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EUR/USD deflates to 1.0860 on Dollar's rebound
EUR/USD corrects lower and revisits the 1.0860 region following the failed bull run to the proximity of the key 1.0900 region early on turnaround Tuesday. The decline in spot came in response to the late bounce in the Greenback and the move higher in US yields.
GBP/USD turns negative near 1.2760
Following the early move to multi-week tops around 1.2800 the figure, GBP/USD lost impetus pari passu with the late rebound in the US Dollar against the backdrop of a marked improvement in US yields, dwindling rate cut bets and hawkish Fedspeak.
Gold losing bullish momentum, still up
Gold retreated to the $2,350 area after rising above $2,360 in the early American session. The benchmark 10-year US Treasury bond yield stays in positive territory after upbeat consumer sentiment data from the US and limits XAU/USD rebound.
Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000
Bitcoin hovers around the $68,000 level on May 28, Tuesday as market participants brace for Mt.Gox transfers of BTC. The defunct crypto exchange’s wallet, tracked by on-chain intelligence trackers, have made BTC transfers to a new wallet.
Inflation data and new US settlement rules to dominate sentiment
Risk sentiment has faltered in recent weeks, and global stock markets have experienced a mild sell off, as the focus shifts to a plethora of economic data that is released this week. The focus will be the Eurozone’s first reading of May CPI and the US core PCE index.
DEEPER DIVE
Like there’s no tomorrow: Unpacking consumer credit
The recent run-up in revolving debt combined with the much higher financing costs raises doubts about the ability of credit to continue to make up for the shortfall between modest real income growth and aspirational spending.
Inventories are quiet, a little too quiet
The economy is in the midst of an unusually calm stretch with respect to inventory investment. It is like the point in the scary movie when someone points out that all the forest creatures have gotten quiet.
Softer growth, cooler inflation and rate cuts remain on the horizon
Economic growth in the United States appears to be in solid shape. Although real GDP growth came in well below consensus expectations and amounted to just 1.6% annualized in Q1-2024.
FXS Signals
Technical Confluences Detector
XAU/USD losing bullish momentum, still up Premium
Gold kept recovering on the broad US Dollar's weakness and regardless of the market mood, with XAU/USD trading around $2,360. The Greenback enjoyed temporal demand at the beginning of the American session, following the release of upbeat data.
The United States (US) released the S&P/Case-Shiller Home Price Index, which improved to 7.4% in March, beating expectations. Also, the Conference Board Consumer Confidence Index unexpectedly improved in May to 102.0 from an upwardly revised 97.5 in April. The Present Situation sub-index increased to 143.1 from 140.6 previously, while the Expectations sub-index rose to 74.6 from 68.8, still below the 80 threshold, which usually signals a recession ahead.
CRYPTOCURRENCIES
FLOKI whales add 30 billion tokens to their holdings in May, meme coin rises 11% on the day
Floki Inu (FLOKI) has noted a spike in on-chain metrics in May. The meme coin rallied alongside large market capitalization meme tokens like Dogecoin (DOGE), Shiba Inu (SHIB), Dogwifhat (WIF) and PEPE (PEPE) this cycle.
Top 3 meme coins Dogecoin, Shiba Inu suffer price decline, Bonk price rallies
Dogecoin (DOGE) and Shiba Inu (SHIB) decline on Tuesday amidst bearish on-chain metrics, as seen on Santiment. On the other hand, Bonk (BONK) price rallies amidst bullish technical indicators on its daily chart.
XRP holders shed altcoin holdings at a loss, Ripple struggles to tackle resistance at $0.55
Ripple holders shed their XRP holdings and took $20 million in profits since May 18. XRP social dominance is nearly at the same level, at 1.46%. XRP sustained above $0.52 on Tuesday but is down 1% on the day.
Bitcoin wallet tagged as Mt.Gox transferred nearly $2.93 billion in BTC, the asset hovers at around $68,000
Bitcoin hovers around the $68,000 level on May 28, Tuesday as market participants brace for Mt.Gox transfers of BTC. The defunct crypto exchange’s wallet, tracked by on-chain intelligence trackers, have made BTC transfers to a new wallet.
THE STOCK OF THE DAY
CAVA Group sits at all-time high ahead of Q1 earnings Premium
CAVA Group is trading at an all-time high leading up to its earnings release, which is slated for the post-market on Tuesday, May 28. Excitement surrounds the first-quarter results of the Mediterranean chain as it rapidly opens new locations throughout the US market.
ECONOMIC CALENDAR
WEEKLY FORECAST
EUR/USD: Bulls gain confidence ahead of US PCE inflation Premium
The EUR/USD pair halted its recovery and finished the week with modest losses in the 1.0840 region, meeting sellers just ahead of the 1.0900 mark. The US Dollar pushed higher for most of the week but was unable to post substantial gains.
GBP/USD: Pound Sterling posts second straight week of gains despite renewed US Dollar strength Premium
The Pound Sterling hit two-month highs above 1.2750 against the US Dollar. The GBP/USD uptrend is likely to stay intact in the holiday-shortened week ahead. The Pound Sterling eyes 1.2900 amid double bullish crossovers and RSI.
US Dollar: DXY recovers from multi-week lows, focus on inflation figures Premium
Following the recent drop to five-week lows, the USD managed to stage quite a marked comeback in the past five days. That said, the USD Index reclaimed the area beyond the 105.00 barrier in tandem with the equally firm bounce in US yields and hawkish FOMC Minutes.
Gold: XAU/USD could extend correction if it fails to reclaim $2,400 Premium
After setting a new all-time high at the beginning of the week at $2,450, Gold staged a deep correction and extended its slide after breaking below $2,400 on Wednesday.
Bitcoin: BTC struggles, but $80K is at striking distance Premium
Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH).
Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight
Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.
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