Bitcoin spikes back over $40k

“My biggest motivation? Just to keep challenging myself. I see life almost like one long university education that I never had—every day I’m learning something new.” - Richard Branson

 

 

HEADLINES

 

 

• Dollar edges lower with Fed in focus
• USD/JPY bears taking control due to lower US yields
• Gold Dips Beneath $1,800 in Pre-Fed Shadow Boxing
• S&P 500 Notches Record as Investors Eye Big Tech Earnings
• Tesla beats profit and revenue estimates, delays Semi launch
• Possible Trend Reversal as Bitcoin Spikes Past $40K
• FOMC Preview: First tapering hint likely in September – Goldman Sachs

 

 

FOREX

 

 

Dollar edges lower with Fed in focus

 

The dollar edged lower on Monday against a basket of other currencies as investors’ focus turned to this week’s U.S. Federal Reserve meeting, while cryptocurrency prices rose to their highest in weeks.

 

USD/JPY bears taking control due to lower US yields

 

At times like this, the bond market is often a reliable indicator of the market's sentiment. Given the drop in US nominal and real rates at the start of the week, investors are potentially weighing the spread of the delta coronavirus variant against prospects of stubbornly higher inflation.

''US 10-year real yields fell to a record low of -1.13% before recovering to -1.10%,'' analysts at Brown Brothers Harriman noted and argued ''the conflicting narratives will make the Fed’s job even trickier as it meets this week.''

 

 

COMMODITIES

 

 

Gold Dips Beneath $1,800 in Pre-Fed Shadow Boxing

 

Gold settled beneath the key $1,800 level on Monday with longs in the yellow metal engaging in typical pre-Fed shadow boxing with shorts as taper and rate expectations reared their heads again. This is going to be a busy week for markets with the Federal Reserve’s monthly policy statement, along with Chairman Jerome Powell’s news conference, on Wednesday.

 

 

STOCKS

 

 

S&P 500 Notches Record as Investors Eye Big Tech Earnings

 

All three major averages clinched record highs Monday after cutting intraday losses ahead quarterly earnings from big tech and further clues on  monetary the Federal Reserve due this week. 

 

Tesla beats profit and revenue estimates, delays Semi launch

 

Electric carmaker Tesla Inc on Monday beat Wall Street expectations for second-quarter profit and revenue as record deliveries offset the impact of a prolonged global shortage of chips and raw materials.

 

 

CRYPTO

 

 

Possible Trend Reversal as Bitcoin Spikes Past $40K

 

Bitcoin is in rally mode, posting its largest daily gain in six weeks as shorts covered positions over the weekend. The cryptocurrency was trading around $38,874 at press time and is up 14.5% over the past 24 hours. Sentiment has shifted from extreme bearishness after a sharp correction in May and two months of consolidation between $30,000 and $40,000.

 

 

ANALYSIS

 

 

FOMC Preview: First tapering hint likely in September – Goldman Sachs

 

“Fed officials have said that they intend to signal that tapering is coming "well in advance" a phrase they also used in reference to the start of balance sheet runoff in 2017.”

“That precedent suggests that "well in advance" means two meetings worth of hints before the formal announcement, consistent with our expectation of the first hint in September, a second hint in November, and a formal announcement of tapering in December.”

 

 

CHART

 

 

Ethereum – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

ETHUSD dropped back after a false break beyond the July 7 peak near 2400. Having doubled bottomed at 1700, a breakout over 2400 could change the trend back higher. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/fomc-preview-first-tapering-hint-likely-in-september-goldman-sachs-202107260335
https://www.fxstreet.com/news/usd-jpy-bears-taking-control-due-to-lower-us-yields-202107261816
https://www.investing.com/news/stock-market-news/sp-500-notches-record-as-investors-eye-big-tech-earnings-2568439
https://www.investing.com/news/commodities-news/gold-dips-beneath-1800-in-prefed-shadow-boxing-2568424
https://www.coindesk.com/market-wrap-bitcoin-spike-potential-trend-reversal
https://www.reuters.com/article/tesla-results/update-3-tesla-beats-profit-and-revenue-estimates-delays-semi-launch-idUSL4N2P23I5
https://www.reuters.com/article/global-forex/forex-dollar-edges-lower-with-fed-in-focus-cryptocurrencies-jump-idUSL1N2P20SJ