Forex, markets await US data, Dollar weakens, Bitcoin hits $100K
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The US Dollar (USD) continues to slide, weighed down by softer Treasury yields and a cautious market mood ahead of key US data releases. Meanwhile, Bitcoin surged past the $100,000 mark, spurred by optimism surrounding President-elect Donald Trump’s pro-crypto regulatory stance. European currencies show resilience, while Gold remains range-bound near $2,650.
US Dollar Struggles Amid Lower Yields
The US Dollar Index (DXY) extended its losses for the third straight day, retreating toward 106.00. Federal Reserve Chairman Jerome Powell’s remarks on the balanced approach to monetary policy failed to boost the Greenback, as markets anticipate a more cautious Fed stance amid robust labor market conditions and easing inflationary pressures.
Treasury yields continued to slide, with the 10-year yield falling below 4.2%, further weighing on the USD. Investors are now focused on Initial Jobless Claims and Goods Trade Balance data for October to assess the economy’s resilience.
Bitcoin Surges to Record High
Bitcoin smashed through the $100,000 barrier, entering price discovery mode, following the announcement that pro-crypto advocate Paul Atkins will replace Gary Gensler as the next SEC Chair. This development has reinvigorated bullish sentiment in the crypto market, with BTC eyeing a potential move toward $113,000. Other cryptocurrencies like Ethereum and XRP also posted strong gains.
Key Forex Developments
EUR/USD: The pair hovers above 1.0500, finding support from slightly better-than-expected German Factory Orders data, which fell 1.5% in October compared to the anticipated 2% decline. The political turmoil in France continues to limit upside potential for the Euro, as investors brace for the upcoming Retail Sales data from the Eurozone.
GBP/USD: Sterling gained traction, climbing above 1.2700, supported by a softer USD and optimism about the UK economy's resilience.
USD/JPY: After a sharp rally on Wednesday, the pair retreated below the 150.00 mark as Bank of Japan board member Toyoaki Nakamura stressed a data-driven approach to monetary policy decisions ahead of the December meeting.
Gold and Other Assets
Gold prices remain steady near $2,650, as declining US Treasury yields provide support, but the absence of a strong catalyst limits momentum. Investors await Fed Chair Powell’s speech and key US data for clearer direction.
Key Market Movers Ahead
US Initial Jobless Claims: A stronger-than-expected reading could renew USD demand and weigh on risk assets.
Eurozone Retail Sales: Expected to shed light on consumer demand trends across the bloc.
Jerome Powell Speech: Markets will scrutinize his comments for clues about the Fed’s rate trajectory.
Technical Levels to Watch
EUR/USD: Immediate support at 1.0480, with resistance near 1.0560.
GBP/USD: Key resistance at 1.2750, with support at 1.2620.
BTC/USD: Support at $100,000; upside targets include $113,000 and $125,000.
XAU/USD: Resistance remains at $2,666, while support lies at $2,600.
Outlook The market remains cautious as traders navigate geopolitical uncertainties and macroeconomic data. Bitcoin's rally has reignited enthusiasm in riskier assets, while currencies and commodities await pivotal developments to break out of their current ranges.
US Dollar Struggles Amid Lower Yields
The US Dollar Index (DXY) extended its losses for the third straight day, retreating toward 106.00. Federal Reserve Chairman Jerome Powell’s remarks on the balanced approach to monetary policy failed to boost the Greenback, as markets anticipate a more cautious Fed stance amid robust labor market conditions and easing inflationary pressures.
Treasury yields continued to slide, with the 10-year yield falling below 4.2%, further weighing on the USD. Investors are now focused on Initial Jobless Claims and Goods Trade Balance data for October to assess the economy’s resilience.
Bitcoin Surges to Record High
Bitcoin smashed through the $100,000 barrier, entering price discovery mode, following the announcement that pro-crypto advocate Paul Atkins will replace Gary Gensler as the next SEC Chair. This development has reinvigorated bullish sentiment in the crypto market, with BTC eyeing a potential move toward $113,000. Other cryptocurrencies like Ethereum and XRP also posted strong gains.
Key Forex Developments
EUR/USD: The pair hovers above 1.0500, finding support from slightly better-than-expected German Factory Orders data, which fell 1.5% in October compared to the anticipated 2% decline. The political turmoil in France continues to limit upside potential for the Euro, as investors brace for the upcoming Retail Sales data from the Eurozone.
GBP/USD: Sterling gained traction, climbing above 1.2700, supported by a softer USD and optimism about the UK economy's resilience.
USD/JPY: After a sharp rally on Wednesday, the pair retreated below the 150.00 mark as Bank of Japan board member Toyoaki Nakamura stressed a data-driven approach to monetary policy decisions ahead of the December meeting.
Gold and Other Assets
Gold prices remain steady near $2,650, as declining US Treasury yields provide support, but the absence of a strong catalyst limits momentum. Investors await Fed Chair Powell’s speech and key US data for clearer direction.
Key Market Movers Ahead
US Initial Jobless Claims: A stronger-than-expected reading could renew USD demand and weigh on risk assets.
Eurozone Retail Sales: Expected to shed light on consumer demand trends across the bloc.
Jerome Powell Speech: Markets will scrutinize his comments for clues about the Fed’s rate trajectory.
Technical Levels to Watch
EUR/USD: Immediate support at 1.0480, with resistance near 1.0560.
GBP/USD: Key resistance at 1.2750, with support at 1.2620.
BTC/USD: Support at $100,000; upside targets include $113,000 and $125,000.
XAU/USD: Resistance remains at $2,666, while support lies at $2,600.
Outlook The market remains cautious as traders navigate geopolitical uncertainties and macroeconomic data. Bitcoin's rally has reignited enthusiasm in riskier assets, while currencies and commodities await pivotal developments to break out of their current ranges.