- Declines in European and US stock markets
- Cryptocurrencies under pressure
- Gold tries to recover losses, the price returns in the vicinity of $1,800
A little more volatility than usual could be observed during the Monday session, especially on the stock market which plunged by rising US Treasury bond yields and the hawkish stance of the Fed. However, cryptocurrencies, which are also considered to be risky assets, also experienced strong declines. The dollar gained among the G8 currencies and gave way only to the Japanese yen.
The main stock indices in Europe ended the session lower. Germany's DAX lost 1.13%, France's CAC 40 fell 1.44% and London's FTSE 100 closed 0.53% lower. The red colour also dominates the U.S. equity market, where the Russell 2000 index is the biggest loser (-2%), followed by the technology-based Nasdaq, which loses 1.7%. In turn, the S&P500 and Dow Jones are losing 1.2% and 1% respectively.
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Open account Try demo Download mobile app Download mobile appLooking at the cryptocurrency market, Monday brought clear losses and a continuation of the sentiment we saw at the end of last week. Bitcoin being the most popular digital currency was losing up to 6% today and was trading below the $40,000 barrier. However, the movement seemed to be temporary and currently the price returned above the USD 41,000 mark. However, the technical situation still does not look very positive, and taking a look at the broader perspective, potential RGR formation can be observed on the D1 interval, which usually heralds declines.
When it comes to the commodities market, on the gold market we observed an attempt to rebound from last week's declines. However, the rebound stopped in the vicinity of resistance at $1,800, the level is being tested again in the evening hours.
The upward move on USDJPY stopped at the resistance resulting from the 127.2% Fibonacci retracement at 116.30 last week, from where the downward correction began. Currently, we are seeing a return to the earlier upward channel and an attempt to negate the 1:1 structure at 115.20. Should it be broken, a deepening of declines towards the lower limit of the aforementioned channel is not excluded.
USDJPY H4 interval. Source: xStation5
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