Articles
US stocks open higher reversing premarket losses held by better US employment cost data
287930 January 31, 2023 22:40 Forexlive Latest News Market News
The better US employment cost data gave hope to buyers and that led to a reversal of the premarket declines in the US stock market . The major indices are modestly higher in early trading with the NASDAQ up 0.4% leading the way. A snapshot of the market currently shows:
- Dow Industrial Average of 27.99 points or 0.08% at 33745.09
- S&P index up 10.05 points or 0.25% at 4027.81
- NASDAQ index up 44.56 points or 0.39% at 11438.38
- Russell 2000 up 8.63 points or 0.46% at 1894.35
For the NASDAQ index, it’s a 200 day moving averages at 11486.17. On Friday, the price moved above and close above that level for the first time since January 13, 2022. However, the move back below the level (and close below the level) disappointed the buyers and tilt the bias back to the downside on the failed break. It would take move back above them moving average level to erase the negative/bearish bias going forward.
NASDAQ index is bouncing but still below the 200D MA
S&P 500 Index: Shifting to a bearish stance following the rejection of 4101 – Credit Suisse
287928 January 31, 2023 22:29 FXStreet Market News
S&P 500 backed away from the brink yesterday after being capped below ‘last resort’ resistance at 4101. This keeps the market with the long-term downtrend still intact whilst below this level, in the view of analysts at Credit Suisse.
Key short-term support is at 3956/49
“S&P 500 backed away from the brink yesterday, reversing its recent close above the important 2022 downtrend after being capped below ‘last resort’ resistance at the 4101 December bearish ‘reversal week’ high. This keeps the market finely poised into this week’s FOMC meeting, with the long-term downtrend still intact whilst below this level.
“We reverse into a tactically bearish stance, with first key support at 3956/49. Back below here would be the first step to reasserting the still intact, at least at this stage, bear market. Next supports thereafter are seen at 3926/25 and then 3886/77.”
“We are still very wary of the potential for an aggressive short-covering rally. However, we remain of the view that a weekly closing break above the 4101 December high is needed to trigger a capitulation-driven move higher, whilst also confirming that we have seen an important change of longer-term trend from down to sideways.”
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United States S&P/Case-Shiller Home Price Indices (YoY) registered at 6.8%, below expectations (6.9%) in November
287927 January 31, 2023 22:26 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
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Tezos Price Forecast: XTZ sees traders pre-positioning after taking profit before central bank announcements
287925 January 31, 2023 22:26 FXStreet Market News
- Tezos price withstands US Dollar strength this Tuesday morning as the currency rallies.
- XTZ stays flat and finds support as traders are done taking profit.
- Expect to see some pre-positioning toward a weaker US Dollar and more upside.
Tezos (XTZ) price had a gut-punch move on Monday with price action sliding over 8% as equities sold off in the US trading session. Overall, this morning the sell-off looks to be halted, which labels the drop-off on Monday as pure profit-taking in the wake of central bankers coming out with announcements by Wednesday. Expect some pre-positioning with bulls looking for bargains and scooping up some price action at the lows this week.
Tezos price sees bargain hunters scalping
Tezos price was no different from other asset classes as this week is set to kick off very violently on data, and central bank messages are kicking in. Traders were caught off guard on Monday morning with Spanish inflation rising surprisingly, and this morning French inflation jumped higher as well. This means that the European Central Bank will need to step up its rate hikes and even hike more. Traders are choosing money for their eggs and taking profit on their risk assets as some fear is creeping into the market that the Fed will stick to its same hiking pattern should they see inflation jump higher.
XTZ currently finds a floor around $1.05 and sees some bidding coming in as scalpers and bulls are looking to pre-position on the back of the trade idea that the Fed will deliver only a 25-basis-point hike and will fall in line with the expectations of markets. Expect more bids to come in by Wednesday as the market and liquidity will dry up near the US rate decision later on Wednesday. Expectations are that it will fall in line, and a break above $1.19 looks granted with the next price of $1.40 on the docket as a profit-taking level.
XTZ/USD daily chart
Some risk needs to be factored in, in case the Fed either hikes again by 50 basis points or does a 25-basis-point hike but instead delivers a very bearish message that points to more future hikes. That would mean that the market is wrong in its point of view and needs repricing. That then means that repricing will push risk assets lower, and XTZ will flirt with a break below $1 toward $0.90.
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USD/JPY Price Analysis: Setup remains tilted firmly in favour of bearish traders
287923 January 31, 2023 22:21 FXStreet Market News
- USD/JPY remains capped near a two-week-old descending trend-line hurdle.
- The formation of a bearish pennant supports prospects for a fresh leg down.
- A sustained move beyond mid-130.00s is needed to negate the bearish outlook.
The USD/JPY pair struggles to capitalize on the previous day’s rally of over 135 pips from the 129.20 area and oscillates in a narrow range through the early North American session on Tuesday.
From a technical perspective, a descending trend-line extending from January 18, currently around the 130.50 area, caps the upside for the USD/JPY pair. This, along with another upward-sloping trend line, constitutes the formation of a symmetrical triangle and points to a consolidation phase.
Given the recent sharp decline from over a three-decade high, the aforementioned triangle might now be categorized as a bearish pennant. This, in turn, favours bearish traders and supports prospects for the resumption of the well-established declining trend witnessed over the past three months or so.
That said, it will still be prudent to wait for a convincing break below the triangle support, 129.25 region, before placing fresh bearish bets. The USD/JPY pair might then turn vulnerable to weaken below the 129.00 mark and test intermediate support near the 128.75-128.70 horizontal zone.
The downward trajectory could get extended further towards the 128.00 round-figure mark, below which the USD/JPY pair seems all set to challenge the multi-month low, around the 127.20 zone touched on January 16.
That said, a sustained strength beyond mid-130.00s, or the top end of the symmetrical triangle, will negate the negative outlook and prompt some near-term short-covering rally. The USD/JPY pair might then accelerate the momentum towards the 131.00 mark, en route to the post-BoJ swing high, around the 131.55-131.60 area. Some follow-through buying should pave the way for additional near-term gains.
USD/JPY 4-hour chart
Key levels to watch
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United States Housing Price Index (MoM) below forecasts (0.8%) in November: Actual (-0.1%)
287922 January 31, 2023 22:21 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
US: Housing Price Index declines 0.1% in December vs. +0.8% expected
287921 January 31, 2023 22:17 FXStreet Market News
- House prices in the US declined modestly in November.
- US Dollar Index continues to stretch lower toward 102.00.
House prices in the US declined by 0.1% on a monthly basis in November, the monthly data published by the US Federal Housing Finance Agency showed on Tuesday. This reading came in below the market expectation for an increase of 0.8%.
Meanwhile, the S&P/Case-Shiller Home Price Index arrived at 6.8% on a yearly basis in November, down from 8.7% in October.
Market reaction
US Dollar Index stays under modest bearish pressure after this data and was last seen posting small daily losses at 102.19.
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EUR/USD Price Analysis: Expected to remain volatile ahead of key events
287919 January 31, 2023 22:17 FXStreet Market News
- EUR/USD bounces off lows near the 1.0800 mark.
- Bets for another test of the 2023 high seem to be losing ground.
EUR/USD manages to reverse the earlier pullback to 2-week lows near the 1.0800 region on Tuesday.
If the downside picks up pace, then the next support of note is seen emerging at the weekly low at 1.0766 (January 18) prior to the 3-month support line just above 1.0700.
The continuation of the uptrend now needs to clear the 2023 high at 1.0929 (January 26) to allow for a test of the weekly top at 1.0936 (April 21 2022). A sustainable break above this level could pave the way for a challenge of the key barrier at 1.1000
In the longer run, the constructive view remains unchanged while above the 200-day SMA, today at 1.0311.
EUR/USD daily chart
GBP/USD: Downside risks limited while above last week’s 1.2265 low – Scotiabank
287918 January 31, 2023 22:12 FXStreet Market News
GBP has weakened in line with the overall gain in the USD against its core European peers. However, more significant losses look technically unlikely, in the view of analyst at Scotiabank.
GBP eases but holds range
“Sterling has slipped and short-term technical signals have turned more negative but price action has not extended to a point where more significant losses look technically likely.”
“Cable is essentially holding within its recent trading range and while the Pound holds above last week’s 1.2265 low, downside risks should remain limited. A break below that point would, however, indicate growing risk of a dip to the lows 1.21s.”
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US SEC accepts LBC token is not a security, renews hope of Ripple’s win in XRP community
287917 January 31, 2023 22:12 FXStreet Market News
- The US Securities and Exchange Commission has settled its lawsuit against LBRY Inc. and accepted that the token in itself is not a security.
- Attorney John Deaton cited a paper by contract attorney Lewis Cohen and persuaded the judge that secondary market transactions of LBC were not securities.
- Experts in the XRP community believe the SEC’s remarks could help ensure Ripple’s win in the lawsuit brought by the financial regulator.
US financial regulator settled its case against LBRY Inc making XRP holders in the Ripple community hopeful. Since the case brought by the Securities and Exchange Commission against LBRY Inc. was similar to its lawsuit against payment giant Ripple, XRP Army monitored the results closely.
Also read: Jim Cramer believes bulls could party on US Federal Reserve decision, here’s why Bitcoin could fall instead
US SEC settles case against LBRY Inc.
Ripple community considers SEC’s settlement in its lawsuit against LBRY Inc. a victory for the entire crypto industry. Attorney John Deaton, the founder of media outlet CryptoLaw represented tech journalist Naomi Brockwell as an amicus curiae, and sought clarity for LBC secondary market transactions.
Deaton believed that the injunction was ambiguous and broad. As an individual that is not a party to the case but is permitted to assist a court by offering information and expertise, Deaton cited a paper by commercial contract attorney Lewis Cohen that examined all security lawsuits in the U.S. since the SEC vs. W.J. Howey Co case.
No court acknowledged that the underlying asset was security at any point throughout Cohen’s examination of security cases in the US. Deaton’s argument persuaded the judge that LBC’s secondary market transactions were not securities.
The SEC requested an order that does not make a distinction between LBRY, the company’s management, and users who purchased LBC in the secondary market. The judge turned to Deaton and said:
amicus, I’m going to make it clear that my order does not apply to secondary market sales.
XRP Army expects Ripple’s win against the SEC after the key judgment
The recent ruling came as a relief for XRP holders and the community. The cross-border payment remittance platform is currently facing a securities lawsuit from the SEC over the sale of XRP tokens.
First word from the SEC v. LBRY hearing:
The SEC admitted on the record that the token itself is not a security.
Good job Mr. Deaton! https://t.co/tRXIQs5SSu
— Jeremy Hogan (@attorneyjeremy1) January 30, 2023
The ruling indicates LBC token sale in the secondary market doesn’t qualify as securities and this argument can work in favor of the long-running SEC v. Ripple lawsuit. Experts believe this implies, XRP, the native token of XRPLedger, is not a security.
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