- Major indices little changed on the day; US500 hovering near 2800
- European airlines pullback on Ryanair profit drop
- Bitcoin hits highest level since May around 7700
- What’s next for USDJPY?
- Is Gold set for a recovery or more downside ahead?
US stock markets have begun the new week in a relatively subdued manner with trade fairly quiet. The US500 has a relatively small trading range last time out with a narrowing range typical of a summer lull in the markets. Price continues to oscillate around the 2800 level, and while last week’s close was in fact the highest since early February, a break higher has failed to gain the requisite traction just yet.
European benchmarks are also little changed on the whole, although there have been some notable moves in airline stocks after Ryanair released its latest trading update. In the DE30 it is also worth to highlight the poor performance of Lufthansa (LHA.DE) at the beginning of today’s session. No major negative news concerning the company has spurred lately therefore a sell-off can be attributed to the industry-wide factors. Ryanair, an Irish discount airline, submitted an earnings report today and it showed a huge drop in profits.
There’s been further gains in Bitcoin today, with the market moving to a 2-month high and gaining in excess of 4%. Price is testing a potentially key level around 7700 and if the market can make a decisive break above here then it would open up the possibility for a larger rally. In fundamental news, Swiss authorities are encouraging crypto companies to develop their businesses in Switzerland, but Swiss banks share a more rigorous approach to these firms.
The Japanese Yen is making a steady move higher today, with the currency rising against all of its peers. JPY has been subject to two bank recommendations that we posted earlier today, here and here. We provide a more in-depth look at the USDJPY pair here.
It’s been a tough time of it of late for Gold bugs with the price of the precious metal tumbling after price broke below 1304 back in early May, and the market hit its lowest level in a year during last Thursday’s session. Is the market now primed for a recovery or will there be more downside ahead? We look at the market more closely here.