cryptos
Bitcoin is holding onto its bottom and its price is still hovering near the 20,000s, showing that the bulls are doing their best to sustain the price level. ETH’s price action is showing increasingly more encouraging signs as ETH’s price has moved above the 50-day SMA, meaning the bulls may be ready to push prices higher.
gold
The precious metal is likely to remain very volatile as traders use US ADP numbers to gauge the health of the US jobs market, and comments from FOMC member Mester will also see higher volatility. Gold prices are under threat and chances are we will see further weakness in gold prices in the coming days as traders continue to discount the likelihood of a Fed rate hike.
risk
Recession risk worries traders in relation to the US economy, and traders continuously monitor this risk by looking at US credit spreads. Current corporate spread levels only suggest a 25% chance of a deep recession, but in reality we believe the odds are much higher. There is a more than 60% chance of the US economy sliding into recession given the number of announced layoffs and tight monetary policies tending to sap economic growth.
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