<p style=““ class=“text-align-justify“>European stocks are lower in playing catch up to the losses in Wall Street yesterday, with US futures not hinting at much so far on the day. S&P 500 futures are up 1 point, or 0.02%, so that isn’t giving much for traders to work with. Meanwhile, Treasury yields were higher earlier on but have come back down a bit with 10-year yields now down 0.9 bps to 3.566% – the high earlier reached 3.607%.</p><p style=““ class=“text-align-justify“>That said, yields are still keeping above the key level noted <a target=“_blank“ href=“https://www.forexlive.com/news/a-taste-of-what-2023-may-look-like-20221206/“ target=“_blank“ rel=“follow“>here</a> and that remains a major spot to watch in terms of broader market sentiment this week. The retreat in yields and <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-turns-flat-as-buyers-fail-to-top-200-hour-moving-average-20221206/“ target=“_blank“ rel=“follow“>rejection at a key near-term technical level</a> has seen USD/JPY pull back from 137.45 to 136.60 levels now, down just about 0.1% on the day. The dollar is more mixed in general, with light changes being observed.</p><p style=““ class=“text-align-justify“>EUR/USD is hovering near 1.0500 as buyers just managed to keep a defense of its 100-hour moving average so far today:</p><p style=““ class=“text-align-justify“>For now, buyers are still in near-term control but there is some pushback in other dollar pairs to suggest that the selling momentum in the greenback has significantly waned to start the new week.</p><p style=““ class=“text-align-justify“>GBP/USD is also now trading just below its own 100-hour moving average (seen at 1.2188) and buyers will have to do some work in defending the break above its 200-day moving average from last week:</p><p style=““ class=“text-align-justify“>The pair is down 0.2% to 1.2160 levels currently with the 200-day moving average (blue line) seen at 1.2135.</p><p style=““ class=“text-align-justify“>Meanwhile, AUD/USD is up 0.3% following the RBA policy decision earlier but hasn’t gotten much appetite to chase any further upside for now. The more tepid risk mood is certainly giving room for trepidation with dollar sentiment also not hinting at much so far today.</p><p style=““ class=“text-align-justify“>On the daily chart, the pair is just building off a bounce from its 100-day moving average (red line), seen at 0.6683, and is holding just above 0.6700 for now. However, the near-term bias is now favouring sellers and it would require buyers to push back above the 100 and 200-hour moving averages at 0.6778 and 0.6748 respectively to recapture the upside bias.</p>

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

<p>Bitcoin Market picture</p><p class=“MsoNormal“>Bitcoin once
again failed to get on the upside track, and its exchange rate fell to $17K,
around which it has been languishing since the beginning of the month. The
reason for the decline was pressure in the markets due to relatively good
economic data, which increased speculation that the Fed would have to go
further in raising rates than previously expected.</p><p class=“MsoNormal“>We note that
the crypto market recently had very subdued volatility compared to stocks,
having missed much of the rally of the last two months but also not feeling the
kind of pressure that stocks have been under since early December.</p><p class=“MsoNormal“>The
cryptocurrency fear and greed index down 1 point by Tuesday, to 25, and had
moved into „extreme fear“ status. The total capitalisation of the
crypto market fell 1.9% to $853bn.</p><p class=“MsoNormal“>The
suppressed volatility in the cryptocurrency market is causing market
participants to move stop orders closer to the current price. A drop below $16K
(-6%) could devastate speculators‘ positions, delaying a potential market
recovery for many more months. On the other hand, a rise above $18K (+6%) could
open a direct track to $21K.</p><p class=“MsoNormal“>With
professional market makers becoming less active towards the end of the year, it
will become increasingly easy to swing the price in either direction (or even
in both directions).</p><p>Bitcoin News background</p><p class=“MsoNormal“>According to
CoinShares, investments in crypto funds fell by $11m last week after an outflow
of $23m the week before. Bitcoin investments rose by $11m, and Ethereum fell by
$4m. Investments in funds that allow shorts on bitcoin fell by $11m. Trading
volume was $753m, compared to an average of $2bn a year ago, suggesting low
investor engagement, CoinShares noted.</p><p class=“MsoNormal“>Cryptocurrency
broker Genesis Global Capital has reached $1.8bn in debt and is likely to
continue to grow, CoinDesk reported. Messari estimates that the platform needs
to raise at least $500m to avoid liquidation.</p><p class=“MsoNormal“>Bloomberg
Intelligence senior commodities strategist Mike McGlone believes that
cryptocurrencies are now going through their last phase before hitting rock
bottom. However, he says it will be tough for investors and companies to
survive this phase.</p><p class=“MsoNormal“>A Chinese
court has ruled that non-exchangeable tokens (NFTs) are virtual property that
should be protected by law.</p><p class=“MsoNormal“>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

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

<ul><li>Don’t see a ‚hard landing‘ for Eurozone economy</li><li>No material de-anchoring of inflation expectations</li></ul><p style=““ class=“text-align-justify“>He isn’t one of the more vocal members on the governing council and the above are but token remarks anyway.</p>

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

<ul><li>Prior 53.2</li></ul><p style=““ class=“text-align-justify“>UK construction growth falls to a three-month low as business activity grinds to a halt amid subdued demand conditions and reduced risk appetite among clients. Of note, business expectations were seen at their weakest since May 2020 as the outlook deteriorates heading into the end of the year. S&P Global notes that:</p><p style=““ class=“text-align-justify“>“Stalling house building activity contributed to the weakest UK construction sector performance for three months in November. Survey respondents noted that new residential building projects had been curtailed in response to rising interest rates, cancelled sales and worries about the economic outlook. </p><p style=““ class=“text-align-justify“>“Construction growth was largely confined to the commercial segment, but even here the speed of expansion slowed considerably since October as client confidence weakened in response to heightened business uncertainty. At the same time, a lack of new work to replace completed projects resulted in another fall in civil engineering activity. </p><p style=““ class=“text-align-justify“>“The number of construction firms anticipating a rise in overall business activity during the year ahead exceeded those forecasting a decline by only a very fine margin during November. Moreover, disregarding a three-month period of negative sentiment at the start of the pandemic, our survey measure of business expectations across the construction sector was the joint-weakest since December 2008.“</p><p style=““ class=“text-align-justify“>/<a target=“_blank“ href=“https://www.forexlive.com/terms/g/gbp/“ target=“_blank“ id=“3a5ab7c1-ff09-45ea-87d4-eea6613bb754_1″ class=“terms__main-term“>GBP</a></p>

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

<p style=““ class=“text-align-justify“>Amid the lack of change in the major currencies space, this is one of the only notable pieces of action in trading so far today. 10-year Treasury yields are also pretty much flat again on the day, relieving USD/JPY buyers of their impetus at the moment. The pair <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-nudges-higher-to-test-key-near-term-level-to-start-the-session-20221206/“ target=“_blank“ rel=“follow“>ran up to test</a> its 200-hour moving average (blue line) earlier but for now, sellers are holding the line.</p><p style=““ class=“text-align-justify“>As such, the near-term bias stays more neutral after the developments from yesterday – in which we saw price climb back above 135.00 and its 200-day moving average, as well as the 100-hour moving average (red line) above.</p><p style=““ class=“text-align-justify“>For now, price action is caught in a near-term tussle in determining the next directional bias before we look at the bigger picture levels on either side again.</p><p style=““ class=“text-align-justify“>The dollar remains little changed overall today, trading within 0.1% against other major currencies with only AUD/USD up 0.3% to 0.6720 – owing to the RBA policy decision earlier in the day.</p>

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