Heading into Tuesday’s London session, equity markets were encouraged by the DOW’s previous closing up +618 points. This comes ahead of a big Federal Reserve Bank meeting on Wednesday that is highly anticipated. While the ‘R’ word – recession – has been tossed about a little more freely of late, keen observers of stock markets realize the decline we’ve been in recent days could very well be a deep shake out. Rather than the first wave of a recessionary move. Time will tell for sure.
Most major Forex pairs remain contained to their current ranges ahead of the FED meeting which is often the case. EUR/USD managed to crack slightly aobve 1.0700 and is currently trading at 1.0708. The British Pound was unable to hold its levels above 1.2500 and is currently trading at 1.2485.
Gold is showing bullish tendencies as it looks to move higher above recent support that formed at the $1,850 per ounce level. Gold is currently trading at $1,856. Given the hot global inflationary environment we have seen, many expected Gold to see its day in the sun. This could be the beginning of a larger move back to up to $1,900 and beyond.
Bitcoin is on the back foot again as it struggles now to keep its head above $29,000 (currently $29,150). Next near term support comes in at $25,000 which indicates a steep decline could be in store by end of the current week.