Welcome to another market recap traders!
It’s been an interesting week in the markets to say the least. It’s very testing times for retail traders at the moment. Patience and disciple is key. Yes you hear that all the time but it’s totally true so don’t take that advice lightly. Working within a team can help you too so make sure you get in touch with us if you want to join the team. Email email@example.com if you are interested.
So what’s been happening this week? Did Elon Musk move the Crypto market again or did he keep his mouth shut this week (lol)? Let’s take a look at the highlights.
So talking about Elon Musk and Cryptos did you know that there is a new coin called F***Elon? I kid you not. You can check on the internet for more details on that! And yes he did talk about Cryptos in a tweet that Tesla has not sold any of it’s Bitcoin which then in turn caused it to spike higher.
Not only can Elon Musk wipe value from investors digital currency wallets with one of his tweets, but the FTC is reporting that impersonators of Elon Musk have skimmed $2M in crypto from retail victims since October.
On Monday the US 10 year yields returned to the key 1.60% level on Fed’s reassurances.The 1.50% -1.60% level is key in the US 10 year yields and has been significant for the last couple of weeks. Last week the strong US CPI data caused the US 10 year yields to break out of the 1.60% level.
This in turn sent the USD higher as investors speculated that the Fed would be forced into tapering bonds early. The Fed repeated, and have continued to repeat, that they will not be moved by one data point. This allowed the yields to drift back lower. Jackson Hole is in August and the chatterers are already hot on the rumour that Powell will signal a taper in Q4.
Goldman Sachs still are targeting EUR/USD at 1.25 whilst presently floating around the 1.22 mark. The daily chart below shows a lovely bullish trend has formed. Remember the saying guys… ‘the trend is your friend until the bend in the end’.
- “Our economists do not expect the FOMC to materially revise its outlook based on the recent inflation news, both because the committee will likely view the surge in prices as transitory and because this is the conventional way developed market central banks respond to the policy tradeoffs created by a supply shock”
- “The worse-than-expected April employment report should reinforce the case for patience. With the Fed firmly on hold, we do not think higher inflation will support the Dollar, and we continue to forecast broad depreciation (with a preference for EUR/USD longs currently, given accelerating activity in the Euro area)”
Great news out of Canada on Friday with retail sales +3.6% vs +2.3% expected. We did see some strength in CAD leading up to the report which made our traders wonder if the news had been leaked early! Suspicious lot are we 🙂
So traders we will sign off now on a wet and windy Friday afternoon. Have a great weekend and we will catch you next week.
All the best.
T & T