Live Forex News (18th Jan 2024): Gold, Crypto Update and Forex Summary!

BITCOIN ANALYSIS

As Bitcoin (BTC) trades sideways below $43,000 on Thursday, market participants appear unsure on what to do. Due to the sport exchange-traded fund’s inability to sustain pricing, the price of bitcoin has dropped by over 8% in the last week, ushered in as the “altcoin season.” It will be 110 days until the Bitcoin halving event, which is thought to be a trigger for the price of Bitcoin. 



GOLD PRICE 

The gold price (XAU/USD) shows some signs of life on Thursday and appears to have ended a two-day losing run that had taken it below the crucial $2,000 barrier, which is more than a month’s low reached the day before. Supported by geopolitical tensions and concerns over China’s dismal economic outlook, the precious metal holds onto its modest gains through the early European session. In addition, a slight decline in the US dollar (USD) proves to be another positive reason for the commodity, even though the intraday increase lacks strong optimistic indications.


The positive news about US retail sales on Wednesday indicated that the economy is strong and allows the Federal Reserve (Fed) greater leeway to maintain higher interest rates for an extended period of time. This keeps the rates on US Treasury bonds high, which should support the USD and limit any significant increase in the price of non-yielding gold. Therefore, it would be wise to hold off on verifying that the XAU/USD has bottomed out in the near term and preparing for additional gains until there is significant follow-through purchasing. Traders now seek some inspiration from the US economic calendar, which includes the Philadelphia Fed Manufacturing Index, housing market data, and the speech of Atlanta President Raphael Bostic. 


JPY

Thursday sees a little strengthening of the Japanese yen (JPY) relative to the US dollar, which appears to have ended a three-day losing trend and dropped to its lowest level since November 28 was touched the day before. Investor sentiment is still affected by the Middle East’s escalating armed conflict and worries about China’s ongoing economic difficulties. In addition, the JPY is supported by some trade repositioning ahead of Friday’s release of Japan’s consumer inflation data. 


EUR

During Thursday’s European session, the Euro (EUR) is reversing some of its losses. The positive US Retail Sales data has lessened, but the overall EUR/USD trend is still unfavourable. As a result, the US Dollar Index has dropped from one-month highs.

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