- Australian dollar strongest among major currencies
- Mixed sentiment in the stock market
- Gas and oil prices continue to move higher
- Cryptocurrencies slightly lower
Today no key macro data were released and the speeches of central bankers did not cause any major movements in the markets. Fed member Williams reiterated that the tapering process may begin soon, and the spike in covid has hampered the employment recovery. He also added that he did not see any worrying signs of inflation, but this topic needs to be watched closely. In turn, Fed Evans said, if inflation remains above the 2% average target, the central bank would want to hike at a steeper pace.
On Monday, the best performing G8 currency was the Australian dollar, which gained 0.45% against the USD. The British pound also did quite well -the currency pair GBPUSD rose 0.35%. CAD and NZD are also performing relatively well against USD, with increases of 0.17%.On the other side, the CHF and EUR fell 0.15% against the US currency and JPY lost 0.2%.
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Open account Try demo Download mobile app Download mobile appWhen it comes to the crypto market, the main digital currencies are trading slightly in the red. In the evening hours Bitcoin loses more than 1.5%, while Ethereum and Litecoin are trading around 3% lower. Bitcoin started today’s session higher, however buyers did not manage to stay above 44,000 USD level, and price pulled back towards 43,000 USD handle . If the current sentiment prevails, a test of last week's lows cannot be ruled out.
During Monday's session we could observe mixed sentiment on the stock market. Major European stock indices started trading lower, but the vast majority of the downward movement was erased later in the session. The DAX (DE30) added 0.27%, the CAC40 (FRA40) gained 0.19% and the FTSE100 (UK100) closed 0.17% higher. Mixed moods also prevail in the US. Dow Jones rose 0.4%, while the S&P500 and Nasdaq are down 0.35% and 0.85% respectively.
When looking at the commodity market, investors are now focused on natural gas. NATGAS price has been moving in a strong uptrend recently, reflecting supply concerns. Today the price jumped 7% and is testing recent highs. Should break higher occur, then upward move may accelerate even further. The crude oil price also moved higher, gaining about 2%. Gold started Monday sharply higher, higher almost all gains have been erased.
Brent crude oil (OIL) is now trading at its highest after the pandemic highs. Looking at the H4 interval, one can see that the nearest support is located around $ 77.50 level. Next support according to the Overbalance methodology lies around $ 76.30 and is marked with the lower limit of the 1:1 structure. As long as price sits above this level, continuation of an upward move is the base case scenario. Source: xStation5
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