Bitcoin
Fed, BoJ rate decisions, Nasdaq, gold, Bitcoin
Markets next week: Fed, BoJ rate decisions, Nasdaq, Gold, Bitcoin
- Fed and BoJ will keep rates unchanged; comment is essential
- The Nasdaq remains in record territory despite weakening rate expectations.
- Gold Sinking at Support, Bitcoin Pressing Against Resistance.
For all the market-moving economic data and events, see the DailyFX Calendar
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A week packed with high-impact economic data and events, including employment data from the UK, US inflationAustralian employment, US PPI, along with the latest monetary policy decisions by the Fed and the Bank of Japan. The Fed will leave all policy levers intact, but the release of the latest summary of economic projections will likely give the market something to work with. The BoJ will also keep rates unchanged but may signal that it will allow bond yields to rise, the first step towards tightening monetary policy. USD/JPY will be an active pair in the second half of next week.
O American dollar pared all of this week’s losses on Friday following the release of the latest U.S. jobs report (NFPs). This stronger than anticipated release sent the US dollar back to 105.00, erasing all of this week’s and next week’s losses. FOMC meeting will drive action in the coming weeks. The US Dollar Index remains in a downward trend, but a move above 105.21 would break a recent series of higher lows and take the index back above the last of the three simple moving averages.
US Dollar Jumps After NFPs Beat Expectations, Gold Hits One-Month Low
US Dollar Index Daily Chart
Gold on Friday fell $20/oz. just minutes after a Bloomberg report said China had stopped buying the precious metal. China has been a major buyer of gold in recent months and the report sparked a buyers’ strike. The precious metal fell further following the release of the US Employment Report as US Treasury yields soared. Gold currently trades around $2,310/oz. and is approaching a key support level at $2,280/oz. This level needs to be maintained to bring buyers back into the market.
Daily Gold Price Chart
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The Nasdaq 100 is currently recording a new record, driven by the world’s second-largest company, Nvidia. The AI chip giant overtook Apple this week in terms of market value and is behind Microsoft. The Nasdaq remains in a long-term upward trend and short-term sell-offs could offer new opportunities. The concentration risk, however, remains high, with the ‘Magnificent Seven’ dominating the climb.
Nasdaq 100 Daily Chart
Bitcoin is finding it difficult to surpass the important $72K level but remains in a positive trend. If the May 21st high is broken and opened above, a new all-time high is likely to be reached.
Bitcoin Daily Price Chart
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