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Gold gets reprieve on dollar dip, toned-down rate hike bets

 

“Stop chasing the money and start chasing the passion.” – Tony Hsieh 

 

 

HEADLINES

 

  • Dollar retreats as rate hike bets ease
  • Gold gets reprieve on dollar dip, toned-down rate hike bets
  • Oil jumps on Russia gas supply jitters, weaker dollar
  • Easing rate-hike bets, bank earnings lift Wall Street
  • Bitcoin tops $22,000 as crypto market hopes contagion and shakeout is over ether jumps 9%
  • GBP/USD: Scope for a near-term rebound ahead of a slump to 1.15/1.1409 – Credit Suisse
  • EURUSD Short Term: Upside favored

 

 

Dollar retreats as rate hike bets ease

 

The U.S. dollar eased against a basket of currencies on Monday, retreating from the two-decade high hit last week, as traders pared bets on how aggressive the Federal Reserve will be in raising rates at its meeting later this month.

A modest rebound in investors' appetite for riskier assets also dented demand for the safe haven currency.

Federal Reserve officials signalled Friday they will likely stick with a 75-basis-point interest rate increase at their July 26-27 meeting, though a recent high inflation reading could still warrant larger increases than anticipated later in the year.

 

 

COMMODITIES

 

Gold gets reprieve on dollar dip, toned-down rate hike bets

 

Gold recovered some ground on Monday, lifted by a retreat in the dollar as the market toned down the chances of a 100-basis-point rate hike by the U.S. Federal Reserve next week.

Spot gold was up 0.5% at $1,715.20 per ounce by 10:40 a.m. ET (1440 GMT), after rising 1% earlier in the session. U.S. gold futures rose 0.6% to $1,713.90.

Last week, bullion hit its lowest level in nearly a year due to the dollar’s rampant rise, which made gold more expensive for holders of other currencies.

 

 

ENERGY

 

Oil jumps on Russia gas supply jitters, weaker dollar

 

Oil prices extended gains on Monday, boosted by mounting concerns over gas supply from Russia and a lower dollar, offsetting demand fears brought on by a possible recession and China lockdowns.

Brent crude futures for September settlement were up$4.37, or 4.3%, to $105.53 a barrel by 12:30 p.m. EDT (1630 GMT), having gained 2.1% on Friday.

U.S. West Texas Intermediate (WTI) crude futures for August delivery were up $4.02, or 4.1%, at $101.61 after rising by 1.9% in the previous session.

Biden wants Gulf oil producers to step up output to help to lower oil prices and drive down inflation.

 

 

STOCKS

 

Easing rate-hike bets, bank earnings lift Wall Street

 

U.S. stock indexes rose on Monday after earnings from big banks beat expectations for profit, extending last week's positive momentum amid easing bets of a super-sized interest-rate hike by the Federal Reserve.

Goldman Sachs Group Inc (GS.N) gained 2.5% as it reported a smaller-than-expected 48% slump in second-quarter profit, helped by strength in its fixed-income trading. Bank of America Corp (BAC.N) also rose 0.4% after beating analysts' estimates for quarterly profit.

Gains in their shares helped lift the S&P 500 banks index (.SPXBK) by 0.6%, in what has been a mixed earnings second-quarter season, where trading operations flourished due to market volatility and helped counter much of the weakness in investment banking.

 

Bitcoin tops $22,000 as crypto market hopes contagion and shakeout is over; ether jumps 9%

 

Bitcoin bounced above $22,000 on Monday, hitting its highest level in more than a month as the cryptocurrency market held out hope that the contagion and shakeout over the past few weeks is nearing its end.

The world’s largest cryptocurrency was trading around $22,135.30 at 8:57 a.m. ET, according to CoinDesk data, up around 4%. Bitcoin traded as high as $22,493.61 in the past 24 hours, the highest since June 16.

Other cryptocurrencies also bounced with ether up more than 9% versus the price 24 hours ago and Polygon’s MATIC token up 16%.

 

 

ANALYSIS

 

GBP/USD: Scope for a near-term rebound ahead of a slump to 1.15/1.1409 – Credit Suisse 

 

“Key near-term resistance is seen at the recent reaction high and 13-day exponential average at 1.1968. Our bias is for this to ideally cap for a low-level consolidation phase ahead of a move back to 1.1805, then 1.1760.” 

“An eventual move below 1.1760 in due course should see a fall to our core objective at 1.1500/1.1409, the bottom of the six-year range and potential long -term trend support stretching back to 1985. Our bias remains to then look for a more important floor to be found here.” 

“A close above 1.1968 would be seen to clear the way for a deeper corrective recovery to emerge with resistance seen next at the early July reaction high at 1.2057.”

 

 

CHART

 

EURUSD Short Term: Upside favored

 

Technical View: Long position above 1.0095. Target 1.019. Conversely, break below 1.0095, to open 1.006.

Comments: The pair remains supported. Further advance favored.

 

 

 

 

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

 

 

SOURCES

https://www.reuters.com/markets/europe/dollar-lurks-below-highs-euro-gasps-gas-2022-07-18/
https://www.reuters.com/article/global-precious/precious-gold-gets-reprieve-on-dollar-dip-toned-down-rate-hike-bets-idUSL4N2YZ2EC
https://www.reuters.com/business/energy/oil-drops-chinas-rising-covid-cases-renew-fuel-demand-concerns-2022-07-18/
https://www.reuters.com/markets/europe/futures-rise-rate-hike-bets-ease-bank-earnings-awaited-2022-07-18/
https://www.cnbc.com/2022/07/18/bitcoin-btc-tops-22000-ethereum-jumps-as-crypto-market-rallies.html
https://www.fxstreet.com/news/gbp-usd-scope-for-a-near-term-rebound-ahead-of-a-slump-to-115-11409-credit-suisse-202207181212

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