For the past few years, the approval of a Bitcoin spot Exchange-Traded Fund has been viewed as speculative. However, the advancements around ETFs have accelerated recently. Following the defeat of several cryptocurrency lawsuits, the US Securities and Exchange Commission, which has the authority to approve or disapprove ETF products, is now in a vulnerable position.
Between October 16 and 24, the price of bitcoin increased by 30%, setting a new local high of $35,280. This move had tremendous bullish momentum, which made it spectacular. However, BTC has been trending sideways since the formation of its swing high. The daily candlestick closures have generated an upward slope since October 25, which to the untrained eye would appear bullish. Upon closer inspection, the Relative Strength Index (RSI) exhibits a declining slope.
The gold price (XAU/USD) hits a new weekly low on Wednesday, continuing the retracement plunge that began the previous day from the area of a five-month peak that was touched last week. The Federal Reserve’s (Fed) expected hawkishness and the waning worries over the Israel-Hamas war prove to be the main reasons pushing the non-yielding yellow metal lower for the third consecutive day. However, as traders avoid making aggressive bets ahead of the crucial central bank event risk, the precious metal finds some support near the $1,975 region and recovers most of its intraday losses.
Later on Wednesday during the US session, the Federal Reserve (Fed) is due to publish its monetary policy decision, which is expected to keep things as they are. Important US macro releases, such as the JOLTS Job Openings data, the ISM Manufacturing PMI, and the ADP report on private-sector employment, will serve as indicators for traders in the interim. On the other hand, bearish traders should exercise some care due to the lack of substantial follow through selling. Furthermore, worries about China’s shaky economic recovery at the beginning of the fourth quarter appear to be supporting the safe-haven price of gold.
After retreating from the five-month high, EUR/GBP is still losing ground. On Wednesday morning during the early European session, it was trading lower at 0.8690. With the announcement on Tuesday of the weaker-than-expected consumer inflation statistics by Eurostat, the EUR/GBP cross is under pressure to decline. The preliminary Harmonised Index of Consumer Prices for October dropped from 4.3% to 2.9%, below the 3.1% market expectation, according to the Eurozone report. In the third quarter, the seasonally adjusted gross domestic product was 0.1% as opposed to the anticipated 0.2%. The notable deceleration in consumer prices is consistent with the market’s expectation that the European Central Bank will not pursue further increases in interest rates. Furthermore, the Euro (EUR) may continue to be undermined by the impending dangers of a recession, which would affect the EUR/GBP cross.