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Bitcoin’s rally weakened on Tuesday, suggesting that buyers took some profits at around the $68,500 all-time price high. Despite a short-term retreat, upward price targets are expectedfor both BTC and ETH over the next month.
There is a positive sentiment that often prevail the crypto markets near every year’s end. Price target of around $80,000 for BTC is suggested by the end of the year, and a $5,500 target for ETH during the same period. ETH is currently at $4,777.
On Tuesday, Gold prices continued to trend higher after breaking since Friday. Despite the USD’s holding steady, the decline in U.S. treasury yields buoyed the precious metal.
U.S. shares retreated back from record levels on Tuesday’s U. S. session, threatening to disrupt an eight-day gaining sessions for the S&P 500 Index, the first time since 1955. The benchmark index fell by 0.5% in afternoon trading.
The S&P 500 pulled back to end an 8-session winning line of sessions. On Monday, the index closed above 4,700 for the first time.
Economic Data
On Tuesday, the US economic data unveiled the Producer Price Index (PPI) for October, which in its headline expanded by 0.6%, higher than the 0.5% as per the expected estimates.
On a year-over-year figure, the PPI increased 8.6%, in line with the forecast. Additionally, the Core PPI for the same period on a monthly basis rose by 0.4%, a tad higher than expected, whereas the annual basis number came in line with estimations at 6.8%.
The report released by the Bureau of Labor Statistics noted that higher energy costs drove the gain on wholesale prices.
It also mentioned how recent months, transportation bottlenecks, material shortages, and increasing labor costs sent prices surging across the U. S. economy.
On Wednesday, the U. S. economic scene will witness the latest release of the Consumer Price Index, CPI, for October. This data is awaited by investors and traders, as the Federal Reserve dovish tone spurred a selloff in the bond market, while US Treasury yields fall.
CPI is unlikely to offer much of a amnesty on the inflation front. Forecasts orbit around 0.6% month-over-month increase on the headline index and a monthly increase of 0.4% on the core index.
If realized, this would put headline CPI inflation at 5.9% year-over-year and core CPI inflation a bit lower at 4.4% year-over-year.”
The Initial Jobless Claims for the week ending on November 6 will be revealed on Wednesday. New weekly jobless claims are expected to touch a fresh pandemic-era low again this week, as labour shortages and companies’ endeavors to bring about change and retain workers are helping to put a cap on the pace of firings and other separations.
Other Developments
The start of the current week came with renewed fears of a Brexit showdown as the United Kingdom has threatened to trigger emergency unilateral provisions in the Brexit divorce deal widely known as Article 16.
U. S. WTI sharply advances in the New York session, up by almost 2%, trading at $82.93 per barrel. Earlier, Tuesday, oil retreated under the $81.00 psychological figure, but later found support at the 1-hour 50-simple moving average at $80.99, which capped the downward pressure on the U. S. crude oil benchmark.
The Short Term Energy Outlook (STEO) predicted that the market would have an excess supply early in 2022 and reported that prices would fall in December from current levels.
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BRIEXIT, Article 16 Warn GBP Traders
WTI jumps sharply on STEO report
Wednesday’s CPI Data Helps Investors Conceptualize U. S. Inflation
Will Wednesday’s CPI Impact EUR/USD?
Fed’s Daly: Prices will moderate as U. S. gets through pandemic
BOE & ECB Interest Rate Expectations Updates
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