20210220

Commodities Corner: Copper Soars to Nine-Year High, Lean Hogs Spike 15%

The Red Metal Sees Green  

It was running the bulls in the copper market this past week as the red metal topped $4 for the first time since the end of 2011. The bullish sentiment gave the industrial metal a 7% gain for the week, buoyed by strong Chinese demand and forecasts of a supply deficit this year. Is this sustainable or could copper prices head back down to earth?  

Over the last several months, the world’s largest copper consumer, China, has acquired vast volumes of the industrial metal to restock its inventories. As the nation accelerates its economic recovery, copper remains a critical component for everything, from construction to manufacturing to green energy. Many factories had remained open during this year’s Lunar New Year holiday, allowing copper to continue edging higher.  

According to a new report from Citigroup, copper supply will fall short of demand, raising the deficit to approximately 500,000 tons. The financial institutions anticipate the deficit to last for four of the next five years.  

But while demand has dominated headlines, it is the supply side that is impacting the market. Some of the world’s largest producers, such as Peru, have reduced production amid labor strife and the COVID-19 public health crisis. Still, like the broader commodities bull market, everyone is demanding copper at the same time, which is weighing on stocks.  

Copper is integral for green energy technology, electric infrastructure, automobile manufacturing, and consumer goods.  

A weaker greenback supported copper prices, with the US Dollar Index, which gauges the buck against a basket of currencies, slumping 0.15% over the last week to 90.34. A lower buck is good for dollar-pegged commodities because it makes it cheaper for foreign investors to purchase.  

But Commerzbank presents the case that surging copper and oil prices are “completely detached from reality.” Commerzbank precious and industrial metals analyst, Daniel Briesemann, wrote in a research note 

In our opinion, metals prices are currently being driven to a large extent by speculation, and the upswing is beginning to look excessive. From a technical perspective, copper and aluminum are overbought again at present, as measured against the relative strength index.  

  • Friday Settlement: +$0.1655, or 4.24%, to $4.0665 per pound  
  • Weekly Performance: +7.03%  
  • YTD Performance: +15.53%  

Paying More at the Pump in 2021?  

Gasoline prices are off to a roaring start in 2021, soaring more than 30% in the first few weeks of the calendar year. But can they sustain the momentum throughout the rest of the week? It may be appropriate to look at the last several days on the New York Mercantile Exchange to answer that question. 

Gasoline futures contracts have skyrocketed in the last week as harsh winter weather has been decimating refineries and crude oil prices are slowly returning to pre-pandemic levels. Market analysts believe that the fun is just getting started in the gasoline market, particularly as the economy recovers in the aftermath of the coronavirus-induced economic downturn and the government hands out additional direct-income support payments.  

This could lead to a spike of as much as 20 cents per gallon over the next few weeks, warns GasBuddy analyst Patrick De Haan.  

Oil prices have continued to rally as global oil demand recovers from the worst of the COVID-19 pandemic, and now the extreme cold weather shutting refineries down, U.S. motorists just can’t seem to catch a break. We probably won’t see much, if any relief, anytime soon.  

Following the devastating winter storm in Texas, nearly a dozen refineries were shut down due to the extreme temperatures, taking about one-fifth of the country’s refining capabilities offline.  

Vaccinations are also in focus since more people getting inoculated against COVID-19 could allow for greater travel at home and abroad.  

  • Friday Settlement: +$0.0746, or 4.16%, to $1.8689 per gallon  
  • Weekly Performance: +10.29%  
  • YTD Performance: +32.44%  

Forget It, Meat-eaters. It’s Hog Town  

Supermarket shoppers should anticipate paying more for their meat products this year. Farmers that raise cattle, hogs, and poultry are seeing higher prices for their corn and soybean feed, passing off the cost to suppliers and consumers. This was evident in the recent spike in lean hog futures, topping 85 cents a pound this week.  

Foreign demand is also predicted to surge well into the summer, including China that is witnessing a resurgence in its hog supplies after being devastated by the African swine flu. Meanwhile, output has tumbled this month amid slaughter delays across Texas and the Southern US Plains due to wintry weather blanketing the region. This week, 479,000 were processed compared to 488,000 from the previous week. The freezing temperatures and heavy snowfall have killed stocks and idled meat plants.  

Overall, market experts prognosticate that lower production could extend into the spring, despite increased pork consumption.   

  • Friday Settlement: +0.775 cents, or 0.92%, to 85.275 cents per pound  
  • Weekly Performance: +15.28%  
  • YTD Performance: +21.22%  

Cryptocurrency is a Bit Deal  

Next stop $100,000? What about $1 million? Is this the mother of all bubbles?  

The peer-to-peer decentralized virtual currency bitcoin has ventured to the moon in 2021, soaring by an astounding 91% this year. For the first time, the cryptocurrency’s market value topped $1 trillion as the price for one coin finished the trading week just below $56,000.  

Many factors have been contributing to the digital currency’s meteoric ascent this year. While Tesla Motors CEO Elon Musk’s tweets have supported crypto markets this year, the fundamentals are helping bitcoin prices to make history.  

Financial analysts present the case that bitcoin is being held as a global digital reserve asset. With inflation concerns rampant worldwide, investors are searching for hedges against currency depreciation and rising price inflation. The conventional strategy had been to buy gold and silver to hedge against inflation, industry observers aver that the young generation is pouring into bitcoin, ethereum, and other cryptocurrencies.  

Overall, bitcoin adoption is more ubiquitous than it was during the last bull run a few years ago. International regulators have urged caution, but most institutions and corporate entities have given it their blessing. It also helped that Tesla acquired $1.5 billion worth of bitcoin.  

Last week, North America’s first bitcoin-dominated exchange-traded funds (ETFs) were launched, allowing the digital currency to go mainstream in financial markets. The Bitcoin Fund (QBTC) and Purpose Bitcoin ETF (BTCC) have seen enormous volumes following their debuts.   

So, how high can bitcoin go this year? Some are predicting as high as $220,000 by the end of 2021.  

  • Friday Settlement: +$3,560.00, or 6.8%, to $55,900 per coin  
  • Weekly Performance: +15.27%  
  • YTD Performance: +91.31%  

If you have any questions and comments on commodities today, use the form below to reply. 


© AndrewMoran for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin, Copper, Hogs, Oil

Via Commodity Blog https://bit.ly/2OA2lVq

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EUR/USD Consolidated in Yet Another Bullish Flag on Weekly

The EUR/USD currency pair has been trading in a strong uptrend since March 2020. Noticeable on the weekly timeframe chart are two previous consolidations that had been followed by trend continuations: a bullish pennant in July and a bullish flag in September-October. Both resulted in strong bullish legs for the FX pair. The current consolidation has started in late December and is now ripe for a breakout.

On the chart screenshot below, the pattern’s borders and its pole are shown using the yellow lines. The stop-loss level is marked with the red horizontal line and lies on the low of the spike down (1.19517) inside the consolidation area. My potenial take-profit level is shown with the green horizontal line, which is positioned at the pole’s height added to the lowest level of the pattern’s flag part. I will trade only a bullish breakout here and only if a candle closes well above the flag’s upper border.

EUR/USD - Bullish Flag Pattern on Weekly Chart as of 2021-02-20

You can download a chart template for MetaTrader 4 for this EUR/USD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this bullish flag on the EUR/USD chart, please feel free to post them via the form below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/eur-usd-consolidated-in-yet-another-bullish-flag-on-weekly/

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BTC at $57,000: Next Journey to $65,000 May Have These Bullish and Bearish Cases

The benchmark cryptocurrency continues to enjoy breaking new all-time highs with each passing day. At 14:23 GMT on Saturday, the coin was selling at $57,601, a 8.65% increase over the last 24 hours.

The current price follows Bitcoin cementing its place as the first cryptocurrency to pass a $1 trillion market capitalization. It is the sixth most valuable global asset by market cap. What makes this record important is that Bitcoin is also witnessing subdued volatility as the price trades above the $50k levels.

This comes after MicroStrategy announced that it has completed another $1 billion offering of convertible notes, which would be invested in Bitcoin. The business intelligence firm already holds $4 billion or 71,000 BTC.

Institutional investors are not stopping anytime soon. Grayscale added nearly 2,000 BTC in the last 2 days. The Grayscale Bitcoin Trust (GBTC) now has over $35 billion invested as its net assets under management.

Bearish and bullish cases as Bitcoin targets $65,000

Santiment has shared data revealing some of the bearish and bullish indicators that can determine the pioneer cryptocurrency’s run from here on.

Bullish indicators show the following:

As dormant coins move, the mean dollar invested in Bitcoin continues to drop. The network realized profit/loss for Bitcoin (BTC) it lower than its peak a week back. It shows fewer investors are interested in profit-booking than earlier.

Bitcoin Realized Profit Loss

In addition, coin supply on spot exchanges have been dropping drastically since the start of the year. Many holders are moving their Bitcoin to private or cold storage.

If this continues, Max Keiser’s $65,000  prediction, which he has now adjusted to $77,000, will come to pass. Max noted in a Februry 17 tweet:

I’m raising my short term BTC price target from $65K to $77K based on growing supply-shock issues — as coins are removed from exchanges My 2021 target of $220,000 remains.

DigitalCoinPrice also believes Bitcoin will reach highs of more than $86,000 by the end of this year.

The following bearish on-chain indicators may occur:

First, long traders are paying a premium to short traders to keep prices higher. The Santiment report shows Bitfinex findings rate stays at a very high percentage of longs.

On the flip side, Bitcoin whale addresses have been on a steady decline since BTC crossed $45,000 levels on February 7. It suggests that whales are profit booking with every surge.

Despite this, data from Glassnode shows that there are still over 100,000 addresses with more than $1 million worth of Bitcoins.

If you have any questions and comments on Bitcoin today, use the form below to reply.


© IbrahimAnifowoshe for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin, Forecasts

Via Commodity Blog https://bit.ly/2OA2lVq

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USD/JPY in Short-Term Descending Triangle Correction

The US dollar has been correcting against the Japanese yen since February 17, forming a descending channel pattern. Now, the pattern can serve as a continuation trigger for a greater long-term uptrend in the USD/JPY currency pair.

The image below shows the channel as two declining parallel yellow lines. My potential entry level is a the cyan line, which is positioned at 10% of the channel’s width above the upper border. I will set my take-profit to where the green line is (at 100% of the channel’s width above the upper border). The stop-loss level isn’t shown on the chart because it will be set to the low of the breakout candle. However, if the breakout candle trades mostly outside of the channel, the stop-loss will be set to the low of the preceding candle instead. I will ignore bearish breakouts from this bullish continuation setup.

USD/JPY - Descending Channel Pattern on 4-Hour Chart as of 2021-02-20

I detected this channel using the Channel Pattern Detector indicator and built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/JPY pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this descending channel on the USD/JPY chart, please feel free to submit them via the form below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/usd-jpy-in-short-term-descending-triangle-correction/

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United States Overnight Repo Rate



The United States Overnight Repo Rate decreased to 0.06 on Friday February 19 from 0.07 in the previous day. Repo Rate in the United States averaged 2.29 from 1995 until 2021, reaching an all time high of 6.94 in September of 2019 and a record low of -0.01 in December of 2009. Overnight repo rate is the interest rate at which different market participants swap treasuries for cash to cover short-term cash needs. The repo rate is helping to ensure banks have the liquidity to meet their daily operational needs and maintain sufficient reserves. The repo rate usually trades in line with the Federal Reserve’s target interest rate. This page provides - United States Repo Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/repo-rate

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Weekly Forex Technical Analysis (Feb 22 — Feb 26, 2021)

EUR/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.1891 1.1957 1.2037 1.2103 1.2183 1.2249 1.2329

EUR/USD - Floor pivot points as of Feb 20, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.1961 1.2044 1.2107 1.2190 1.2253

EUR/USD - Woodie's pivot points as of Feb 20, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.2037 1.2077 1.2091 1.2104 1.2131 1.2144 1.2158 1.2198

EUR/USD - Camarilla pivot points as of Feb 20, 2021

Tom Demark’s pivot points

Support Resistance
1.1997 1.2143

EUR/USD - Tom Demark's pivot points as of Feb 20, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.2023 1.2058 1.2079 1.2096 1.2114 1.2169

EUR/USD - Fibonacci retracement levels as of Feb 20, 2021

GBP/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.3671 1.3750 1.3877 1.3957 1.4084 1.4163 1.4290

GBP/USD - Floor pivot points as of Feb 20, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.3762 1.3901 1.3969 1.4108 1.4175

GBP/USD - Woodie's pivot points as of Feb 20, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.3891 1.3947 1.3966 1.3985 1.4023 1.4042 1.4061 1.4118

GBP/USD - Camarilla pivot points as of Feb 20, 2021

Tom Demark’s pivot points

Support Resistance
1.3917 1.4124

GBP/USD - Tom Demark's pivot points as of Feb 20, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.3830 1.3878 1.3909 1.3933 1.3957 1.4036

GBP/USD - Fibonacci retracement levels as of Feb 20, 2021

USD/JPY

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
103.47 104.18 104.80 105.51 106.13 106.85 107.47

USD/JPY - Floor pivot points as of Feb 20, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
104.16 104.75 105.49 106.09 106.82

USD/JPY - Woodie's pivot points as of Feb 20, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
104.69 105.05 105.18 105.30 105.54 105.67 105.79 106.15

USD/JPY - Camarilla pivot points as of Feb 20, 2021

Tom Demark’s pivot points

Support Resistance
105.16 106.49

USD/JPY - Tom Demark's pivot points as of Feb 20, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
104.89 105.21 105.40 105.56 105.71 106.22

USD/JPY - Fibonacci retracement levels as of Feb 20, 2021

AUD/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
0.7616 0.7670 0.7769 0.7823 0.7922 0.7976 0.8075

AUD/USD - Floor pivot points as of Feb 20, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
0.7682 0.7792 0.7834 0.7945 0.7987

AUD/USD - Woodie's pivot points as of Feb 20, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
0.7784 0.7826 0.7840 0.7854 0.7882 0.7896 0.7910 0.7952

AUD/USD - Camarilla pivot points as of Feb 20, 2021

Tom Demark’s pivot points

Support Resistance
0.7796 0.7949

AUD/USD - Tom Demark's pivot points as of Feb 20, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
0.7724 0.7760 0.7783 0.7801 0.7819 0.7877

AUD/USD - Fibonacci retracement levels as of Feb 20, 2021

USD/CAD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.2407 1.2500 1.2558 1.2652 1.2710 1.2804 1.2862

USD/CAD - Floor pivot points as of Feb 20, 2021

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.2491 1.2540 1.2643 1.2692 1.2795

USD/CAD - Woodie's pivot points as of Feb 20, 2021

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.2533 1.2574 1.2588 1.2602 1.2630 1.2644 1.2658 1.2700

USD/CAD - Camarilla pivot points as of Feb 20, 2021

Tom Demark’s pivot points

Support Resistance
1.2529 1.2681

USD/CAD - Tom Demark's pivot points as of Feb 20, 2021

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.2594 1.2630 1.2652 1.2670 1.2688 1.2746

USD/CAD - Fibonacci retracement levels as of Feb 20, 2021

If you have any questions or comments on this technical analysis, please feel free to reply below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/weekly-forex-technical-analysis-feb-22-feb-26-2021/

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United States - Credit Rating



Fitch Ratings changed on Friday 31 July 2020 the United States’ sovereign rating outlook to negative from stable and affirmed the debt grade at AAA, citing as main trigger behind the revision the ongoing deterioration in the U.S. public finances and the absence of a credible fiscal consolidation plan, issues that were highlighted in the agency's last rating review on March 26, 2020. Standard & Poor's credit rating for the United States stands at AA+ with stable outlook. Moody's credit rating for the United States was last set at Aaa with stable outlook. DBRS's credit rating for the United States is AAA with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of the United States thus having a big impact on the country's borrowing costs. This page includes the government debt credit rating for the United States as reported by major credit rating agencies.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/rating

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20210219

Commodities Week in Review: February 15 to February 19

Commodities Week in Review: February 15 to February 19

Agriculture 

In a recent research note, JPMorgan Chase warned that the commodities market is in a “supercycle,” an extended period of rampant gains. The financial analysts stated that agriculture, energy, and metals are in the middle of a massive bull run that could last for a couple of years amid strong demand worldwide at the same time. This has been apparent in the agriculture sector, with prices for many crops at multi-year highs. With a weaker US dollar lingering in the background, many of these agricultural products enjoyed a stellar performance.

Cocoa 

  • Friday Settlement: +$3.00, or 0.12%, to $2,446 per metric ton
  • Weekly Performance: 0%
  • YTD Performance: -5.81%

Coffee 

  • Friday Settlement: +$0.002, or 0.15%, to $1.2935 per pound
  • Weekly Performance: +5.59%
  • YTD Performance: +1.61%

Corn 

  • Friday Settlement: -$0.0725, or 1.32%, to $5.43 per pound
  • Weekly Performance: +0.65%
  • YTD Performance: +11.79%

Cotton 

  • Friday Settlement: +0.39 cents, or 0.43%, to 90.69 cents per pound
  • Weekly Performance: +2.36%
  • YTD Performance: +15.96%

Lean Hogs

  • Friday Settlement: +0.775 cents, or 0.92%, to 85.275 cents per pound
  • Weekly Performance: +15.28%
  • YTD Performance: +21.22%

Orange Juice 

  • Friday Settlement: +$0.003, or 0.27%, to $1.0985 per pound
  • Weekly Performance: -1.66%
  • YTD Performance: -12.71%

Rice 

  • Friday Settlement: $0.01, or 0.08%, to $12.78 per pound
  • Weekly Performance: +0.08%
  • YTD Performance: +7.26%

Soybeans 

  • Friday Settlement: +$0.0325, or 0.24%, to $13.7825 per bushel
  • Weekly Performance: +0.53%
  • YTD Performance: +5.19%

Sugar 

  • Friday Settlement: +0.32 cent, or 1.93%, to 16.91 cents per pound
  • Weekly Performance: +8.4%
  • YTD Performance: +9.1%

Wheat 

  • Friday Settlement: -$0.0725, or 1.09%, to $6.58 per bushel
  • Weekly Performance: +3.22%
  • YTD Performance: +2.53%

Bitcoin 

The peer-to-peer decentralized digital currency bitcoin has transformed into a $1 trillion market, topping $55,000 for the first time ever. Last year at this time, bitcoin’s market value was just under $200 billion. Is this the mother of all bubbles? While financial experts agree that there is some speculation involved, the bitcoin boom is being driven by investors holding it as a global digital reserve asset. So, is the next stop $60,000?

  • Friday Settlement: +$3,560.00, or 6.8%, to $55,900 per coin
  • Weekly Performance: +15.27%
  • YTD Performance: +91.31%

Energy 

It was an up-and-down week for the energy sector, with weather primarily in focus. A blast of freezing temperatures and snowstorms impacted 100 million Americans, creating power outages in several US states, including Texas and Oklahoma. But investors are also combing through domestic output levels, US inventories, and global demand. Saudi Arabia and the Organization of the Petroleum Exporting Countries (OPEC) were also under the spotlight this week as industry observers believe that Riyadh and the rest of the cartel will curtail the production freeze beginning in April.

West Texas Intermediate (WTI) Crude Oil 

  • Friday Settlement: -$1.49, or 2.46%, to $59.04 per barrel
  • Weekly Performance: -1.16%
  • YTD Performance: +21.93%

Brent Crude Oil 

  • Friday Settlement: -$0.07, or 0.11%
  • Weekly Performance: +0.21%
  • YTD Performance: +21.50%

Natural Gas 

  • Friday Settlement: 0% to $3.082 per million British thermal units (btu)
  • Weekly Performance: +6.39%
  • YTD Performance: +21.53%

Gasoline 

  • Friday Settlement: +$0.0746, or 4.16%, to $1.8689 per gallon
  • Weekly Performance: +10.29%
  • YTD Performance: +32.44%

Heating Oil 

  • Friday Settlement: -$0.0218, or 1.2%, to $1.8010 per gallon
  • Weekly Performance: +1.53%
  • YTD Performance: +21.3%

Metals 

Can the metals market maintain consistent momentum? Ever since coronavirus vaccines were announced last fall, it has been a rocky performance for the precious metals, with industrial metals doing most of the heavy lifting in the sector. The primary factor that might be keeping gold prices elevated is inflation fears, especially after Treasury Secretary Janet Yellen pushed for even more fiscal stimulus to combat the coronavirus-induced financial crisis.

Gold 

  • Friday Settlement: +$8.10, or 0.46%, to $1,783.10 per ounce
  • Weekly Performance: -2.29%
  • YTD Performance: -6.23%

Silver 

  • Friday Settlement: +$0.292, or 1.08%, to $27.37 per ounce
  • Weekly Performance: -0.29%
  • YTD Performance: +3.19%

Copper 

  • Friday Settlement: +$0.1655, or 4.24%, to $4.0665 per pound
  • Weekly Performance: +7.03%
  • YTD Performance: +15.53%

Palladium 

  • Friday Settlement: +$30.70, or 1.31%, to $2,379.50 per ounce
  • Weekly Performance: -0.34%
  • YTD Performance: -3.10%

Platinum 

  • Friday Settlement: +$7.50, or 0.59%, to $1,282.20 per ounce
  • Weekly Performance: +1.40%
  • YTD Performance: +18.78%

Steel 

  • Friday Settlement: -$22.00, or 1.73%, to $1,248.00 per ton
  • Weekly Performance: +3.23%
  • YTD Performance: +29.60%

If you have any questions and comments on commodities today, use the form below to reply.


© AndrewMoran for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin, Cocoa, Coffee, Copper, Corn, Cotton, Gold, Hogs, Natural Gas, Nickel, Oil, Orange Juice, Palladium, Platinum, Rice, Silver, Soybean, Steel, Sugar, Wheat

Via Commodity Blog https://bit.ly/2OA2lVq

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Bitcoin Surges past $55,000: Bulls Remain Unstoppable

Bulls remain unstoppable on major crypto exchanges today. BTC has now gone past $55,000 as the uptrend of the king cryptocurrency remains consistent. At 19:46 GMT on Friday, the price of BTC was at $55,070. A gain of 5.8% in the last 24 hours.

bitcoin passes $50k

Mainstream and corporate adoption of the coin seems to be fueling the all-time highs. More companies and asset managers are thinking of the coin and ways to diversify their assets.

Within the last 4 hours, the benchmark cryptocurrency pushed above the $1 trillion level. While Bitcoin started in 2009 as an experiment, it only took 12 years to achieve $1 trillion market capitalization.

It is interesting to note that in March 2010, Bitcointalk.org auctioned 10,000 BTC for $50. There was no buyer.

Elon Musk and other prominent Bitcoin investors are credited with helping the coin maintain a bull rally. Musk noted in a tweet responding to Binance CEO, Changpeng Zhao comment on Tesla’s $1.5 billion Bitcoin purchase that Bitcoin was more of a less dumb liquidity than cash.

He said:

Tesla’s action is not directly reflective of my opinion. Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P500 company.

Morgan Creek Digital’s Anthony Pompliano noted that Bitcoin is closer to $100,000 ATH than it is to $0 Bitcoin.

However, illiquid BTC has experienced its largest one-week decrease in 6 weeks. Illiquid BTC decreased from 7,600 BTC to 15.49 million BTC. It’s generally expected that illiquid supply decreases during bear markets and increases during bull markets. Analysts at JP Morgan have advised that the current price may become unsustainable, unless the volatility of the asset’s price subsides quickly.

MicroStrategy completes $1.05 billion debt offering

As the Bitcoin market jubilates, the publicly traded company, MicroStrategy, announced that it has now completed its $1.05 billion offering of convertible senior notes.

To date, the business intelligence firm holds 71,079 BTC. This makes the company the largest purchaser of BTC.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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Bitcoin Will Peak in December at $250K, Bobby Lee Predicts

Cryptocurrency expert, Bobby Lee has said that there will be a much bigger increase in the price of Bitcoin (BTC) in the near future. His early Bitcoin predictions have proven to be accurate in the current bull market so far.

In a December 2018 tweet, Lee said the next Bitcoin bull market would begin in late 2020, take off in early 2021, and peak in December of the same year. In the bull market, which began late last year, Bitcoin’s price surpassed its previous high of $20,000 in December and hit $30,000 in January.

“Bitcoin was less than $10,000 in 2018. No one was talking about it,” Lee told Cointelegraph.

While Lee withdrew his 2018 prediction of a $333,000 BTC peak by December, he still believes that the price of Bitcoin is  likely to leave the current one, roughly $55,000, in the dust:

I think it will be at least four to five times more. It will reach $200,000 to $250,000 this year.

More companies will follow Tesla’s lead and load up on Bitcoin

Lee points out that recent price fluctuations may be due to news that institutional investors like Tesla have entered the cryptocurrency. He also said that many in the crypto ecosystem are beginning to believe that the Securities and Exchange Commission (SEC) will approve Bitcoin exchange-traded funds (ETF).

Lee said because someone “as respected as Elon Musk” converted large transactions of Tesla Inc‘s balance sheet into Bitcoin, “every board member of every publicly listed company and even board members of private companies” may have to consider the same investment.

Lee points out that another company, SpaceX, led by Elon Musk, could follow Tesla. SpaceX Chief Financial Officer Brett Johnson is said to have attended a recent web conference on MicroStrategy’s Bitcoin strategy.

Lee’s long-term forecast is that Bitcoin prices will, however, plummet in 2022 and then bottom out at around $41,000 in January 2023. By 2028, BTC’s market capitalization will exceed gold, at which point prices could reach more than $500,000.

“When Bitcoin peaks, it will crash. The crash will be catastrophic,” Lee points out. “For many, that would be a big surprise.”

Currently based in Shanghai, Lee is the CEO of the crypto wallet company Ballet. Lee is one of the members of the Bitcoin Foundation’s board of directors and a former CEO of China’s first crypto exchange, BTCC, founded in 2011.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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Bitcoin Surges Above $55,000 – What Is it Heading Next?

The premier cryptocurrency — Bitcoin (BTC) — has continued its rapid growth after exceeding a market capitalization of $1 trillion. On Friday 19, Bitcoin crossed the $55,000 mark, renewing all-time highs.

At the time of writing, the BTC/USD trading pair is trading at $55,232 on Bitstamp exchange.

BTC/USD 1-Hour Chart. Source: TradingView

One of the founders of the Gemini digital asset exchange, Tyler Winklevoss, noted that the cryptocurrency renewed its all-time high due to the launch of the first Bitcoin ETF in history. The financial instrument was launched on the Toronto Stock Exchange. Gemini acted as a sub-custodian of the Bitcoin ETF.

Also, members of the crypto community drew attention to the fact that the active rise in prices in the digital asset market made Bitcoin worth more than the Brazilian stock market in terms of capitalization.

It is noteworthy that against the background of the renewal of the maximum value of Bitcoin, the price of gold dropped. As a result, members of the crypto community jokingly explained the changes by the fact that BTC “eats” precious metal.

Comparison of charts of movement of the rate of gold and Bitcoin

Where is Bitcoin heading next?

Some members of the crypto community believe that updating the highs may lead to a correction in Bitcoin. According to a crypto analyst, Alex Saunders, BTC price may fall in the near future. In anticipation of a possible correction, he advised investors to start taking profits.

However, analyst PlanB, popular in the crypto community for developing his S2F model for predicting the price of Bitcoin, decided to pay attention to the long-term perspective of the coin’s movement. He believes that BTC will continue the bullish trend despite possible corrections. According to the S2F model, during the current growth phase, Bitcoin will be able to rally the level of $100,000.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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Metals Gain as Dollar Falls, Gold Remains Under Pressure

Metals rallied today as risk appetite among investors drove the US dollar lower, boosting commodities priced in the US currency. As it has been happening throughout this week, gold struggled to join other metals in a rally. While the yellow metal managed to eke out some gains, they were very mild compared to those of other metals, in particular copper.

Market analysts explained that fundamentals remained generally negative to bullion. The positive market sentiment, which has been driving the greenback lower, limited the appeal of gold as a safe haven. And rising US Treasury yields as well as the rally of European and American stocks further diminished the attractiveness of the non-yield-bearing commodity to investors.

Meanwhile, metals used in industry, especially copper, profited from traders’ optimism about the global economy. The positive economic outlook suggests that consumption of the industrial metal should increase as economies around the world resume their industries. At the same time, supply disruptions caused by the COVID-19 pandemic can limit the amount of metal available on the market. Specialists pointed out that copper inventories tracked by the London Metal Exchange were close to the lowest level since 2005. Another reason for the sharp advance of copper prices was the return of Chinese traders to the market after the Lunar New Year holiday.

Futures for delivery of gold in April rose by $6.8 (0.38%) to $1,781.8 per troy ounce as of 17:49 GMT on COMEX today. Silver for delivery in March climbed by $0.42 (1.54%) to $27.54 per ounce. Spot price for platinum advanced by $11.48 (0.9%) to $1,287.3 per ounce, and palladium rallied by $16.03 (0.68%) to $2,374.78 per ounce. Copper for delivery in May surged by $0.164 (4.2%) to $4.071 per pound, rising above the $4 level for the first time in a decade.

If you have any questions and comments on commodities today, use the form below to reply.


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EUR/USD Rises on Positive Eurozone PMIs

EUR/USD rose today after the release of positive PMI reports from Markit for the eurozone. The currency pair halted its advance and was trading sideways following the release of positive macroeconomic reports in the United States but kept its gains.

Markit released a preliminary report on US manufacturing and services PMIs in February. Markit manufacturing Purchasing Managers’ Index fell from 59.2 in January to 58.5 in February, matching market expectations. Markit services PMI rose from 58.3 to 58.9 instead of falling to 57.9 as analysts had predicted. (Event A on the chart.)

Existing home sales in the United States were at a seasonally adjusted annual rate of 6.69 million in January, up from 6.65 million in December (revised negatively from 6.76 million). Markets were counting on a drop to 6.59 million. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Posted on Forex blog.

from Forex Blog https://www.earnforex.com/blog/eur-usd-rises-on-positive-eurozone-pmis/

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United States Initial Jobless Claims



Initial Jobless Claims in the United States increased to 861 thousand in the week ending February 13 of 2021 from 848 thousand in the previous week. Initial Jobless Claims in the United States averaged 372.33 Thousand from 1967 until 2021, reaching an all time high of 6867 Thousand in March of 2020 and a record low of 162 Thousand in November of 1968. Initial jobless claims have a big impact in financial markets because unlike continued claims data which measures the number of persons claiming unemployment benefits, Initial jobless claims measures new and emerging unemployment. This page provides the latest reported value for - United States Initial Jobless Claims - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/jobless-claims

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United States Services PMI



Services PMI in the United States increased to 58.90 points in February from 58.30 points in January of 2021. Services PMI in the United States averaged 53.81 points from 2013 until 2021, reaching an all time high of 61 points in June of 2014 and a record low of 26.70 points in April of 2020. Markit US Services PMI (Purchasing Managers' Index) is based on data collected from a representative panel of over 400 private sector companies covering transport and communication, financial intermediaries, business and personal services, computing & IT and hotels and restaurants. The index tracks variables such as sales, employment, inventories and prices. A reading above 50 indicates that the services sector is generally expanding; below 50 indicates that it is generally declining. This page provides the latest reported value for - United States Services PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/services-pmi

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United States Manufacturing PMI



Manufacturing PMI in the United States decreased to 58.50 points in February from 59.20 points in January of 2021. Manufacturing PMI in the United States averaged 53.33 points from 2012 until 2021, reaching an all time high of 59.20 points in January of 2021 and a record low of 36.10 points in April of 2020. In the United States, the Markit Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 600 industrial companies. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change. This page provides the latest reported value for - United States Manufacturing PMI - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
SOURCE: 🇺🇸 United States
https://tradingeconomics.com/united-states/manufacturing-pmi

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Bitcoin to Hit $1 Trillion Market Cap As Price Nears New ATH

A new day, a new ATH seems to be Bitcoin’s motto. The benchmark cryptocurrency nears $53,000 on Friday as $50,000 becomes the support level. On February 19, BTC hit another all-time high as it accelerates toward becoming a trillion dollar asset.

Tradingview chart showed Bitcoin reaching $52,932 earlier on Friday on Bitstamp. At 12:40 GMT, BTC rose to $52,688, a 2.71% gain over the last 24 hours.

tradingview data as btc nears $53k

In the last 2 days, the cryptocurrency has held $50,000 as the key support with BTC primed to gain further in the short term. This may explain why more institutional investors and large holders are acquiring more BTC. The price of the coin is expected to double in the coming days.

When BTC breaks $53,600, it would pass the $1 trillion market cap for the first time in its 12 year history.

PlanB summarized on Friday:

It is simple. In the old world your money loses value, because governments debase currencies to fund their warfare & welfare state. In the new world Bitcoin increases in value, because math caps the monetary base at 21M BTC. The new world is eating the old world right now.

Grayscale acquires more

Grayscale’s total assets under management (AUM) has now passed over $40 billion. Next is the Ethereum Trust with almost $6 billion of ETH. CEO Micheal Sonnenshein confirmed this on Twitter this week.

In recent weeks, Grayscale cooled off buying more, a contrast to the frequency of purchases seen at the start of the year. Purchase of Ethereum only returned in February after a two-month long break.

Institutional buyers are not stopping yet. MicroStrategy already owns over 70,000 BTC and confirmed this week that it would be raising $900 million to increase its holdings. BlackRock, the world largest asset manager, with nearly $7 trillion assets under management has also confirmed earlier that it will be interacting with BTC in some capacity.

Sonnenshein told CNN earlier this month that the diversification angle of Bitcoin is what makes it beneficial.

It’s really about recognizing the benefits of owning Bitcoin. There’s certainly the diversification angle.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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