Naeem Aslam
Zaye Capital Markets
Cryptos
Bitcoin is holding on to its ground, and its price is still hovering near the 20K, which shows bulls are trying their best to hold the price level. ETH's price action has started to show more encouraging signs as the price of ETH has moved above the 50-day SMA, which means that the bulls may be ready to push the prices higher.
Gold
The precious metal is likely to remain highly volatile as traders will assess the health of the US labour market by looking at the US ADP number, and comments from the FOMC member Mester will also bring higher volatility. Gold prices are under threat, and the odds are high that we may see further weakness in the gold price in the coming days as the traders continue to factor odds of a Fed interest rate hike.
Risk
Recession risk is on traders' minds regarding the US economy, and traders continuously monitor this risk by looking at the US credit spreads. The current corporate spread levels only indicate a chance of 25% of a deep recession, but in reality, we believe that the odds are much higher. There is more than a 60% chance of the US economy falling into recession, given the number of layoffs being announced and hawkish monetary policy, which is prone to killing economic growth.
The information is purely for education purposes only and cannot be perceived as an advise.
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EUR/USD trades deep in red below 1.0300 after strong US jobs report
EUR/USD stays under bearish pressure and trades below 1.0300 in the American session on Friday. The US Dollar benefits from the upbeat jobs report, which showed an increase of 256,000 in Nonfarm Payrolls, and forces the pair to stay on the back foot heading into the weekend.
GBP/USD drops toward 1.2200 on broad USD demand
GBP/USD extends its weekly slide and trades at its weakest level since November 2023 below 1.2250. The data from the US showed that Nonfarm Payrolls rose by 256,000 in December, fuelling a US Dollar rally and weighing on the pair.
Gold ignores upbeat US data, approaches $2,700
Following a drop toward $2,660 with the immediate reaction to strong US employment data for December, Gold regained its traction and climbed towards $2,700. The risk-averse market atmosphere seems to be supporting XAU/USD despite renewed USD strength.
Sui bulls eyes for a new all-time high of $6.35
Sui price recovers most of its weekly losses and trades around $5.06 at the time of writing on Friday. On-chain metrics hint at a rally ahead as SUI’s long-to-short ratio reaches the highest level in over a month, and open interest is also rising.
Think ahead: Mixed inflation data
Core CPI data from the US next week could ease concerns about prolonged elevated inflation while in Central and Eastern Europe, inflation readings look set to remain high.
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