Cryptocurrency prices retreated on Wednesday as investors reflected on the relatively weak earnings by Coinbase. The company, which is the second-biggest exchange in the world, made more than $1.2 billion in revenue in the second quarter. This was about $200 million lower than what analysts were expecting. It also lost users during the quarter as cryptocurrency prices retreated. Other companies that have exposure to cryptocurrencies like Robinhood and Square also reported weaker earnings. Still, cryptocurrencies like Bitcoin, Solana, and Ethereum are all a few points below their all-time high.
Global stocks were relatively mixed as investors reflected on the latest China, Germany, and US inflation data. In China, the headline consumer price index (CPI) rose by 1.5% in October, a significant jump from the previous 1.4%. In the same period, the producer price index rose by 13.5% as energy prices rose. These are important numbers since they will be passed to consumers. As such, there is a likelihood that global inflation will continue for a while. Meanwhile, in Germany, the headline inflation rose to 4.5% while the harmonised CPI rose by 4.6%. In the United States, the headline CPI rose by 6.2% while core CPI rose by 4.6%. These were the highest levels in decades.
In Europe, the DAX, FTSE 100, and CAC 40 indices were relatively unchanged. In the United States, futures tied to the Dow Jones and Nasdaq 100 index declined by more than 0.25%. There will be several companies in the spotlight today. First, Coinbase stock has dropped by more than 12% in premarket trading after weak earnings. While Unity Software delivered strong results, its stock dropped by more than 6% after it made a $1.7 billion acquisition. The biggest stock to watch will be Rivian, which is set to go public at a $77 billion valuation.
BTCUSD
The BTCUSD pair declined to a key support level at 66,820, which was the previous all-time high. The pair has formed a break and retest pattern, which is usually a bullish sign. It is also at the upper part of the cup and handles pattern. The pair has also risen above the 25-day and 50-day moving averages. It is also above the ascending trendline that is shown in pink. Therefore, the pair will likely break out higher in the coming days.
ETHUSD
Like the BTCUSD, the ETHUSD pair retreated slightly on Wednesday. The pair is trading at 4,745, which was slightly below the all-time high of 4,830. On the four-hour chart, the pair has moved above the 25-day and 50-day moving averages. It is also between the ascending channel while the Relative Strength Index (RSI) is slightly below the overbought level. Therefore, the pair will likely keep rising as bulls target the key resistance at 5,000.
EURUSD
The EURUSD was unchanged immediately after the US published its inflation data. The pair is trading at 1.1573, where it has been in the past few days. It is also along with the 25-day moving average while the average true range (ATR) and the MACD have remained unchanged. Therefore, the pair will likely remain in this range during the American session.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD trades sideways below 1.0450 amid quiet markets
EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familair range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro.
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision
GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick.
Gold price holds comfortably above $2,600 mark; lacks bullish conviction
Gold price oscillates in a range at the start of a new week amid mixed fundamental cues. Geopolitical risks continue to underpin the XAU/USD amid subdued US Dollar price action. The Fed’s hawkish stance backs elevated US bond yields and caps the pair’s gains.
The US Dollar ends the year on a strong note
The US Dollar ends the year on a strong note, hitting two-year highs at 108.45. The Fed expects a 50-point rate cut for the full year 2025 versus 4 cuts one quarter earlier, citing higher inflation forecasts and a stubbornly strong labour market.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.