technical formation forecasts a 45% upswing on the breakout of the $2,000 psychological level.A flip of the $1,639 support level will invalidate the bullish thesis for ETH.Ethereum (ETH) price shows a tight consolidation on the three-day chart. As this rangebound movement nears a breakout, investors need to be extremely cautious of Bitcoin (BTC) bears, who could flip the plan on its head.Also read: Ethereum Layer 2 Optimism beats MATIC to the curb, sees massive spike in active addressesEthereum price edges closer to a breakoutEthereum price has shown resilience over the past few months as it hovered between the $1,000 and $2,000 psychological levels. During this time, ETH has set up nearly four equal highs and four higher lows. Connecting these swing points using trend lines reveals an ascending triangle setup. This technical formation forecasts a 45% ascent on the breakout of the horizontal resistance at nearly $2,000. The target of $2,915 is obtained by adding the measured distance to the breakout point. As Ethereum price gets squeezed at the triangle’s apex, a volatile breakout is to be expected from ETH holders. The upswing might be prematurely stopped at the $2,439 hurdle, which would amount to a total gain of nearly 28% from the current price at $1,908. The Relative Strength Index, which has flipped above the mean line, the Awesome Oscillator and the Wave Trend indicators have remained bearish. Still, the Wave Trend indicator suggests that a bullish crossover could occur soon.ETH/USDT 3-day chartOn the other hand, if Ethereum price produces a three-day candlestick close below the $1,639 support level, it will create a lower low and invalidate the bullish thesis for ETH. Such a development could see the altcoin revisit the $1,500 psychological level.In a worse-case scenario, Ethereum price could slide as low as the $1,368 registered on March 8.
Mullen Automotive Stock Forecast: MULN surges 18% on Wednesday after 30% crash

Mullen Automotive Stock Forecast: MULN surges 18% on Wednesday after 30% crash

FXStreet News FXStreet News 21.06.2023 16:38
MULN stock rose nearly 5% in Wednesday’s premarket.Mullen shares plunged 30% on Tuesday.CEO David Michery sold more than 2 million shares for close to $0.26.MULN stock is down 99.6% over the past year.Mullen Automotive (MULN) stock jumped 18% at the start of trading on Wednesday's regular session, rising from $0.16 to $0.19. This was impressive since the stock lost 29.9% of its value on Tuesday. Despite a letter on June 15 that attempted to calm shareholder worries, CEO and founder David Michery sold more than 2 million shares of common stock last Friday, June 21, which appears to have triggered Tuesday’s plummet in the share price.Mullen stock news: Michery sells shares after MULN plummets 90%CEO David Michery sold 2,090,979 shares of the electric vehicle company on June 16, according to a filing with the Securities & Exchange Commission (SEC). These shares were exercised on a day when the MULN price closed at $0.2616. This means Michery took home at least $547,000.Michery actually had another 541,813 shares expire worthless due to his 2022 performance stock award compensation that required the MULN share price to hold above a certain level. However, as Michery himself admitted in a letter to shareholders on June 15, Mullen stock has lost 90% of its value just since March 31 of this year.The heavy implosion of the share price was largely due to the extreme level of dilution going on. Mullen has been funding its pre-revenue operations by selling common stock and warrants at a blistering speed. Just the previous week, Mullen announced 586 million shares of common stock and warrants for common stock in order to fund its production ramp-up. This meant dilution of more than a third in the span of a few days. In his letter to shareholders, Michery wrote: “We want to respond to the many emails and calls regarding the decrease in our share price. Since March 31, 2023, our stock has declined 90% from $3.25 per share. On June 13, 2023, the Company’s common stock closed at $0.32 per share. The Company currently trades at a discount to its current cash position of $135 million or $0.38 per share.“Despite the decline in stock price, management believes we are in position to meet the previously announced objectives for moving first into the production and then sale of our Class 3 commercial vehicles during the quarter ending Sept. 30, 2023.”Following that letter to shareholders last Thursday, Michery’s immediate sale of more than 2 million shares on Friday produced a run on the stock this Tuesday. The company is now valued at a market cap of $39 million and looks to be headed toward bankruptcy if nothing changes. Of course, Mullen has survived for more than a decade by finding a steady stream of willing investors, so let’s just see if Michery can wriggle out of this situation.Mullen stock chartWhat to even say? MULN stock is down 99.6% over the past year. The company’s shareholder meeting scheduled for early August is expected to offer shareholders the ability to vote on another reverse stock split. Mullen’s last stock split on May 4, less than two months ago, gave shareholders one share for every 25 they previously owned. The new one is expected to give one share for every 10.The daily chart below compares Mullen’s stock price to a number of other EV upstarts that have experienced extreme sell-offs over the past year. Rivian (RIVN), Lucid (LCID), Nio (NIO) and Polestar (PSNY) are all trading between 45% and 65% lower, but Mullen is the only one down more than 99%. That’s really something.MULN 1-year chart
Bitcoin dominance hits two-year high at 51%, jeopardizing altcoin gains

Bitcoin dominance hits two-year high at 51%, jeopardizing altcoin gains

FXStreet News FXStreet News 21.06.2023 16:38
Bitcoin price has been on a tear since the start of 2023.The recent uptick in BTC dominance has pushed it to two-year highs at 51.03%.Altcoins might have to take a backseat until the big crypto takes a breather.Bitcoin price has increased 74% in the last six months, and recent developments suggest more gains are on the way. Specifically, the BTC dominance shows a bullish outlook while the short-term picture remains optimistic. Also read: WisdomTree joins traditional finance's BTC race for Bitcoin ETF approvalWhat is Bitcoin dominance and why is it important?Bitcoin dominance is the market capitalization or percentage of BTC as compared to the total market capitalization of the cryptocurrency industry. A spike in this index suggests that more investors are willing to invest in BTC as opposed to altcoins like Ethereum (ETH) or Ripple (XRP), among others.As seen in the chart below, Bitcoin dominance has been on an uptrend since November 2022 and recently shattered through the 50% level, retesting two-year highs. These levels were last seen in April 2021, marking a shift in narrative among investors. Bitcoin Dominance 1-week chartThe increase in Bitcoin dominance suggests that the interest has moved from risky altcoins to BTC, which is perceived as relatively safer. More often than not, this move is seen during the start of a new cycle or a bull run. Considering the uncertainty over global macroeconomic conditions and crypto’s regulatory landscape in the US, it is likely that long-term investors are buying the dip. Also read: Recent Bitcoin price crash triggers whales to scoop BTC at discountWhat this means for altcoins?A spike in Bitcoin dominance could mean two things: fresh capital is flowing into BTC or the unrealized profits from altcoins are moving back to Bitcoin. Therefore, an extrapolation from these conditions could mean that investors are selling their altcoins and moving capital back to Bitcoin. These conditions could propel BTC higher while Ethereum (ETH), Ripple (XRP), Litecoin (LTC) and other altcoins could move sideways or slide lower.While Bitcoin dominance has risen 18% since February, altcoin dominance has shed nearly 27%. This negative correlation is likely to bode ill for altcoins in the near future.Bitcoin Dominance vs. others chart
Nio Stock Forecast: NIO falls as Chinese economy outlook downgraded by Goldman Sachs

Nio Stock Forecast: NIO falls as Chinese economy outlook downgraded by Goldman Sachs

FXStreet News FXStreet News 20.06.2023 16:54
Goldman Sachs has cut its outlook for 2023 Chinese GDP growth to 5.4%.Nio cut model prices by $4,200 earlier in June.May deliveries from the electric-vehicle company dropped 12% YoY.NIO stock drops 3% in Tuesday premarket.Nio (NIO) stock is on the backfoot on Tuesday after Goldman Sachs released an update to its economic outlook for China on Monday that forecasts 5.4% growth in 2023. Goldman’s prior forecast had predicted 6% growth.This news sent most Chinese American Depository Shares (ADRs) lower early Tuesday, including Nio. The stock is down 2% at $9.25 in Tuesday’s first hour of trading, while the broader market also looks pessimistic. NASDAQ 100, S&P 500 and Dow futures are all dropping around 1% at the time of writing.Nio stock news: Chinese economy upsets againA narrative has begun to set in across Wall Street. It follows a generally pessimistic approach to Chinese equities. If it’s not related to the Chinese government’s crackdown on tech companies, then pundits point out that Chinese growth is faltering in the post-pandemic world. If it’s not related to the US belief that China is imminently prepared to invade Taiwan – and thus experience repercussions from US or EU sanctions – then they say that China’s unwillingness to allow US regulators to view audits from ADR-linked companies makes them uninvestable. They just can’t seem to win.Goldman’s new downgrade of Chinese economic growth signals yet another fault line in the deteriorating relationship between US investors and the once beloved Chinese equity market. Chinese youth unemployment rose to a record high last week, and retail sales, industrial growth, and fixed asset investment figures all showed a flagging level of growth over the past month.In unrelated but important news, Alibaba’s (BABA) long-time CEO on Tuesday left his position. Daniel Zhang will be leaving the company to head up Alibaba’s new cloud computing spinoff. This news was previously reported, but BABA stock still sold off 2% on the news that Joseph Tsai will take over as chairman. The cloud computing segment is viewed as the most profitable part of Alibaba.Nio delivered 6,155 electric vehicles in May – a 12.4% decrease from the year-ago quarter. In response, management cut prices by an average of $4,200. To make matters worse, Nio’s gross margin in the first quarter dropped to 1%. Just one year ago, this figure was close to 14%.Nio stock forecastNio stock broke above its five-month descending trendline last week. Additionally, bulls grew excited when NIO stock conquered the $9.50 resistance level. On Friday, however, this all changed. Nio stock descended below the $9.50 level, and bulls are uncertain whether they can regain some semblance of power.The 9-day and 21-day moving averages are both merging near $8.25, and that is most likely the best idea for a future support level. Otherwise, NIO could descend to the $7.50 region near for a retouch of the former resistance trendline.NIO daily chart
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets take a breather

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets take a breather

FXStreet News FXStreet News 20.06.2023 16:54
Bitcoin price attempts to break out of consolidation and retest the $30,000 psychological level again.Ethereum price could aim for $1,853 if bulls take control.Ripple price remains at a better position compared to BTC and ETH and could tag the $0.515 and $0.548 targets.Bitcoin price remains ambiguous, with no clear directional bias. As a result, Ethereum (ETH), Ripple (XRP) and other altcoins are stuck consolidating. But things are likely to change quickly as BTC nears a breakout. Read Bitcoin's big-picture outlook here: Is Bitcoin’s 2023 bull rally at an end?Bitcoin price attempts a breakoutBitcoin price has been sliding lower since April 19 and has produced three distinctive lower lows and lower highs. Connecting these swing points reveals a falling wedge setup from which BTC attempts to break out in the short term. A failure to push through could lead to a revisit of the $25,209 support floor. The ideal scenario would include a fake out to the downside, namely a sweep below the $25,209 support level and a potential retest of $23,905 followed by a recovery into the failing wedge and a breakout. This move would trigger massive pain for buyers and sellers, and the breakout from this manipulative move could see Bitcoin price retest the $30,000 psychological level.BTC/USD 1-day chartHowever, a breakdown of the $20,000 psychological level could hamper the bullish outlook and trigger a selling spree among investors. Such a development could see Bitcoin price revisit the $19,251 and $17,676 support floors.Ethereum price at an inflection pointEthereum price has recovered above the $1,703 support level, but it is unsure if this is the start of a recovery rally. If ETH fails to sustain above the aforementioned support, then the smart contract token is likely to retest the daily inefficiency, which extends from $1,478 to $1,563.This move in Ethereum price would represent a 9.30% loss from the current price level.ETH/USD 1-day chartOn the other hand, if Ethereum price maintains its position above $1,703, it will mean that the bulls are in control. In such a case, ETH could further ascend to retest the $1,817 and $1,853 resistance levels. Ripple price needs to conquer critical hurdlesRipple price completed its inverse head-and-shoulders setup on June 13 and has since dropped more than 14%. XRP price trades at $0.485 at the time of writing and is awaiting directional bias from Bitcoin. A surge in bullish momentum could see Ripple price tag the immediate hurdle at $0.515. In a highly bullish case, XRP could even retest the $0.548 resistance level. XRP/USD 1-day chartWhile the outlook is also ambiguous for Ripple price, a swift and decisive breakdown of the $0.468 support level will confirm a bearish regime. In such a case, XRP price could revisit the $0.442 and $0.408 support floors.
AUD/USD Price Analysis: Drops sharply to near 0.6840 ahead of RBA minutes and PBoC’s policy

AUD/USD Price Analysis: Drops sharply to near 0.6840 ahead of RBA minutes and PBoC’s policy

FXStreet News FXStreet News 19.06.2023 16:21
AUD/USD has shown a downside move to near 0.6840 amid a quiet market mood due to an extended weekend in the US.The appeal for the Australian Dollar has been trimmed ahead of RBA policy minutes and PBoC policy.AUD/USD is climbing higher in a Rising Channel pattern formed in which each pullback is considered as a buying opportunity.The AUD/USD pair has retreated after facing barricades around 0.6880 in the European session. The Aussie asset has dropped to near 0.6840 as investors are getting precautionary ahead of the release of the Reserve Bank of Australia (RBA) minutes and the monetary policy announcement by the People’s Bank of China (PBoC).The US Dollar Index (DXY) is demonstrating a lackluster performance as United States markets are closed on Monday on account of Juneteenth.Meanwhile, US Treasury yields have extended further as the Federal Reserve (Fed) has confirmed expansion in interest rates by 50 basis points (bps) to 5.50-5.75%. The 10-year US Treasury yields have jumped to 3.82%.AUD/USD is climbing higher in a Rising Channel chart pattern formed on an hourly scale in which each pullback is considered as a buying opportunity. The Aussie has tested territory below the aforementioned pattern but is finding cushion near the horizontal support plotted from June 14 high at 0.6834.Upward-sloping 100-period Exponential Moving Average (EMA) at 0.6826 indicates that the trend is bullish.The Relative Strength Index (RSI) (14) is taking support near 40.00. A recovery move above 60.00 would strengthen the upside momentum.A decisive break above the round-level resistance of 0.6900 will drive the asset toward Feb 16 high at 0.6936 followed by Feb 07 high at 0.6988.On the flip side, a breakdown below June 14 low at 0.6756 will expose the Aussie asset to May 02 high at 0.6717 and May 19 high at 0.6675.AUD/USD hourly chart
XRP price recovers, could reach $30 if Ripple wins SEC, hedge fund manager says

XRP price recovers, could reach $30 if Ripple wins SEC, hedge fund manager says

FXStreet News FXStreet News 19.06.2023 16:21
XRP price has increased 6% over the weekend, reversing some of the losses seen last week, once traders digested the contents of the Hinman documents.Crypto fund manager Thomas Kralow set a bullish target of $30 for XRP, citing the altcoin’s potential for higher market activity. XRP has seen 200% gain in value against Bitcoin since the SEC filed its lawsuit against Ripple at the end of 2020. XRP price recovered over the weekend after the release of the Hinman documents led to a broad sell-off of Ripple’s token last week, as increasing uncertainty on how these papers can help the payment giant in its lawsuit against the US Securities and Exchange Commission (SEC) weighed on the asset.The token trades at $0.4870, early on Monday, up 5.8% from Friday’s low of $0.4601, but still under the $0.53 region it moved before the release of the Hinman documents.Speculation surrounding the release of the Hinman documents could push XRP price up to the $30 bullish target in the short term, Kralow Capital founder and manager Thomas Kralow says in an interview, few months ahead of a key ruling which is set to determine the fate of Ripple’s token.The release of Hinman documents on June 13, a key element in the legal battle between the US Securities and Exchange Commission (SEC) and Ripple, as well as the reaction of the company’s legal team has fueled speculation among XRP holders. Moreover, some of altcoin's on-chain indicators show that XRP is undervalued at the current price, $0.4870 at the time of writing.Also read: XRP losses mount as traders digest Hinman documentsXRP gains 200% in value against Bitcoin XRP price has declined significantly from its June 13 peak of $0.5661. The altcoin wiped out its gains as holders digested the contents of Hinman documents release. XRP holders are awaiting a ruling in the SEC vs. Ripple case and the outcome could make or break the altcoin’s price trend.However, XRP has gained 200% in value against Bitcoin since the SEC filed its lawsuit against Ripple at the end of 2020. This development fuels a bullish thesis for XRP price recovery and hints at likely bullish trend reversal in the asset in the short term.XRP/BTC price chartFrom a technical perspective, the next key support is at $0.4518, a level that represents its 200-day Exponential Moving Average (EMA).The altcoin’s price has sustained above the $0.4500 level for over a month. If recent history repeats, XRP is likely to experience a rebound and recover from support at $0.4518.Crypto fund manager sets $30 target for XRP priceXRP price is largely influenced by the SEC lawsuit against payment giant Ripple. The XRP holder community therefore closely watches the updates to determine the direction in which the altcoin is headed.In response to the release of the Hinman documents, the contents of which are key to Ripple’s defense against the SEC, XRP price rallied to $0.5649 on Tuesday. However, XRP price has settled below $0.4853 since then, wiping out its weekly gains. Find out more about Hinman documents here.The three main factors fueling speculative narratives for XRP are: contents of the Hinman documents – internal messages and email exchanges among executives of the agency –, SEC former Director William Hinman’s comments on Ethereum in his 2018 speech and the regulator’s stance on XRP as a security.Thomas Kralow, crypto hedge fund manager at Kralow Capital, said to FXStreet that these factors could fuel further speculation, driving XRP price higher within the next three to four months.Kralow weighed in on the rising interest among crypto market participants. Based on data from Google trends, searches for XRP have doubled in the last month, signaling an increase in interest among traders worldwide.Krakow told FXStreet:Currently, we observe huge speculative narratives around Ripple, which could potentially lead to a significant price increase for XRP in the next three to four months, pushing its value to anywhere between $10 and $30.Over the past thirty days, XRP price climbed 15.32%, from $0.4190 to $0.4832 on Binance. Data from Google trends reveals further potential for market activity, Kralow says, setting a bullish target of $30 per token within the next three to four months.The manager and founder of Kralow Capital identified two factors that could make or break XRP’s rally within the next three months.Ripple’s IPO: Ripple and its executives have shared their desire to take the payment remittance firm public from time to time during the lawsuit. Ripple’s IPO could act as a key milestone and a bullish catalyst for XRP price given the token is native to the giant’s XRPLedger.Ripple’s win against the SEC: Ripple’s win against the SEC, or a settlement between the two parties, drawing the conclusion that XRP isn’t a security could propel the altcoin to a new all-time high.According to crypto influencers and Ripple proponents closely following the lawsuit, a ruling is expected before September 30 this year. XRP holders could expect an increase in demand closer to the ruling.Kralow set a minimum of $10 and a cap of $30 as price targets for XRP ahead of the ruling.On-chain metric signals XRP is undervaluedThe Market Value to Realized Value (MVRV) ratio is an on-chain metric that shows the ratio between the current price and the average price of a certain asset. The higher the MVRV ratio, the more profitable it is to sell the token at the current market price, giving an idea of how overvalued or undervalued an asset is.MVRV chart for XRP With an MVRV ratio of -2.8% on Monday, XRP is undervalued at a price of $0.4870, implying there is bullish potential in XRP.
Binance withdraws from the Netherlands amidst SEC lawsuit

Binance withdraws from the Netherlands amidst SEC lawsuit

FXStreet News FXStreet News 16.06.2023 15:51
Binance shut doors to new users living in the Netherlands and starting July 17, existing Dutch users will only be able to withdraw assets.Binance continues working towards full compliance with the EU's MiCA for crypto regulation. The SEC vs. Binance lawsuit continues with a former SEC official predicting a settlement. Binance, the largest crypto exchange by volume, withdrew from the Dutch market as it failed to get a license to operate in the Netherlands. The exchange is currently engaged in a legal battle with the US Securities and Exchange Commission (SEC).As of July 17, Dutch residents will have access to withdrawals and no further services on Binance’s platform. The exchange explains that it is focused on the process of becoming fully compliant with the European Union’s rules on cryptocurrencies (MiCA).Binance leaves Netherlands after failure to registerThe crypto exchange is currently embroiled in a legal battle with the SEC, fighting allegations of securities laws violations. To find out more about the lawsuit’s update, check this post. Upon its failure to register with the Dutch regulator, Binance announced its exit from the Netherlands.The exchange needs a Virtual Asset Service Provider (VASP) license to attest that its platform meets Anti-Money Laundering (AML) guidelines. Binance’s announcement reveals that no new users residing in the Netherlands will be accepted to the exchange, effective June 16. Starting July 17, 2023, existing Dutch resident users will be able to withdraw their assets from the platform, without access to other services like deposits and trade.Binance’s announcement reads:We encourage those [who are waiting to withdraw assets] users to take appropriate action by withdrawing assets from their accounts.Binance is AML compliant in six EU nations, offering crypto services to usersThe European Union has been receptive to crypto exchange platforms that are compliant with their AML rules. Binance has attained the status of AML compliance in France, Italy, Lithuania, Poland, Spain and Sweden.With regards to its exit from the Netherlands, Binance said:Although Binance explored many alternative avenues to service Dutch residents in compliance with Dutch regulations, unfortunately this has not resulted in a VASP registration in the Netherlands at this time.Earlier this week, the exchange shared its plan to exit the EU nation of Cyprus to focus on becoming fully compliant with the new rules on Markets in Crypto Assets (MiCA).
Silver Price Forecast: XAG/USD shifts above $24.00 as Fed’s interest rate peak uncertainty fades

Silver Price Forecast: XAG/USD shifts above $24.00 as Fed’s interest rate peak uncertainty fades

FXStreet News FXStreet News 16.06.2023 15:51
Silver price has comfortably shifted above $24.00 as the USD Index remains weak.The USD Index is facing pressure as investors are not agreeing that the Fed will hike rates two times more this year.Fed Barkin has commented that raising rates further could create the risk of a more significant slowdown in the economy.Silver price (XAG/USD) has shifted its auction comfortably above the crucial resistance of $24.00 in the early New York session. The white metal has got strengthened as investors have found clarity about Federal Reserve’s (Fed) interest rate peak for now.S&P500 is expected to open on a positive note considering bullish cues from overnight futures. Market mood is quite cheerful as uncertainty about the interest rate peak has receded after the display of the dot plot by Fed chair Jerome Powell.The upside in the US Dollar Index (DXY) seems restricted around 102.30 amid the risk-appetite theme. In June’s monetary policy statement, Fed Powell confirmed that two more interest rate hikes are appropriate this year. However, investment banking firm Morgan Stanley sees no more hikes and expects the Fed to hold the rate at 5.1% till it undertakes a 25 bps cut in March 2024.Meanwhile, Richmond Fed Bank President Thomas Barkin has commented that raising rates further could create the risk of a more significant slowdown in the economy, as reported by Reuters. He further added, "Comfortable doing more on interest rates if coming data doesn't confirm a story that slowing demand is returning inflation to the 2% target."Silver technical analysisSilver price is struggling to surpass the 23.6% Fibonacci retracement (plotted from May 26 low at $22.68 to June 09 high at $24.53) at $24.10 on a two-hour scale. The 50-period Exponential Moving Average (EMA) at $23.88 is providing support to the Silver bulls.The Relative Strength Index (RSI) (14) is looking to shift into the bullish range from the bearish range of 20.00-60.00. An occurrence of the same will activate the upside momentum.Silver two-hour chart
European Central Bank Analysis: Lagarde lifts Euro with three hawkish boosts, more to come

European Central Bank Analysis: Lagarde lifts Euro with three hawkish boosts, more to come

FXStreet News FXStreet News 15.06.2023 15:51
The European Central Bank has raised rates by 25 bps, singling more to come.Upgraded inflation forecasts show more need to be doneECB President Lagarde's focus on labor costs adds to Euro strength.Hawks are everywhere – with the last ones spotted in Frankfurt. Each central bank is taking turns in conveying a tough message against inflation, and it is the Euro's turn to benefit. The European Central Bank has not only raised interest rates – while the Federal Reserve (Fed) paused – but also included three hawkish moves. These promise further Euro gains.First, ECB staff lifted its inflation forecasts substantially in comparison to the March projections. most notably, the institution upgraded the 2025 forecast to 2.2%, above its 2% target. It is essential to note that the ECB, based in inflation-allergic Germany, does not see inflation falling in the next two years. It calls for more aggressive tightening. Secondly, ECB President Christine Lagarde focused on the labor market, moving beyond the bank's focus on inflation. She stressed that wage increases, higher working hours and negotiated wage bargains – unions are strong in the old continent – are behind inflation. She repeated the message several times. That implies higher rates for longer. Third, while Lagarde only talked about a hike in July and not beyond, she left the door wide open to further hikes. She said that "we need to be confident that core inflation is heading down" – unveiling a current lack of conviction. Moreover, it is another move away from focusing only on headline inflation. All in all, the current drop in inflation is insufficient for the ECB – forecasts are high, core inflation is eyed, and the labor market has become a factor. They all point to persistent inflation, which requires more action. "As long as they persist, we will persist," says Lagarde. Persistent Euro demand is the name of the game.
GameStop Stock Forecast: GME sinks after benefitting from Ryan Cohen effect

GameStop Stock Forecast: GME sinks after benefitting from Ryan Cohen effect

FXStreet News FXStreet News 15.06.2023 15:51
GameStock dropped alongside other stocks due to Jerome Powell’s remarks on Wednesday.GME stock has found it difficult to break through the $27-$30 barrier.Ryan Cohen added another $10 million worth of shares on Tuesday.GME has gained 49% YTD despite poor Q1 results.GameStop (GME) sold off in Thursday premarket once again, a day after the stock fizzled on Federal Reserve Chair Jerome Powell’s admission that rate hikes may resume later in the year. GME stock lost 4.6% on Wednesday and dropped another 1.4% to $25.35 in the premarket. NASDAQ 100 futures have sold off 0.7% on Thursday.GameStop stock news: Can Ryan Cohen turn this ship around?On June 7, GameStop was thrown into disarray by the firing of CEO Matthew Furlong. GameStop Chairman Ryan Cohen, long a proponent of the struggling video game retailer since the meme stock heyday of early 2021, was named Executive Chairman. GME shares have since rebounded from $20 to above 27 in the following four sessions, but the Federal Reserve Chairman’s announcement on Wednesday led to a sell-off. While the entire market was expecting the Fed to pause rate hikes, which is what indeed happened, Powell was clear that this was a “skip” that might very well result in more rate hikes later in the year depending on the trajectory of inflation. With the market expecting Powell to announce that rate hikes were finished for good, if not announce that rate cuts would soon be on the table, stocks sold off across the board.Ryan Cohen’s purchase of $10 million worth of new GME shares had helped GameStop’s stock price regain its composure after last week’s poor first-quarter results. The results, which saw revenue drop 10% YoY, was the cause of Furlong’s unemployment. Cohen now owns more than 12% of GameStop, and his fierce loyalty to the corporation has kept a number of investors fortifying their so-called “diamond hands”. Cohen now owns 36,847,842 shares of GameStop worth $947 million, which is about one-quarter of the Chewy.com founder’s net worth.Cohen has his work cut out for him. With five different CEOs in about five years, not one has been able to end the drain on new game purchases. Quarter after quarter, gamers have steadily switched to digital downloads rather than in-store purchases. The most recent quarter did see merchandise and hardware sales increase from a year ago however, so maybe there is an end to the retreat on the horizon.GameStop stock chartIt is unsurprising where GameStop decided to retract from since the stock was within the $27 to $30 overhanging supply zone. This area acted as resistance for the entire second half of 2022, and $27 held firm once again on March 22 of this year. Bulls will need to push GME stock through $30 before a real rally is in the cards. Until then, GameStop stock will continue to ricochet between $20 and $27.GameStop stock is up 49% year to date, so plenty of traders will continue watching this stock closely. The Relative Strength Index (RSI) did not reach the overbought threshold this past week, so some smallscale buying should continue.GME daily chart
Top 3 cryptocurrencies seeing uptick in social volume: Ethereum, XRP, Binance Coin

Top 3 cryptocurrencies seeing uptick in social volume: Ethereum, XRP, Binance Coin

FXStreet News FXStreet News 14.06.2023 16:14
Bitcoin network’s social volume has declined, making way for Ethereum, XRP and Binance Coin. Altcoins continued their recovery by varying degrees with rising confidence from crypto market participants. BNB price rallied 10% in response to the Binance hearing, which will be updated on Thursday. Social media attention has recently turned to Ethereum (ETH), XRP and Binance Coin (BNB) at the expense of Bitcoin, a sign of increasing confidence in these altcoins among crypto traders even as the price of the most popular cryptocurrency holds above the $25,000 level.Recent news affecting these altcoins is the main reason behind the surge in social media mentions. Binance’s hearing on Tuesday marked an important milestone for holders of BNB, the exchange’s native token. Judge Amy Berman Jackson, of the D.C. District Court, asked the Securities and Exchange Commission (SEC) and Binance to continue negotiating and to submit a status update by Thursday.BNB price rallied 10.5% in response to the hearing. Similarly, the release of the so-called Hinman emails, key documents for Ripple’s defense against the SEC, fueled a temporary bullish sentiment among XRP holders.Also read: XRP volatility surges as Hinman documents support Ripple's case against the SECEthereum, XRP and Binance Coin witness spike in social volumeBitcoin’s social volume declined after the asset’s price rally in March, according to data from crypto intelligence tracker Santiment. Social volume is built on top of social data collected by the tracker. The platform combs text documents containing the asset name at least once, on Twitter, Telegram and Reddit.As seen in the chart below, Bitcoin social volume increased sharply in mid-March, weeks before reaching its recent price peak of $30,899.76 in April. ETH, XRP and BNB social volumeA spike in social volume is typically followed by a rally in the asset’s price in the weeks following a spike in social volume.ETH, XRP and BNB registered an increase in social volume after Tuesday’s events. The Hinman documents, key to Ripple’s defense against the SEC, were unveiled for public view. Their content fueled a bullish sentiment among XRP holders and the altcoin yielded 6% gains before pulling back. Find out more here. The Hinman documents shed light on the regulator’s stance on Ethereum and why the asset was considered a non-security, putting the second-largest altcoin by market capitalization under the spotlight too. ETH price held above key support at $1,724, trading at $1,739.57 at the time of writing. SEC and Binance gear up for Thursday updateOn Tuesday’s hearing, Judge Amy Berman Jackson asked the SEC and Binance to continue negotiating to arrive at a compromise. The Judge asked the two parties to submit a status update by Thursday.In the court hearing, the Judge expressed skepticism about the US financial regulator’s move to enforce its powers on Binance and called it “inefficient and cumbersome,” according to a report from the hearing by The New York Times. These comments fueled hopes among Binance’s native token holders, pushing BNB price higher.BNB price climbed from $228.90 to $252.90, or 10.5%, since Tuesday’s hearing. The exchange’s native token is therefore on track to recoup its recent losses and yield gains for holders ahead of Thursday’s update.
Mullen Automotive Stock Forecast: MULN drops another 15% at start of Wednesday trading

Mullen Automotive Stock Forecast: MULN drops another 15% at start of Wednesday trading

FXStreet News FXStreet News 14.06.2023 16:14
Mullen Automotive stock has lost about 80% of its value since May 4.Now the EV startup is issuing another 586 million shares to investors for immediate re-sale.Mullen will receive no remuneration for this re-sale. Mullen hopes to approve another reverse stock split at its August 3 meeting. Another day, another sell-off for Mullen Automotive (MULN). CEO David Michery and company continue to dilute the burgeoning electric vehicle (EV) upstart at a record pace, which is causing the MULN share price to dwindle. MULN stock is now down 79.9% since the 1-for-25 reverse stock split that took place just a little over one month ago on May 4.The NASDAQ Composite gained 0.16% in Wednesday’s morning session, while MULN stock has shed another 14.9% to trade at $0.2736.Mullen Automotive stock news: Another boatload of dilutionFollowing the Acuitas Capital deal in early June that allowed Mullen common stock to be diluted as much as 36%, give or take since much of it was in warrants, management at the development-stage automaker issued a new filing with regulators on Monday to issue nearly 586 million in new common stock shares.Dated June 12, the filing with the Securities & Exchange Commission (SEC) is a prospectus supplement that details Mullen registering 585,937,467 of new shares of common stock for re-sale. A number of individuals and entities who were issued warrants in the past have now been exchanging those warrants for common stock and immediately selling them. None of the proceeds of these sales go to Mullen. These seller entities include Esoussa Holdings, Michael Wachs 2022 Dynasty Trust, Acuitas Capital, Micael Friedlander, Jess Mogul, Jim Fallon, Davis-Rice Pty Limited and Ault Lending.For color, Mullen’s filing reads: “As of June 7, 2023, we had outstanding 243,567,602 shares of Common Stock. As of that same date, we also had outstanding 1,037 shares of Series A Preferred Stock convertible into an aggregate of 4,148 shares of Common Stock, 1,210,056 shares of Series C Preferred Stock convertible into an aggregate of 14,523 shares of Common Stock and 363,097 shares of Series D Preferred Stock convertible into an aggregate of 48,402 shares of Common Stock. The issuance of shares of Common Stock upon the conversion of such shares of preferred stock would dilute the percentage ownership interest of holders of our Common Stock, dilute the book value per share of our Common Stock and increase the number of our publicly traded shares, which could depress the market price of our Common Stock.”At least they are aware! Mullen’s current agreement with its board allows for the creation of up to 5 billion shares of common stock and 500 million preferred shares.Mullen stock news: Another reverse stock split headed for shareholder voteMullen also announced that it will schedule its shareholder meeting for August 3. At the meeting, management said it will bring up for a vote the need to effect another reverse stock split. This is because the NASDAQ exchange requires companies to maintain a share price above $1. The separate SEC filing says Mullen will enact a reverse split between a 1-for-2 and a 1-for-10 structure. The reverse split on May 4 was 1-for-25, pushing the share price from around $0.064 to $1.60. The share price dropped below $1 before the calendar had even switched to June however.The shareholder event will also allow voting on switching from a Delaware Corporation to a Maryland Corporation, issuing another $30 million in common stock and approving 52 million in new shares for incentive pay.Mullen stock forecastWhile the rest of the market is booming due to the lower May Consumer Price Index (CPI) data reported on Tuesday and Wednesday’s expectation for a Fed rate pause, Mullen stock should continue to fall. The heavy amount of constant dilution required for Mullen to ramp up to a profitable business is large.The Relative Strength Index (RSI) is highly oversold, but in this case that is not a bullish signal. Mullen will likely lose more than 50% of its per share value before the next reverse split is enacted in August, and then shareholders should expect to continue being diluted after that. MULN daily chart
Manchester United Stock News: MANU leaps 16% on Qatar takeover bid

Manchester United Stock News: MANU leaps 16% on Qatar takeover bid

FXStreet News FXStreet News 13.06.2023 16:26
Qatar Sheikh Jassim’s $6.28 billion bid for Manchester United is rumored to be accepted.Manchester United has not responded to questions on Tuesday.MANU stock jumped more than 16% in Tuesday’s premarket.The Glazer family reportedly asked for $7.5 billion.Manchester United (MANU) stock soared 16.2% in Tuesday’s premarket after reports that a bid from Qatar was likely to be accepted. Although the news has not been verified yet by the western press, Qatar’s Al-Watan newspaper reported that a Qatari sheik’s fifth-round bid had been accepted to buy the Red Devils. MANU stock is trading above $23 in the premarket after closing on Monday at $20.13.Manchester United stock news: $6.28 billion bid was final for Sheikh JassimBoth Reuters and CNBC reported early on Tuesday that Sheikh Jassim bin Hamad al-Thani of Qatar’s fifth and final bid had been accepted by the Glazer family that owns Manchester United, citing Qatari newspaper Al-WatanSheikh Jassim had bid $6.28 billion this spring after British billionaire Jim Ratcliffe had outbid him in the fourth round. Manchester United itself has not yet announced whether the deal has been accepted. It was reported earlier that the Glazer family was looking for $7.5 billion.Sheikh Jassim is the brother of the Emir of Qatar. He famously abdicated his position as Crown Prince in 2003 in favor of his brother Tamim.Manchester United finished the 2022-23 English Premier League table in third place behind Manchester City and Arsenal. The Red Devils won 23 matches, lost nine and featured in six draws.Manchester United stock chartMANU stock lifted more than 50% last November, when it became clear that the Glazer family was really open to selling the franchise following several years of fan-perceived team underperformance.Tuesday’s news puts Manchester United stock well above the 50-day moving average. The rally has also placed it above the descending top trendline that has been in place since mid-February, when the stock thrust above $27 per share. Other recent resistance levels that bulls may push for include $23.40 and $25.45.The Relative Strength Index (RSI) is above the 50 level, which is bullish, but not yet in overbought territory.MANU daily chart
Bitcoin adds nearly 50,000 millionaires this year so far despite US regulatory crackdown

Bitcoin adds nearly 50,000 millionaires this year so far despite US regulatory crackdown

FXStreet News FXStreet News 13.06.2023 16:26
Bitcoin price holds above the $26,000 level, showing resilience in the face of the US regulator's clampdown on cryptocurrencies. BTC added nearly 50,000 millionaires to its list of holders since January 5.Bitcoin dominance climbed 19% since the beginning of the year, signaling a shift in market sentiment towards BTC.The number of addresses that hold Bitcoin worth more than $1 million has increased significantly in 2023, reaching almost 50,000, as its price increased despite the US Securities and Exchange Commission’s (SEC) crackdown on the industry and a broader crypto winter.Bitcoin and altcoins are braving the SEC’s lawsuit against Binance and Coinbase differently: while increasing regulatory scrutiny on exchanges led to capital outflows from altcoins, it also fueled Bitcoin’s rising dominance. The US financial regulator’s actions have tested Bitcoin’s resilience, but the asset has held above the $26,000 level despite recent volatility in the crypto ecosystem. Also read: XRP price climbs ahead of Hinman document release in SEC vs. Ripple caseBitcoin creates 47,994 new millionaires in 2023Bitcoin price sustained above a key level of $25,000 through the first half of 2023. Since the beginning of the year, the asset’s price climbed 59.7% against the US Dollar, according to data from Binance. This price increase has been particularly profitable for 47,994 holders of the currency, whose Bitcoin holdings have surpassed the psychological value barrier of one million dollars. Based on data from Bitinfocharts.com, on January 5 there were 28,084 BTC-holding wallet addresses worth upwards of $1 million, a number that has increased to 76,078. This marks an 170% increase in the number of wallets that turned millionaires with their Bitcoin holdings.Bitcoin wallet addresses worth $1,000,000 or higher as seen on Bitinfocharts.comThe above chart reveals a significant increase in the number of wallet addresses richer than $1,000,000. This fuels a bullish thesis for Bitcoin despite the regulatory clampdown on the asset by US regulators. Bitcoin dominance climbs 19% since the beginning of 2023Another key metric supporting a bullish thesis for Bitcoin is the rising dominance of the largest asset by market capitalization. Bitcoin observed a rise in its dominance as capital flows left other risk assets and altcoins in the crypto ecosystem due to the SEC’s crackdown. The overall crypto market capitalization declined from $1.13 trillion on June 5 to $1.09 trillion at the time of writing. In the same timeframe, Bitcoin dominance climbed from 44.21% to 45.88%. Since the beginning of 2023, BTC dominance increased 19%, based on CoinGecko data. Declining market capitalization and increasing BTC dominance suggests that capital is being rotated from altcoins to Bitcoin and this is bullish for BTC price recovery in the long term. It supports the thesis of a bullish market sentiment among participants towards BTC.
S&P 500 Forecast: With end of bear market, stocks gain ahead of interest rate decision

S&P 500 Forecast: With end of bear market, stocks gain ahead of interest rate decision

FXStreet News FXStreet News 12.06.2023 17:00
S&P 500 has broken out of bear market, now awaits FOMC meeting.Fed Chair Jerome Powell and the FOMC board will make a decision on the fed funds rate on Wednesday.The market is heavily counting on a pause in rate hikes, CME’s FedWatch Tool shows a 76% probability of the Fed pausing.US CPI will be released on Tuesday with consensus for core inflation to drop to 5.3% YoY.The S&P 500 index is beginning the week on a positive note. The S&P 500 index rose 0.2% early Monday, while its NASDAQ Composite counterpart advanced 0.4%.The vast majority of analysts, traders and observers expect the Federal Reserve (Fed) on Wednesday to pause its rate hiking cycle for the first time since it began raising interest rates back in the Spring of 2022. A pause would be bullish for stocks, and the S&P 500 ended its 18-month bear market last week in expectation of investment leaving the sidelines. Still, the Fed may be greatly influenced by data from the US Consumer Price Index (CPI) that arrives on Tuesday.S&P 500 News: The bear is brokenLast Thursday, the S&P 500 officially ended its bear-market reign. This was in fact the longest bear market for the index since the one that lasted from the end of World War II until 1948. Approximately 18 months long in its entirety, the bear market lasted from January 4, 2022 until it was broken on June 8, 2023.That was the session when the S&P 500 closed at 4,293 – just above the 20% market from its nadir on October 13 or last year. Bear markets are considered a fact once a stock or index drops 20% from its all-time high. To end the bear market, the stock or index needs to regain 20% off of its lowest point since the bear market began. That lowest point last October 13 was 27% off the January 4 high at 4,818. Both the Dow Jones and the NASDAQ have already ended their respective bear markets, so the same for the S&P 500 gives investors the idea that a true bull market is about to raise all boats.Plenty of money that has been stashed away in money market funds and US Treasury bills may soon begin to seep back into the equity market, especially if the Federal Reserve does indeed pause on Wednesday. The fed funds rate is currently sitting in a range between 5% and 5.25%. CME’s FedWatch Tool gives a 24% probability that the Fed hikes rates to a range between 5.25% and 5.5% and a 76% chance that the central bank will leave the fed funds rate as is. May US CPI is the only hurdle standing in Fed’s wayThe one thing that could change the market’s – and the Fed’s – mind about interest rates is Tuesday’s May CPI data. Though it is not the most important survey the central bank uses, the CPI arriving on the first day of the two-day FOMC meeting could still have the effect of influencing the final decision. Much higher Initial Jobless Claims reported last week and the Unemployment Rate rising from 3.4% to 3.7% has given most market participants the view that an easing labor market should give the Fed enough leeway to pause its hiking cycle. A much higher inflation signal on Tuesday would pretty much throw the market into chaos however.Wall Street consensus expects core inflation in May to drop to 5.3% YoY from April’s 5.5% reading. This would mean another 0.4% MoM core reading. The headline figure is expected to demonstrate a much more pronounced pullback with the YoY figure dropping from April’s 4.9% to May’s 4.1% and rising just 0.2% MoM. Related newsS&P 500 News: Stocks consolidate as market bulls await next week's Fed meetingAdvanced Micro Devices Stock Forecast: AMD rally stuck in $120-$130 resistance thicketLululemon Athletica Earnings: LULU stock adds 15% on big Wall Street beat Earnings of the weekMonday, June 12 - Oracle (ORCL)Wednesday, June 14 - Lennar (LEN) Thursday, June 15 - Adobe (ADBE), Kroger (KR)What they said about the S&P 500 – David KostonGoldman strategist David Koston announced that he is raising his S&P 500 year-end target to 4,500 from 4,000. Koston now expects a “general valuation re-rating” that will lift the multiples of a broad range of stocks closer to the valuations of the large mega caps that have provided much of the index’s rally this year."Our unchanged 2023 EPS forecast of $224 assumes a soft landing and is above the top-down consensus of $206.”S&P 500 forecastThe S&P 500 retracted on Friday after touching the 4,325 resistance level that stems from August 2022. We have been focused on this price level for months, so it is fascinating to see how it has retained significance 10 months after its last familiarity. Arguably, S&P 500 traders will want to see a close above this level for confirmation. There is plenty of support nearby though. The 9-day moving average is rising to last week’s supportive ledge that surrounded 4,265. The 21-day moving average is also not too far off at 4,200 – the top of the last resistance zone.If the S&P 500 breaks through and closes above 4,325 this week, bulls will be expecting a steady move toward the 4,600 resistance area in the latter half of the year. That resistance zone pushed index price action down on multiple occasions during February and March of last year.SP 500 daily chart
US Inflation Preview: Why the US Dollar is more likely to fall than rise, three scenarios

US Inflation Preview: Why the US Dollar is more likely to fall than rise, three scenarios

FXStreet News FXStreet News 12.06.2023 17:00
Economists expect US underlying inflation to have risen by 0.4% MoM in May.A minor downside surprise one day before the Federal Reserve decision would down the US Dollar. Gains for the Greenback look limited in response to an upside surprise due to the proximity of the Fed’s meeting.Nerve-wracking does not begin to describe it – the No.1 economic indicator is released only one day before the most potent market mover says its word, and volatility is set to explode. Consumer Price Index (CPI) data is released at the same time as Federal Reserve members are convening to discuss their interest-rate decision, and they will be watching it closely. For traders, there are three clear scenarios – and not all are equal.Here is a preview of the CPI data for May, due out on Tuesday at 12:30 GMT.Why US CPI is important, and its recent developmentsThe Federal Reserve has a dual mandate – full employment and price stability. With the labor market looking healthy, the central bank focuses on inflation, which raised its ugly head after years of being tamed. CPI releases have triggered more volatility than Nonfarm Payrolls publications in the past year.The good news is that headline inflation is falling – CPI stood at 4.9% YoY in April, nearly half the peak of 9.1% recorded in June 2022. Falling energy prices and unsnarling supply-chain issues led to the decline. Source: FXStreetEconomists expect another sharp fall in the CPI YoY in May, down to 4.1%. However, that is not what investors and the Fed focus on.The world's most powerful central bank wants to see Core CPI – which excludes volatile food and energy prices – fall toward the prized 2% area. A bustling labor market means higher wages and, thus elevated "sticky" inflation. This measure of underlying inflation stood at a stubbornly high 5.5% in April, and economists forecast only a small retreat to 5.3%.Is Core CPI moderating? That is best measured by the monthly figure, which is chopping its way down but refuses to provide enough relief. It rose by 0.4% in April, an annualized pace of 5%, uncomfortably high. A repeat of that figure is on the cards for May. Source: FXStreetThis time, CPI data is published as Federal Reserve officials convene in Washington for their two-day rate-setting meeting. Fed Chair Jerome Powell and his most influential colleagues have signaled the Fed will leave rates unchanged – the first such move in over a year, and as rates have topped 5%, roughly matching core inflation. Nevertheless, Fed officials left the door wide open to additional tightening in July, leaving investors on edge. According to bond markets, there is a 68% chance of a hike in July and a 26% probability of an increase already this week.. Source: CME FedWatch ToolThis high uncertainty implies more volatility, but it also tells about the potential reaction. Three Scenarios for Core CPI and the US Dollar1) As expected: If Core CPI hits estimates with 0.4% MoM, the US Dollar will likely decline. Why? While a 0.4% is elevated, such an outcome would be insufficient for the Fed to raise rates imminently. The bank refrains from surprising markets, and a 0.4% rise in May does not guarantee a hike in late July – more data still awaits investors until then. As bond markets still price more than a one in four chance of a rate increase, this outcome might deflate these probabilities and push the US Dollar down. I see this scenario as having the highest probability, as economists' predictions were accurate in the past four out of five releases. 2) Below expectations: An outcome of 0.3% or below would take the wind out of hawks' sails, fully closing the door on a rate hike. It would also diminish the chances of a rate increase in July. The reaction would be a party in stock markets and a tumbling down of the US Dollar. With more signs of weakness in the US economy – such as the recent jump in jobless claims – I give a 0.3% rise a medium probability. Anything lower than that seems unlikely and would trigger even wilder moves. 3) Above expectations: A 0.5% increase in Core CPI would reflect an annualized level of 6%, above the current YoY figure – a massive disappointment. The US Dollar would soar on speculation of a last-minute change at the Fed, and stocks would crash. I see 0.5% as possible, but having a low probability. Any leap in the Greenback would likely be reversed – the Fed is unlikely to shock markets unless it is shocked. For a rapid change of heart, a 0.6% Core CPI increase seems to be the minimum. Nevertheless, a 0.5% rise would substantially lift the chances of a hawkish stance by Fed Chair Jerome Powell on Wednesday and the probability of a rate hike in July. Once again, I see this scenario as the least likely of the three.Final thoughtsThe Fed is focused on inflation, and CPI provides hard evidence of how price rises are developing. Coming one day ahead of the Fed decision – and as members are prohibited from speaking to the media – tensions are high and volatility will likely be elevated. I lean toward lower rather than higher inflation, as well as a weaker US Dollar. Still, I suggest trading with care in these nervous markets.
Top 3 cryptocurrencies that outperformed Bitcoin, Ethereum this week: Terra LUNC, XRP and Lido DAO

Top 3 cryptocurrencies that outperformed Bitcoin, Ethereum this week: Terra LUNC, XRP and Lido DAO

FXStreet News FXStreet News 09.06.2023 16:21
Terra Luna Classic, XRP and Lido DAO tokens have outperformed Bitcoin and Ethereum with gains for holders over the past week.BTC, ETH prices declined nearly 3% in response to SEC’s clampdown on key crypto exchanges while LUNC, XRP and LDO prices rallied.The three tokens were not labeled as “securities” by the Securities and Exchange Commission. The US Securities and Exchange Commission’s (SEC) crackdown on cryptocurrencies triggered a correction in the prices of Bitcoin, Ethereum and several altcoins with large market capitalization. Despite the broader sell-off among crypto assets, some tokens such as Terra Luna Classic (LUNC), XRPLedger’s native token (XRP) and Lido DAO (LDO) were spared from it. Also read: XRP braves SEC’s crackdown on cryptocurrencies sustains above $0.52Bitcoin, Ethereum prices lag behind The US financial regulator stepped up its crackdown on cryptocurrencies, filing lawsuits against crypto exchanges Binance and Coinbase. Earlier this week, BTC and ETH experienced a V-shaped trend reversal. Bitcoin and Ethereum prices wiped out their gains, losing between 2.5% to 3% since June 2. Other cryptocurrencies such as Cardano (ADA), Solana (SOL) or BNB (BNB) have faced even larger losses in the last seven days, with price declines that span from 10% to 15%.However, three tokens – Terra Luna Classic (LUNC), XRPLedger’s native token (XRP) and Lido DAO (LDO) – outperformed Bitcoin and Ethereum this week. LUNC, XRP and LDO yielded gains for holders over the past week, holding above key levels and heading towards a profitable weekly close.Several technical and social catalysts can explain the price rallies seen in XRP, LUNC and LDO. A key factor is that these assets weren’t labeled as securities by the SEC in its recent charges against Binance and Coinbase, but there are other variables that could be driving up prices. Terra Luna Classic network upgrade’s implementation draws closerThe LUNC community is awaiting the implementation of the v2.1.0 network upgrade after the proposal was passed by a majority of votes from community members. June 14 is the official date for the implementation of the upgrade.The upgrade will reward validators with a 5% commission – likely attracting more validators to the network –, will simplify the development of smart contracts and will implement several protocol security updates. Countdown to v2.1.0 upgrade In anticipation of the upgrade, LUNC price increased from $0.000085 on June 2 to $0.000099 at the time of writing, nearly a 17% gain over the past seven days. SEC vs. Ripple lawsuit stakes get raised, XRP holders turn bullishXRP price dynamics are closely linked with Ripple’s own lawsuit with the SEC, a case that is yet to determine whether XRP is considered a security. With the US financial regulator broadening its clampdown to Binance and Coinbase, the result of the Ripple case is likely to set a precedent about what’s to come for Coinbase and Binance.James Murphy (@Metalawman on Twitter), founder of Ludlow Street Advisors LLC, said the stakes in the SEC vs. Ripple lawsuit are higher than ever. Judges presiding over SEC’s lawsuits against Binance and Coinbase will be closely watching the case and its outcome. The lawsuit and its outcome is critical to the SEC’s litigation against Binance and Coinbase since the regulator alleges that the entities engaged in the unlawful sale of securities. XRP price rose from $0.5084 to $0.5255 between June 2 and Friday. XRP yielded 3.36% gains over the past seven days and the altcoin held above $0.52, a key resistance level. Lido’s LDO token sees accumulation by whalesLDO is exchanging hands at $2.19 on Binance at the time of writing. LDO has been accumulated by large wallet investors since June 7, according to data from crypto intelligence tracker Spotonchain. Accumulation of the asset by large wallet investors acts as a bullish catalyst by reducing the selling pressure across exchanges. Whale accumulation is therefore typically considered bullish. A whale wallet address accumulated 306,879 LDO worth $709,000 between June 7 and 9. The large wallet investor acquired LDO tokens from Binance, swapped Ether for LDO at an average buying price of $2.31. LDO price climbed from $2.050 to $2.231, or an 8.8% increase,between June 2 and 9.
Dow Jones Industrial Average News: DJI pulls back at start of Friday session

Dow Jones Industrial Average News: DJI pulls back at start of Friday session

FXStreet News FXStreet News 09.06.2023 16:21
The Dow Jones Industrial Average has gained for five of the past six sessions.The DJI is sitting below a major resistance band.On Thursday, higher Initial Jobless Claims resulted in the market expecting a rate pause at the Fed’s June 14 meeting.The S&P 500 ended its 18-month bear market on Thursday.The Dow Jones Industrial Average (DJI) lost 0.07% at the start of trading on Friday, while the NASDAQ Composite gained 0.6% and the S&P 500 advanced 0.2%. The index gained for the fifth time in the last six sessions on Thursday as the larger S&P 500 index broke out of its longest bear market since 1948. Both indices benefited, counterintuitively, from higher Initial Jobless Claims that presented the market with more ammunition for a rate pause by the Federal Reserve (Fed).In the premarket, Dow futures have declined 0.14% early Friday as NASDAQ 100 futures are just barely green. The DJI advanced 0.5% on Thursday.Dow Jones Index News: Higher jobless claims show Fed is getting resultsThe US Department of Labor released Initial Jobless Claims on Thursday that showed an increase of 28,000 layoffs in the week ending June 2. The 261K in unemployment claims was well above expectations for 235K and led the market to presume that the Fed would have an easier time pausing its rate hike cycle at the June 14 meeting.That news came one week after the US Bureau of Labor Statistics reported that the Unemployment Rate in May rose from 3.4% to 3.7%. Additionally, recent data from both the ISM Manufacturing and Services PMIs show an economy that is slowing down somewhat. This is only good news if you are laser-focused on the Fed reaching its terminal rate sooner rather than later. Much of the institutional investing class is in that category.The CME Group FedWatch Tool predicts interest rate changes based on price action in the 30-day fed funds futures market. Currently, the tool gives a 78% chance that interest rates remain flat at 5% to 5.25% and a 22% chance that the Fed hikes by 25 basis points at the June 14 meeting. Lower or stabilized interest rates should help corporations in need of financing and aid bank lending, which has receded of late due to the higher rate environment causing a reduction in deposits.S&P 500 ends long bear marketThe S&P 500 ended its 18-month long bear market, the longest since 1948, on Thursday. The S&P 500 index closed at 4,293, just a little over one point above the point level that equates to a 20% gain from its low on October 13, 2022.From its high on January 4, 2022, the S&P 500 index fell roughly 27% until its low on October 13. Advancing 20% off a low traditionally ends a bear market, although to be sure S&P Dow Jones Indices (which manages both the DJI and the S&P 500) does not consider a bear market to be over until a new high is achieved. That criterion would require the S&P 500 index to climb another 12% from here. Most of the market follows the traditional criteria though.For its part, the Dow Jones Industrial Average has already broken its bear market. This happened just two months after its October 13 low on November 30. In that session the Dow ran up 2.18% to close at 34,589 – well above the 34,393 level needed. Related newsS&P 500 News: Stocks consolidate as market bulls await next week's Fed meetingAdvanced Micro Devices Stock Forecast: AMD rally stuck in $120-$130 resistance thicketMullen Automotive Stock News: MULN trying to find a bottom at $0.50 Dow Jones forecastSince then, however, the DJI has been in a bit of a funk. On December 13, 2022, the DJI index ran to a 11-month high at 34,712 but then sold off to end the session at a loss. For the past six months, DJI has been floating in a holding pattern primarily between 31,600 and 34,000.A range of resistance between 34,257 and 34,590 has been pushing rallies down for months at this point. Closing above that 34,590 level, therefore, should result in the beginning of a new rally for the Dow Jones index. This is why 34,600 is the first major price level to break and a primary price target for bulls. The Moving Average Convergence Divergence (MACD) indicator has crossed over bullishly of late, so a rally up to this target should be in the cards.If not and more support is required, the 32,500 to 32,800 demand zone should come in handy in the case of any major downdrafts. That range has worked as support on a number of occasions all year long.DJI daily chart
Two key dates over the SEC request to freeze Binance assets

Two key dates over the SEC request to freeze Binance assets

FXStreet News FXStreet News 08.06.2023 16:48
Binance and its subsidiary Binance US will respond to the SEC’s temporary restriction freezing order by June 12. As the entities grappled with the consequences of the SEC’s regulatory crackdown on the exchange, BNB price declined by 7% overnight. The hearing on the temporary restraining order will be held on June 13. Crypto exchange Binance must respond to the US Securities Exchange Commission’s (SEC) order to freeze assets tied to its subsidiary Binance.US by June 12, ahead of a court hearing about the case on June 13, according to the D.C. district court schedule. Contrary to rumors in the crypto community, the judge hasn’t approved any freezing order, and this won’t happen until the hearing is done. It isn’t clear if the judge will rule on the freezing order the same day. Still, events next week are likely to be a key driver for the price of Binance’s native token BNB.Also read: BNB price falls 10% as US court summons Binance CEO, Changpeng ZhaoSEC’s freezing order follows lawsuitAfter suing Binance for violating the US securities law, the SEC asked the court to accept a restraining order to temporarily freeze assets from Binance.US as well as from Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings, Inc., and their founder, Changpeng Zhao.These two key dates could determine the course of action of the regulator against Binance in the lawsuit. SEC chair possible links with Binance Binance’s lawyers said that SEC’s chair Gary Gensler tried to join the exchange as an advisor in 2019.According to a CNBC report, the exchange’s lawyers have claimed that Gensler once offered to serve as an advisor, adding another layer of complexity to the lawsuit.Based on documents filed by the SEC on Wednesday, attorneys from Gibson Dunn and Latham & Watkins, two of Binance’s law firms, allege that Gensler engaged in conversations with Binance executives and CEO Changpeng Zhao in March 2019. Moreover, Gensler met Zhao in Japan later the same month, according to the filing. BNB price declined 5.6% overnightThe developments in the lawsuit have negatively influenced the exchange’s native token BNB’s price. Binance’s native token BNB yielded nearly 6% losses for holders overnight, as price plummeted to $262. BNB price chart from CoinGeckoOver the past week, BNB price nosedived 13.9%, based on CoinGecko data.
Mullen Automotive Stock News: MULN trying to find a bottom at $0.50

Mullen Automotive Stock News: MULN trying to find a bottom at $0.50

FXStreet News FXStreet News 08.06.2023 16:48
Mullen Automotive (MULN) stock is trading right above $0.50 in the first hour of Wall Street on Thursday, at the time of writing. Stock markets are trying to find some footing after the NASDAQ 100, alongside all major indexes, experienced a notable sell-off on Wednesday on a surprise rate hike from the Bank of Canada. The MULN stock sell-off this week has likely been caused by another round of dilution. On Monday, Mullen filed with the Securities & Exchange Commission (SEC) about a recent issuance of common stock and warrants to Acuitas Capital.Mullen Automotive stock news: Acuitas Capital bought a lot of shares to dumpOn June 5, Mullen sent a filing to the SEC explaining its latest funding initiative. Mullen requires lots of cash to meet production targets as it is currently ramping up its assembly line at a factory in Mississippi in order to build the Mullen Three, an electric long-haul truck chassis.Right now its Mullen One electric delivery van is on the lot, awaiting orders at Randy Marion Automotive Group’s enterprise dealerships nationwide, but automotive production requires heavy investment. The much bigger Lucid Group (LCID), another EV maker in California that differs from Mullen due to its eye on the luxury segment of the market, just sold another $3 billion worth of common stock in order to burnish its production budget.The June 5 filing shows that Acuitas Capital paid $20 million for 19,493,071 shares of MULN common stock and pre-funded warrants that can be exercised for 8,074,124 shares of common stock. The warrants can be exercised immediately at a price of $0.001 per share. Acuitas may already be exercising these warrants this week, thus causing the share price to drop precipitously.Mullen separately issued Acuitas 50,999,310 warrants exercisable for common stock at a price of $0.7255 per share. As this price is above the current share price, Acuitas likely will have to wait a while to exchange them for common shares. Altogether then, the Mullen filing means that the share count could expand by more than 78.5 million shares. Since there were 218 million shares at the end of the first quarter, considering the May 4 1-for-25 reverse stock split, this deal with Acuitas capital would itself dilute shares outstanding by about 36%.Mullen stock forecastMullen stock has been setting new all-time lows since early March, and there is no reason for it to stop in the near term. Mullen burned about $68 million in the first quarter of this year, and that figure should rise as it begins production of the Mullen Three in July. Expect MULN stock to fall back to its pre-reverse stock split price of $0.06 before entreaties from the NASDAQ exchange cause management to file for another reverse stock split. NASDAQ-listed companies are not allowed to trade below $1 for an extended period of time.MULN daily chart
Mullen Automotive Stock News: MULN drops another 9% on Wednesday

Mullen Automotive Stock News: MULN drops another 9% on Wednesday

FXStreet News FXStreet News 07.06.2023 16:47
Mullen Automotive issued pre-funded warrants, according to a filing on Monday.MULN stock traded down to $0.6060 on Tuesday.NASDAQ futures are slightly down in Wednesday’s premarket session.Lucid Group raised $3 billion in late May to fund its ambitious production growth.Mullen Automotive (MULN) stock is down 8.9% to $0.5521 at the start of trading on Wednesday, a new all-time low. MULN stock previously dropped 13.1% on Tuesday to $0.6060. The continued sell-off this week despite any new headlines was likely caused by another round of dilution. On Monday, Mullen filed with the Securities & Exchange Commission (SEC) about a recent issuance of common stock and warrants to Acuitas Capital.Mullen Automotive stock news: Acuitas Capital bought a lot of shares to dumpOn June 5, Mullen sent a filing to the SEC explaining its latest funding initiative. Mullen requires lots of cash to meet production targets as it is currently ramping up its assembly line at a factory in Mississippi in order to build the Mullen Three, an electric long haul truck chassis.Right now its Mullen One electric delivery van is on the lot, awaiting orders at Randy Marion Automotive Group’s enterprise dealerships nationwide, but automotive production requires heavy investment. The much bigger Lucid Group (LCID), another EV maker in California that differs from Mullen due to its eye on the luxury segment of the market, just sold another $3 billion worth of common stock in order to burnish its production budget.The June 5 filing shows that Acuitas Capital paid $20 million for 19,493,071 shares of MULN common stock and pre-funded warrants that can be exercised for 8,074,124 shares of common stock. The warrants can be exercised immediately at a price of $0.001 per share. Acuitas may already be exercising these warrants this week, thus causing the share price to drop precipitously.Mullen separately issued Acuitas 50,999,310 warrants exercisable for common stock at a price of $0.7255 per share. As this price is above the current share price, Acuitas likely will have to wait awhile to exchange them for common shares. Altogether then, the Mullen filing means that the share count could expand by more than 78.5 million shares. Since there were 218 million shares at the end of the first quarter, considering the May 4 1-for-25 reverse stock split, this deal with Acuitas capital would itself dilute shares outstanding by about 36%.Mullen stock forecastMullen stock has been setting new all-time lows since early March, and there is no reason for it to stop in the near term. Mullen burned about $68 million in the first quarter of this year, and that figure should rise as it begins production of the Mullen Three in July. Expect MULN stock to fall back to its pre-reverse stock split price of $0.06 before entreaties from the NASDAQ exchange cause management to file for another reverse stock split. NASDAQ-listed companies are not allowed to trade below $1 for an extended period of time.MULN daily chart
USD/JPY struggles to capitalize on modest intraday bounce, remains below 140.00 mark

USD/JPY struggles to capitalize on modest intraday bounce, remains below 140.00 mark

FXStreet News FXStreet News 06.06.2023 16:33
USD/JPY reverses an intraday dip and draws support from the emergence of USD dip-buying.A goodish intraday pickup in the US Treasury bond yields helps revive demand for the buck.Intervention fears, a softer risk tone could underpin the JPY and cap the upside for the major.The USD/JPY pair attracts some dip-buying in the vicinity of the 139.00 mark on Tuesday and stalls the overnight retracement slide from a multi-day peak. Spot prices build on the steady intraday ascent through the early North American session and climb to a fresh daily high, back closer to the 140.00 psychological mark in the last hour.As investors look past Monday's disappointing release of the US ISM Services PMI, the US Dollar (USD) regains positive traction and turns out to be a key factor acting as a tailwind for the USD/JPY pair. The intraday USD uptick could be attributed to an intraday uptick in the US Treasury bond yields, though is likely to remain limited in the wake of rising bets for an imminent pause in the Federal Resreve's policy tightening cycle.In fact, the markets are pricing in a greater chance that the US central bank will leave interest rates unchanged at the end of a two-day policy meeting on June 14. This might hold back the USD bulls from placing aggressive bets. Apart from this, the prospect of Japanese authorities intervening in the markets might further contribute to keeping a lid on any meaningful appreciating move for the USD/JPY pair, at least for the time being.Furthermore, the prevalent cautious mood - as depicted by a softer tone around the equity markets - could benefit the JPY's relative safe-haven status. That said, a more dovish stance adopted by the Bank of Japan (BoJ) might continue to undermine the JPY and limit the downside for the USD/JPY pair. In the absence of any relevant macro data from the US, the mixed fundamental backdrop warrants caution for aggressive traders.
S&P 500 News: Markets drop again for second day in a row as Apple sells off another 1%

S&P 500 News: Markets drop again for second day in a row as Apple sells off another 1%

FXStreet News FXStreet News 06.06.2023 16:33
President Joe Biden signed a bill to raise the debt ceiling on Saturday.Apple introduces VR headset on Monday, but AAPL stock caves.May jobs report last Friday gives lower probability of June Fed rate hike.Stitch Fix, DocuSign, Nio report earnings this week.The S&P 500 index is unsure where to move now that the US debt ceiling standoff has been dealt with. President Joe Biden signed the agreement into law on Saturday that will lift the debt ceiling until 2025, which should put the markets at ease now that a politically-caused US debt default is out of the picture. However, last Friday’s jobs report makes it less likely that the Federal Reserve (Fed) hikes interest rates on June 14. Even though the Fed decision comes down next week, the lack of significant data on the schedule this week leaves markets more focused on next Wednesday.Despite the stock rallying in advance, Apple’s (AAPL) much-touted unveiling of its virtual reality headset hurt the S&P 500 index on Monday when the index’s largest stock fell 0.8%. Though many were wowed by the technology, most of the negativity surrounded the Apple Vision Pro’s $3,499 price tag. AAPL stock dropped another 1% in the first half hour of Tuesday's session.At the time of writing in Tuesday’s premarket, both S&P 500 and NASDAQ 100 futures are slightly in the red but not by much.S&P 500 News: Markets look ahead to FOMC meetingLast Friday’s May Nonfarm Payrolls figure of 339,000 blasted expectations out of the water. Various consensus forecasts thought the US labor market would decline to between 185K and 195K new hires. Instead, the US economy produced 339,000 new positions, demonstrating that a recession does not seem to be emerging. However, 440,000 new layoffs overpowered that strong jobs figure, and unemployment jumped from 3.4% to 3.7%. Additionally, the YoY average hourly wage figure ticked down to 4.3%, so the market took this report as a sign that the Fed’s hikes have worked.The CME FedWatch Tool just one week ago had a 66% chance of a 25-basis-point hike. Now the gauge has dropped to 25%. It seems the market believes hikes may end this month, which is of course bullish for the S&P 500. However, observers do not think the Federal Reserve is likely to cut rates anytime soon. The market leapt higher on Friday, but Monday saw a less enthusiastic response as the S&P 500 lost 0.2%.Still, the lack of significant data this week leaves many traders sitting tight until June 14, when certainty over the Fed should lead to action in the markets.
EUR/GBP recovers further from YTD low set last week, climbs to 0.8630 region

EUR/GBP recovers further from YTD low set last week, climbs to 0.8630 region

FXStreet News FXStreet News 05.06.2023 16:30
EUR/GBP scales higher for the second straight day and recovers further from the YTD low.Hawkish remarks by ECB officials underpin the shared currency and remain supportive.The setup supports prospects for additional gains towards the 0.8670 support breakpoint.The EUR/GBP cross gains positive traction for the second successive day on Monday and recovers further from a fresh YTD low, around the 0.8565 region touched last week. The cross maintains its strong bid tone through the mid-European session and is currently placed near a three-day high, around the 0.8625-0.8630 region.The shared currency's relative outperformance comes amid the recent hawkish remarks by several European Central Bank (ECB) officials, backing the case for additional rate hikes in the coming months. In fact, ECB policymaker Boštjan Vasle said on Friday that more rate hikes are needed to get inflation to the 2% target as core inflation remains high and persistent. Separately, ECB Governing Council member, Gabriel Makhlouf noted that the central bank has not reached the moment where it can say let's now stop.Adding to this, ECB President Christine Lagarde, speaking at the Hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament, reiterated that price pressure remains strong in the Euro area. Lagarde added that there is no clear evidence that underlying inflation has peaked and that wage pressures have strengthened further. This overshadows last week's softer Eurozone CPI figures and continues to underpin the Euro, which, in turn, acts as a tailwind for the EUR/GBP cross.The British Pound, on the other hand, struggles to attract any buyers as the market already seems to have priced in the prospects for another interest rate hike by the Bank of England (BoE). This, in turn, favours bullish traders and backs the case for a further near-term appreciating move for the EUR/GBP cross. Hence, some follow-through strength back towards testing a strong horizontal support breakpoint, around the 0.8670 region, looks like a distinct possibility. The said area should act as a pivotal point for short-term traders.
Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September

Pro-XRP attorney says Ripple has 25% chance of winning against SEC, Judge could announce verdict by September

FXStreet News FXStreet News 05.06.2023 16:30
Pro-XRP attorney John Deaton says there is a 25% likelihood of an outright win for the payment remittance firm against the SEC. Deaton believes Ripple has a 50% chance of victory by way of a “splitting the baby” ruling. Deaton believes Judge Torres will likely announce a verdict in the SEC vs. Ripple case by September 30. Ripple has a 25% chance of winning its legal battle against the US Securities & Exchange Commission (SEC), according to pro-XRP attorney John Deaton. Over the weekend, Deaton shared his opinion on Ripple’s likelihood of both an outright win and a partial victory. Ripple’s win could positively influence XRPLedger’s native token XRP and likely promote a relisting of the altcoin across top cryptocurrency exchange platforms. Pro-XRP attorney believes Ripple has favorable odds of victory against the SECJohn Deaton, the founder of CryptoLaw, is a pro-Ripple attorney. In a June 3 episode of The Good Morning Crypto podcast, Deaton commented on the likelihood of Ripple’s win against the SEC. In December 2020, the SEC filed a lawsuit against Ripple, alleging the sale of $1.3 billion worth of XRP tokens in an unregistered securities offering. Since then, the XRP holder community has been watching the lawsuit closely for signs of Ripple’s win, anticipating a positive impact on the altcoin’s price. Deaton places Ripple’s odds of an outright win at 25% and a partial victory or “splitting the baby” ruling at 50%. The pro-XRP attorney informed the community that the US SEC has a “less than 3%” chance of an outright win against payment remittance firm Ripple. A “splitting the baby” ruling would imply that Judge Torres potentially rules that XRP was offered as an unregistered security before 2018. It is likely that XRP transitions from a security to a commodity once it is sufficiently decentralized, based on the conclusions drawn from the emails of SEC former director of the Division of Corporate Finance William Hinman. SEC vs. Ripple verdict will most likely be announced by September 30Deaton told XRP community holders that Judge Analisa Torres, who is presiding over the SEC vs. Ripple case, is likely to announce the verdict by September 30 of this year. The pro-XRP attorney argues that a soft deadline of six months is offered to district judges and the list details of all summary judgements pending for longer than six months are filed to Congress.The list gets published on the last day of March and September. Deaton, therefore, expects a ruling in the SEC vs. Ripple case by September 30 of this year.
Lululemon Athletica Earnings: LULU stock adds 15% on big Wall Street beat

Lululemon Athletica Earnings: LULU stock adds 15% on big Wall Street beat

FXStreet News FXStreet News 02.06.2023 15:26
Lululemon trounced analyst expectations late Thursday for the first quarter.LULU stock advanced to $377 per share on the news in Friday’s premarket.Comparable store sales rose 14% YoY, 17% with constant currency.Lululemon earned $2.28 per share on $2 billion in revenue.Lululemon Athletica (LULU) did it again. In something that has become quite predictable, LULU stock sailed 14.9% higher in Friday’s premarket to $377.20 after the prized athleisure brand posted a nearly 15% earnings beat for the first quarter.NASDAQ futures have rallied 0.5% early Friday as well following the US Senate’s passing of the debt-ceiling bill late Thursday.Lululemon stock news: Comparable sales rise 14% YoYIf there is any one detail from the earnings report, note that Lululemon revenue grew 14% YoY at comparable stores, even 17% on a constant-currency basis. Unlike other downmarket retailers over the past few months, Lululemon’s wealthier customer base appears to be unphased by talk of a recession."Our results reflect the strength of our guest relationships, our innovative products and how our brand resonates across the globe,” said CEO Calvin McDonald. “This year we celebrate our 25th anniversary, and our community-based model remains one of our biggest competitive advantages."Lululemon posted $2.28 in GAAP earnings per share (EPS), compared to Wall Street’s consensus estimate for $1.99. This amounts to an impressive 54% gain YoY. Earnings benefited from gross margin growing 3.6 percentage points to 57.5%.Lululemon’s revenue of $2 billion in the quarter beat analyst estimates by $80 million and rose 24% YoY. Sales grew 17% YoY in North America but surged 60% YoY globally, which demonstrates how Lululemon’s brand is becoming a worldwide phenomenon. The comparisons to Nike (NKE) are lost on few shareholders at this point.“Women's [revenue] was up 22%, men's was up 17% and accessories was up 67%,” McDonald added. “Comparable sales grew 16% in stores and 18% in our e-commerce business.”The CEO said Lululemon experienced “a meaningful acceleration in the Greater China business” as revenue grew 79%, partially due to last year’s covid effects.”The growth is also expected to continue. Lululemon’s management team guided for revenue between $2.14 and $2.17 billion in Q2 with GAAP EPS between $2.47 and $2.52.Lululemon stock forecastLululemon stock pulled a massive head-fake on the trading community. LULU stock fell off a cliff when it hit the $386.50 resistance level. The share price lost more than $55 since the beginning of May, and the Relative Strength Index (RSI) had fallen far into oversold territory. Whether it was the debt-ceiling situation or just renewed expectations for a recession, LULU stock actually dropped below the 200-day moving average in Thursday’s regular session. This is typically an extremely bearish sign. Just a day later, LULU stock is back near that $386.50 resistance level that pushed the share price lower in both early December 2022 and just last month. A break of this price level would have bulls gunning for the $410 resistance that won the day back in April 2022.LULU daily chart
Nonfarm Payrolls Quick Analysis: Wage growth softens, and so will the Fed and the US Dollar

Nonfarm Payrolls Quick Analysis: Wage growth softens, and so will the Fed and the US Dollar

FXStreet News FXStreet News 02.06.2023 15:26
The US economy has gained 339,000 jobs in May, far above 190,000 expected. Wage growth has moderated to 4.3% YoY, marginally below estimates. The hurdle for raising rates this month is higher, implying fresh US Dollar falls.Is the US economy experiencing a soft landing? According to the latest Nonfarm Payrolls, the job market is slowing down to a "Goldilocks level" – not too hot nor too cold. For markets, it means continued growth, but with lower inflation and interest rates. For the US Dollar, it means the path of least resistance is down.The US gained 339,000 jobs in May, far above 190,000 expected – but that is only one part of the story when it comes to the Federal Reserve. The participation rate held at 62.6%, but labor shortages seem to be less of an issue. Moreover, annual wage growth slowed to 4.3% YoY, lower than expected. Inflation pressures are cooling.Hiring is high, but inflation may drop – that is how Goldilocks looks like.Until several days ago, the hawks at the Fed seemed to have the upper hand, pushing for yet another rate hike in the upcoming June meeting – and perhaps another one. Phillip Jefferson, Vice-Chair of the Federal Reserve, changed the picture by leaning toward "skipping" further tightening this month. He was joined by several dovish peers, tilting the playing field in favor of a halt. The Consumer Price Index (CPI) report is the last major data point before the bank's decision, but it is unlikely to change the picture. May's Nonfarm Payrolls and the bank's tendency to pause – echoed also by Fed Chair Jerome Powell – all point to halting hikes.As bond markets do not fully price this option, there is room for further softening for the US Dollar alongside returns on US debt. In turn, falling yields mean fresh gains for Gold.
Gold Price Forecast: XAU/USD hits fresh weekly highs near $1,980 after US data

Gold Price Forecast: XAU/USD hits fresh weekly highs near $1,980 after US data

FXStreet News FXStreet News 01.06.2023 16:28
XAU/USD accelerated to the upside after ULC and ISM PMI. US Dollar corrects further lower on Thursday. Gold prices are risen for the third consecutive day as US Treasury yields continue to decline. XAU/USD pair recently jumped to $1,977, hitting a one-week high following the release of the US ISM Manufacturing PMI. Gold turns positive on Thursday after US dataDuring the European session, the value of an ounce bottomed at $1,952, the weakest level in two days. It then started to recover and gained momentum, reaching levels above $1,970 following the release of US economic reports. The ADP Employment report showed an increase in private payrolls by 278K, surpassing expectations of 174K. The US dollar initially rose briefly after the ADP, but then weakened again after the Bureau of Labor Statistics announced a revision of Q1 Unit Labor Costs (ULC) from 6.2% to 4.2%.The dollar's decline accelerated after the May ISM Manufacturing PMI showed a decline in the main index from 47.1 to 46.9, below the market consensus of 47. The Price Paid Index also fell considerably from 53.2 to 44.2, against expectations of 52, while the Employment Index unexpectedly rose from 50.2 to 51.4.As a result, the Greenback tumbled to fresh daily lows across the board, in line with a decline in Treasury yields. US stocks opened mixed on Wall Street. Gold continues to move with an upside bias in the short-term, with the next resistance area located around $1,980. A consolidation above this level would set the stage for an extension towards $1,995. On the flip side, a firm break below $1,955 would likely remove the upside bias, adding pressure for a test of $1,946.
Lucid Group Stock News and Forecast: LCID sheds 13% with $3 billion share sale

Lucid Group Stock News and Forecast: LCID sheds 13% with $3 billion share sale

FXStreet News FXStreet News 01.06.2023 16:28
Lucid plans on issuing $1.2 billion in new shares to the public.Its existing majority shareholder will purchase $1.8 billion in new common stock.This dilutes the share count by approximately 21%.LCID stock traded down to $6.75 in Thursday’s premarket. Lucid Group (LCID), the maker of the Lucid Air luxury electric sedan, surprised shareholders late Wednesday when it announced that it would raise $3 billion in new common stock. This would dilute existing shares outstanding by about 24%, and LCID stock is trading 13% lower in Thursday’s premarket at $6.75. Stock futures are mixed early Thursday after the US House passed the debt-ceiling bill late Wednesday, which was already expected.Lucid stock newsLucid will offer 173,544,948 shares of its common stock to the public off the current count of shares outstanding of 1.83 billion. Additionally, the EV maker will sell $1.8 billion worth of common stock to Ayer Third Investment, an affiliate of its majority shareholder, the Public Investment Fund (PIF). The PIF is a sovereign wealth fund from Saudi Arabia, and the purchase will allow it to maintain its 60.5% ownership stake in Lucid.In total, the PIF affiliate will purchase 265,693,703 shares of LCID. Between the public offering and the private sale to PIF, Lucid’s share count will rise by nearly 440 million shares to 2.27 billion.In its announcement regarding the equity sale, Lucid said, “The underwriter may offer the shares of common stock from time to time for sale in one or more transactions to purchasers directly, through agents or through brokers in brokerage transactions on Nasdaq, in the over-the-counter market, through negotiated transactions or in a combination of such methods, or otherwise at a fixed price or prices, which may be changed, at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.”Lucid, headed up by CEO Peter Rawlinson, said it would use the proceeds of the shelf sale for capex and working capital needs. Lucid is working on ramping up production of its Lucid Gravity SUV model that it expects to outsell the award-winning Lucid Air, but the company has been experiencing production difficulties for the last three quarters. Bank of America Securities is the book runner on the public offering.Lucid stock forecastLucid stock will almost certainly trend down to its recent support at $6.20. This level is where the LCID stock price found support during late December of last year and the first few sessions this January. There is no certainty that it will hold up though. The Relative Strength Index (RSI) is rather sanguine at the moment (above 50), but Lucid stock has already been trending down since its swing high to $17.80 on January 27. Any break above the $8.28 or $8.69 resistance levels would be necessary to bring bulls back to the table.LCID daily chart
C3.ai Stock News: After 33% rally, AI shares backtrack ahead of earnings

C3.ai Stock News: After 33% rally, AI shares backtrack ahead of earnings

FXStreet News FXStreet News 31.05.2023 16:37
C3.ai stock sinks over 7% in Wednesday's premarket.AI stock rose 33% on Tuesday after Nvidia news.C3.ai reports fiscal Q4 earnings after the close on Wednesday.The market expects a slight drop in revenue YoY.C3.ai (AI) stock slipped 7.6% to $41.62 in Wednesday’s premarket ahead of quarterly earnings expected after the close. This may just be traders taking profits after Tuesday’s 33.4% surge in the AI stock price.NASDAQ 100 futures are off 0.2% in the premarket as the market worries over a slowing Chinese economy based on soft purchasing managers’ data released on Wednesday. A Citigroup analyst on Tuesday wrote a client note saying long positions in NASDAQ 100 futures are now at a three-year high, making the market biased toward profit-taking.C3.ai stock news: Software company benefits from artificial intelligence rallyC3.ai is a software company that runs a big data platform using artificial intelligence for enterprise customers.Since everything related to artificial intelligence is running gangbusters lately, it is no wonder that C3.ai stock is part of the bandwagon. Nvidia (NVDA), the leading maker of semiconductors that power the AI space, issued seven press releases in a 24-hour period to start this week. Then NVDA shares rallied enough on Tuesday to make the company the fifth trillion-dollar stock.While there are a number of AI startups, and the most famous one – OpenAI – is largely controlled by Microsoft (AI), investors are running rampant to place their loose dollars in any publically-traded stock attached to the space. That is largely why C3.ai and its relatively minuscule operation have been attracting so much interest. The stock is up 297% this year despite the expectation that it will post a 1.4% drop in YoY revenue during its earnings call Wednesday evening. Wall Street expects a GAAP earnings per share loss of $0.66 on $71.34 million in sales for the fourth fiscal quarter, which ended April 30. CEO Thomas Siebel, for his part, predicted one month ago that revenue would arrive slightly above $72 million.While the expectations are quite limited, the market will look for further color regarding the current quarter as Siebel has said that deals and pilot partnerships are beginning to accelerate.C3.ai stock forecastIt looks like C3.ai stock may be in a period of consolidation after such an extreme runup. It is trading just above the R2 resistance at $38.83. The period is unlikely to last the rest of the week however. Earnings news will likely send the stock in a sharp move in either direction. A good call could send AI shares up to the $50 level, where it last experienced resistance in November 2021, while a poor announcement or outlook would likely send C3.ai stock down the 50-candle moving average on the 4-hour chart near $28. That support level makes sense since it’s just above the S1 at $27.61.AI 4-hour chart
US ADP Employment, ISM Manufacturing PMI Preview: First down, then up for US Dollar?

US ADP Employment, ISM Manufacturing PMI Preview: First down, then up for US Dollar?

FXStreet News FXStreet News 31.05.2023 16:37
ADP's private-sector labor report may disappoint, following a see-saw pattern.Low expectations for the ISM Manufacturing PMI may result in an upside surprise. Fears about another Fed rate hike will likely persist, supporting the US Dollar.With or without the debt-ceiling crisis, the US Dollar is on the rise – but every trend has a countertrend, and a double-feature release creates opportunities. Ahead of Friday's Nonfarm Payrolls (NFP), Thursday's release of two critical leading indicators is set to rock markets. Here is a preview of ADP's private-sector jobs report at 12:15 GMT and the Manufacturing Purchasing Managers' Index (PMI) from the Institute of Supply Management (ISM) at 14:00 GMT.ADP Employment data tend to see-saw, this time it could disappointAutomated Data Processing (ADP) is America's largest payroll provider, handling one of every six payslips – making its publication a leading indicator of the official jobs report. Nevertheless, the correlation between its figures and the Bureau of Labor Statistics NFP is shaky. Nevertheless, it tends to move markets. A quick look at the economic calendar shows economists expect an increase of only 170,000 jobs gained in May after 296,000 in April. Are estimates too low? Not necessarily, as a deeper look into this publication shows a see-saw pattern.Source: FXStreetNot only have ADP's figures jumped from miss to beat and the other way around, but these differences have also been significant, especially in recent months. After leaping to the highest level since July 2022 in the latest April publication, the upcoming May report could be weak.If my scenario materializes, investors' knee-jerk reaction would be to sell the US Dollar on estimates that the odds for a rate hike in June are lower. It is essential to note that officials at the Federal Reserve (Fed) are split on whether to increase borrowing costs or pause. Bond markets reflect that uncertainty with roughly even odds – and any data point could make a difference.ISM Manufacturing PMI may show some signs of stabilityThe second and last leading indicator before May's Nonfarm Payrolls is limited to the manufacturing sector, which is smaller than the larger services one. However, it has the last word, and ISM's strong reputation means markets react. Contrary to ADP, economists have mostly been too optimistic in recent months, resulting in five consecutive misses – ending last month, when the headline ISM Manufacturing PMI beat estimates, stabilizing at 47.1 points. A look at the chart below, also shows some signs of bottoming out.Source: FXStreetAmerica's manufacturing sector suffered from the post-pandemic re-opening when consumers shifted back to services such as flights, hotels and restaurants while shying away from goods such as cookware or Peloton bikes. Over a year after the last covid wave waned, and the sector is stabilizing. The calendar points to stability in May – a minor drop from 47.1 to 47. Estimates for the employment component are more pessimistic, pointing to a drop from 50.2 to 48.5 points. That also allows for an upside surprise in the figure that matters for the Nonfarm Payrolls report. Overall, there is room for an upside surprise in the ISM Manufacturing PMI and its key component, potentially leading to US Dollar strength. Final thoughtsMy scenario of US Dollar weakness followed by strength is only one of many outcomes. What is more certain is the high market sensitivity to economic indicators. The US bank holiday on Monday pushed ADP's release to Thursday instead of Wednesday, resulting in more last-minute positioning and more jittery markets.
Tesla Stock News: TSLA breaks above $200 as Elon Musk visits China

Tesla Stock News: TSLA breaks above $200 as Elon Musk visits China

FXStreet News FXStreet News 30.05.2023 16:34
Tesla stock moves above $200 in Tuesday premarket.US legislators have compromised with President Biden over the debt ceiling.Elon Musk meets with the Chinese Foreign Minister in Beijing.NHTSA investigation into passenger play has been dropped.Tesla (TSLA) stock has overcome a major psychological barrier to start the week with shares overcoming the $200 level early Tuesday. A number of tailwinds are aiding the growth stock, which has gained 4.4% to $201.67 in the premarket.NASDAQ 100 futures have gained 1.5% at the same time as Nvidia (NVDA) has broken into the $1 trillion market cap basket of stocks.Tesla stock news: Musk arrives in ChinaCEO Elon Musk landed in China on Tuesday to observe his company’s operations in the world’s biggest electric vehicle (EV) market. Musk met with Chinese Foreign Minister Qin Gang in Beijing first though. Musk joined the official in stating that the US and Chinese governments needed to work from “mutual respect” at a time of enmity between each administration.Musk is hoping to meet with Premier Li Qiang to convey his company’s interest in launching Tesla’s autonomous driving technology in the country. Tesla is also slated to begin trial production of a larger version of its Model 3 sedan at its Shanghai factory in the near future.The stock market is excitable this first day of the trading week as US politicians hammered out a compromise to raise the debt ceiling over the weekend. That removes one major headwind for markets and could lead to a rally in equities this week.Another headwind out of the way is the top automobile regulator in the US closing an 18-month-old investigation into Tesla. In December 2021, the National Highway Traffic Safety Administration began investigating Tesla’s “passenger play” feature that was said to allow drivers the ability to play video games on the center console while the vehicle was in motion. Tesla sent a software update at that time, and the NHTSA said on Tuesday that it is closing the case.Tesla stock forecastTesla stock has not traded above $200 since April 3, about two months ago. To break out of its downtrend, TSLA needs to close above the $207.79 high from March 31. Then February resistance at $214 will be the next target for bulls. Support can be found between $180 and $190, where there is plenty of historical volume.TSLA daily chart
Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move

Bitcoin whales could prevent BTC price first monthly loss of 2023 through this move

FXStreet News FXStreet News 30.05.2023 16:34
Bitcoin network’s large wallet investors accumulated BTC throughout May. BTC supply on exchanges nosedived from 1.33 million to 1.29 million since the beginning of May. While BTC is headed towards its first monthly loss of 2023, whales could fuel a recovery in the asset. Bitcoin price is inching towards the first monthly loss of 2023. At press time, BTC price is 4.4% below $29,233, its price on May 1. If BTC fails to regain lost ground, the asset is in for its first monthly loss of the year. Bitcoin network’s large wallet investors could potentially fuel a recovery in BTC price before it charts its first negative month in 2023.Also read: Bitcoin price retreats as US core PCE inflation comes hotter than expectedBitcoin whale accumulation and declining exchange supplyTypically, accumulation by large wallet investors and a decline in the supply of the asset across cryptocurrency exchanges are both considered bullish signs for BTC price. Throughout May, whales across three segments continued scooping up Bitcoin tokens and the supply on exchanges declined by nearly 3%. Based on data from crypto intelligence tracker Santiment, whales picked up the pace of their accumulation on May 24. BTC whale accumulation Bitcoin supply on exchanges The declining supply implies easing selling pressure on the asset across cryptocurrency exchange platforms. This leaves room for recovery in BTC ahead of the monthly close. While Bitcoin is headed for its first monthly decline, whales are positioning themselves to push BTC price higher. Delta based trading systems analysts at Skew (@52kskew) on Twitter identified how whales are influencing Bitcoin price. Whales are bidding and using the market positioning to push holding low-time frame Exponential Moving Averages (LTF EMAs) higher. Traders with both short and long positions in Bitcoin are apeing into whale movements. Whales are, therefore, in a position to influence retail traders with their movements and fuel a recovery in Bitcoin, acting as a bullish catalyst for BTC price.
US Dollar consolidates gains as focus shifts to US data

US Dollar consolidates gains as focus shifts to US data

FXStreet News FXStreet News 29.05.2023 16:35
US Dollar stays resilient against its rivals at the beginning of the week. US Dollar Index trades at multi-week highs following last week's rally.Hawkish Fed bets continue to provide a boost to US Dollar.The US Dollar (USD) preserves its strength to start the new week despite subdued trading action amid the Memorial Day holiday in the United States (US). The US Dollar Index (DXY), which tracks the USD's performance against a basket of six major currencies, holds steady above 104.00 after having gained 1% last week. Following the latest upbeat macroeconomic data releases from the US, investors reassess the Fed's policy outlook and now see a stronger chance of the US central bank raising the key interest rate one more time in June. In turn, the USD continues to find demand on the back of rising US Treasury bond yields.In the second half of the week, the ISM Manufacturing PMI, ADP Employment Change and the US Bureau of Labor Statistics' May jobs report will be watched closely by market participants. Daily digest market movers: US Dollar stays resilient against its rivalsThe US Bureau of Economic Analysis (BEA) reported on Friday that inflation in the US, as measured by the change in Personal Consumption Expenditures (PCE) Price Index, rose to 4.4% on a yearly basis in April from 4.2% in March.The annual Core PCE Price Index, the Fed's preferred gauge of inflation, edged higher to 4.6%, compared to the market expectation of 4.6%. Further details of the BEA's publication showed that Personal Income increased 0.4% on a monthly basis while Personal Spending rose 0.8%.Cleveland Fed President Loretta Mester told CNBC on Friday that PCE Price Index data underscore the slow progress on inflation. "It's important for the Fed not to under tighten the monetary policy," Mester added.According to the CME Group FedWatch Tool, markets are currently pricing in a less than 40% probability of the Fed leaving its policy rate unchanged at the upcoming meeting.On Sunday, US President Joe Biden and Republican House Speaker Kevin McCarthy reached an agreement to temporarily suspend the debt-limit to avoid a US debt default. The House of Representatives and Senate still need to approve the deal, which will suspend the $31.4 trillion debt-ceiling until January 1, 2025, in coming days. Bond and stock markets in the US will remain closed on Monday.On Tuesday, the Conference Board will release the Consumer Confidence Index data for May.US Dollar Index technical analysis: Bullish outlook stays unchanged in the near termThe Relative Strength Index (RSI) indicator on the daily chart stays near 70, suggesting that the US Dollar Index (DXY) could turn technically overbought in the near term. In case DXY stages a technical correction, 104.00 (Fibonacci 23.6% retracement of the November-February downtrend) aligns as key support. A daily close below that level could attract USD sellers and open the door for an extended slide toward 103.00, where the 100-day Simple Moving Average (SMA) is located.If DXY continues to use 104.00 as support, buyers are likely to remain interested. Additionally, the bullish cross seen in the 20-day and the 50-day SMAs points to a build-up of momentum. On the upside, 105.00 (psychological level, static level) aligns as next resistance before 105.60 (200-day SMA, Fibonacci 38.2% retracement).
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: XRP becomes an outlier as outlook turns bullish

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: XRP becomes an outlier as outlook turns bullish

FXStreet News FXStreet News 29.05.2023 16:35
Bitcoin price shows a classic Power of Three (PO3) setup in play, forecasting a potential decline to $25,296. Ethereum price could attempt a rally to $2,028 if the bullish outlook persists.Ripple price has set up an inverse head-and-shoulders setup, forecasting a 10.76% increase to $0.515.Bitcoin (BTC) price has surprised investors with a quick uptick over the weekend, but it is unclear if this is a spurt in buying pressure or a reentry of sidelined buyers. Judging by the price action, the cause of the uptick is unclear and the bearish outlook explained in previous articles is still valid.Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC set to punish greedy bullsBitcoin price ready to collapseBitcoin (BTC) price breached its two-week consolidation on May 28 and collected the buy-stop liquidity resting above May 10 swing high at $28,293. This liquidity run was soon followed by a retracement, which is underway and signals a Power of Three (PO3) setup in play.This technical formation has three phases – accumulation, manipulation and distribution. As the name indicates, the asset usually moves sideways in the first phase and is often followed by a sweep of a critical level, which is termed manipulation.The third or the last phase is distribution, which leads to volatile rallies in the opposite direction of manipulation. In Bitcoin’s case, BTC swept a local top at $28,293 and is trading at $27,879, signaling the next move should favor bears. If this setup plays out, Bitcoin price could reach the $25,764 support level to collect the sell-stop liquidity. Should the selling pressure persist even after this 7.6% decline, BTC price could hit the next critical support level at $25,296. These levels are key accumulation levels, as seen in previous articles. Read more: Bitcoin Weekly Forecast: BTC delays inevitable crash to $25,000BTC/USD 4-hour chartOn the other hand, if Bitcoin price continues to tread above the $28,051 level, it could attempt an extension of this weekend's rally. If the move leads to a flip of the $30,000 psychological level, it would invalidate the bearish thesis. In such a case, BTC could attempt a retest of the $32,450 hurdle.Ethereum price needs to stay above this levelEthereum price has overcome the $1,817 hurdle and shot up 7% over the weekend. ETH trades at $1,898 at the time of writing but it needs to hold above the $1,853 support level to resume its uptrend. If successful, ETH could eye a retest of the $2,028 hurdle followed by a sweep of the April 16 high at $2,147.ETH/USD 1-day chartOn the contrary, if Ethereum price breaches the $1,853 support level, investors should pay attention to $1,817. If this level fails to hold, ETH will invalidate the bullish thesis and could trigger a correction to $1,703. Ripple price flips bullish amid confusing timesRipple price has set up an inverse head-and-shoulders set up on the four-hour chart. This technical formation contains three swing lows, with the central one lower than the other two. The ones on each side are defined as the shoulders, while the central one is the head. Connecting the peaks using a trend line reveals a declining resistance level known as the neckline.This setup forecasts a 10.76% upswing to $0.515, determined by measuring the distance between the right shoulder’s peak and the head’s lowest point, adding it to the breakout point at $0.465 (see chart below). So far, Ripple price has not only breached the neckline but has also rallied nearly 4%, currently trading at $0.481. If the bullish trend continues, XRP price could rally another 7.30% before it hits the theoretical target.XRP/USD 4-hour chartInvalidation of the inverse head-and-shoulders setup will occur if Ripple price slices the neckline at $0.465. If this bearish outlook continues, XRP price could slide towards the May 24 low at $0.442.
Ford Stock News and Forecast: New agreement will give customers access to 12,000 Tesla chargers

Ford Stock News and Forecast: New agreement will give customers access to 12,000 Tesla chargers

FXStreet News FXStreet News 26.05.2023 16:25
Ford stock is benefitting from its new agreement with Tesla.Ford customers will be able to use Tesla Superchargers beginning in 2024.In 2025 new Ford EVs will come equipped with Tesla charging design.F stock is stuck in a descending wedge with a resistance target of $14.50. Ford (F) stock has advanced about 2.5% early Friday following CEO Chris Farley’s announcement that Ford owners will be able to charge their EVs at Tesla Superchargers beginning in early 2024. The announcement was made via a Twitter Spaces talk between Tesla (TSLA) CEO Elon Musk and Farley late Thursday.NASDAQ 100 futures have gained 0.3% in Friday’s premarket as Dow and S&P 500 futures are ahead slightly less than 0.2%. Ford stock news: Tesla, Ford first automakers to make charger sharing agreementThe precise economics of the agreement have not been stated, but beginning in the first quarter of 2024 Ford EV owners will have access to double the current number of public chargers in the US and Canada. Ford already has 10,000 chargers available to its customers and plans to add another 1,800 by early 2024. Existing Ford EV owners will need to pay for a software update and a Tesla-designed adaptor at first, but beginning in 2025 Ford will switch from its current Combined Charging System (CCS) design to Tesla’s North American Charging Standard (NACS) connector. This is the first instance of an automaker in the US adopting Tesla’s charging technology.Tesla currently has more than 17,700 Superchargers but 12,000 of them will be made available to Ford owners. Ford customers will be able to pay using their existing Ford payment apps."The idea is that we don't want the Tesla supercharger network to be like a walled garden,” Musk told the Twitter Spaces audience of more than 18,000. “We want it to be something that is supportive of electrification and sustainable transport in general.”Musk has praised Ford’s electric F-150 Lightning pickup truck in the past, and Farley recently told an investor conference that Ford was open to collaboration with other automakers, especially on electric infrastructure. Ford stock forecastFord has been stuck in a sort of wedge for a while now. The green descending resistance zone has been pushing Ford stock’s highs mostly lower since last August. On the bottom side, the $11 price level has been acting as a floor over the same time frame.A close above $14.50 is the primary key to a sustained rally, but first bulls will need to break through the wide chasm of the green resistance window. Any break of the $11 support level could send F shares down to the $10 to $10.50 former resistance range that held shares down during 2019 and 2020.Ford daily stock chart
Ethereum price to outpace Bitcoin price as ETH jumps over key hurdle where BTC fumbles

Ethereum price to outpace Bitcoin price as ETH jumps over key hurdle where BTC fumbles

FXStreet News FXStreet News 26.05.2023 16:25
Ethereum price breaks back above $1,800 on Friday in the ASIA PAC session.ETH signals a bullish outlook with the RSI showing spare room to head higher.Should ETH bulls cross above the green ascending trendline, expect to see a jump to $1,875.Ethereum (ETH) price is working on its recovery after it dipped to a two-week low on Thursday. While Bitcoin price has failed to make a similar move and head back above $26,500, Ethereum is outpacing Bitcoin and has been able to push above $1,800. One hurdle is in the way now. The green ascending trendline must be overtaken again by bulls before heading to $1,875.Ethereum price ultimately on trajectory to $1,930 Ethereum price slid below the green supportive trendline and made a two-week low on Thursday with nearly every crypto or altcoin component printing red numbers. Meanwhile, this Friday a small turnaround is noticeable, but not for everyone. Bitcoin price is still in the red, unable to jump above its recovery point, while Ethereum price has already advanced beyond that point at $1,800 and is primed to head higher.ETH will need to cross back above the green ascending trendline in order to get that continuation going. Once that has happened, expect to see further follow-through higher that heads toward $1,875 near the 55-day Simple Moving Average (SMA). The Relative Strength Index (RSI) has ample room to do that and might even see a brief test at $1,930 in case bulls overshoot the profit target.ETH/USD 4H-chart Risk to the downside is coming from a possible rejection against that same ascending trendline. In case that holds as resistance, a firm rejection could send ETH back to $1,765 and flirt with a deeper loss. If that level breaks, a leg lower to $1,740 would print a new monthly low.
Advanced Micro Devices Stock Forecast: AMD surges to 14-month high following Nvidia earnings

Advanced Micro Devices Stock Forecast: AMD surges to 14-month high following Nvidia earnings

FXStreet News FXStreet News 25.05.2023 16:54
Advanced Micro Devices seems to be piggy-backing on Nvidia earnings success.AMD stock rose 8% in Thursday’s premarket to above $118.Nvidia added as much as $222 billion at its peak late Wednesday.AMD stock is trading at its highest point since March 2022. Advanced Micro Devices (AMD) stock has risen 9% in Thursday’s premarket on the back of big brother Nvidia’s (NVDA) record earnings gap up. Nvidia stock shot up 25% late Wednesday after a 55% guidance raise for the next quarter’s revenue projection. Another AI-themed stock, C3.ai (AI) has also rallied more than 13% in the premarket.NASDAQ futures are up 2.2% on the back of Nvidia’s surge, while Dow futures are flat.Advanced Micro Devices Stock News: Nvidia achieves largest intrasession market cap gain in historySimply put, Nvidia’s gain following its post-market earnings release on Wednesday led to the largest intrasession market cap gain on record. Though it settled near $381 by the end of the afterhours session, NVDA stock ran up from $305 to nearly $395 before traders began taking profits off the table. That would mean a $222 billion market cap gain in one session. That was higher than Amazon’s (AMZN) $191 billion surge on February 4 of last year. As Nvidia’s most-watched competitor in the semiconductor design industry, AMD has followed the much bigger Nvidia by trading up to a level near $118 that it has not achieved since March 2022. This rally has pushed up AMD’s market cap by a much lower but still impressive $15.7 billion.AMD investors are likely impressed by Nvidia’s second-quarter revenue guidance, which shot up by nearly $4 billion or 55% to $11 billion. Nvidia expects an extreme jump in GPU orders, especially for its H100 chip used in AI-focused data centers. The data center had been languishing in recent quarters for Nvidia but the first quarter showed a measurable turnaround in that part of the business. AMD also has a large data center business that might benefit from sector-wide growth in that realm.AMD presented on Tuesday at the 51st Annual J.P. Morgan Global Technology, Media, and Communications Conference. AMD CFO, Jean Hu, was already ecstatic regarding the company’s opportunities in the AI space.“I would say one of the most exciting aspects during the last four months is to see incredible market opportunities, especially the opportunities related to generative AI [or] large language models. Literally, it's just unfolding in front of us,” Hu told the conference. “I think AMD has a broad portfolio. The company has been investing in both the CPU, GPU for the last decade. And then last year, with the acquisition of Xilinx and Pensando, the business added not only CPU, GPU but DPU adaptive compute and adaptive SoC.”AMD stock forecastAMD stock will likely now break into the resistance-prone $120. This area pushed AMD stock down during the first three months of 2022. It is unlikely that region will make things easy for bulls this time around. Additionally, the weekly RSI is overbought on the weekly chart, which amounts to further evidence that its current price at $118 will need to move sideways as bulls make sure the stock can be supported here. Support at the moment can be found near the June 2022 range high that should turn into support if needed.AMD weekly chart
Shiba Inu likely to launch Shibarium layer-2 in July

Shiba Inu likely to launch Shibarium layer-2 in July

FXStreet News FXStreet News 25.05.2023 16:54
Shiba Inu layer-2 Shibairum’s tentative launch date was revealed by a marketing specialist on Wednesday. SHIB holders have long anticipated the launch of the scaling solution as it is considered a bullish catalyst for ecosystem tokens.According to lead developer Shytoshi Kusama, Shibarium will be released in July if there are no development delays.Shiba Inu’s layer-2 scaling solution Shibarium is likely to be released in July or Q3, according to recent comments from the project’s lead developer. Shibarium’s launch is expected to drive the utility and adoption of ecosystem tokens Shiba Inu (SHIB), Bone Shibaswap (BONE) and Doge Killer (LEASH), which are part of Shiba Inu’s ecosystem Also read: Elon Musk warns traders against “betting the farm” on his favorite cryptocurrency DogecoinShiba Inu’s Shibarium likely to be launched in Q3 Shiba Inu community members are waiting for the launch of Shibarium, the ecosystem’s layer-2 scaling solution. Shibarium’s testnet Puppynet recently hit a new milestone, with 11 million successful transactions for more than 15 million wallet addresses. Shibarium’s significanton-chain growth fueled a bullish thesis among whales, with 40 billion SHIB tokens scooped up by large wallet investors, setting a fresh record. In a 60-minute time period on Wednesday, several big transactions were identified by crypto intelligence tracker Etherscan. Nearly 6.4 billion Shiba Inu tokens were transferred in only six transactions. A large wallet investor purchased 13 billion SHIB from the Crypto.com exchange, while 1.5 billion more were scooped up from KuCoin and withdrawn to a cold wallet. SHIB transfers on EtherscanJust as Shibarium’s transaction volume milestone fueled a bullish thesis among SHIB holders, the launch date release is also expected to drive a recovery in sentiment among community members. Shibarium mainnet ready to be rolled out soonShiba Inu’s marketing specialist Lucie Sasnikova said on Twitter that Q3 is the tentative date for the layer-2 launch. The SHIB executive reminded holders that Shytoshi Kusama, the lead developer, has previously said the release is expected in July in case there are no delays in the development phase. Shiba Inu is trading at $0.00000854 at the time of writing.The meme coin has seen a 3% price correction over the past week. The upcoming launch of Shibarium mainnet and its recent milestone are expected to fuel a thesis for SHIB price recovery in the short term.
FOMC Minutes Preview: The complicated task of searching for clues

FOMC Minutes Preview: The complicated task of searching for clues

FXStreet News FXStreet News 24.05.2023 16:22
The Federal Reserve will release the minutes of the FOMC meeting held on May 2-3.Fed members diverge on short-term rate outlook, but none anticipate rate cuts in 2023.The US Dollar Index is staging a recovery, which could continue if FOMC minutes reveal a firm tightening bias.The US Federal Reserve (Fed) will release the minutes of the Federal Open Market Committee’s (FOMC) May 2 - 3 policy meeting at 18:00 GMT, on Wednesday, May 24. They will provide valuable insights into the Fed's monetary policy outlook and the potential for further rate hikes in the near term. Traders and investors will be closely monitoring the minutes for any hints on the Fed's stance on inflation, economic growth, and interest rates, which could impact the financial markets.At the May meeting, the FOMC decided to raise the federal funds rate by 25 basis points to the range of 5.00% - 5.25%, in line with market expectations. This move has resulted in a total increase of 500 basis points since March 2022. In its statement, the central bank removed the reference "anticipates" additional policy tightening, opening the door to a potential pause at the next meeting on June 13-14.Market participants will scrutinize the minutes for clues about the central bank's next move at the upcoming June meeting. Although the odds of a rate hike have increased in response to the latest round of economic data, they remain small, and the expectation is for a pause.Source: CME FedWatch ToolThe May meeting offered signals of a "hawkish pause" ahead. If the minutes confirm that tone, the market reaction should be limited. While comments about rate cuts by year-end are not expected, if present, they could trigger a sell-off in the US Dollar. The focus is on the Fed's view of the current rate in relation to the peak and whether, along with the tightening in credit standards resulting from the banking crisis, the rate is restrictive enough to bring inflation back to 2%.Old news? Since the May meeting, US economic data has shown a resilient economy, with mixed signals, but no sign of the recession that many had warned about. Despite this, the bond market continues to anticipate a deterioration in activity during the second half of the year and has priced in rate cuts from the Federal Reserve. However, the Fed members have repeatedly stated that they do not see rate cuts ahead, and they differ on the economic outlook.The divergence between market expectations and the Fed has diminished somewhat during the last few days, which explains the rebound in US yields and the value of the US Dollar. This occurred even as Chair Jerome Powell suggested that he was open to holding rates unchanged, mentioning that the banking stress could mean that rates may not need to rise as high as otherwise. The divergence appears to be growing among the FOMC members, as some, like Kashkari, suggested they could support a pause, while others, like Bullard, explicitly said they have to move rates further higher.Old or new, the FOMC minutes will be scrutinized as the June 13-14 meeting is looking increasingly likely to be a close call between a 25 basis point rate hike and no hike. Furthermore, the forward guidance and how it will be communicated will be critical. Any detail could have significant but short-lived implications.Ahead of the next Fed meeting, several economic data releases will be important. On Friday, the US Core Personal Consumption Expenditure Price Index, which is the Fed's preferred inflation indicator, will be released. This will be followed by the May official employment report (June 2), and on the day the meeting commences, May's Consumer Price Index (CPI) will also be released (June 13).US Dollar Index: Rising from essential supportThe US Dollar Index is currently showing an upside bias after holding above the crucial support level of 101.00. The recent rally has faced resistance around the 103.50 area, and the DXY needs to break clearly above this level to pave the way for further gains. The bullish bias will remain in place as long as the index stays above 102.80. However, a drop under 102.20 would expose the critical support area of 101.00 once again.The rise in US yields has been a significant factor behind the US Dollar Index's recent upward movement. The upcoming release could further boost Dollar's strength, especially if they provide an upbeat perspective. However, if the FOMC minutes fail to do so and the outlook is pessimistic, yields could drop, posing a challenge to the current bullish outlook.
Nasdaq 100 posted a new one year high. S&P 500 ended the day unchanged

Palantir Stock Forecast: With PLTR up 55% on month, can May rally continue?

FXStreet News FXStreet News 24.05.2023 16:22
PLTR stock has risen 55% over the past month. Investor Cathie Wood has purchased PLTR across her Ark Invest ETFs. Palantir’s relationship to artificial intelligence has also buoyed the stock. Palantir stock formed a bullish Golden Cross pattern on the daily chart in early April.   Palantir (PLTR) stock has run up 55% over the past month after the market’s excitement over first quarter earnings and the related euphoria for all things artificial intelligence (AI). Palantir’s big data platform for militaries, governments and corporations utilizes AI, hence the excitement as other AI-linked stocks like Nvidia (NVDA), C3.ai (AI) and Upstart (UPST) have all benefited in recent weeks. After two straight weeks of more than 20% gains, Palantir stock is up 7.9% so far this week but down nearly 3% in Wednesday’s premarket. The pullback mid-week is primarily due to pessimistic remarks from House Speaker Kevin McCarthy on the debt-ceiling negotiations in Washington. Palantir stock news: Cathie Wood adds to PLTR frenzy Palantir stock had languished down near its IPO reference price for much of the past year after dropping more than 80% from its all-time high of $45 in January of 2021. That all changed on May 8, when Palantir released its first-quarter results. PLTR stock gapped up, consolidated for a week around $10, and then shot up over the past week to close at a 13-month high on Tuesday at $12.64. That price level has not been reached since April 2022. Investor Cathie Wood has helped to invigorate the rally this week. A long-time supporter of Palantir, Wood’s once-meteoric Ark Invest family of ETFs announced large buys this week. It is uncertain what made her team plough back into the stock more than a week after earnings, but its Ark Innovation ETF announced the purchase of more than 240,000 shares on Monday, its Ark Fintech ETF bought more than 54,000 shares, and its Ark Next Generation ETF acquired more than 42,000 shares. Wood is still a much-followed investor in tech and growth stocks, and so her purchases are closely followed by retail traders. Palantir CEO Alex Karp impressed the market with first-quarter results when he said that the data mining firm should be profitable all year. Until then, many analysts expected slight losses as the company focuses on driving revenue growth. However, revenue came in $19 million, or about 4% ahead of analyst consensus in the first quarter, so the market has drawn from this that profits and strong revenue growth can now be won in tandem. Still, debt talks in Washington are beginning to hold back equities this week, with NASDAQ 100 futures down 0.4% before the bell. Likewise, many in the market will wait to enter until FOMC minutes arrive at 18:00 GMT. Palantir has billions of dollars worth of US government, especially military, contracts that could get cut, postponed or face late payments if US legislators cannot agree to raise the debt limit in the next few weeks. Additionally, a debt compromise could result in major cuts to federal spending that lead to lowered guidance at Palantir. Palantir stock forecast Palantir stock has already reached a strong resistance band that stems from January and February of 2022. It ranges roughly from $12 to $14. The past two weeks have seen long wicks on the weekly chart once price action advanced into this region. A break of $14 will allow bulls to make a run at the April 2022 high of $14.86. PLTR weekly chart A close above that price could spur an attack at the $19 resistance level, which can be seen on the daily chart below. That level put a ceiling on price action during a long spell of consolidation in December of 2021. A Golden Cross formation – when the 50-day moving average crosses above the 200-day moving average – commenced in early April and seems to have given the first glimpse that a rally was in the cards. Still, the debt standoff in Washington, and especially if the US defaults on Treasury payments in June, could choke off any optimism in the market over the coming weeks. If this leads to a market exodus, then any pullback from this point in PLTR stock should coalesce around the August 2022 high at $11.62. PLTR daily chart
Autozone Stock Earnings: AZO slides below 50-day moving average on tiny revenue miss

Autozone Stock Earnings: AZO slides below 50-day moving average on tiny revenue miss

FXStreet News FXStreet News 23.05.2023 15:53
Autozone misses Wall Street revenue target by $30 million for fiscal Q3.AZO stock trades lower on news in Tuesday premarket.GAAP EPS beat expectations by 9%.AZO stock breaks below 50-day moving average.AutoZone (AZO) stock slid 2.7% early Tuesday to $2,548 per share after the vehicle maintenance and parts retailer reported revenue that missed the mark by a miniscule $30 million. Wall Street had expected $4.12 billion in sales during AutoZone’s fiscal third quarter, which ended May 6, but the company reported $4.09 billion.AutoZone stock news: Profits are way upAZO stock could just as easily have gone the other way as profits continued to soar at the parts dealer. AutoZone earned $34.12 in GAAP EPS – 9% ahead of the $31.29 consensus among analysts. This was also 17.5% above the same quarter a year ago.Management said it experienced a slowdown in revenue during March that led to the top line miss. Revenue was still up 6% YoY though, with same store sales in the US increasing by 2% over the same period.“While weaker than expected sales for the month of March meaningfully affected our results this quarter, we are excited about our initiatives and believe we are well positioned for future growth,” said CEO Bill Rhodes.AutoZone opened 22 new US locations during the quarter, as well as six in Mexico and two in Brazil.The company repurchased $908 million worth of stock during the quarter, and has approximately $844 million leftover in its current buyback mandate.AutoZone stock forecastAutoZone’s stock price has broken below the 50-day moving average in the premarket. When this has happened in the past, as in March just two months ago, AZO stock typically has found its footing near the 200-day moving average. That average is currently at $2,418. Otherwise, the $2,300 level held up both in January and March and could come in handy again. AZO stock needs to close above $2,600 – the double top from last November and this February – in order to move back to a bullish posture.AZO daily chart
Shiba Inu’s Shibarium heats up competition among Ethereum-based blockchains Arbitrum and Optimism

Shiba Inu’s Shibarium heats up competition among Ethereum-based blockchains Arbitrum and Optimism

FXStreet News FXStreet News 23.05.2023 15:53
Shiba Inu’s layer-2 scaling solution Shibarium surpassed 11 million transactions on its native test network Puppynet. Puppynet has processed over 11 million transactions for 15.9 million addresses since its launch in March. Shibarium’s new milestone helps layer-2 position itself as a competitor to Ethereum-based blockchains Arbitrum and Optimism. Shiba Inu, one of the largest meme coin projects in the crypto ecosystem, is gearing up to compete with Ethereum layer-2 blockchains. Scaling solution Shibarium’s test network Puppynet surpassed 11 million transactions. Also read: Three reasons why Litecoin whales could push LTC price to $100 before third halvingShibarium’s Puppynet hits a new milestone with 11 million transactionsThe Shiba Inu ecosystem’s layer-2 scaling solution hit a key milestone with transactions on the native test network Puppynet climbing above 11 million. Based on data from the BlockScout explorer, Puppynet has completed 11,160,339 transactions for 15.94 million wallet addresses. Puppynet statisticsAround 3% of the 11.16 million transactions, nearly 400,000, was recorded in a 24-hour period on May 21. The success of the layer-2 scaling solution is preparing Shibarium to compete with Ethereum-based Arbitrum and Optimism. Arbitrum and Optimism are focused on tackling scalability, speed and relatively high cost of transactions. With Shibarium in the mix, these Ethereum-based blockchains have a new competitor vying for market share in the ecosystem. Shibarium was built with a focus on metaverse and gaming applications. The layer-2 solutions' relatively low transaction cost is likely to attract decentralized application (dApp) developers to build on the network. Shiba Inu battles the speculation and hypeWhile most meme coin projects are typically driven by speculation and hype, Shiba Inu has differentiated itself from its competitors with a layer-2 scaling solution and a metaverse gaming ecosystem. Shiba Inu’s ecosystem tokens SHIB, BONE and LEASH control upwards of $5 billion in crypto market capitalization and the success of Shibarium is likely to fuel a bullish thesis among holders, driving these assets higher.
US S&P Global PMIs Preview: Dollar set to rise on a slip in the services sector

US S&P Global PMIs Preview: Dollar set to rise on a slip in the services sector

FXStreet News FXStreet News 22.05.2023 16:23
S&P Global's Services PMI may decline, missing estimates for a third consecutive time. Investors fear a recession more than fresh rate hikes from the Federal Reserve. A weak read would trigger safe-haven flows toward the US Dollar. Sell in May and go away? This market adage could be realized if the influential S&P Global Services Purchasing Managers' Index dips as I expect. The reading has broken a winning streak of six beats and missed estimates in the two most recent releases. Another weak data could come now – but for the US Dollar, a potential miss could be a boon. Here is a preview of S&P Global's preliminary Purchasing Managers' Indexes (PMIs) for May, due on Tuesday, May 23. Why S&P Global's PMIs matter for the US Dollar and what to expectWhile ISM's (Institute for Supply Management) PMIs hold the highest prestige, the ones published by S&P Global (formerly Markit) have an advantage – their preliminary version is out before the end of the month. In addition, the upcoming publication is the first significant release for the week, meaning more impact on already sensitive markets. The focus is on the services sector, which accounts for roughly 70% of the world's largest economy. Economists expect the Services PMI to stand pat at 53.6 points in May, reflecting decent growth – every figure above 50 represents expansion. They may be too optimistic.First, the mood has worsened due to the ongoing debt crisis debacle in Washington. Purchasing managers cannot fully ignore the news and remain optimistic. Secondly, there are signs of a slowdown in the US economy, seen in retail sales, producer prices and jobless claims. Third, the S&P Global Services PMI seemed to have lost momentum against economists' expectations..Source: FXStreetAll in all, a miss is more likely than a beat. Expected market reaction to the S&P Global PMI releaseThis time, the release comes as investors are following the debt crisis debacle in Washington. At the time of writing, there is fresh optimism, but the fluctuations in the saga mean markets are jittery. If pessimism returns, a weak data release would only add fuel to the fire – weigh on stocks and push the safe-haven US Dollar up.Yet, even if headlines from Washington remain upbeat around the publication, there is room for a risk-off reaction in markets. Why? Investors are worried about a recession, and every poor release adds to worries. If the US sneezes, the world catches a cold – sending funds to the safety of the US Dollar. What about rate hikes? The Federal Reserve (Fed) has all but announced the end of its tightening cycle. While some hawks at the bank remain open to yet another increase of borrowing costs, Fed Chair Jerome Powell seemed to signal that the bar is high for another move. Final thoughtsTraders often overlook S&P Global's PMIs – but their early release makes them impactful. The current backdrop points to a miss and an opportunity for US Dollar strength and stock market weakness.
Binance Coin price is on the road to recovery and the prospect of a 5% gain

Binance Coin price is on the road to recovery and the prospect of a 5% gain

FXStreet News FXStreet News 22.05.2023 16:23
Binance Coin price recovers during the European trading session.BNB breaks back above the monthly S1 support level and heads higher.Should BNB break above the red descending cap, expect to see a quick sprint to $320 this week.Binance Coin (BNB) price is heading higher this Monday after a failed string of tests at the topside and a breakdown in the ASIA PAC session on Monday morning. With price action already above the monthly S1, it means that bulls are resilient and willing to go the extra mile to get some gains out of this trading week. The Relative Strength Index (RSI) proves that bulls have been buying and are bound to head to $320 with a least a 5% gain for this week's projection.Binance Coin bulls are vying for a breakoutBinance Coin price is heading higher and is flirting with another test and possible break above the short-term red descending trendline. Over the weekend, the bulls already tried relentlessly and failed on several occasions. With a rejection on Monday morning, price action briefly slipped below the monthly S1 and flirted with $304 on the downside.BNB saw a knee-jerk reaction in the European session on Monday unfold as bulls bought the dip regardless and looked to advance higher again for that test. This time that test could be proven successful with a break above the red descending trendline near $310. Once that opens up, expect a massive influx of more bulls with a rally toward $320 by the end of this week in this plain and simple breakout play.BNB/USD 4H-chart Another rejection on the topside would hurt even more though. In that case bulls would start to offload their positions as clearly the red descending trendline is proven too big a hurdle to overcome. Look at $304, because once that level starts to crack, a quick drop to $300 is inevitable.
InstaForex's Irina Manzenko talks British pound amid latest events

GBP/USD eases from daily peak, up a little below mid-1.2400s ahead of Fed’s Powell

FXStreet News FXStreet News 19.05.2023 16:06
By Haresh Menghani GBP/USD stages a goodish recovery from over a three-week low amid a modest USD pullback. Hawkish Fed expectations and the US debt ceiling optimism should help limit the USD losses. Traders also seem reluctant to place fresh directional bets ahead of Fed Chair Powell’s speech. The GBP/USD pair shows some resilience below the 50-day Simple Moving Average (SMA) on Friday and stages a solid bounce from sub-1.2400 levels, or over a three-week low touched the previous day. The pair, however, retreats a few pips from the daily high touched during the early North American session and currently trades around the 1.2435-1.2445 region, up nearly 0.25% for the day. The risk-on impulse - as depicted by a generally positive tone around the equity markets - prompts some profit-taking around the safe-haven US Dollar (USD), especially after the recent runup to a nearly two-month high. This, in turn, is seen as a key factor lending support to the GBP/USD pair, though the upside potential seems limited. Firming expectations that the Federal Reserve (Fed) will keep interest rates higher for longer, along with the latest optimism over the US debt ceiling deal, continue to push the US Treasury bond yields higher and favour the USD bulls. Read next: EUR/USD Price Analysis: Initial support turns up near 1.0760| FXMAG.COM In fact, a slew of Fed officials this week expressed concerns that inflation in the United States (US) was not cooling fast enough and forced investors to scale back their bets for interest rate cuts later this year. In fact, the current market pricing indicates a small chance of another 25 bps lift-off at the next FOMC policy meeting in June. Furthermore, top US congressional Republican Kevin McCarthy said on Thursday that negotiations are at a better place than last week and expected a bill to raise the government's $31.4 trillion debt ceiling on the House floor next week. The aforementioned fundamental backdrop might hold back traders from placing aggressive bearish bets around the Greenback. Apart from this, expectations that fewer rate increases by the Bank of England (BoE) will be needed in the coming months to bring down inflation further contributes to capping gains for the GBP/USD pair. Investors also prefer to wait on the sidelines ahead of Fed Chair Jerome Powell's speech, which might provide clues about future rate hikes. This will drive the near-term USD price dynamics and provide a fresh directional impetus to the major.
Taming the Dollar: Assessing Powell's Hawkish Tone Amidst BRICS Expansion

Alibaba Stock Earnings News: BABA shares rise as profits outperform in FQ4

FXStreet News FXStreet News 18.05.2023 16:55
Alibaba beat analyst consensus on the top and bottom lines. Management mostly discussed their intent to spin-off various subsidiaries. Revenue rose just 2% YoY in US Dollar terms but beat analyst consensus. BABA stock rose 1.2% in Thursday’s premarket session. Alibaba (BABA) easily beat Wall Street’s pessimistic forecast for the fiscal fourth quarter (FQ4) early Thursday. The Chinese online retail conglomerate and cloud provider posted $1.56 in adjusted earnings per average diluted share compared with a general forecast of $1.35. Revenue of $30.32 billion beat analyst consensus by $410 million but rose just 2% YoY. BABA stock rose 1.2% to $91.70 in Thursday’s premarket session, while upstart competitor JD.com (JD) fell an equal amount. Alibaba stock news: Unlocking shareholder value through spin-offs, IPOs While the results were decent in the quarter, management said its main focus was unlocking shareholder value. “We are taking concrete steps towards unlocking value from our businesses and are pleased to announce that our board has approved a full spin-off of the Cloud Intelligence Group via a stock dividend distribution to shareholders, with intention for it to become an independent publicly listed company,” said CEO Daniel Zhang in a statement. “We have established a capital management committee at the Alibaba board level to undertake a comprehensive capital management plan to enhance shareholder value,” said CFO Toby Xu. “We are delighted to share that our board has approved the process to start external financing for Alibaba International Digital Commerce Business Group; exploration of IPO for Cainiao Smart Logistics Group; and execution of IPO for Freshippo.” Net income of $3.2 billion was robust “primarily due to net gains arising from increases in the market prices of our equity investments in publicly-traded companies.” Adjusted earnings per share rose 35% YoY. The international retail segment, which houses such flagship brands as Lazada, AliExpress, Trendyol and Daraz, saw order volume rise 15% YoY. Orders for the domestic Chinese services segment rose 20% YoY. Alibaba stock forecast BABA stock has definitely been on a shy uptrend of late. After bottoming out near $80 in the early part of May, the stock began rising as the earnings date got closer. Now that it has been reported, traders will watch intently on where BABA leans next. Breaking through the $103 to $105.32 resistance range is the primary concern. This region pushed BABA stock back down in March and April, and bulls are looking to break it once again on their march back up to the $120 price point. That last level has served as the divider between neutral and bullish outlooks over the past year. BABA daily chart
Chiliz announces public launch of layer 1 blockchain to take place on May 10

Binance Coin likely to outperform competitors as Wrapped Beacon ETH gets warm welcome

FXStreet News FXStreet News 18.05.2023 16:55
Binance has shifted its focus with the launch of its Ether-Wrapped Beacon ETH token in a pool on Curve Finance. The pool ranks eighth among liquid staking derivatives, amassing $129.9 million in total value since its release in late April. Binance Coin, the native token of Binance, could outperform competitors with its rising dominance in the DeFi landscape. The largest cryptocurrency exchange by trade volume, Binance, is gearing up to establish its dominance in the DeFi landscape with the launch of Ethereum-wrapped Beacon Ether (ETH-wBETH) liquidity pool on Curve Finance. Binance is incentivizing users with staked Ether rather than native tokens like other protocols. This has helped the pool amass $129.9 million in Total Value Locked (TVL) since its launch on April 27. Also read: Bitcoin mining difficulty hits record high, signals likely influx of selling pressure on BTC Binance ETH-wBETH pool on Curve Finance gains $129 million TVL in two weeks The wrapped Beacon Ethereum (wBETH) token was launched on April 27 and Binance introduced it in an ETH-wBETH liquidity pool on Curve Finance. Each wBETH represents one Beacon Ether and the accrued staking rewards from the Beacon Chain at the rate of conversion of 1.002. Within two weeks, 70.9K wBETH tokens have been minted and the current TVL is $129.9 million. wBETH ranks eighth among Liquid Staking Derivatives. wBETH statistics Binance can gain an edge over its competitors by inviting users to deepen the liquidity of the ETH-wBETH pool. In order to make this possible, the largest exchange by trade volume needs voting rights and needs to lock Convex Finance (CVX) tokens. The exchange is currently incentivizing vlCVX (vote locking CVX) holders with 11.381 wBETH, instead of a native protocol token. This opens up an opportunity for vlCVX token holders to gain staked Ether instead of other tokens like wstETH (wrapped staked Ether) offered by Lido Finance that need to be exchanged further for unlocked staked ETH. Binance’s dominance in DeFi could fuel BNB price recovery The exchange’s native token BNB benefits from Binance’s dominance in the DeFi landscape. BNB is in an upward trend that started in mid-June 2022 and Binance’s native token is on track to break past the 50% Fibonacci retracement (of the decline from April 2022 highs of $460 to June lows of $184) at $322. The 50-day Exponential Moving Average at $318.80 is the immediate resistance for BNB in its upward trend. BNB/USD one-day price chart In the event of a price decline, the 38.2% Fibonacci level at $289.50 would be key. A drop below this level could invalidate the bullish thesis for Binance Coin. Equal low at $267.7 is likely to act as support for BNB in the event of a decline in the native token of the exchange.
Australian Employment Change Preview: Another strong report?

Australian Employment Change Preview: Another strong report?

FXStreet News FXStreet News 17.05.2023 16:52
Australia is expected to have created 25,000 new jobs in April. The Wage Price Index rose 0.8% in the first quarter. The AUD/USD remains sideways, with risk in the short term tilted to the downside.The monthly Australian job report will be out on Thursday, May 18. The country is expected to have added 25,000 new positions in April. The consensus is for the Unemployment Rate to remain at 3.5%, while the Participation Rate is seen holding at 66.7%.Australia Unemployment Rate to remain near record low In March 2023, the Australian economy added 53,000 jobs, surpassing expectations. The Unemployment Rate stood at 3.5%, slightly above the record low of 3.4%. The news briefly boosted the Australian Dollar, with AUD/USD testing levels above 0.6800 before reversing.The strong employment numbers served as an argument for the Reserve Bank of Australia (RBA) surprise rate hike on May 3. This decision also briefly boosted the Aussie. Declining commodity prices and evidence of weak economic activity in China, plus a somewhat stronger US Dollar, kept AUD/USD below 0.6800.Data released Wednesday showed that during the first quarter, the Wage Price Index rose 0.8% quarterly and 3.7% year-on-year. This report, together with the wage data and employment numbers, may not be enough for the RBA to hike rates again at the June 6 meeting. Other employment indicators point to the labor market continuing to show tight numbers. Some of these are already priced in. However, such figures will add more evidence, keeping the door open (or the bias) to further tightening from the RBA, thus helping the Aussie.The monthly Consumer Price Index (CPI) indicator due on May 31 will be crucial. The CPI rose 6.3% in the 12 months to March. So far, market consensus is for the RBA to keep rates unchanged. The interest rate market sees rate cuts beginning early 2024, instead of late 2023 as previously expected.AUD/USD still in consolidation modeAn upbeat jobs report could trigger a rally in AUD/USD, but its sustainability depends on other factors, mostly external ones. For the pair to break above 0.6800, it looks like a stronger Australian dollar alone is not enough. Positive data could bring the pair closer to the key area.Risk in the short term look tilted modestly to the downside for the AUD/USD pair while it is under 0.6700 and under key daily moving averages. However, the main trend is sideways.Negative employment numbers could have an even a larger impact considering the short-term bearish bias. A slide under 0.6640 would expose the round-figure support at 0.6600 before the 2023 lows around 0.6560. Below that, Aussie bears might take control.
Target (TGT) Stock Earnings News: Profits beat the Street, but revenue remains flat

Target (TGT) Stock Earnings News: Profits beat the Street, but revenue remains flat

FXStreet News FXStreet News 17.05.2023 16:52
Retailer Target announced Q1 results early Wednesday.Target beat Wall Street consensus on the top and bottom lines.Revenue was flat YoY, and management blamed increased theft.TGT share price set to keep dropping, but support is nearby at $153.50. Target reported an impressive first quarter earnings beat early Wednesday, but shares barely budged as revenue grew just 0.6% from a year earlier. TGT stock rose an imperceptible 0.4% to $157.60 in Wednesday’s premarket as management detailed a shocking level of theft and other “shrink” that it says will reduce full-year profits by $500 million.Target stock news: Theft becomes major hit to earnings powerThe market has not moved much following the earnings release despite Target beating Wall Street’s pessimistic expectations. Revenue was $40 million above consensus for the quarter at the retailer, but that is not even close to 1% of the $25.32 billion topline figure.Simply put, Target is in a slow growth environment, and last year’s hefty inventories have to be sold at reduced prices to get cleared out. That said, inventories have fallen 16% YoY.GAAP earnings per share (EPS) of $2.05 beat Wall Street’s consensus by about 25 cents but fell about 5% YoY. The better-than-expected earnings figure can mostly be attributed to the reduction in inventory.Management seems worried, however, about “organized retail crime” that it blames for eating into net profit margins.“We now expect shrink will reduce this year's profitability by more than $500 million compared with last year,” Target CEO Brian Cornell said. “While there are many potential sources of inventory shrink, theft and organized retail crime are increasingly important drivers of the issue," he added.To put that figure into perspective, Target earned $6.95 billion in 2022, so $500 million is slightly more than 7% of that.Target kept its guide for the full year at a range of $7.75 to $8.85 in adjusted EPS, but the outlook for the second quarter is much worse than expected. Management gave a range of $1.30 to $1.70 in adjusted EPS – well below Wall Street’s expectation of $1.93.Target stock forecastTarget stock has been on a downward trend since early February. This latest earnings report seems unlikely to reverse that course. TGT stock is already near support at $153.50, which is where it is likely to rest next. A break here could, however, send Target stock back to the $145.50 support level that defended the price action back in May, September and October of last year. Target will not regain a neutral footing until it breaks above the descending top trendline that began in February. Right now, the trendline sits at $165, or about 6% higher than the current price level.TGT daily chart
USD/JPY retakes 136.00 as hawkish remarks by Fed’s Mester help revive USD demand

USD/JPY retakes 136.00 as hawkish remarks by Fed’s Mester help revive USD demand

FXStreet News FXStreet News 16.05.2023 16:46
USD/JPY reverses an intraday dip amid the emergence of some USD dip-buying on Tuesday.Hawkish remarks by Fed’s Mester lift bets for additional rate hikes and boosts the Greenback.A softer risk tone could underpin the safe-haven JPY and cap any further gains for the major.The USD/JPY pair attracts some dip-buying on Tuesday and move back above the 136.00 mark during the early North American session, closer to a one-and-half-week high touched the previous day.The US Dollar (USD) recovers its intraday losses in reaction to hawkish remarks by Cleveland Federal Reserve President Loretta Mester and turns out to be a key factor lending support to the USD/JPY pair. Mester said that interest rates are not at a sufficiently restrictive level and that the central bank isn't at the spot to hold rates yet. This, in turn, triggers a sharp intraday rise in the US Treasury bond yields and acts as a tailwind for the Greenback, overshadowing the mixed US Retail Sales figures.The US Census Bureau reported that the headline US Retail Sales rose 0.4% MoM in April as compared to consensus estimates for a reading of 0.8%. Meanwhile, sales excluding automobiles registered a modest 0.4% growth during the reported month, as anticipated. The positive surprise came from Retail Sales Control Group, which recorded a solid rebound from the previous month's 0.4% downfall and increased by 0.7% during the reported month, surpassing market expectations for a flat reading.This, along with a more dovish stance adopted by the Bank of Japan (BoJ), continues to undermine the Japanese Yen (JPY) and further contributes to the USD/JPY pair's intraday bounce. It is worth recalling that BoJ Governor Kazuo Ueda said last week that it was too early to discuss specific plans for an exit from the massive stimulus program. That said, a generally weaker toen around the equity markets could benefit the JPY's relative safe-haven status and cap any meaningful gains for the major.Against the backdrop of concerns about the US debt ceiling, weaker-than-expected Chinese macro data fuels recession fears and tempers investors' appetite for riskier assets. Nevertheless, the fundamental backdrop seems tilted in favour of bullish traders and suggests that the path of least resistance for the USD/JPY pair is to the upside. Hence, a subsequent move up towards testing the 200-day Simple Moving Average (SMA), currently around the 137.00 round-figure mark, looks like a distinct possibility.
Home Depot Stock Earnings: HD drops 5% on revenue miss, comparable sales decline

Home Depot Stock Earnings: HD drops 5% on revenue miss, comparable sales decline

FXStreet News FXStreet News 16.05.2023 16:46
Home Depot revenue missed projections by over $1 billion in Q1.Comparable sales fell 4.5% YoY.HD stock dropped nearly 5% on the news.Historical support on the daily chart shows up at $281.Home Depot (HD) stock careened 4.8% lower in Tuesday’s premarket to $274.83 after the preeminent home improvement retailer in the United States posted a similar decline in sales for the fiscal first quarter. Home Depot saw comparable sales drop 4.5% YoY and 4.6% in the US alone. Revenue of $37.3 billion fell 4.1% YoY and missed Wall Street consensus by $1.05 billion.Home Depot Stock News: Customers pull back spendingThe good news in the quarter comes from the profit side. Home Depot reported GAAP earnings per share (EPS) of $3.82, which beat analyst consensus by just less than 1%. The market, however, is mainly focused on the revenue shortfall. April retail sales figures will be released an hour before the market opens in New York, and market observers are already wondering if Home Depot's results will show up in those wider economy figures. As a result Dow futures have trended down 0.3% early Tuesday."After a three-year period of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market," said CEO Ted Decker. “Our sales for the quarter were below our expectations primarily driven by lumber deflation and unfavorable weather, particularly in our Western division as extreme weather in California disproportionately impacted our results.”Essentially, it appears that the covid pandemic pulled forward a lot of demand for do-it-yourself home renovations as many were stuck at home for months on end. Additionally, a lack of supply led to an enormous price increase in timber that lasted through the first quarter of 2022 before dropping back to normal levels. As a major distributor of lumber, Home Depot's sales results are somewhat distorted by that commodity.Management views the first quarter as carrying on into full-year results. Home Depot executives expect comparable sales to pull back by between 2% and 5% compared to the prior year. While the operating margin for the full year is projected to remain above 14%, diluted EPS will decline between 7% and 13% YoY.Home Depot stock forecastHome Depot stock immediately crashed into support from March around the $281 level. If that gives way, it is possible that enough selling could push HD shares down to the demand window that ranges from $264.50 to $268. That supportive range held up on three separate occasions last year – in June, September and October. This downtrend in Home Depot was already heralded on May 5, when the 9-day moving average dropped below its 21-day counterpart. The market seemed to already be telgraphing its descent.Expect either this downtrend to continue, but if $281 holds over the next week then HD stock will remain in neutral territory. There still won't be a bull call on the stock until it breaks through resistance that sits in a range between $300 and $303.Home Depot daily chart
S&P 500 Forecast: Expect debt ceiling talks to injure sentiment this week

S&P 500 Forecast: Expect debt ceiling talks to injure sentiment this week

FXStreet News FXStreet News 15.05.2023 16:41
Debt ceiling talks should get underway this week.Yellen to hold meeting with Bank Policy Institute.Home Depot, Target, Walmart, Alibaba report earnings.April US retail sales will be reported on Tuesday. The S&P 500 index could begin to feel the effects of the debt ceiling showdown in Washington this week. Now midway through May, US debt ceiling talks are less than three weeks away from the US Treasury’s chosen deadline of June 1. At that point, the Treasury will begin using extraordinary measures in order to continue making the federal government’s debt payments by delaying other payments in order to resist a default.Besides debt ceiling talks held throughout the week, which may push equity sentiment in either direction, a few high-profile retailers will report earnings this week, including Walmart (WMT) and Home Depot (HD). Those quarterly announcements will mesh well with Tuesday’s April retail sales release to make the retail sector the overall focus of the stock market this week.At the time of writing in Monday’s premarket, S&P 500 futures have advanced 0.3%, while NASDAQ 100 futures have gained 0.2%. S&P 500 News: Debt ceiling situation likely to hurt equitiesBetting markets put the odds at about 15% that the federal government will commit a technical default (late payment) before the debt ceiling is lifted. This already occurred during the Obama administration when Congressional intransigence led to Standard & Poor’s lowering the US government’s credit rating. Even a technical default could lead to higher interest rates on Treasuries that would hurt the relative value of equities and thus the S&P 500.A compromise that cuts spending and/or raises taxes would also likely be a net negative for the index however. The federal budget is currently running a large deficit that is acting as a shadow stimulus to the economy. A major cut to that spending level would likely lower future GDP and even corporate profits in the second half of the year. The only situation that would help the stock market would be a clean raise of the debt limit – which is currently stuck at $31.4 trillion.Last Friday’s negotiations between President Biden and House Republicans were postponed to this week, so expect some market-moving headlines to emerge once those meetings take place. Additionally, US Treasury Secretary Janet Yellen is scheduled to give a talk at the Bank Policy Institute this week. The industry lobby will also feature CEO Jamie Dimon of JPMorgan and Citigroup CEO Jane Fraser.April retail sales combines with major retailer resultsThe US Census Bureau will release April retail sales one hour before the market opens on Tuesday. Wall Street consensus for the MoM retail sales growth is 0.7%. This would be much better than March’s -0.6% decline, so a miss would likely lead to a sell-off in retail stocks.Adding to the focus on retail, a number of the largest big box retailers are reporting their quarterly results this week. Home Depot arrives on Tuesday with analyst consensus calling for $3.80 in GAAP EPS on revenue of $38.37 billion in sales. Wednesday has Target (TGT) reporting with Wall Street expecting $1.86 in GAAP EPS on $25.31 billion in sales.Then on Thursday, both Walmart and Alibaba (BABA) report. Wall Street consensus expects Walmart to earn $1.31 per share on revenue of $147.8 billion, while Alibaba is expected to report $1.36 in adjusted EPS on $30.19 billion in sales.Besides that, smaller retailers like Ross Stores (ROST), Foot Locker (FL) and TJX Companies (TJX) will also report this week.Earnings of the weekMonday, May 15 - Tower Semiconductor (TSEM)Tuesday, May 16 - Baidu (BIDU), Home Depot (HD), Sea Limited (SE)Wednesday, May 17 - Target (TGT), Cisco (CSCO), TJX Companies (TJX), Take-Two Interactive (TTWO)Thursday, May 18 - Walmart (WMT), Alibaba (BABA), Applied Materials (AMAT), Farfetch (FTCH), Ross Stores (ROST)Friday, May 19 - Foot Locker (FL), Deere & Co (DE)S&P 500 quote: Michael WilsonMichael Wilson, chief US equity strategist for Morgan Stanley, said the debt ceiling debate is likely to trigger major moves in the market."[Most market participants] believe it will ultimately get resolved, but not without some near-term volatility.”S&P 500 forecastThe S&P 500 has already been whispering that a downturn is in the cards. Last week the index lost -0.3%, and the week before it was -0.8%. What has kept the S&P 500 afloat is that twice now – on April 26 and again on May 4 – strong support was seen at 4,050. That double bottom has kept many a trader’s hopes alive. SP 500 daily chartThe debt ceiling showdown, however, has the worrisome prospect of probably leading to some institutional selling. No one likes uncertainty, and the possibility of a technical default is extremely dangerous. The “sell in May and go away” saying is sensible now more than ever. A weekly close below 4,100 will certainly lead to more selling next week. And a break of recent support at 4,050 will set the S&P 500 on an escalator down to December’s support ledge at 3,800. All told, the market looks pessimistic. The Moving Average Convergence Divergence (MACD) indicator also crossed over bearishly at the end of April, so this downturn has been foreshadowed for weeks.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Panic sellers likely to regret soon

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Panic sellers likely to regret soon

FXStreet News FXStreet News 15.05.2023 16:41
Bitcoin price has dipped into the weekly FVG, indicating that a short-term bottom might be near. Ethereum price approaches a reversal level after a 17% crash in four weeks. Ripple price is also waiting on BTC’s consent for a rebound rally.Bitcoin (BTC) price shows a lack of buying participants after crashing nearly 17% over four weeks. Due to the dearth of bullish momentum, there seems to be no recovery rally in sight. However, there seems to be a slow yet steady plan for a bounce, which if confirmed, could trigger a mini-rally for altcoins, including Ethereum (ETH) and Ripple (XRP) as well.Also read: Ethereum Cancun upgrade to boost ETH blockchain’s popularity among developers and users on this conditionBitcoin price is close to initiating a recoveryBitcoin (BTC) price entered the weekly Bearish Breaker, extending from $29,247 to $41,273, which triggered a spike in selling pressure. As a result, BTC slid 16.50% between April 10 and May 8 into the weekly Fair Value Gap (FVG), which extends from $22,591 to $26,591.For more details on Breakers and FVG, read this: Where will the 2023 crypto bull rally top? – ICTWhile the bullish outlook for Bitcoin price has not become apparent yet, there are signs that traders can look for to spot an early trend reversal. The Relative Strength Index (RSI) could slide a little lower to bounce off the mean level. The Awesome Oscillator (AO) shows a decline in bullish momentum but is very close to seeing a reset at the zero-line.With this momentum reset in mind, investors should pay attention to the $25,205 and $24,300 support levels to accumulate BTC. A clear outlook in momentum shift can be observed on the daily chart. In the likely case that buyers make a comeback, Bitcoin price will eye a retest of the bearish breaker’s midpoint at $35,260. In total, this move would constitute a 40% to 45% gain for investors based on their accumulation levels. BTC/USD 1-week chartInvestors should note that the bullish outlook detailed above needs to be spotted and then confirmed. However, if neither of the above is noted, Bitcoin price could continue to plummet. In such a case, BTC might find support at $17,605, which is the selling climax of the June 13 weekly candlestick. Ethereum price recovery awaits BTC’s signalEthereum (ETH) price set up a prolonged bearish divergence sell signal on the daily chart between January 14 to May 13. This setup resulted in a 17% crash in four weeks that pushed ETH to $1,735. Although Ethereum price failed to retest the $1,705 support level, it slipped below the $1,817 structure. While a recovery seems to be already in place, investors need to wait for Bitcoin to show its hand before jumping on altcoins like ETH.Investors can look at the $1,705 support level for accumulation, but in a dire case, a dip into the daily FVG, extending from $1,478 to $1,563, seems plausible. If Bitcoin price kick-starts its recovery, Ethereum price might also eye a recovery rally and a retest of $2,028.ETH/USD 1-day chartA daily candlestick close below $1,478 will invalidate the FVG and the bullish thesis for Ethereum price. In such a case, ETH could slide down to $1,249. Ripple price fails againRipple price has been trying to overcome the $0.532 resistance level for nearly a year. The recent retests on March 29 and April 19 were the latest failed attempts. As a result, XRP price has slid 20% and is currently trading at $0.422. A bounce off this stable support level is likely to trigger a rally in Ripple price. The targets of this recovery rally include $0.609 and $0.765, provided the remittance token can flip the $0.532 resistance level into a support level. XRP/USD 3-day chartWhile the outlook for Ripple price is extremely optimistic, it is contingent on Bitcoin’s recovery rally. Failure in BTC to runup could result in XRP price flipping the $0.422 support level into a resistance barrier. Such a move would invalidate the bullish thesis and potentially trigger a retest of the range low at $0.288.