As artificial intelligence (AI) weaves into the fabric of global industries, it sparks a crucial inquiry: Is the soaring valuation of AI stocks a sign of a robust future or a bubble waiting to burst? This article delves into the financial phenomenon, dissecting the realities behind the AI market's ascent.
What Is a Bubble?
A financial bubble represents a market...
An eventful news background creates increased volatility in financial markets.
Unlike the Fed, whose rhetoric is becoming softer, Europe's central banks are sticking to plans to maintain tight policies. The ECB said yesterday that policy easing was not even discussed at its two-day meeting, the Bank of England said rates would remain high for an "extended...
GBP/USD is the third most actively traded currency pair on the foreign exchange market, after EUR/USD and USD/JPY. It is also one of the oldest pairs traded on forex. The British pound continues to cost more than the US dollar, despite the dollar overtaking it as the global reserve currency.
Why is the British pound stronger than the US dollar? In this FXOpen...
USD/CHF declined and now struggling below the 0.8700 resistance.
Important Takeaways for USD/CHF Analysis Today
· USD/CHF declined below the 0.8705 and 0.8665 support levels.
· There is a key bearish trend line forming with resistance near 0.8665 on the hourly chart at FXOpen.
USD/CHF Technical Analysis
On the hourly chart of USD/CHF at FXOpen, the pair...
EUR/USD started a fresh increase above the 1.0890 resistance.
Important Takeaways for EUR/USD Analysis Today
· The Euro rallied after it broke the 1.0890 resistance against the US Dollar.
· There is a connecting bullish trend line forming with support near 1.0955 on the hourly chart of EUR/USD at FXOpen.
EUR/USD Technical Analysis
On the hourly chart of...
Since November 1, the price of natural gas has fallen by more than 30%. This was facilitated by:
→ relatively mild weather at the beginning of the winter period;
→ record volumes of liquefied gas production, as reported by Reuters. Analysts estimate there is currently about 7.8% more gas in storage than normal for this time of year.
On December 13, the price of...
Yesterday, the Federal Reserve published a unanimous decision to leave the base rate unchanged for the third time in a row, which coincided with the expectations of most market participants. At the conference that followed, Powell's rhetoric was not as harsh as before. According to him:
→ economic activity is slowing, but the labor market remains strong;
→...
In November, the 1.25 level acted as resistance, but after a bullish breakout, it began to provide support (as shown by the black arrows).
However, recent events are increasing bearish pressure. Among them:
→ yesterday's news on inflation in the US, the values of which were in line with expectations. It is worth paying attention to Core CPI MoM, the values of...
USD/CAD is rising and might aim for more gains above the 1.3620 resistance.
Important Takeaways for USD/CAD Analysis Today
· USD/CAD is showing positive signs above the 1.3580 support zone.
· There was a break above a major bearish trend line with resistance near 1.3585 on the hourly chart at FXOpen.
USD/CAD Technical Analysis
On the hourly chart of...
GBP/USD is moving lower from the 1.2650 resistance.
Important Takeaways for GBP/USD Analysis Today
· The British Pound started a fresh decline below the 1.2615 support zone.
· There is a key bearish trend line forming with resistance near 1.2565 on the hourly chart of GBP/USD at FXOpen.
GBP/USD Technical Analysis
On the hourly chart of GBP/USD at FXOpen,...
Forex trading is a complex task; therefore, traders look for various techniques and tools to overcome the challenges. One such technique is understanding and harnessing the power of market sentiment. In this article, we will define what forex market sentiment is, highlight the pivotal role it plays in trading, and provide an overview of the various sentiment...
As the clock ticks towards 13:30 GMT, financial markets are bracing for the release of the Consumer Price Index (CPI) data for November, a pivotal metric that provides a snapshot of the current state of the United States economy.
The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and...
Get ready for a surge in volatility in the coming days, because:
→ today at 16:30 GMT+3: news will be published on inflation in the USA;
→ tomorrow at 22:00-22:30 GMT+3: news from the Federal Reserve on the interest rate will be published;
→ on Thursday: news from the central banks of Europe, Great Britain, Switzerland will be published.
Add in geopolitical...
On Monday morning, the price of bitcoin fell sharply. As the chart shows, the BTC/USD rate fell below 42,000 on Monday during the Asian session. According to Coinglass, the decline resulted in about $400 million worth of positions being liquidated by about 100,000 traders on cryptocurrency exchanges. So far, the price has found support around the 41,200 level,...
Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies involving other indicators. Read on to gain insights into how to...
In the first half of 2023, the Japanese stock market was dominated by bullish sentiment due to (still) negative interest rates — while the rest of the G7 countries raised their rates to combat inflation.
The NIKKEI-225 index grew by 30% in the first half of the year. But then the balance of supply and demand was achieved, judging by the daily chart, where a range...
Pivot points are a go-to tool for traders seeking to identify potential reversal zones in the markets. From combining them with the Relative Strength Index (RSI) to harnessing the power of Fibonacci retracements, this article discusses three multi-layered approaches to pivot point trading. Dive in to optimise their utility in your trading toolkit.
Understanding...
This morning, the AUD/JPY rate dropped below 95.2 yen per Australian dollar for the first time since late October.
The weakening of the AUD was contributed by:
→ negative news regarding the Chinese economy. The Hang Seng Index set its 2023 low yesterday;
→ Australian GDP data published yesterday, which is growing at a weaker-than-expected pace.
And the...
