The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
Bitcoin might fall deeper
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14:00 GMT+2, EUR, ECB President Lagarde Speaks
16:30 GMT+2 CHF, Gov Board Member Maechler Speaks
Standard Chartered, a financial multinational, claimed the markets are underestimating the likelihood of a further 70% fall in the Bitcoin price, down to $5,000. Besides, the company suggested that demand could switch from Bitcoin, perceived by the market as a digital version of gold, to a real asset, leading to a 30% increase in the price of the precious metal.
Bitcoin has already fallen over 60% this year after several high-profile projects and company crashes that have swept the industry. The latest and biggest victim was the FTX cryptocurrency exchange, which declared bankruptcy. The contagion from the FTX drop continues to spread throughout the market.
The fall in the price of Bitcoin will also coincide with a rally in gold, said Eric Robertsen, head of global research at Standard Chartered. He supposed the yellow metal could rise 30% to $2,250 “as cryptocurrencies continue to fall and more crypto firms succumb to liquidity shortages and investor exit.”
At the moment, Bitcoin keeps higher than $15600 support level. The nearest support is $17400. The price is moving in tunnel for a quite a long time, so most likely, the price will break though any of these levels soon. Any news can influence the asset’s price now.
Other important news:
- Hong Kong shares rose almost 3% after reports that the city is easing anti-Covid rules.
- EU announces ninth round of sanctions against Russia after Putin's warning that the threat of nuclear war is growing.
- Google, Oracle, Amazon, and Microsoft have signed $9 billion cloud computing contracts with the US government.
- Deutsche Bank partners with Nvidia to bring artificial intelligence to financial services.
- Japan posted lower than expected GDP, q/q = -0.2% vs. +1.1% expected, and y/y = -0.8% vs. +4.5% expected.
- WSJ reported Apple is developing a new data encryption system.
- Oil rose as investors weighed in on the impact of China's moves to ease the Covid Zero policy amid a looming slowdown in the US.
- Gold fell on weak Treasury yields as traders wait for Friday's US producer price report and the release of the US CPI next week.
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2022 was rough: inflation, energy crisis, and plenty of other controversial situations…
The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.