Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
Are the Bulls Back for Bitcoin?
2023-04-07 • Updated
Hey, have you heard about the latest news on de-dollarization? It's the process of shifting away from the US Dollar (USD) as the world's reserve currency for trading oil and other commodities. The USD has been facing many problems lately, such as rising inflation, declining geopolitical relations, and the erosion of trust in banks and the Federal Reserve. As a result, many countries are moving towards using their currencies instead. For instance, China has already signed agreements with Australia, Russia, Japan, Brazil, and Iran to use their national currencies for trade. Moreover, the BRICS member countries are discussing the possibility of creating their currency backed not by gold but by land and rare earth metals. This could significantly weaken the USD's presence in global economic activity and boost cryptocurrencies like Bitcoin. Exciting times are ahead for global currencies, don't you think?
BTCUSD - Weekly Timeframe
The weekly timeframe of BTCUSD is currently at a drop-base-drop supply zone. It is expected that we will get to see some minor initial reactions from the supply zone. The overall market direction, however, looks largely bullish based on the break above the previously marked highs. The trendline support and the 100-period moving average are in perfect alignment. Combining that with the drop-base-rally demand zone, we have credible confirmations of the bullish sentiment.
Based on the technical breakdown indicating a change in the market from a bearish to a bullish sentiment, it is safe to conclude that the Bulls might just be gearing up to resume the bullish movement once the retracement move is completed.
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.
Here's the scoop: The Bank of England (BOE) is set to accelerate the pace at which it shrinks its balance sheet, according to one of its deputy governors. Currently, the BOE is unwinding about £20 billion of quantitative easing every three months. The goal is to reduce the stock by around £80 billion per year through active sales and maturing assets.
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.
Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.