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.
Recommended Content
Editors’ Picks
AUD/USD turns south to test 0.6650 as US Dollar finds footing
AUD/USD is back in the red, testing 0.6650 in Friday's Asian trading. A renewed US Dollar uptick undermines the pair, even as risk sentiment remains in a sweeter spot. However, the downside appears limited amid the RBA's hawkish stance and hopes for more Chinese stimulus could act as a tailwind for the Aussie.
USD/JPY defends gains above 153.00 as Japan's intervention risks cap gains
USD/JPY defends minor bids above 153.00 early Friday, reversing a part of Thursday's corrective slide from its highest level since July 30. The upbeat market mood and the post-Fed US Dollar rebound support the pair but speculations over a likely Japanese intervention cap the pair's upside.
Gold price consolidates around $2,700 amid mixed cues
Gold price hovers around $2,700 in the Asian session on Friday, failing to extend the recovery from the vicinity of the 50-day SMA support, or over a three-week low. Resurgent demand for the US Dollar, despite improving risk tone, induces fresh weakness in Gold price.
Bitcoin, crypto market remain in uptrend following 25 bps Fed rate cut
The crypto market has remained in the green following the Federal Reserve's decision to lower interest rates. Historically, Bitcoin and the crypto market have reacted positively to low interest rate environments.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 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.