<p>Market picture</p><p class=“MsoNormal“>Bitcoin
updated five-week highs above $18,300 on Wednesday but then fell along with
stock indices amid the Fed’s intention to raise rates higher and hold them
longer than markets had hoped.</p><p class=“MsoNormal“>The market
reaction to the Fed brought the price back to levels before the lift-off but
did not trigger a sustained decline yet. Bitcoin failed to close the day above
its 50-day moving average but continues to hover around that curve. A
consolidation above this line could spur additional demand.</p><p class=“MsoNormal“>The
cryptocurrency Fear and Greed Index was up 1 point to 31 by Thursday and
continues to be in a state of „fear“. Despite dropping 1.4%
overnight, the crypto market’s total capitalisation at 860bn has been near the
upper end of its trading range for more than a month.</p><p>News background</p><p class=“MsoNormal“>According to
CoinGesco, the number of cryptocurrencies in the BTC and Ethereum networks
reached historic highs following the collapse of FTX. The growth rate of large
asset holders has quadrupled compared to the annual average.</p><p class=“MsoNormal“>Goldman
Sachs said gold is a better asset diversifier than BTC as it is less volatile.</p><p class=“MsoNormal“>According to
Nansen, about $3 billion has been withdrawn from Binance in the last two days,
with user activity attributed to a „temporary suspension“ of
withdrawals in USDC.</p><p class=“MsoNormal“>In response
to the recent media attack, Tether, the issuer of USDT, said it would reduce
the collateralised credits in USDT reserves to zero over the next year.</p><p class=“MsoNormal“>There is no
consensus among US regulators on cryptocurrencies. The Commodity Futures
Trading Commission (CFTC) has called bitcoin, Ethereum and USDT commodities in
a lawsuit against FTX CEO Sam Bankman-Fried, who faces up to 115 years in
prison.</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 www.forexlive.com.

<p style=““ class=“text-align-justify“>Roughly 16% of people said that they were worried or very worried about their food running out before having money to buy more, with the situation already being a reality for 6% of those surveyed. Just to provide some background, the ONS survey was conducted between 22 November and 4 December and had 2,524 respondents.</p><p style=““ class=“text-align-justify“>Adding to that, some 23% of people said that they were unable to keep comfortably warm in their own homes. I reckon that in itself is a bad look for the rest of the winter considering how October has already been hotter than expected in Europe.</p><p style=““ class=“text-align-justify“>In terms of public discontent, 74% of people said that Britain’s society is „not as it should be“.</p><p style=““ class=“text-align-justify“>All of this will just continue to mount further pressure on the government to try and sort things out as the cost-of-living crisis intensifies.</p>

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

<p style=““ class=“text-align-justify“>This comes amid a broad rebound in the US dollar, stemming from the retreat in equities since the Fed yesterday. The dollar is seen up across the board today, posting solid gains as the bulls hope to make a comeback. In the case of USD/JPY, the 200-day moving average (blue line) is the key line that is being defended this week:</p><p style=““ class=“text-align-justify“>That has now seen buyers seize back near-term control, pushing back above the key near-term region highlighted earlier <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-climbs-as-stocks-retreat-in-european-trading-20221215/“ target=“_blank“ rel=“follow“>here</a>. So, the risk to any further upside move now is the 100 and 200-hour moving averages at 136.27-40 before the 200-day moving average, seen at 135.44 currently.</p><p style=““ class=“text-align-justify“>That said, the recent bounces in the pair have failed to get above the 23.6 Fib retracement level of the downswing since October, seen at 137.94. As such, any upside momentum needs to clear that as well before buyers can feel comfortable of a move back towards 140.00 potentially.</p><p style=““ class=“text-align-justify“>As much as the dollar is getting a tailwind from softer sentiment in equities, the bond market will also need to play ball to vindicate any major rebound in USD/JPY in my view. For now, we’re not seeing that too much with 10-year Treasury yields up by just 0.5 bps on the day to 3.488% – lacking any real appetite ahead of US trading.</p>

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

<ul><li>Underlying inflation pressure has increased</li><li>Danger remains inflation could stay elevated</li><li>It is too early to sound the all clear</li><li style=““ class=“text-align-justify“>SNB will sell forex in future if appropriate, will also buy to check excessive appreciation pressure</li></ul><p style=““ class=“text-align-justify“>Some token remarks there by Jordan. For today’s decision, it is all about the fact that they just hiked by 50 bps instead of 75 bps – which some quarters of the market hoped for.</p>

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

<p style=““ class=“text-align-justify“>The key trigger point was the softer-than-expected US CPI data yesterday and the dollar is now holding lower once again today. The euro and pound are decent gainers so far, but it is more of the case that both currencies are looking to solidify a further technical break higher against the dollar from yesterday.</p><p style=““ class=“text-align-justify“>Let’s dive straight into the charts.</p><p style=““ class=“text-align-justify“>In the case of EUR/USD, the pair managed to secure a daily break above the key trendline resistance (white line) from the downside swing from January last year. That key level is seen around 1.0598 and a weekly break above that as well as the 38.2 Fib retracement level at 1.0610 will be a massive win for buyers, allowing for scope to push towards 1.0800 next.</p><p style=““ class=“text-align-justify“>As for GBP/USD, the pair managed to breach resistance from its August highs at 1.2276-93 and is now running to fresh highs since June. A push towards 1.2500 looks to be on the cards but of course, the Fed will have the biggest say in terms of what comes next for the pair for the remainder of the week.</p><p style=““ class=“text-align-justify“>The 50.0 Fib retracement level of the downswing from last year is also at risk of being breached, seen at roughly 1.2306 (this may vary depending on what the low price is for the September drop). That will just add to more momentum for buyers in chasing a further move higher if the central bank stars line up via the Fed and BOE in the sessions ahead.</p><p style=““ class=“text-align-justify“>As much as the dollar is looking to count on the Fed for assistance later today, the technical predicament that it is in currently is already making it tough for dollar bulls to really turn things around. With such vulnerabilities being exposed, it won’t take much to trigger another round of selling in the greenback as we look towards the FOMC meeting.</p>

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

<p style=““ class=“text-align-justify“>In a week where we will get so many major central bank decisions, you would think the bond market is the key spot to watch. But as we look towards the Fed later today, I would be remiss not to highlight how pivotal a part the stock market could end up playing once the dust settles over the coming sessions.</p><p style=““ class=“text-align-justify“>In particular, the S&P 500 chart is one that is presenting some technical considerations that are rather important to pay attention to:</p><p style=““ class=“text-align-justify“>The buoyant open and push higher after the US CPI data yesterday ultimately failed to clear the key trendline resistance (white line) from the downtrend this year and that also saw price fall back below its 200-day moving average (blue line).</p><p style=““ class=“text-align-justify“>The former is now arguably the most critical point in any Santa Claus rally for stocks before the turn of the year. Meanwhile, any downside push is currently limited by support from the 100-day moving average (red line). It will take a break below that for sellers to really regain any potential downside momentum from this point, upon a defense of the above resistance levels that is.</p><p style=““ class=“text-align-justify“>The technical considerations above will play into how risk sentiment will push forward in the aftermath of the events this week. As such, it may not necessarily be a straightforward reaction in which we equate any dollar selling and bond market rally to a potential risk rally. I fear that it might be a case of equities having to vindicate the moves elsewhere and if they don’t, that might spark some retracement in the dollar and bond market moves.</p><p style=““ class=“text-align-justify“>That is rather contrary to the phrase ‚the bond market is always right‘, something I usually would ascribe to any potential event that will impact broader markets as a whole.</p>

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

<p>Trivia: Did you know that
future contracts are generally <a target=“_blank“ href=“https://kowela.com/signup“ target=“_blank“ rel=“follow“>traded on commodity exchanges</a>? Fact: The two largest commodity markets in the U.S. are
the New York Mercantile Exchange and Chicago Mercantile Exchange. </p><p>Raw materials like grain, bread, oil, and metals are commodity
products. The purchasing and selling of these primary resources are known as
commodities trading. This is because it occasionally involves the exchange of
tangible things. However, futures contracts, where you agree to purchase or
sell a commodity at a certain price at a particular date, are where it
typically occurs.</p><p>Your portfolio can become more diversified by adding
commodities, which act as an inflation hedge. However, commodities are very
erratic. Moreover, trading commodities is complicated because unpredictable
events like weather and political unrest can have a significant impact on
prices. Continue reading to discover several <a target=“_blank“ href=“https://kowela.com/“ target=“_blank“ rel=“follow“>strategies
to invest</a> in items and the fundamentals of
commodities trading.</p><p>UNDERSTANDING COMMODITY MARKET</p><p>You probably need to give the location of their cultivation or
mill more thought when you purchase a bag of wheat flour or an ear of corn from
a grocery store. This is so because corn and flour are both products. Commuting
and selling these replaceable resources in large quantities is known as
commodities trading. In addition, these basic materials frequently serve as the
foundation for produced goods.</p><p>The price movement of a commodity is the subject of bets by
traders. You buy futures or go long if you believe a commodity’s price will
increase. You sell futures or go short if you anticipate a price decline.</p><p>TYPES OF COMMODITIES</p><p>Commodities are divided into two groups by investors: hard and
soft. Through mining or drilling, hard commodities was discovered. Grown or
cultivated soft goods include cattle. The four primary sorts of commodities are
as follows:</p><p>Products from agriculture: delicate items.</p><p> -They include agricultural products like lumber, cotton,
corn, wheat, soybeans, and coffee.</p><p>Meat and livestock are soft goods also. They consist of milk,
meat, pork belly, and live cattle.</p><p>Hard goods: energy items. They consist of coal, unleaded
gasoline, natural gas, propane, crude oil, and unleaded fuels.</p><p>Metals: durable goods. They consist of industrial metals like
copper, aluminum, and palladium and noble metals like silver and gold.</p><p>Let me give you an example situation of commodity trading.</p><p>Consider being a food processing business that requires corn to
make cornmeal for food stores. If the crop is smaller, you want to avoid taking
the chance of higher prices. Consequently, you spend $4 on that futures
contract for 5,000 bushels of maize. If prices decline, you lose money because
you overpaid. However, even if they soar, you’re still only paying $4 per
bushel.</p><p>OVERVIEW</p><p>In summary, commodities are a well-liked stock market hedge. For
instance, during a bad market, many investors turn to gold. Likewise, a common
inflation hedge is commodities. Commodity prices frequently rise in response to
high inflation; when inflation is reduced, equities and bonds perform better.
Buying and selling the actual commodity is one way to trade it, but futures
contracts are far more popular. </p>

This article was written by ForexLive at www.forexlive.com.

<p style=““ class=“text-align-justify“>The optimists are feeling a bit more upbeat now as we look towards North America trading, with US futures nudging higher in a more positive risk tilt – at least for the time being. Nothing is set in stone though, especially since we’re all waiting on the US CPI data that is to come later at 1330 GMT.</p><p style=““ class=“text-align-justify“>Here’s a look at how the S&P 500 has performed in each of the last four editions of the CPI data (the report covers the figures for the month prior):</p><ul><li>August: +2.1%</li><li>September: -4.3%</li><li>October: +2.6%</li><li>November: +5.5%</li></ul><p style=““ class=“text-align-justify“>Those are volatile moves and one can expect more of the same again later today. It is an especially important time for equities especially after the rally since last month, as it faces key technical challenges on the chart:</p><p style=““ class=“text-align-justify“>The bottom came after the October release (for the month of September) of the US CPI data and the rebound finally stalled at key trendline resistance from the downtrend this year (white line). Since then, a retreat in stocks has only resulted in a test of the 100-day moving average (red line) and so the risk lines are quite clearly drawn up ahead of the big events this week.</p><p style=““ class=“text-align-justify“>A break above the key trendline resistance will give room for the S&P 500 to rally back towards its August high at 4,325 while a break below the 100-day moving average will pose a major setback to buyers in a potential fall back towards the November low at 3,698 for starters.</p>

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

<ul><li>UK inflation is high</li><li>Demand is slowing and interest rates have been rising</li><li style=““ class=“text-align-justify“>Both households and businesses are more resilient than during previous periods</li><li style=““ class=“text-align-justify“>Banks are also more resilient thanks to post-2008 regulation</li></ul><p style=““ class=“text-align-justify“>Just some token remarks there by Bailey. His speech is more focused on financial stability, so it isn’t one to really give much away ahead of Thursday’s decision.</p>

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

<p class=“MsoNormal“>Equity in <a target=“_blank“ href=“https://investmentsglobal.com/register/“ target=“_blank“ rel=“follow“>accounting and finance</a> refers to the
value that may attribute to a company’s owners. The current share price depends
on the market value of equity (if it is publicly traded), a deal established by
investors, or a value assessed by valuation experts. </p><p class=“MsoNormal“>The book value of
equity is computed as the distinction between assets and liabilities on the
company’s balance sheet. The account may also be known as <a target=“_blank“ href=“https://investmentsglobal.com/“ target=“_blank“ rel=“follow“>shareholders‘ equity</a>, owners‘ equity,
or stockholders‘ net worth.</p><p class=“MsoNormal“>The term
„equity“ is used to suggest justice and fairness. Since equity
recognizes that we do not begin from the same position as others and that
inequities must be acknowledged and addressed, it differs from the word
„equality“ in this regard. </p><p class=“MsoNormal“>We must continue to
work to uncover and remove both intentional and unintended impediments brought
on by systemic structures or biases. </p><p>FORMULA
TO USE TO FIGURE OUT EQUITY</p><p class=“MsoNormal“>To determine a
company’s equity using the accounting equation, apply the following formula and
calculation:</p><p class=“MsoNormal“>OWNER’S EQUITY=
TOTAL ASSETS – TOTAL LIABILITIES</p><p class=“MsoNormal“>There are two
categories of equity value: </p><ol type=“1″ start=“1″>
<li class=“MsoNormal“>Book Value</li>
<li class=“MsoNormal“>Market Value</li>
</ol><p>Book
Value</p><p class=“MsoNormal“>Book value is The
total of all current and non-current assets on a company’s balance sheet and
represents the worth of its assets. Cash, accounts receivable, inventory,
prepaid costs, property, plant, and equipment (PP&E), goodwill,
intellectual property, fixed assets, and intangible assets are among the major
asset accounts.</p><p class=“MsoNormal“>The total of all
current and non-current obligations on the balance sheet represents the value
of liabilities. Standard liability accounts include credit lines, short-term
debt, deferred revenue, long-term debt, charges payable, capital leases, and
any fixed financial commitment.</p><p>Market
Value of Equity</p><p class=“MsoNormal“>A market value,
which may be significantly greater or lower than the book value, is how equity
is commonly described. This mismatch derives from the fact that the statements
of accounts are retrospective (all results are from the past). In contrast,
financial analysts anticipate financial performance by looking forward to the
future.</p><p class=“MsoNormal“>A corporation’s
stock’s market value can easily be ascertained if it is listed on a public
exchange. You can identify the market value of the company’s stock by
multiplying the total number of outstanding shares by the most recent share
price.</p><p class=“MsoNormal“>It is far more
challenging to estimate a company’s market worth if it is privately held.
Therefore, if the business needs to be formally evaluated, it will frequently
hire experts to do a detailed investigation, such as investment bankers,
accounting firms (valuations groups), or boutique valuation businesses.</p><p>The
importance of equity</p><p class=“MsoNormal“>Equity is a crucial
metric for determining the worth of the shareholder’s money. It provides an
understanding of the worth of a company when paired with other criteria.</p><p>PERCEPTION</p><p class=“MsoNormal“>The equity equation
establishes the company’s existing status. It accomplishes this by comparing
precise figures demonstrating what the business owns and owes. By selling
shares, a business can raise funds that are then utilized to fund operations
and projects. As a result, the company’s assets increase.</p><p class=“MsoNormal“>A business may
raise capital by issuing stock or debt (such as loans or bonds or by selling a
stock). However, the main reason why most investors pick equity investments is
that they increase their likelihood of profiting from a company’s expansion and
success.</p><p class=“MsoNormal“>Moving forward, I
will be discussing risk management, what it is, and its importance. It is a
guide for you before thinking of investing in trading. </p>

This article was written by ForexLive at www.forexlive.com.