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USD is not giving up its climb, so are Cryptos
28.07.2022

The US Dollar is again on the rise after declining the day before. The US Dollar Index, which provides the value of the US Dollar against six currencies, increased throughout the day and is now close to hitting the 107.00 mark once again. The US Dollar continues to be influenced by the alternation in the Fund rate as well as its safe haven status. The price movement of the Euro on the other hand is experiencing significant declines due to the current energy crisis.

EUR/USD

EURUSD - 28.07.2022.jpg

EUR/USD 1-Hr Chart on Thursday, July 28th.

European investors continue to monitor the energy crisis in the Eurozone which has significantly lowered their sentiment within the region.This week, energy ministers from all around the EU have met for a meeting and reached a compromise on the issue of reducing the consumption of "blue fuel" by 15% from the average level over the past five years.

The emergency plan, developed in the event of a complete cessation of energy supplies from Russia, assumes a decrease in the volume of gas used in the upcoming winter heating season, starting from August this year to the end of March 2023. The driver for the decision was the reduction in the volume of fuel transported through the Nord Stream gas pipeline to only 20% of its capacity due to technical work carried out on the gas turbine engine. However, many regions which are specifically reliant on heating during the winter months are worried about the rising energy bills.

As for the US dollar, the price is mainly being influenced by comments made by the Federal Open Market Committee after yesterday’s decision on the Fund Rate. Several experts and certain members of the Fed believe the rate increase will not be enough to reduce the rapid pace of inflation, as consumer prices in the States exceeded 9.0% in the latest month.

Bitcoin

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Bitcoin 1-Hr Chart on Thursday, July 28th.

Bitcoin has experienced most of its price gains during yesterday’s trading sessions but does continue to increase today, only slightly. Cryptocurrency investors felt more confident in the market as it became certain that the Federal Reserve would not increase interest rates by 1% and most likely not do so in the foreseeable future either.

In addition to this the cryptocurrency market, had also been supported by the positive performance of the stock market which saw the SNP500, NASDAQ and DowJones increase in value. Investors have experienced a clear correlation between the two markets mainly due to both being influenced by the market’s risk profile and their overall appetite to risk.

The price of Bitcoin has reached its highest level since the 22nd of this month and traders are looking to see if the asset has the ability to increase onto a new wave high.

Exxonmobil

EXXON - 28.07.2022.jpg Exxonmobil Stocks 1-Hr Chart on Thursday, July 28th.

The stock market in general increased in value during yesterday’s trading session. The futures market also increased today, once more. The stock market has been supported by comments made by the Chairmen of the Federal Reserve who have advised that they are mindful of interest rate hikes pressuring the stock market and that they may even look to slow the pace of hikes if data allows the regulator to do so.

Also, a positive reaction from investors was caused by messages from the management of ExxonMobil about the discovery of two new fields offshore Guyana, which will increase production volume. It should be noted that the company is already producing more than 340K barrels of oil equivalent per day in the country; whereas it was previously believed that the company would not be able to reach such levels until the beginning of 2023.

The price has also been supported by the agreement between NextDecade Corp. and a subsidiary of ExxonMobil on the issue of natural gas supplies in the amount of 1M tons per year for 20 years. This contract will allow the issuer to significantly increase profits, as the global gas demand is actively growing.

The price of the stock has increased by 5.17% over the past 5 days but the market is mainly concentrating on the company’s quarterly earnings figure which is due to be announced tomorrow before the market opens. The company is predicted to announce an Earning per Share of $3.80 which is much higher than the $2.07 from the previous quarter.

Key takeaways:

  • The US Dollar again increases in value
  • Bitcoin performs well after risk sentiment returns to the market
  • Exxonmobil is expected to see a much higher earnings per share compared to the previous quarters
  • The stock market continues to perform well after the Fed refuse to increase interest rates by 1%
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