Image Source:   Asian stocks hit a seven-week peak as Wall Street experienced a surge in both stocks and bonds amidst a backdrop of tariffs, lacklustre technology earnings, and mixed economic indicators from the US. Shares in China rose as the Yen gained strength. The MSCI index rose for the third consecutive day, while US market futures ticked higher after the S&P 500 and Nasdaq 100 both made gains on Wednesday. Indian stock indices saw declines, while equities in Hong Kong and mainland China rebounded, recovering from Wednesday’s drop. Treasuries declined after a significant jump overnight. Thursday’s stability contrasts with the market’s Monday meltdown, when Trump decided to impose and then delay tariffs on Canada and Mexico. The US enacted a 10% tariff on all imports from China, leading China to retaliate with some tariffs on US goods. The inconsistent policy measures from the US have dampened investor enthusiasm, with traders weighing the risks of tariffs against the likelihood of improved monetary conditions. Philip Jefferson, Vice Chair of the Federal Reserve, expressed his willingness to maintain the central bank’s policy rate at its current level until there is greater clarity regarding the policies of the Trump administration. Nevertheless, U.S. Treasury yields remained close to their lowest levels in over a month on Thursday, influenced by mixed economic data and a tendency among investors to seek safety due to uncertainties surrounding Trump’s tariff policy and the potential for escalating trade conflicts.The Yen surrendered most of its earlier gains against the Dollar. Tamura, the […]

XRP price struggled to continue higher above the $2.75 zone and dipped. The price is showing a few bearish signs below the $2.60 level. XRP price started a strong upward move above the $2.50 level. The price is now trading below $2.60 and the 100-hourly Simple Moving Average. There is a connecting bearish trend line forming with resistance at $2.60 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair might start a fresh increase if it clears the $2.60 resistance zone.  XRP Price Recovery Could Soon FadeXRP price started a recovery wave above the $2.00 support zone, like  and . The price gained pace for a move above the $2.20 and $2.45 resistance levels.The bulls pumped the price above the $2.60 level. However, the bears remained active near the $2.75 level. A high was formed at $2.780 and the price is now correcting gains. There was a move below the $2.60 level. The price dipped below the 23.6% Fib retracement level of the upward wave from the $1.750 swing low to the $2.780 high.The price is now trading below $2.60 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $2.60 level. There is also a connecting bearish trend line forming with resistance at $2.60 on the hourly chart of the XRP/USD pair.(Click on image to enlarge)The first major resistance is near the $2.70 level. The next resistance is $2.780. A clear move above the $2.780 resistance might send the price […]

U.S. Dollar / Japanese Yen (USDJPY) Day ChartUSDJPY Elliott Wave Technical Analysis Function: Bearish Trend Mode: Impulsive Structure: Orange wave 3 Position: Navy blue wave 1 Direction Next Higher Degrees: Orange wave 4 Details: The orange wave 2 of navy blue wave 1 appears completed, and now orange wave 3 is unfolding. Wave Cancel Invalidation Level: 155.941 Analysis OverviewThe USDJPY Elliott Wave Analysis for the daily chart evaluates the U.S. Dollar against the Japanese Yen, highlighting a bearish trend. The market is currently in an impulsive phase, indicating strong momentum in the downward direction.The structure is identified as orange wave 3, forming part of a larger wave pattern known as navy blue wave 1. This suggests the market is in the early stages of a broader downward movement.The analysis indicates that orange wave 2, a corrective phase within navy blue wave 1, has completed. This completion signals the beginning of orange wave 3, expected to push prices further down. The next higher degree is orange wave 4, meaning that once orange wave 3 completes, a corrective phase may follow.A crucial level to monitor is the wave cancellation invalidation level at 155.941. If the price moves above this threshold, the current wave count would be invalidated, potentially altering the bearish outlook. Traders should closely observe this level to confirm the trend’s continuation.ConclusionThe USDJPY daily chart analysis suggests a bearish trend with impulsive momentum, currently in orange wave 3 of navy blue wave 1. The completion of orange wave 2 has set the stage for further downside movement.The invalidation level at 155.941 serves as a key reference point for traders, indicating whether the bearish trend remains intact or a potential reversal could occur. Upon orange wave 3’s completion, the next anticipated phase is orange wave 4, signaling a possible corrective phase in the near future.U.S. Dollar / Japanese […]

The GBP/USD forecast shows a pullback from recent peaks as market participants prepare for a likely Bank of England rate cut. Meanwhile, the dollar remained fragile amid lingering fears of a trade war between the US and China. The Bank of England will hold its policy meeting later in the day, and market participants are pricing a 92% chance of a quarter-point rate cut. This will be the third cut since the central bank started its monetary easing campaign last year. The rate cut will come after a period of weak economic growth in the UK.However, policymakers believe inflation remains high. For this reason, the BoE has been more cautious at cutting than most of its peers, like the BoC and ECB. Market participants expect three rate cuts in the UK this year. However, this will heavily depend on incoming data and the impact of Trump’s policies on the global economy. Meanwhile, the dollar remained fragile after turmoil in the previous session caused by fears of a trade war between China and the US. Trump’s 10% triggered an immediate response from China, indicating a lack of willingness to negotiate. Elsewhere, data on Wednesday revealed that US private jobs increased more than expected. However, a separate report showed that business activity in the services sector fell, with the PMI dropping from 54.2 to 52.8. GBP/USD key events today BoE monetary policy report BoE monetary policy summary US unemployment claims  GBP/USD technical forecast: RSI divergence points to fading bullish momentum(Click on image to enlarge)GBP/USD 4-hour chart On […]

December 2024 marked the 33rd consecutive month of the new home affordability crisis in the U.S.Starting in April 2022, the monthly mortgage payment for the median new home purchased in each month has exceeded 36% of the  in each month since. For December 2024, that monthly mortgage payment would consume 39.7% of the income of a household at the exact middle of the spectrum of income in the United States. That’s worse than the revised figure of 38.2% that applied in November 2024, which was among the lowest percentages recorded for this affordability measure since the crisis began.This outcome was ensured by an increase in the median sale price of new homes sold in the U.S. during December 2024, which rose to an initial estimate of $427,000 from November’s revised $402,000. This rise more than offset a small decrease in the average conventional 30-year fixed rate mortgage interest rate to 6.65% during December 2024.It also puts the relative affordability of a new home above the 36% of pre-tax income that marks the  of household income that mortgage lenders use to determine whether they will lend to a household that has no other debt. For households that do have other debt, it is well elevated above the 28% of household income that lenders set as a maximum for determining how much mortgage they can afford.The latest update of our  tracks the changing relative affordability of the typical new home sold in the U.S. is for the typical American household with respect to these mortgage […]