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EUR/USD hovers around 1.0850 as US Dollar stabilizes
EUR/USD is trading sideways at around 1.0850 in European trading on Monday. A lack of fresh fundamental catalysts and holiday-thinned market conditions leave the pair oscillating in a tight range.
GBP/USD keeps range near 1.2750 amid holiday-thinned trading
GBP/USD is trading modestly flat, keeping its range near 1.2750 in the European morning on Monday. The pair is subject to thin liquidity and minimal volatility, courtesy of US and UK market holidays.
Gold price edges higher, Israel strikes Rafah and boosts safe-haven flows
Gold price (XAU/USD) gathers strength on Monday. The softer US Dollar (USD) and the renewed escalating geopolitical tensions in the Middle East provide some support to the yellow metal.
BTC/USD appears poised for further outperformance
Last week was another positive for BTC/USD, which was up +1.9% as of London’s close on Friday despite finishing considerably off its best levels. Price movement on the weekly timeframe has been working between the limits of a potential bullish flag pattern.
Final full week of May welcomes updated inflation data
Monday will likely be a snoozer, with US and UK banks closing in observance of Bank Holidays. The majority of focus this week will fall on Friday’s US PCE inflation for April, alongside personal income and spending.
DEEPER DIVE
Like there’s no tomorrow: Unpacking consumer credit
The recent run-up in revolving debt combined with the much higher financing costs raises doubts about the ability of credit to continue to make up for the shortfall between modest real income growth and aspirational spending.
Inventories are quiet, a little too quiet
The economy is in the midst of an unusually calm stretch with respect to inventory investment. It is like the point in the scary movie when someone points out that all the forest creatures have gotten quiet.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the United States appears to be in solid shape. Although real GDP growth came in well below consensus expectations and amounted to just 1.6% annualized in Q1-2024.
FXS Signals
Technical Confluences Detector
Gold: Acceptance above $2,350 is critical to sustain the upturn Premium
Gold price is building on the recovery from two-week lows early Monday, as US holiday-induced thin market conditions support buyers.
China optimism and geopolitical tensions underpin Gold price
Besides, renewed optimism around China’s economic growth prospects and a fresh escalation in the war between Israel and Hamas provide extra legs to the ongoing rebound in Gold price.
CRYPTOCURRENCIES
Arbitrum community opens vote for 200 million ARB Gaming Catalyst Plan proposal
Arbitrum community opened a vote for its Gaming Catalyst Program (GCP) to boost support for game builders in the ARB ecosystem. The plan is to strategically allocate 200 million ARB to game projects within Arbitrum. The token has sustained its gains from the week.
ONDO extends gains by 4% with rise in non-empty wallets, hits new all-time high
Ondo extended gains by 75% increase in the past 11 days, per crypto intelligence tracker Santiment. The token ranks among top trending assets on the platform, with a massive spike in non-empty wallets. ONDO added 4% value to its price on Sunday, sustaining 40% gains from the week.
Aptos user transactions hit record high, APT eyes over 20% gains
Aptos user transactions in a single day reached 97.488 million. The number of user transactions and Transactions Per Second, both metrics hit a record high, supporting the thesis for price gains in APT. The rise in transaction-related metrics can be attributed to Tapos, a viral clicker game where users can earn rewards.
US Presidential candidate Donald Trump is open minded to cryptocurrency, supports right to self custody
US Presidential candidate Donald Trump shared positive views on crypto, posting on social media platform, “I am very positive and open minded to cryptocurrency companies and all things related to this new and burgeoning industry.”
THE STOCK OF THE DAY
TSLA shares gain despite setback on Model Y production in China Premium
Tesla has trimmed Model Y production at its Shanghai factory by 20%, according to a new report from Reuters. The news outfit says that anonymous insiders say the cuts have been gaining steam since March and will likely run through June.
ECONOMIC CALENDAR
WEEKLY FORECAST
EUR/USD: Bulls gain confidence ahead of US PCE inflation Premium
The EUR/USD pair halted its recovery and finished the week with modest losses in the 1.0840 region, meeting sellers just ahead of the 1.0900 mark. The US Dollar pushed higher for most of the week but was unable to post substantial gains.
GBP/USD: Pound Sterling posts second straight week of gains despite renewed US Dollar strength Premium
The Pound Sterling hit two-month highs above 1.2750 against the US Dollar. The GBP/USD uptrend is likely to stay intact in the holiday-shortened week ahead. The Pound Sterling eyes 1.2900 amid double bullish crossovers and RSI.
US Dollar: DXY recovers from multi-week lows, focus on inflation figures Premium
Following the recent drop to five-week lows, the USD managed to stage quite a marked comeback in the past five days. That said, the USD Index reclaimed the area beyond the 105.00 barrier in tandem with the equally firm bounce in US yields and hawkish FOMC Minutes.
Gold: XAU/USD could extend correction if it fails to reclaim $2,400 Premium
After setting a new all-time high at the beginning of the week at $2,450, Gold staged a deep correction and extended its slide after breaking below $2,400 on Wednesday.
Bitcoin: BTC struggles, but $80K is at striking distance Premium
Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH).
Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight
Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.
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