<p style=““ class=“text-align-justify“>The hype this week was all about the US CPI data and the reaction yesterday did not disappoint. However, it seems like market players are running out of steam today or it may just be another summer’s day in Europe as things settle down and we are seeing light changes overall for the most part.</p><p style=““ class=“text-align-justify“>European indices are now little changed after a positive open, trading more mixed while US futures are still keeping slightly higher but the gains are rather measured. S&P 500 futures are up 11 points, or 0.3%, while Nasdaq futures are up by only 0.1% on the day.</p><p style=““ class=“text-align-justify“>Meanwhile, Treasury yields cratered initially to the release yesterday but picked itself up as rates showed little change in general but are slightly lower today. Perhaps 10-year yields are looking for a bigger play with a wedge/flag pattern forming at the moment:</p><p style=““ class=“text-align-justify“>While greed is the name of the game in the equities space, the bond market seems to be voting that not much has changed in terms of the Fed outlook after just one data point that may be hinting at inflation pressures easing slightly. I think the fact that Fed funds futures also dialed back a little higher to ~43% for a 75 bps rate hike next month (it was down to ~30% at one point) is a testament to that.</p><p style=““ class=“text-align-justify“>In FX, the dollar remains a little softer today but there are some key technical levels in play at the moment before any further downside leg for the greenback as outlined earlier:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurusd-nudges-higher-as-dollar-stays-sluggish-20220811/“ target=“_blank“>EUR/USD nudges higher as dollar stays sluggish</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-looks-to-build-on-yesterdays-gains-amid-heavy-dollar-20220811/“ target=“_blank“>GBP/USD looks to build on yesterday’s gains amid heavy dollar</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-taken-on-a-see-saw-ride-by-us-economic-releases-20220811/“ target=“_blank“>USD/JPY taken on a see-saw ride by US economic releases</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdcad-looks-to-establish-further-downside-leg-after-fall-to-two-month-lows-20220811/“ target=“_blank“>USD/CAD looks to establish further downside leg after fall to two-month lows</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/audusd-takes-a-peek-above-key-resistance-level-on-dollar-struggles-20220811/“ target=“_blank“>AUD/USD takes a peek above key resistance level on dollar struggles</a></li></ul>

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

<ul><li>Tax relief is part of overall package to help citizens</li></ul><p style=““ class=“text-align-justify“>There are sparse details on this with German finance minister Lindner only stating that the tax relief plan would be in the realms of €10 billion. This is on top of the €30 billion package unleashed by the government earlier which included a fuel tax cut and a public transport ticket valid across Germany priced at just €9 a month for June, July and August.</p>

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

<p style=““ class=“text-align-justify“>The pair traded to fresh highs in two months after the US CPI data yesterday but the daily close fell short of breaching the 100-day moving average (red line). That key resistance level is once again the focus today and we are seeing buyers look to test waters above that at 0.7085 at the moment.</p><p style=““ class=“text-align-justify“>Hold above and the bearish bias in the pair will be put off as there is the scope for price action to trade towards the 200-day moving average (blue line), seen at 0.7150 currently. These key technical levels have been vital in definining and limiting price moves in AUD/USD, as evident from the chart above since May trading.</p><p style=““ class=“text-align-justify“>As such, they will be key levels to pay attention to in gauging the potential for the next leg lower in the dollar against the aussie. Across other dollar charts, the greenback also has key levels that are being contested, or close to, at the moment as seen with the <a target=“_blank“ href=“https://www.forexlive.com/news/eurusd-nudges-higher-as-dollar-stays-sluggish-20220811/“ target=“_blank“>euro</a>, <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-looks-to-build-on-yesterdays-gains-amid-heavy-dollar-20220811/“ target=“_blank“>pound</a>, <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-taken-on-a-see-saw-ride-by-us-economic-releases-20220811/“ target=“_blank“>yen</a>, and <a target=“_blank“ href=“https://www.forexlive.com/news/usdcad-looks-to-establish-further-downside-leg-after-fall-to-two-month-lows-20220811/“ target=“_blank“>loonie</a>.</p><p style=““ class=“text-align-justify“>The coherent technical picture across multiple pairs exemplifies the notion that dollar sentiment is the key driver in FX at the moment, as markets continue to look for clues on the Fed pivot. For now, we’re still caught up in the reaction to the US jobs report from Friday last week and the US CPI data yesterday. The dollar is softer and while there is scope for a further drop, there needs to be confirmation from the technicals and we are approaching that crossroads towards the end of the week.</p>

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

<p style=““ class=“text-align-justify“>There were big moves across dollar pairs in trading yesterday and USD/CAD was no exception as it cast aside the memory of the jump to 1.2980 last Friday in a drop back below 1.2800 in the aftermath of the US CPI data release. There hasn’t been much relief since the drop with the slight retracement earlier stalling at the 100-day moving average (red line) at 1.2793 – a level that was broken yesterday and which helped to stall the downside trend initially on 1 August.</p><p style=““ class=“text-align-justify“>The break below the key technical level is a boost to sellers and opens up the path towards testing the 200-day moving average (blue line) next at 1.2741. That is the key support level to watch now as a break below that will pave the way for a further downside leg in the pair.</p><p style=““ class=“text-align-justify“>It isn’t much of a coincidence that we are seeing dollar pairs in general move close towards testing another round of key technical levels in which a break might set off the next downside leg for the dollar.</p><p style=““ class=“text-align-justify“>I want to say that the late surge in oil prices yesterday helped to keep the loonie steadier but considering its recent volatility, it’s hard to really pin down such a move to fluctuations in oil. For now, dollar sentiment is still the key driver in FX and the technicals are what is defining the action at the moment as seen with the <a target=“_blank“ href=“https://www.forexlive.com/news/eurusd-nudges-higher-as-dollar-stays-sluggish-20220811/“ target=“_blank“>euro</a>, <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-looks-to-build-on-yesterdays-gains-amid-heavy-dollar-20220811/“ target=“_blank“>pound</a>, and <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-taken-on-a-see-saw-ride-by-us-economic-releases-20220811/“ target=“_blank“>yen</a> as well.</p>

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

<ul><li>Prior +1.2%</li><li>Market index 279.8 vs 279.2 prior</li><li>Purchase index 205.4 vs 208.4 prior</li><li>Refinancing index 662.9 vs 640.6 prior</li><li>30-year mortgage rate 5.47% vs 5.43% prior</li></ul><p style=““ class=“text-align-justify“>The increase in mortgage activity owes to refinancing in the past week as home purchases were seen falling once again. As the Fed’s battle against inflation continues to rage on, it is hitting the US housing market and that is something to be wary of as economic conditions does show signs of worsening in the months ahead.</p>

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

<ul><li>Will keep liquidity reasonably ample</li><li>Will balance economic growth and price stability</li><li>Will not resort to flood-like stimulus</li><li>Will provide strong and high-quality support for the real economy</li></ul><p style=““ class=“text-align-justify“>The PBOC also says that the price target for 2022 can still be achived, though they are vigilant on structural inflation pressures. Adding that consumer inflation may pick up in some months during 2H 2022 and may exceed 3% in stages (h/t @ Sino_Market). The remarks from the central bank aren’t anything new and just reaffirms that China is sticking with its existing policy settings in order to keep the economy supported.</p>

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

<p class=“MsoNormal“>Let’s be real: Traders can be a boastful bunch.
And rightfully so! Technical analysis, number crunching, and backtesting an
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will want to download the award-winning PrimeXBT mobile app.</p><p class=“MsoNormal“>Here is more on what the PrimeXBT app for
Android and iOS devices can do for you, as well as how to easily create a
shareable image to highlight your trading ROI.</p><p class=“MsoNormal“>Computers, Apps, And The
Evolution Of Trading Tools</p><p class=“MsoNormal“>The advent of computers and the internet turned
the practice of <a target=“_blank“ href=“https://primexbt.com/trading-academy?utm_source=PR&utm_medium=PR&utm_campaign=Bragging+Rights%3A+How+To+Share+Successful+Trades+On+Social+Media+Using+The+PrimeXBT+App“ target=“_blank“>technical analysis</a> from
something drawn by hand into something handled by advanced computer software.
Online trading desks became commonplace during the 90s and 2000s. However,
today, smartphone apps are where the money and users are at.</p><p class=“MsoNormal“>The emergence of social media has also changed
the way we trade and interact in the financial community. Online influencers
and <a target=“_blank“ href=“https://www.investopedia.com/articles/active-trading/041515/worlds-10-most-famous-traders-all-time.asp“ target=“_blank“>well-known traders</a>
share their thoughts and insights for others to see. Trends like copy trading
have since been developed to take advantage of the demand to follow other
traders’ lead.</p><p class=“MsoNormal“>Because people love to show off on social media
on the regular, those behaviors spill over from posting about new cars, fancy
watches, and other luxury goods to prove one’s level of wealth, into bragging
about a winning trade.</p><p class=“MsoNormal“>Always On Apps Are
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a few taps, an exchange tool, a revamped withdrawal process, and the ability to
share successful trades online. For full transparency, traders can even choose
to share losing trades if they would like.</p><p class=“MsoNormal“>Not only does boasting about winnings help to
prove a trader’s worth in the trading community, it can have a positive effect
on the growth of the community itself. For example, if a PrimeXBT trader is
also a Covesting strategy manager, promoting successful trades could turn a
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This article was written by ForexLive at www.forexlive.com.

<p class=“MsoNormal“>Market
picture</p><p class=“MsoNormal“>Bitcoin lost
3.8% on Tuesday, ending it at around $23.2K, and is developing a decline to
$22.9 by Wednesday morning. Ethereum has lost 5.6% in the last 24 hours, to
$1680. Top altcoins are down 2.5% (BNB) to 7.2% (Solana).</p><p class=“MsoNormal“>Total crypto
market capitalisation, according to CoinMarketCap, fell 3.9% overnight to $1.08
trillion.</p><p class=“MsoNormal“>The recovery
in stock indices has choked, but even earlier and more dramatically, these
changes have affected Bitcoin and the whole crypto market. Should the decline
develop, investors and traders should pay close attention to the 21500 area,
where the previous local lows are concentrated. A dip below that and a decisive
return below the 50-day average could well be the start of a new wave of decline
that could take the crypto market to new lows. At least, there might be a test
of the June-July lows.</p><p class=“MsoNormal“>News
background</p><p class=“MsoNormal“>According to
CoinShares, net capital inflows into crypto funds slowed to $3m last week, with
Ethereum accounting for the most investments at $16m. Funds investing in
bitcoin lost $8.5m; those allowing shorting it faced $7.5m in outflows.</p><p class=“MsoNormal“>Michael
Novogratz, CEO of investment firm Galaxy Digital, expects bitcoin to
consolidate in the $20,000-$30,000 range for a while.</p><p class=“MsoNormal“>Circle has
blocked 75K USDC on Tornado Cash mixer wallets, which have come under sanctions
from the US Treasury. According to the agency, attackers have laundered
cryptocurrency worth more than $7 billion since its inception in 2019, with
about $0.5 billion linked to the North Korean hackers Lazarus Group.</p><p class=“MsoNormal“>The Reserve
Bank of Australia is working with the Digital Finance Corporate Research Centre
(DFCRC) to launch a pilot project to explore options for the practical use of
CBDC digital currency.</p><p class=“MsoNormal“>El Salvador
President Nayib Bukele said the legalisation of bitcoin last year contributed
to significant growth in the country’s tourism. </p><p class=“MsoNormal“>Iran
conducted its first import transaction worth $10 million paid in
cryptocurrency, bypassing the global financial system restricted by US
sanctions.</p><p class=“MsoNormal“>This article was written by <a target=“_blank“ href=“mailto:https://www.fxpro.com“ target=“_blank“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

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

<p style=““ class=“text-align-justify“>There’s not much in it so far in European morning trade as market players are all waiting on the US CPI data later today before firming up any convictions. Major currencies were more pensive earlier and little changed but we are seeing some light moves now with the dollar slightly softer. That said, it isn’t anything material as the ranges are still relatively contained for the most part.</p><p style=““ class=“text-align-justify“>EUR/USD is up a little to 1.0230 but even then, the range today is not even 30 pips so that kind of exemplifies the lack of meaningful price action for the time being. In the bigger picture, the pair is still caught between 1.0100 and the 50.0 Fib retracement level at 1.0283 and we’ll have to see if the US CPI data later can be a catalyst for any technical pushes this week:</p><p style=““ class=“text-align-justify“>Meanwhile, USD/JPY is still slugging in and around the 135.00 mark as traders are struggling to find any real desire to go chasing firmer moves before we get to the key risk event later. <a target=“_blank“ href=“https://www.forexlive.com/news/the-bond-market-remains-a-key-spot-to-watch-on-the-week-20220810/“ target=“_blank“>The bond market is still a key aspect to watch</a> for the pair so just be mindful of that in confirming any major technical moves later in the week:</p><p style=““ class=“text-align-justify“>Elsewhere, USD/CHF is down 0.4% to 0.9500 and commodity currencies are mildly higher against the greenback but both USD/CAD and AUD/USD are also just holding 30 pips ranges. As such, I wouldn’t read much into it and we’ll only get a better sense of trading sentiment once we are able to digest the US consumer inflation report later today.</p>

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

<p style=““ class=“text-align-justify“>After a bit of a mixed start early on, we are seeing stocks look more guarded now with a bit of a drop ahead of the Wall Street open later. S&P 500 futures have slipped to the lows for the day, down 16 points, or 0.4% currently. Meanwhile, Nasdaq futures are down 0.6% and Dow futures down 0.2% on the day.</p><p style=““ class=“text-align-justify“>Meme stocks stole the headlines to start the week but perhaps the sense of apprehension ahead of the key risk event tomorrow i.e. US CPI data will be the story for today.</p><p style=““ class=“text-align-justify“>Elsewhere, European indices are extending declines as well with the DAX down 1.2%, CAC 40 down 0.6%, and Eurostoxx down 1.0%.</p>

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