• US is not in a recession
• Inflation needs to be addressed
• Fed is going to have to do more with interest rates
• Details depend on data flow in the coming months
• Rate hikes could hurt job growth but so far, there is still momentum in hiring

He also voiced out concerns that recession fears could be self-fulfilling. He’s not exactly wrong in that sense but I mean there is no doubt that the economic numbers from the US have been rather poor. It is a bit arrogant to outright dismiss a recession but I don’t think that is all too important for markets. It is all about what the Fed will do and while more rate hikes are to follow, Bostic is following in Powell’s lead to stress on data dependency.

This article was written by Justin Low at www.forexlive.com.

Bitcoin
closed Thursday near $24,000, retesting that area after a failed attempt to
climb higher in the middle of last week. The first cryptocurrency has added
3.8% over 24 hours, about as much as it has gained in the past seven days.
Ethereum has added 4.8% in 24 hours, to $1720. Altcoins from the top 10 gained
between 3.8% (BNB) and 10% (Solana).

The total
capitalisation of the crypto market, according to CoinMarketCap, rose by 3.8%
to $1.1 trillion overnight.

Bitcoin has
closed above its 50-day moving average for two days. Closing the week above
22,700 would be a telling return to territory above the 200-week moving
average.

Such a
technical disposition could inspire retail buyers. Other factors are at work
for institutionalists, notably a recovery in demand for risky assets and a
pullback of the dollar from multi-year highs.

However, the
longer-term and whole picture is working against the buyers. As long as we see
tightening monetary and economic conditions, the crypto market has to move
against the tide. In addition, Guggenheim Partners‘ widely held view remains
that the industry has not yet been „cleared“ of distressed
participants. Crypto will be in trouble long-term because of regulatory
pressure and a lack of strong institutional support.

According to
the IMF, the cryptocurrency market will fall if the economy goes into
recession. Preliminary US GDP data released on Thursday confirmed the start of
a technical recession in the country.

The UK has
suggested that cryptocurrencies be treated as a new type of property, making it
much easier to protect investors in this instrument.

This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.

This article was written by FxPro FXPro at www.forexlive.com.

The greenback has pared losses against the euro, pound, loonie, aussie and kiwi on the session now, trailing just behind the yen and franc. Even then, the dollar has moved off earlier lows and is actually posting slight gains against the pound and loonie notably. This comes as Treasury yields pull higher after a bit of a drop earlier, with 10-year yields now back up by over 4 bps to 2.72%:

Now, it is still early in the day and a technical breakdown in yields could still yet materialise. But for now, there is some apprehension and dollar bulls are making full use of that sentiment.

EUR/USD is back to near unchanged around 1.0200 with large expiries seen at 1.0200-05 as well as 1.0245-50 – which has pretty much been the range in European morning trade.

Meanwhile, GBP/USD has stumbled from a high of 1.2245 to 1.2150 now, falling back below the 50.0 Fib retracement level at 1.2213. That will be a key level to watch ahead of the daily close.

USD/CAD is also trading back up by 0.2% to 1.2830 now after having slipped to a low of 1.2790 earlier. And we have AUD/USD turning flat at 0.6985 after having hit a high of 0.7030 at the start of the session, now keeping back below the key 0.7000 handle.

I highlighted key levels on the charts earlier here and they are still very much in play.

This article was written by Justin Low at www.forexlive.com.

• Closely watching FX moves with a sense of urgency

These are similar comments to when the Japanese yen tumbled and even with the pullback this week, it hasn’t really amounted to much in the bigger picture. USD/JPY is still down 0.7% to 133.30 with the low earlier touching 132.50 and from a technical perspective, sellers still look poised to try and push the agenda towards 132.00 for now.

This article was written by Justin Low at www.forexlive.com.