Markets Week Ahead: Markets Risk-On, BoE Decision, Gold, Nasdaq, Bitcoin
- Risk markets remain resilient, positive US earnings underpin the move higher.
- US dollar sell-off post NFPs may not last.
- USD/JPY breaking lower, helped by ‘official’ Yen buying.
- Bitcoin pops 9% higher on Friday for no apparent reason.
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A busy week for a range of markets with the US dollar buffeted by Wednesday’s FOMC meeting and Friday’s weak NFP release, while in the US equity space, heavyweight earnings releases from Amazon, Block, Apple, and Coinbase kept traders busy. The world’s 2nd largest company gave the market a sizeable boost, announcing earnings beat across the board, an improved dividend, and the largest ever corporate buyback of $110 billion. Apple shares jumped around 9% Thursday before giving back some gains on Friday.
The tech-heavy Nasdaq ended the week in positive territory and at its highest level in over two weeks. A bearish flag formation can be seen on the charts but a break above trend resistance cannot be ruled out.
Nasdaq Daily Price Chart
The economic data and events calendar is relatively quiet next week. However, the latest Bank of England decision (see the British Pound report below) and a handful of Fed speakers, will keep traders busy.
For all market-moving economic data and events, see the Calendar
The Japanese Yen moved sharply higher against the US dollar over the week, driven by strong talk of official intervention. After hitting a spike high just above 160.00, USD /JPY tested prior support at 151.92 on Friday. The Japanese Yen gained across the board this week and is likely to continue this trend in the coming weeks.
USD/JPY Daily Price Chart
Gold ended the week lower but the precious metal could not break a prior level of support around $2,280/oz. Lower US Treasury yields should be boosting gold but this is not happening now. The CCI indicator suggests that gold is oversold.
Gold Daily Price Chart
Bitcoin made a sharp turn higher on Friday on the back of little news. The CCI indicator shows that BTC/USD was heavily oversold on Wednesday and this coincided with Bitcoin’s move higher. A break and open above the $65k level leaves $69k as the next target.
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Chart of the Week – Bitcoin
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Technical and Fundamental Forecasts – w/c May 6th
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