- Oil breaks out of oversold territory
- China increases gold reserves for the sixth consecutive month
- Pepe Coin Craters as Bitcoin Struggles
Oil
Oil prices continue to rise as the crude demand outlook is affected by mixed signals. The latest jobs report was not as good as the headline implied and today's Fed survey showed that demand for loans is falling off a cliff. The oil market was extremely oversold and will likely continue to stabilize as long as Wall Street remains confident that the Fed will cut rates later this year. Oil prices will not be able to go as high from here due to all the growth demand fears, but expectations are high for OPEC+ to try to keep prices above the $70 a barrel level.
WTI Crude is likely to form a range above $70-$80 if the macroeconomic backdrop does not fully deteriorate. There are plenty of risks on the table, but optimism is growing that the debt ceiling drama and bank jitters remain short-term issues.
Gold
It looks like gold wants to make another run into record territory. There are too many recession risks on the table for gold to experience a significant pullback. Gold is also getting strong demand from China and that should improve going forward. China posted its sixth straight monthly increase in gold reserves.
Gold could get a catalyst from an online inflation report. Treasury yields are rising again, but for that to continue, the price pressures can't be too hard. Gold could be stuck in a range until we get that key inflation report.
cryptoweakness
The headlines have not been friendly for Bitcoin to start the trading week. Binance had to pause bitcoin withdrawals for a couple of hours as the number of unconfirmed transactions hit a record high. To fix the problem, Binance had to increase the fees and that will not go down well in the cryptoverse. Binance withdrawal fees will increase from around $5.59 to $27.94 per withdrawal.
What is not helping Bitcoin is all the attention being directed at the Pepecoin meme coin. Pepe surpassed the $1 billion market cap, which is ridiculous. The meme coin crashed, causing massive losses for those who joined the party too late.
For the global crypto market capitalization to rise seriously, these meme coins cannot attract as much attention.
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With more than 20 years of trading experience, Ed Moya is a Senior Market Analyst at OANDA, producing up-to-date cross-market analysis, coverage of geopolitical events, central bank policy, and market reaction to corporate news. His particular expertise is across a wide range of asset classes, including FX, commodities, fixed income, stocks and cryptocurrencies. Throughout his career, Ed has worked with some of the leading forex brokerages, research teams, and news departments on Wall Street, including Global Forex Trading, FX Solutions, and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Live Finance, Fox Business and Sky TV. His views are trusted by the world's most renowned global news services, including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed has a BA in Economics from Rutgers University.
