The cryptocurrency's market capitalisation rose 4.3% in the last 24 hours, hitting the $1.29 trillion. Ether's rally is successfully pulling most of the market with it.
Bitcoin is up 2.4% overnight, underperforming the market but revisiting last June's highs near $30.8K.
Ethereum is up more than 10% overnight, trading above $2100. This is its highest level since last May. The rally was triggered by the successful activation of the Shapella hard fork.
The update was activated on the night of the 12th at 22:30 GMT, allowing withdraw from the stacking. Contrary to fears, this did not put pressure on the ETH exchange rate, but instead accelerated the upward trend that started in December.
According to Nansen, full withdrawals are available for 7,948 validators with a total of 284,622 ETH (more than $546 million) in their balances. The total assets in the stack exceed 18 million ETH. However, 56% of the validators' addresses do not have the 0x01 prefix required to unlock assets.
Bitcoin is up 2.4% overnight, underperforming the market but revisiting last June's highs near $30.8K.
Ethereum is up more than 10% overnight, trading above $2100. This is its highest level since last May. The rally was triggered by the successful activation of the Shapella hard fork.
The update was activated on the night of the 12th at 22:30 GMT, allowing withdraw from the stacking. Contrary to fears, this did not put pressure on the ETH exchange rate, but instead accelerated the upward trend that started in December.
According to Nansen, full withdrawals are available for 7,948 validators with a total of 284,622 ETH (more than $546 million) in their balances. The total assets in the stack exceed 18 million ETH. However, 56% of the validators' addresses do not have the 0x01 prefix required to unlock assets.
Fed shrinks balance sheet slower than ECB
The Fed’s balance sheet shrank by 17.6 bn last week to 8.615 bn. Down 119bn over three weeks, the balance sheet is still 275bn higher than at the start of March.
Pumping liquidity into the financial system helps to support demand for risky assets, as it reduces stress in the financial system and creates more optimistic expectations for the banking sector and the market.
A shrinking balance sheet is only good news for the dollar in theory. In practice, the ECB is more disciplined in reducing its balance sheet. Moreover, comments from European officials are shaping expectations that the next ECB rate hike will also be a 50bp hike. Markets are currently pricing in a 69% probability of the Fed’s 25bp hike and a 31% probability of no hike.
The Fed’s balance sheet shrank by 17.6 bn last week to 8.615 bn. Down 119bn over three weeks, the balance sheet is still 275bn higher than at the start of March.
Pumping liquidity into the financial system helps to support demand for risky assets, as it reduces stress in the financial system and creates more optimistic expectations for the banking sector and the market.
A shrinking balance sheet is only good news for the dollar in theory. In practice, the ECB is more disciplined in reducing its balance sheet. Moreover, comments from European officials are shaping expectations that the next ECB rate hike will also be a 50bp hike. Markets are currently pricing in a 69% probability of the Fed’s 25bp hike and a 31% probability of no hike.
The situation with US banks in March highlighted the Fed’s flexibility and willingness to change course as circumstances dictate. This is good news for the economy, commodities, and equity markets, but it is also a negative agenda for the dollar. The US is clearly in the lead regarding policy tightening, while the ECB is raising interest rates and selling assets from its balance sheet more actively.
We expect this to continue, putting moderate pressure on the USD against its major rivals. On the macro monetary policy, 2022 is similar to 2002, when the #EURUSD began a strong recovery, and the pair rose by more than 50% in less than three years.
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We expect this to continue, putting moderate pressure on the USD against its major rivals. On the macro monetary policy, 2022 is similar to 2002, when the #EURUSD began a strong recovery, and the pair rose by more than 50% in less than three years.
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The Swiss Producer and Import Price Index rose by 0.2% in March, slowing the annual growth rate to 2.1% from 2.7%. Producer price pressures are easing faster than expected 2.7%. Easing inflation is a long-awaited signal for the SNB, which has raised its rate by 225 b.p. since the middle of last year to 1.5%.
Swiss CPI accelerated unexpectedly in January and February. Still, a continued slowdown in producer and import prices will likely keep a lid on consumer inflation in the coming months.
The Swiss franc exchange rate is also playing its role in easing inflation. From its peak in November to Thursday's low, the USDCHF exchange rate has lost more than 12.5%, taking prices back to February 2021 levels. The current rate of 0.8880 is quite close to multi-year lows near 0.8800.
Switzerland is now entering a situation where inflation is on a steady downward path, and the franc is close to historically uncomfortable levels for the SNB.
The central bank may start to change its rhetoric to a more dovish one.
Swiss CPI accelerated unexpectedly in January and February. Still, a continued slowdown in producer and import prices will likely keep a lid on consumer inflation in the coming months.
The Swiss franc exchange rate is also playing its role in easing inflation. From its peak in November to Thursday's low, the USDCHF exchange rate has lost more than 12.5%, taking prices back to February 2021 levels. The current rate of 0.8880 is quite close to multi-year lows near 0.8800.
Switzerland is now entering a situation where inflation is on a steady downward path, and the franc is close to historically uncomfortable levels for the SNB.
The central bank may start to change its rhetoric to a more dovish one.
The crypto market has gained around 7.2% in the last seven days to $1.268 trillion. The crypto market is recovering, like climbing the stairs, and is now consolidating at the same level it consolidated in May-June last year. To get to the next floor, with a market cap of $1.7 trillion, would require a jump of 34% - quite a climb, requiring a shift in market sentiment.
#Bitcoin is trading 6% higher than a week ago, stuck at $30K. #Ethereum has jumped 13% to $2100. Other leading altcoins in the top 10 are up 2.3% (#XRP) to 26% (#Solana).
Traders should be prepared that the $30K mark for the first cryptocurrency could act as solid resistance after it was rigid support in 2021. That said, technically, bitcoin has already proven the end of the bear market by securing above key moving averages and steadily retreating from the bottom.
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#Bitcoin is trading 6% higher than a week ago, stuck at $30K. #Ethereum has jumped 13% to $2100. Other leading altcoins in the top 10 are up 2.3% (#XRP) to 26% (#Solana).
Traders should be prepared that the $30K mark for the first cryptocurrency could act as solid resistance after it was rigid support in 2021. That said, technically, bitcoin has already proven the end of the bear market by securing above key moving averages and steadily retreating from the bottom.
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#WaveAnalysis #BA
Boeing falling inside impulse waves 3 and (3)
Likely to reach support level 193.10
Boeing continues to fall inside the minor impulse wave 3, which belongs to the intermediate impulse wave (3) from February.
Both of the active impulse waves 3 and (3) started from the resistance level 215.00, which is the upper boundary of the sideways price range inside which the price has been trading from January.
Boeing can then be expected to fall further toward the next support level 193.10 (low boundary of the active sideways price range).
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Boeing falling inside impulse waves 3 and (3)
Likely to reach support level 193.10
Boeing continues to fall inside the minor impulse wave 3, which belongs to the intermediate impulse wave (3) from February.
Both of the active impulse waves 3 and (3) started from the resistance level 215.00, which is the upper boundary of the sideways price range inside which the price has been trading from January.
Boeing can then be expected to fall further toward the next support level 193.10 (low boundary of the active sideways price range).
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#WTI Crude Oil is trading below $82 a barrel at the start of the new week and remains below its 200-day moving average. Crude oil was not allowed to break above this critical curve for the banks and big players, signalling to them that the bearish trend was in force.
As March progressed, we saw oil drop out of the established $72-82 trading range and almost as quickly bounce back into it. We also saw a failed attempt to break out of the range last week.
Crude's momentum has slowed as it approaches its 200-day MA after rising nearly 30% over the past three weeks. Large traders and funds look at this curve as a long-term trend indicator: Higher readings indicate an uptrend, and lower readings indicate a downtrend.
This line acted as critical support during oil's bullish rally from 2020 to mid-2022. A break below it in August 2022 was the prologue to a one-third drop in price over the next eight months.
As March progressed, we saw oil drop out of the established $72-82 trading range and almost as quickly bounce back into it. We also saw a failed attempt to break out of the range last week.
Crude's momentum has slowed as it approaches its 200-day MA after rising nearly 30% over the past three weeks. Large traders and funds look at this curve as a long-term trend indicator: Higher readings indicate an uptrend, and lower readings indicate a downtrend.
This line acted as critical support during oil's bullish rally from 2020 to mid-2022. A break below it in August 2022 was the prologue to a one-third drop in price over the next eight months.
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Last week and early this week, we saw the first touch of this curve, which is now acting as resistance. In addition, fatigue from the previous rally is working against oil.
On the daily timeframe, the RSI oscillator came very close to the overbought territory in the middle of last week, suggesting a potential correction. A series of lower intraday highs indicates that a more active correction is about to begin.
On the technical side, the $80 area, which was the starting point of the last rally, looks like the next target on the downside for WTI. However, a correction to this area would likely only fuel the bears. A potentially more interesting target would be to close the gap from the first trading day of April when the market was rocked by an unexpected OPEC+ quota cut over the weekend. This would take the price back to $75.7.
This would confirm the bearish reversal from the 200-day MA and take the price back below the 50-day MA, which is the medium-term trend.
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On the daily timeframe, the RSI oscillator came very close to the overbought territory in the middle of last week, suggesting a potential correction. A series of lower intraday highs indicates that a more active correction is about to begin.
On the technical side, the $80 area, which was the starting point of the last rally, looks like the next target on the downside for WTI. However, a correction to this area would likely only fuel the bears. A potentially more interesting target would be to close the gap from the first trading day of April when the market was rocked by an unexpected OPEC+ quota cut over the weekend. This would take the price back to $75.7.
This would confirm the bearish reversal from the 200-day MA and take the price back below the 50-day MA, which is the medium-term trend.
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Dollar’s return to growth?
Today is not a day rich in economic data. The most important is the Empire State manufacturing index, which came in well above expectations for April. The New York Fed's index rose to 10.8 from -24.6 the previous month, although a slight increase to -17.7 was expected. A reading above 0 indicates increased activity; the current level is the highest since last July.
Although this indicator has been somewhat volatile in recent years, its sharp improvement against expectations in a quiet market supported expectations of another rate hike.
At the start of US trading, the interest rate futures market was pricing at an 87% chance of a 25bp hike, up from 78% last Friday to 72% the week before. This reassessment of the outlook supports the demand for the dollar, which benefits from higher interest rates.
Today is not a day rich in economic data. The most important is the Empire State manufacturing index, which came in well above expectations for April. The New York Fed's index rose to 10.8 from -24.6 the previous month, although a slight increase to -17.7 was expected. A reading above 0 indicates increased activity; the current level is the highest since last July.
Although this indicator has been somewhat volatile in recent years, its sharp improvement against expectations in a quiet market supported expectations of another rate hike.
At the start of US trading, the interest rate futures market was pricing at an 87% chance of a 25bp hike, up from 78% last Friday to 72% the week before. This reassessment of the outlook supports the demand for the dollar, which benefits from higher interest rates.
The Dollar Index has rallied on the news to 101.55 (+0.9% from Friday's lows), and EURUSD is trading near 1.0950, back below the important 1.10 ground level. GBPUSD has also pulled back 100 pips below 1.2500.
The resumption of dollar buying questions whether the DXY's new lows and EURUSD and GBPUSD's new highs were a false break. To say that the dollar has managed to defend a vital level will only be possible if it rises another 0.9%, which would take the DXY back above the previous highs and form a bullish trend. The EURUSD is at 1.0850, and the GBPUSD is at 1.2350.
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The resumption of dollar buying questions whether the DXY's new lows and EURUSD and GBPUSD's new highs were a false break. To say that the dollar has managed to defend a vital level will only be possible if it rises another 0.9%, which would take the DXY back above the previous highs and form a bullish trend. The EURUSD is at 1.0850, and the GBPUSD is at 1.2350.
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#WaveAnalysis
#GBPUSD reversed from resistance level 1.2510
• Likely to fall to support level 1.2340
GBPUSD continues to fall after the price reversed down from the key resistance level 1.2510 (which stopped the previous minor impulse wave 1 at the start of April).
The downward reversal from the resistance level 1.2510 created the daily Japanese candlesticks reversal pattern Evening Star.
Given the bearish divergence on the daily Stochastic, GBPUSD can then be expected to fall further toward the next support level 1.2340 (low of the previous minor correction 2).
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#GBPUSD reversed from resistance level 1.2510
• Likely to fall to support level 1.2340
GBPUSD continues to fall after the price reversed down from the key resistance level 1.2510 (which stopped the previous minor impulse wave 1 at the start of April).
The downward reversal from the resistance level 1.2510 created the daily Japanese candlesticks reversal pattern Evening Star.
Given the bearish divergence on the daily Stochastic, GBPUSD can then be expected to fall further toward the next support level 1.2340 (low of the previous minor correction 2).
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#WaveAnalysis #UK100
• FTSE 100 rising inside impulse wave 3
• Likely to reach resistance level 7960.00
FTSE 100 index rising inside the sharp minor impulse wave 3, which previously broke above the resistance level 7800.00 (upward target set in our earlier report for this index).
The active impulse wave 3 belongs to the intermediate impulse wave (3) from the middle of March.
Given the prevailing daily uptrend, FTSE 100 index can then be expected to rise further toward the next resistance level 7960.00 (target for the completion of the active impulse wave 3).
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• FTSE 100 rising inside impulse wave 3
• Likely to reach resistance level 7960.00
FTSE 100 index rising inside the sharp minor impulse wave 3, which previously broke above the resistance level 7800.00 (upward target set in our earlier report for this index).
The active impulse wave 3 belongs to the intermediate impulse wave (3) from the middle of March.
Given the prevailing daily uptrend, FTSE 100 index can then be expected to rise further toward the next resistance level 7960.00 (target for the completion of the active impulse wave 3).
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#Bitcoin has been correcting its previous rally, falling back to $29K early Tuesday. From this level, it has been on a buying spree and has now risen to $29.6K and begun correcting lower, falling below the $30K level amid negative equity indices and a rising US dollar.
Similarly, total crypto market capitalisation is now 0.8% lower than 24 hours ago but 1.2% higher than today’s low. Further positive momentum during the day cannot be ruled out. Still, doubts remain whether the market will consolidate above 30K for Bitcoin, $2100 for #Ethereum, and $1.28 trillion capitalisations for the entire crypto.
According to CoinShares, investments in crypto funds doubled last week to $114 million, the fourth consecutive week of growth. Investments in Bitcoin rose by $104 million, while Ethereum saw just $0.3 million. Among altcoins, #Solana saw the largest outflow ($2.1 million).
Similarly, total crypto market capitalisation is now 0.8% lower than 24 hours ago but 1.2% higher than today’s low. Further positive momentum during the day cannot be ruled out. Still, doubts remain whether the market will consolidate above 30K for Bitcoin, $2100 for #Ethereum, and $1.28 trillion capitalisations for the entire crypto.
According to CoinShares, investments in crypto funds doubled last week to $114 million, the fourth consecutive week of growth. Investments in Bitcoin rose by $104 million, while Ethereum saw just $0.3 million. Among altcoins, #Solana saw the largest outflow ($2.1 million).
China released a large set of statistics this morning from which it's difficult to draw clear conclusions, although GDP growth was stronger than expected.
The Chinese economy grew by 2.2% in the first three months of the year and is 4.5% higher than a year ago. This is stronger than the 4% forecast. Last year, the economy grew by only 3% against a government target of 5.5%.
The 5.0% target for 2023 is less ambitious. Given lifted pandemic restrictions and recovering global trade, achieving and exceeding it is relatively easy.
Separate reports on industrial production and retail sales suggest domestic demand remains the main driver, putting it on a faster growth path.
The Chinese economy grew by 2.2% in the first three months of the year and is 4.5% higher than a year ago. This is stronger than the 4% forecast. Last year, the economy grew by only 3% against a government target of 5.5%.
The 5.0% target for 2023 is less ambitious. Given lifted pandemic restrictions and recovering global trade, achieving and exceeding it is relatively easy.
Separate reports on industrial production and retail sales suggest domestic demand remains the main driver, putting it on a faster growth path.
Retail sales in March were 10.6% higher than a year earlier (7.3% expected). The cumulative YTD increase was 5.8%, much higher than expectations (3.7%) and the growth rate for the same period last year (+3.3%).
At the same time, the unemployment rate fell from 5.6% to 5.3%, returning to the level of December 2021.
However, industrial production surprised on the downside, rising by 3.9% year-on-year in March, less than the 4.7% expected. China's industrial production is often seen as a bellwether for a global industry. The low growth rate could signal how hard the global economy is growing under the pressure of rising interest rates. Fixed asset investment has been stagnant at around 5% year-on-year, with a slight downward trend, which is also worrying.
However, in recent months there has been much talk of foreign companies shifting production from China to other Asian countries, which is negative for the former but positive for the latter.
At the same time, the unemployment rate fell from 5.6% to 5.3%, returning to the level of December 2021.
However, industrial production surprised on the downside, rising by 3.9% year-on-year in March, less than the 4.7% expected. China's industrial production is often seen as a bellwether for a global industry. The low growth rate could signal how hard the global economy is growing under the pressure of rising interest rates. Fixed asset investment has been stagnant at around 5% year-on-year, with a slight downward trend, which is also worrying.
However, in recent months there has been much talk of foreign companies shifting production from China to other Asian countries, which is negative for the former but positive for the latter.
The labour market situation in the UK is worrying. Claimant counts rose by 28.2K in March, following two months of falls by 21.5K and 18.8K, and forecasts for a fall of 2.5K last month. In a broader picture, the number of people out of work has been broadly stable over the past nine months, hovering around 1,525K. This level was a ceiling for a long time between 2009 and 2013, as the country recovered from the financial crisis. By this measure, the labour market has considerable room for improvement.
At the same time, the unemployment rate rose to 3.8% in the December-February period, from 3.7% previously and a low of 3.5% in the three months to August, as more people joined the job search amid rising inflation and recovery from the pandemic.
At the same time, the unemployment rate rose to 3.8% in the December-February period, from 3.7% previously and a low of 3.5% in the three months to August, as more people joined the job search amid rising inflation and recovery from the pandemic.
Meanwhile, the rate of wage growth excluding bonuses shows no significant signs of cooling at 6.6% y/y, while earnings, including bonuses, have stabilised around 6% for the past seven months. This trend generally indicates a decline in the bonus component and could signal a consolidation of inflationary trends.
Such news has a net positive effect on the Pound, allowing us to expect further interest rate hikes in the coming months. At the same time, monitoring the labour market to see if a rise in claimants is becoming a trend is essential. Sterling traders should also pay attention to tomorrow's UK inflation data, which could either support or reverse expectations of further rate hikes.
Such news has a net positive effect on the Pound, allowing us to expect further interest rate hikes in the coming months. At the same time, monitoring the labour market to see if a rise in claimants is becoming a trend is essential. Sterling traders should also pay attention to tomorrow's UK inflation data, which could either support or reverse expectations of further rate hikes.
US building permits fell 8.8% in March to 1,413K, erasing more than half the 15.8% jump to 1,550K in the previous month. The latest pullback suggests that we saw little more than a short-lived spike in February, and high-interest rates continue to weigh on a market down nearly a quarter from a year ago.
New housing starts fell 0.8% to 1,420K, down 17.2% from March last year.
The housing market is often seen as a leading indicator of the economy, as it points to consumer confidence and influences many sectors of the economy. Since April last year, construction has declined due to rising interest rates and economic concerns. The performance of this sector over the coming months could be an important illustration of what is happening in the US economy.
A further decline will signal deterioration and be a factor against further rate hikes by the Fed. If we see a subsequent recovery in construction and sales, we should be prepared for a tighter monetary policy stance.
New housing starts fell 0.8% to 1,420K, down 17.2% from March last year.
The housing market is often seen as a leading indicator of the economy, as it points to consumer confidence and influences many sectors of the economy. Since April last year, construction has declined due to rising interest rates and economic concerns. The performance of this sector over the coming months could be an important illustration of what is happening in the US economy.
A further decline will signal deterioration and be a factor against further rate hikes by the Fed. If we see a subsequent recovery in construction and sales, we should be prepared for a tighter monetary policy stance.
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#WaveAnalysis
#EURGBP reversed from resistance level 0.8850
• Likely to fall support level 0.8800
EURGBP currency pair recently reversed down from the resistance level 0.8850 (which also stopped the previous wave (a) in the middle of March).
The resistance level 0.8850 was strengthened by the upper daily Bollinger Band and by the 61.8% Fibonacci correction of the downward impulse (c) from the start of March.
Given the strongly bullish sterling sentiment, EURGBP can then be expected to fall further toward the next support level 0.8800.
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#EURGBP reversed from resistance level 0.8850
• Likely to fall support level 0.8800
EURGBP currency pair recently reversed down from the resistance level 0.8850 (which also stopped the previous wave (a) in the middle of March).
The resistance level 0.8850 was strengthened by the upper daily Bollinger Band and by the 61.8% Fibonacci correction of the downward impulse (c) from the start of March.
Given the strongly bullish sterling sentiment, EURGBP can then be expected to fall further toward the next support level 0.8800.
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#WaveAnalysis
#WTI reversed from resistance level 82.55
• Likely to fall support level 79.40
WTI crude oil previously reversed down from the resistance level 82.55 (former strong support from October, which has been reversing all upward corrections after it was broken in November).
The downward reversal from the resistance level 82.55 stopped the previous minor correction 2.
Given the overbought daily Stochastic, WTI crude oil can then be expected to fall further toward the next support level 79.40 (low of the earlier correction from the start of April).
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#WTI reversed from resistance level 82.55
• Likely to fall support level 79.40
WTI crude oil previously reversed down from the resistance level 82.55 (former strong support from October, which has been reversing all upward corrections after it was broken in November).
The downward reversal from the resistance level 82.55 stopped the previous minor correction 2.
Given the overbought daily Stochastic, WTI crude oil can then be expected to fall further toward the next support level 79.40 (low of the earlier correction from the start of April).
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