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XTB TRADEBEAT

Cryptos continue to rise; Gold holds prior support

Summary:

  • Gold bounces from lower bound of recent range
  • US consumer confidence beats forecasts
  • Cryptocurrencies enjoy strong gains
  • Indices fade after bright start 

One of the key driving factors for markets at the moment is US yields with the 10-year (TNOTE on xStation) approaching 3% and the TNOTE falling lower once more. This can be seen to impact all major asset classes with Gold earlier falling lower before bouncing from prior support around 1322. The precious metal has been in a narrow range so far this year and currently resides towards the lower reaches of the 1306-1365 region.  

The standout economic releases of the afternoon have come from the US with both the latest consumer confidence and housing figures beating forecasts. Looking first at the conference board reading, this metric increased to 128.7 from 127.7 for the month of April, and considering that the consensus forecast was for a decline to 126.0 then it is clearly a strong print.   

Cryptocurrencies could be awakening from their slumber with the markets enjoying another big day of gains. Bitcoin has firmed up of late and is gaining traction back above the 9000 handle and is higher by another 4% today. One interesting fundamental development in this space comes as news that Thomson Reuters has conducted a study among some of its clients (about 400 financial institutions) on the possibility of launching cryptocurrency trading operations this year. The study shows that 70 percent of these firms are considering setting up cryptocurrency trading operations division with three to six months while about 22 percent is looking into the period of six to twelve months.

 Stock indices had begun the day in a fairly bright mood with the US500 moving up to its highest level of the week this morning, but there’s been some pretty notable selling since and the market trades lower on the day at the European close. The DE30 is another market which has dropped back after beginning higher and whilst the price hasn’t gone far in recent sessions, it could be set for a 5th consecutive negative close. 

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