Business

XRP at a crossroads


TOPICS DISCUSSED IN THIS MARKET BRIEFING:

  • LEuropean stock exchangesawait the Fed’s decisions
  • Wall Street weakened by producer price
  • Chart of the day –XRP/USD : a key pivot at $ 0.7600

European stock markets await Fed decisions

European stock exchanges progressed at the start of Wednesday’s session ahead of the US Federal Reserve’s monetary policy decisions. Markets await the release at 8:00 p.m. of the US Federal Reserve’s monetary policy decisions after a two-day meeting.

An acceleration in the reduction of Fed bond purchases is still widely anticipated by investors who will analyze the “dot plots”, the forecasts of the members of the Federal Open Market Committee on the future evolution of rates, and the statements of the President. , Jerome Powell, at a press conference.

We could see a more aggressive rate of rise in dot plots with possibly a majority of members reporting up to 3 rate hikes in 2022, although they will also need to recognize the current risks around the Omicron variant.

Wall Street weakened by producer prices

Wall Street ended lower on Tuesday after the release of data showing that US producer prices climbed more than expected in November, fueling the hypothesis that the Federal Reserve (Fed) decides this week to step up the market. tightening of its asset purchase programs.

As the S&P 500 settled at an all-time high at the end of last week, concerns about the rapid spread of the Omicron variant of the coronavirus have contributed to the deterioration of investor confidence and to push back the main indices of Wall Street. Tech stocks finished in the red, weighing on the S&P 500 and the Nasdaq. Meta, Microsoft, Tesla, Alphabet and Amazon lost between 1% and 4%.

According to data released today by the US Department of Labor, the producer price index in the United States jumped last month 9.6% year on year, a record increase for eleven years. Many investors expect the US central bank to signal faster-than-expected tapering and, therefore, premature interest rate hikes in an attempt to offset rapid price spikes.

As a result, the Dow Jones fell 0.30% to 35,544.18 points. The Nasdaq lost 1.14% and the S & P500 was down 0.75%.

Othersupdates on financial market news

The oil market retreats for a third consecutive session over fears that supply growth will exceed demand growth next year.

The International Energy Agency (IEA) said on Tuesday that the increase in COVID-19 cases with the emergence of the Omicron variant will weigh on global demand for crude as crude production is expected to increase in the same. time, especially in the United States.

Today’s economic calendar:

Find the entire economic calendar to know all the economic events to comer.

CHART OF THE DAY – XRP / USD: a key pivot at $ 0.7600

Stock market: Fed day - Ripple: XRP at a crossroads

XRP has stabilized for several sessions on a double level of support at $ 0.7600. First, prices are supported by a long-term bullish slant. Then the crypto is moving in a bearish channel as well, so the lower bound converges with the trend line, which strengthens the support at $ 0.7600.

Hence, this is a key pivot that buyers need to defend to stop the decline and allow a bullish restart. A foray below this threshold would not bode well for the future, sellers could take the psychological ascendancy to seek the next level at $ 0.642.

On the other hand, if the support does not give way under the selling pressure, then the market should begin a bullish rally. The next technical targets are at 0.9240 then $ 1.0518.

If you are a newbie or experienced trader, DailyFX has many resources available to help you:

CONTINUE YOUR READING






Source link

Advertisement

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button