Over the past month, the cryptocurrency market has been showing some signs of revival. For many, this was an indication that the crypto crash was coming to an end and a new crypto chapter was ready to begin. However, cryptocurrencies appear to be slipping again today, with Bitcoin falling below $23,300 from a recent peak of $24,500. If the bulls don’t manage to push the price further, this development could result in a correction. However, if Bitcoin manages to close above $24,565 and turn its resistance level into its support level, it really might be the beginning of a new chapter.
Despite experiencing gains over the past few months, Ethereum was also trading lower for a fourth consecutive day today, as bearish sentiment flooded the crypto markets again. After peaking at $1,745.88 on Sunday, ETH/USD fell to an intraday low of $1,650.42 earlier in today’s session. However, according to economists, if Ether manages to form a daily candlestick close above $1,730, it will invalidate the bearish thesis and may trigger a potential move to $2,000.
The US Stock Exchange has been celebrating the Q2 financial reports as companies continue to release positive reports, proving that it's not all doom and gloom.
Coming up this week are the Q2 releases of Moderna, Airbnb, Uber, AMC, and many more. Uber is set to release its Q2 reports on Tuesday. The company had released a better-than-expected Q1 earnings report and traders are hoping that it won't disappoint with Q2 either. For the second quarter, the company is expecting an increase in gross bookings, mainly attributed to the success of its rapidly expanding groceries and deliveries business. The projected number falls somewhere between $28.5 and $29.5 billion.
Airbnb is not too far off either, having beaten the expectations in Q1 when it announced a $1.51 billion profit. For Q2, the company’s outlook suggests a $2.03 to $2.13 billion in revenue. The positive outlook comes against the backdrop of heightened traveling after the pandemic. Q1 saw a huge rise in bookings, exceeding pre-pandemic levels and Q2 should be even better.
Moderna released exceptional figures for Q1 of the year, so traders are hoping for the same kind of success in Q2. Especially since the pharma giant signed a £1 billion deal with the UK government throughout the quarter.
This year the dollar has gained 10% against other major currencies, hitting highs that we haven’t seen since 2002. The primary reason behind the advance is the hawkish policies of the Federal Reserve. The more they increase the interest rates, the higher the dollar climbs. But some economists are concerned that a shift away from aggressive rate hikes by the Federal Reserve could send the greenback plunging.
With the US reporting a contractionary economy for a second consecutive quarter, ever closer to an official recession, it's highly unlikely that the Fed will continue with the rate hikes. Fed Chairman Jerome Powell even commented that a slowdown in rate hikes is very likely. As a result, the US Dollar Index fell by 0.2% today. The USD/JPY fell by 0.8% to a 6-week-low earlier in the session, EUR/USD gained 0.1% at the expense of the Dollar’s weakness but it is unclear whether the Euro will be able to sustain the rise, considering the gas supply and inflation issues in its own backyard. GBP/USD climbed 0.2%, and AUD/USD rose by 0.4%.
Traders will be focused on the NFP report, scheduled for Friday, to get a better understanding of the inflation and GDP figures in the US. They will also be keeping an eye out for the Bank of England's rate hike decision, European Retail Sales figures, an announcement from the Reserve Bank of Australia, and others.
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