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downtrend

Forex News February 03, 2022

#edgeforex #trading #market #money #forex #countries #dollar #currency #fed #downtrend #psychological #buyers #investing #inflation #crypto #bitcoin downtrend

Bitcoin

  • Bitcoin is approaching downtrend resistance.
  • There is strong psychological opposition ahead at the $40,000 level.
  • Bitcoin gained 0.6 percent on Tuesday, closing around $38,700. Ethereum increased by 3.7 percent, while other top ten cryptocurrencies increased by 0.5 percent (Binance Coin) to 12.8 percent (Solana). According to CoinGecko, the overall capitalization of the crypto market increased by 1.5 percent overnight to $1.86 trillion.
  • On Tuesday, Bitcoin reached a week-and-a-half high above $39,000 before falling down, wiping out virtually all of the gains. Positive market indices and a weaker dollar supported the first cryptocurrency, but sellers began taking gains on long holdings.
  • BTC has gained about 20% in the previous eight days, recouping more than half of the failure in the second part of January, as purchasers opted not to take chances. There is significant psychological barrier ahead at the $40,000 level, which supported the first part of January. Bitcoin’s technical advances have paused as it reaches the upper threshold of the falling channel.
  • Traders are looking for additional clues as to whether the recent resurgence in risk demand will last or if it will be snuffed out. The outcome of this conflict will decide whether the decline will be broken or if it will continue.
  • BTC has gained about 20% in the previous eight days, recouping more than half of the failure in the second part of January, as purchasers opted not to take chances. There is significant psychological barrier ahead at the $40,000 level, which supported the first part of January. Bitcoin’s technical advances have paused as it reaches the upper threshold of the falling channel. Traders are looking for additional clues as to whether the recent resurgence in risk demand will last or if it will be snuffed out. The outcome of this conflict will decide whether the decline will be broken or if it will continue.
  • There is significant psychological barrier ahead at the $40,000 level, which supported the first half of January. Bitcoin’s technical advances have paused as it reaches the upper threshold of the falling channel. Traders are looking for additional clues as to whether the recent resurgence in risk demand will last or if it will be snuffed out. The outcome of this conflict will decide whether we see a break in the downtrend or if the decline continues. El Salvador’s president, Nayib Bukele, believes bitcoin will continue to develop rapidly. It’s all about the fact that the globe has 50 million millionaires.
  •  If they wanted to buy a coin, there wouldn’t be enough for everyone because the total bitcoin supply would be limited to 21 million.
  • On the latest market fall, MicroStrategy added another 660 BTC. MicroStrategy now has more than 125,000 bitcoins. According to Russian government officials, Russians hold $214 billion in cryptocurrency. That equates to around 12% of the whole crypto market value.

Europe

  • Several key takeaways from today’s PMI results in Europe.
  • A sluggish (or sluggisher) start to the new year
  • That is to be expected given the stricter restrictions and the proliferation of the omicron version throughout the region. Spain was the worst impacted in this aspect, with services activity weighing on all of today’s numbers. Germany witnessed a little improvement, which may serve as a ray of hope that any slowdown will be brief. Notably, business confidence remains strong, with the entire Eurozone rating reaching its highest level since last October. Despite current omicron concerns, this shows that firms continue to have a more positive perspective.
  •  Inflationary pressures are still present.  Across all reports, cost pressures continue to be an issue, with continued labour restrictions as well as raw material shortages. While the latter has begun to ease, it is far from gone, and it will undoubtedly continue to be an issue in the months ahead.
  • It is worth noting that inflationary pressures have returned to near-record levels, which is a cause for concern for companies (and, by extension, consumers) and, in the macro context, the ECB.

UK

  • UK final services in January
  • PMI 54.1 vs. 53.3 preliminary This just confirms a minor comeback in demand circumstances as omicron spread limitations are projected lessening in the UK economy to begin the new year. However, one bad lesson is that prices charged inflation reached a survey-record high, which is concerning for the BOE. In January, over one-third of service providers reported an increase in their average costs charged.
  • “The latest PMI figures indicate excellent news regarding expectations for the UK economy in 2022, as demand has begun to rebound from the impact of Omicron limitations, and most firms predict just a brief slowdown from cancelled reservations and employee absences around the turn of the year,” according to Markit.
  • Growth prospects for the next 12 months increased in January and have already reached their highest level since last spring, with personnel recruitment challenges frequently being the only major source of concern.
  • formalised paraphrase “However, historic price hikes in the service industry are projected to exacerbate the UK families’ cost of living issue. Input cost inflation surged again in January, prompting service providers to raise their rates at the quickest rate since the index’s inception in July 1996. Almost one-third of survey respondents reported higher average prices charged than in December, with increased wage payments, energy bills, and logistical expenses listed as the most prevalent causes.”

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