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20 01, 2025

Can it Overcome $31? (Video)

By |2025-01-20T16:19:07+02:00January 20, 2025|Forex News, News|0 Comments


  • Silver has fallen pretty significantly during the trading session on Friday, but it is trying to hang on to the 50 day EMA.
  • The 50 day EMA of course is a technical indicator that a lot of you will be paying attention to and this does at least show some signs of hope, but I’m not really keen on silver or I should say, I believe silver will lag in reference to gold as the market is falling the way it has shown just how brittle it can be.

While the gold market did pull back a little bit in the early hours of Friday, silver really got hammered at one point in time, the XAG/USD pair was down about 2%. Now it looks like we are at least trying to hang on to the $30 level as support, which makes a certain amount of sense considering that it’s a large round psychologically significant figure and an area where I would imagine a lot of options traders are watching. If we were to break down below there, then it opens up the possibility of a move down to the 200 day EMA currently hanging around the $29.30 level or so.

On the Upside

To the upside, if we can break above the $31 level, I think that opens up the possibility of silver to go much higher, probably to $32.50. The previous uptrend line has offered resistance. So that dissects right about where I think the buy and sell orders probably end up being, especially around that $31 level. So it all ties together for a market that’s very noisy but still trying to figure out what to do with the longer term. I think we’re probably neutral to somewhat negative right now. That being said, the $31 level and the double bottom down at $28.75, I think are the two main points to watch if we break above or below that should give you a heads up as to which direction we are going.

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20 01, 2025

UBS lifts GBP/USD forecast; “Truss moment” fears overdone By Investing.com

By |2025-01-20T15:08:34+02:00January 20, 2025|Forex News, News|0 Comments

Investing.com – Sterling has struggled of late, weighed by concerns surrounding the UK’s financial position. UBS sees the potential for further losses near term, but thinks the fiscal concerns are undone and gains are likely later in the year.

At 06:15 ET (11:15 GMT), rose 0.2% to $1.2201, but has dropped over 3% over the last month in the wake of the UK gilts turmoil as yields soared. 

The recent rise in UK gilt yields has been compared in the media with the “Truss moment”, when Liz Truss became the UK’s shortest-serving PM as she was forced to resign after just 49 days in office when borrowing costs soared in the aftermath of her government’s mini-budget. 

However, UBS maintains that comparisons to the 2022 “Truss saga” are overdone.

“We do not expect the recent market wobbles in the UK to result in a situation comparable to the 2022 turmoil. Pension regulations are in a better place and policymakers are (hopefully) well aware of the risks,” analysts at the Swiss bank added, in a note dated Jan. 17.

With major risks lined up in the coming weeks that could push US yields even higher, the bank cannot rule out GBP/USD breaking below $1.20.

However, this is not our base case and while we like selling upside, we prefer to remain on the sidelines in GBP/USD for the time being, as we are particularly wary of Trump inauguration risks. 

“We expect GBP/USD to recover losses later in the year as we see USD strength waning, but it will take some time and potentially pain to get there,” UBS added.

The Swiss bank sees GBP/USD climbing to $1.29 by the year’s end.

 



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20 01, 2025

Tea-volution: The history of Chinese tea in Malaysia and how we drink it

By |2025-01-20T15:06:15+02:00January 20, 2025|Dietary Supplements News, News|0 Comments


At the quirky little Tanah dan Air Tea Bar in Petaling Jaya, tea artist Law Siow Fei is hard at work. Hunched over a long table, she gently pours tea out of a tiny little tea pot into three equally tiny porcelain cups, then passes one to me.

“This is a Phoenix Oolong tea – it is very popular among the Teochew community,” she says.

The tea is aromatic and nuanced, with floral streaks running through its golden waters.

Across the space, another table is occupied by a young couple, their heads bowed over cups of Chinese tea, sipping intently and oohing and aahing as they rediscover the pleasures of this heritage brew.

In many ways, people like Law are keeping the culture and knowledge of traditional Chinese tea alive in Malaysia, paving the way for younger generations to appreciate this ancient beverage.

Tea originates from China and has been a mainstay among Chinese denizens all over the world for centuries. — YAP CHEE HONG/The Star

History of Chinese tea

Chinese tea’s roots hark all the way back to 2000 BC and the Qin dynasty when the mythical Emperor Shennong was said to have discovered tea after the leaves of the Camellia Sinensis fell into a cup of boiling water.

Tea in China was originally thought to be purely medicinal so it wasn’t until centuries later during the Tang dynasty (618 to 917 CE) that drinking tea became more widespread, although it was reserved for the upper echelons of Chinese society.

Most of the information surrounding Chinese tea was developed and acquired through Lu Yu’s The Classic of Tea, which was produced around 760 CE. In that era, green tea leaves were squished to make tea bricks (also called tea cakes), which were then ground into tea powder and mixed with water using a whisk.

Although tea whisking faded out, the culture was introduced to Japan, where it has evolved into the Japanese art of matcha.

During the Ming dynasty in China (1368 to 1644 CE) loose leaf tea began replacing tea bricks, as the emperor at the time came from an impoverished background and understood how laborious it was for farmers to produce tea bricks.

Today, loose leaf tea is still the predominant way Chinese denizens in China and the Chinese diaspora all over the world continue to consume tea.

Chinese tea was introduced to Malaysia in the 15th century and has been a constant among the Chinese community here, although the knowledge of the culture has not really been transferred to younger people. — YAP CHEE HONG/The StarChinese tea was introduced to Malaysia in the 15th century and has been a constant among the Chinese community here, although the knowledge of the culture has not really been transferred to younger people. — YAP CHEE HONG/The Star

Chinese tea in Malaysia

In Malaysia, Chinese tea has a history that dates back to the 15th century when Admiral Cheng Ho first brought tea to Melaka during his voyages here. The intermarriage of Chinese traders with local women and the eventual Peranakan communities that sprung from these unions also created a demand and interest in Chinese tea in then-Malaya.

When the bigger wave of Chinese migrants began arriving in the country in the 19th and 20th centuries to work in the tin mines, they too brought tea with them.

“Because they were poor, they couldn’t pack many things. One of the things that could withstand travel well was tea leaves. And the tea leaves that they brought were those with long shelf lives which were typically dark teas – the same sort that explorers like Marco Polo brought around the world. So very little of the white teas made it to Malaysia,” says Koh Peng Chye, whose family has been in the tea industry in Malaysia for nearly 100 years and now runs modern tea bar Beca Tea.

Koh comes from a tea-faring family that spans generations. Pictured here is the family drinking tea in Fujian, China on a buying trip decades ago. — BECA TEAKoh comes from a tea-faring family that spans generations. Pictured here is the family drinking tea in Fujian, China on a buying trip decades ago. — BECA TEA

According to an article published by the Tea Trade Association of Malaysia, different Chinese communities in Malaysia have different predilections for tea-drinking – i.e. the Cantonese have a preference for Liu Pao dark tea; the Hokkiens and Teochew are partial to Oolong tea; and the Hakkas traditionally opt for green tea.

So what is Chinese tea made up of? Essentially, all Chinese tea comes from the Camella Sinsenis plant. But what separates different teas is the way that they are processed.

While the Western world recognises four kinds of teas, there are six acknowledged types of Chinese teas – green tea, yellow tea, white tea, Oolong tea, dark tea and red tea.

Also read: Tea-volution: The history of Chinese tea in Malaysia and how we drink it

There are six different kinds of Chinese teas - green tea, white tea, yellow tea, Oolong tea, red tea and dark tea - which are different based on the way they are processed. — YAP CHEE HONG/The StarThere are six different kinds of Chinese teas – green tea, white tea, yellow tea, Oolong tea, red tea and dark tea – which are different based on the way they are processed. — YAP CHEE HONG/The Star

Chinese tea drinkers in Malaysia

Although the practice of drinking Chinese tea would likely have been introduced by new Chinese arrivals to Malaysia centuries ago, the knowledge and culture behind the art of tea-drinking has been somewhat lost over the generations.

In recent years though, there has been a resurgence in interest among younger Malaysians, partly driven by health concerns and an increased desire for pure teas. This is bolstered by the fact that certain teas have been shown to have health properties.

Both Koh and Law have noticed that more and more younger Malaysians are now interested in reconnecting with their roots and learning more about Chinese tea. — FILEPICBoth Koh and Law have noticed that more and more younger Malaysians are now interested in reconnecting with their roots and learning more about Chinese tea. — FILEPIC

White tea for instance has high levels of antioxidants that may have cancer-fighting properties while green tea can boost heart health and lower cholesterol levels. Oolong tea on the other hand contains an amino acid that reduces anxiety levels.

“There is a growing interest among younger people who are health-conscious in tasting or drinking tea that doesn’t have any sugar, milk or cream,” says Law.

While Law’s tea bar honours traditional Chinese tea brewing, Koh’s Beca Tea aims to appeal to both conventional tea drinkers as well as those seeking out more contemporary fare that is better for them.

“I believe those who grow up with bubble tea are already starting to gravitate towards the more pure teas. At Beca Tea, we are like a mid-point for this transition. People who are sick of all the sugars and artificial flavourings and colourings are trying to move to purer tea but are not quite sure where to go, so this is where we come in.

“We can introduce you to tea by easing you into tastes that you are more familiar with before going into the pure stuff,” he says.

Beca Tea is trying to draw in younger tea drinkers with a more interesting array of tea-based options. — BECA TEABeca Tea is trying to draw in younger tea drinkers with a more interesting array of tea-based options. — BECA TEA

Koh also believes that many younger people who have lost touch with their roots are keen to rediscover it in more accessible ways.

“I think the knowledge of Chinese tea culture and tea drinking was not passed down because the earlier Chinese people who came to Malaysia were menial workers who had busy lives. They did not have the luxury of sitting down, enjoying tea and passing on the knowledge. So I think an entire generation lost out on that knowledge transfer and cultural practice.

“So at Beca Tea, I am encouraged to see young people – anyone between the ages of 20 to 40 – coming because they are curious to know this Asian culture that they have forgotten,” says Koh.

Law says she has also noticed that as time has progressed and Chinese tea has become more mainstream in Malaysia, the number of non-Chinese tea drinkers has also shot up.

“I have noticed quite a number of Malay customers who are interested in Chinese teas and how to brew them, so I think slowly Chinese tea will become more popular throughout Malaysia,” she says.



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20 01, 2025

Cardano Price Eyes a Record-Breaking $5 as Analysts Predict Explosive Growth in 2025

By |2025-01-20T15:04:09+02:00January 20, 2025|Crypto News, News|0 Comments

Despite the bullish predictions about Cardano, many investors are opting to rotate funds into the viral presale of crypto casino Rollblock, which has already raised over $8.8 million in record time. 

Rollblock is a new entry in the crypto casino landscape, and with its innovative framework, it’s poised to disrupt the $450 billion gambling industry. Built entirely on the Ethereum blockchain, Rollblock addresses all the typical inefficiencies that have been driving users away from traditional online casinos running on obsolete platforms. This means near-instantaneous transactions across 20 cryptocurrencies including the native RBLK token, superior transparency, and enhanced security. Additionally, all bets are easily traceable and tamper-proof, ensuring a trustworthy casino experience with provably fair odds.

Newcomers will find over 7,000 games, with titles ranging from all-time favorites such as blackjack and poker, to live games and brand-new, AI-driven exclusives. Sports fans will be pleased to learn that Rollblock has recently launched a dedicated sports betting platform, allowing users to bet on their favorite tournaments and championships.

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20 01, 2025

WTI Crude Oil Forecast Today 20/01: Looks for Value (Video)

By |2025-01-20T14:18:08+02:00January 20, 2025|Forex News, News|0 Comments


  • The West Texas Intermediate or Light Sweet Crude market has been somewhat noisy during the trading session on Friday as we continue to bounce around an area that quite frankly is going to end up being more or less consolidation and resistance.
  • After all, the $78.50 level has been resistance in the past, so it does make a certain amount of sense that there’s market memory here, causing a bit of a headache.

I do think at this point, you probably see a lot of volatility and perhaps even a bit of a pullback. That pullback might be a nice buying opportunity, especially if we drop towards the $75 level, as the 200-day EMA is racing towards that region.

Alternatively…

On the other hand, if we break above the $80.56 level, then it’s likely that the crude oil markets will continue to go higher. Nonetheless, this is a market that I do think you’re looking for value to take advantage of and it makes quite a bit of sense that we would see oil slightly positive due to concerns about supply coming out of places like Russia and the possibility of sanctions against Iran now that the Trump administration is taking over.

But at the end of the day, I think there’s also the idea that central banks around the world cutting rates will probably continue to spur demand as well. I do think ultimately pullbacks though get bought into and those are probably the entry points that you’re looking for as chasing the move all the way up here has been a bit risky as oil shot straight up in the air over the last couple of weeks to get to this region. In other words, we have to work off some of that inertia that has been expended. Ultimately, I like finding value on dips in this bullish market.

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20 01, 2025

USD/JPY Forecast: Investors on Edge Ahead of Trump’s Speech

By |2025-01-20T13:07:10+02:00January 20, 2025|Forex News, News|0 Comments

  • Trump’s presidency might be bullish for the dollar.
  • Trump’s tariffs will increase demand for locally produced goods.
  • Traders expect the Bank of Japan to hike rates this week.

The USD/JPY forecast shows indecision ahead of Trump’s inauguration speech. At the same time, market participants are gearing up for the Bank of Japan policy meeting. However, trading might remain thin due to the Martin Luther King Jr. Day Holiday in the US. 

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USD/JPY fluctuated on Monday, with the greenback steady amid anticipation of Trump’s policies. Meanwhile, the yen was also steady as market participants priced a high likelihood of a Bank of Japan rate hike on Friday. 

Analysts have predicted that Trump’s presidency will be bullish for the dollar since his policy proposals might boost economic growth. Traders will wait to see whether he will implement his proposals to cut taxes and impose tariffs on imported goods. Tax cuts will favor the economy by improving the business environment. Meanwhile, tariffs will increase demand for locally produced goods. At the same time, experts believe this will lead to a spike in inflation that would force the Fed to keep interest rates at restrictive levels.

On the other hand, traders expect the Bank of Japan to hike rates this week to support a weak yen. At the same time, since Trump’s policies will likely support the dollar, a BoJ rate hike will keep the yen from dropping too much. 

USD/JPY key events today

Market participants do not expect any key reports from the US or Japan. Consequently, market participants will focus on Trump’s inauguration. 

USD/JPY technical forecast: Bulls pause at 30-SMA hurdle

USD/JPY Forecast: Investors on Edge Ahead of Trump’s Speech
USD/JPY 4-hour chart

 

On the technical side, the USD/JPY price has recovered after finding support at the 155.01 key level. However, the bullish move has paused after meeting the 30-SMA resistance line. Moreover, the bearish bias remains intact since the price trades below the 30-SMA, with the RSI below 50. 

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Therefore, bears might soon overpower bulls to revisit the 155.01 support level. A break below this support will confirm a continuation of the downtrend as it would form a lower low. Moreover, it would clear the path for USD/JPY to retest the 153.25 support level. 

On the other hand, a break above the SMA and the 157.01 resistance level would indicate a bullish shift in sentiment. However, the price would have to start making higher highs and lows to confirm a bullish trend.

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20 01, 2025

key supplement trends to watch in 2025

By |2025-01-20T13:05:30+02:00January 20, 2025|Dietary Supplements News, News|0 Comments



If you thought supplements were just for athletes or those leading ultra-fitness lifestyles, it’s time to think again. The world of health and wellness continues to evolve, and supplements are taking centre stage in our daily routines. More and more people are prioritising their health span over lifespan, focusing not just on living longer but living healthier for longer. This means choosing supplements that support overall well-being, from strengthening the immune system to improving daily energy levels. Preventive solutions like vitamins, minerals, and adaptogens are booming, with projected sales of $139.9 billion by 2025. This shift highlights a growing desire to take care of the body proactively before any issues arise, embracing a lifestyle that emphasises prevention rather than reaction.


At the same time, there’s no need to sacrifice pleasure for health. A trend that we’ve seen gaining strength for some time, further amplified during the pandemic, is the combination of indulgence with nutrition. This means that supplements are now available in high quality options that taste just as good as they look, and gummies are definitely the format that best represents this trend! Consumers are becoming more selective, seeking products that not only deliver benefits but also make the experience enjoyable. This balance between indulgence and functionality is redefining the supplement market: you get the nutritional boost you need while enjoying the process.


Stress and uncertainty have also made us more aware of the importance of mental health and mindfulness. Over 53% 2 of people are actively taking steps to improve their mental health. As daily life becomes increasingly demanding, people are turning to supplements to improve not just physical wellness but also emotional and mental well-being. Products targeting sleep and relaxation are on the rise, helping individuals manage stress and maintain a sense of calm.


Specific women’s health supplements are also gaining significant traction. Women are increasingly prioritising personalised health solutions that address their unique needs. Brands are responding to this demand by developing targeted products for concerns like hair, skin and nails, mood support during premenstrual syndrome (PMS), weight management, reproductive health, prenatal, postnatal and cognitive health. This focus on women-specific supplements aligns with broader trends in wellness that emphasise holistic care and lifestyle integration. As women continue to take charge of their health journeys, this category of women’s health supplements, addressing specific concerns, is expected to expand further, becoming a pivotal area of growth within the supplement industry.


Another growing category within the supplement market is fitness-oriented products designed to optimise physical performance and recovery. Beyond traditional options like protein powders, consumers are turning to supplements that enhance hydration, replenish electrolytes, and provide targeted micronutrients essential for maintaining energy and stamina. These products cater to both amateur fitness enthusiasts and seasoned athletes who seek holistic performance solutions. The emphasis is on achieving physical goals while supporting overall health, making these supplements versatile tools for anyone looking to improve their daily activity levels or athletic performance. With a focus on recovery, endurance, and hydration, fitness-oriented supplements are becoming indispensable in modern wellness routines.


In the evolving landscape of health and wellness, metabolism boosters continue to play a crucial role in supporting individuals on their wellness journeys. These supplements provide a complementary approach, addressing key areas such as energy levels, cardiovascular system, insulin balance and digestion. Rather than offering a quick fix, these supplements serve as valuable tools in a holistic strategy, empowering individuals to achieve sustainable and balanced results.


The growing demand for supplements has sparked innovation, encouraging companies to embrace the trend of cross-category collaboration, with beauty brands playing a significant role. By integrating dietary supplements into their product lines, they are creating solutions that enhance both physical appearance and internal well-being. This synergy between industries is poised to fuel innovation and growth as a cornerstone of the broader supplement market.


Also, consumers are giving greater importance to the formulation of the supplements they consume. They are interested in ingredients with scientific backing and clean labels that guarantee not only the functionality but also the safety of the product. Additionally, it’s key for the product to include claims that clearly communicate its benefits, making it easier for consumers to make informed choices when selecting from available options.


The future of supplements is clear: they are becoming more accessible, innovative, and enjoyable, helping consumers care for both body and mind in ways that feel personalised and practical. Supplements are no longer a “nice-to-have” but an essential part of a balanced, proactive lifestyle. Are you ready to embrace this wave of preventive and conscious health?


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20 01, 2025

Is a New All-Time High on the Horizon?

By |2025-01-20T13:03:31+02:00January 20, 2025|Crypto News, News|0 Comments

  • XRP recently broke through a weak demand zone, swept liquidity below, and is now targeting zones above
  • A key M15 supply zone may spark a reaction, with liquidity overhead signaling potential upward momentum
  • Market unpredictability makes risk management crucial—scenarios suggest both bullish and bearish possibilities

In our previous analysis of XRP, we observed the price resting on a relatively weak demand zone, with a significant pool of liquidity sitting just below.

As anticipated, the price broke through this demand, swept the liquidity, and is now climbing upward, seemingly targeting the liquidity zones above.

Is a New All-Time High on the Horizon?

But what’s next for XRP? Could it create a new all-time high (ATH)?

The Supply Zone in Focus

Currently, XRP is approaching an intriguing M15 supply zone.

xrp price prediction

This area holds the potential to spark a reaction, but it also carries liquidity overhead, making the situation complex. Traders should tread carefully here, as the market may attempt to sweep that liquidity before showing its hand.

Interestingly, the area below lacks substantial liquidity, which could further bolster the upward momentum.

XRP might aim for a liquidity grab above the supply zone before any significant pullback—or even a potential rally toward uncharted highs.

Market Unpredictability

Despite these scenarios, let’s address the elephant in the room: market uncertainty. No analysis, no matter how detailed, can predict the market with 100% accuracy.

XRP, like any other asset, is subject to unpredictable movements driven by external events, market sentiment, or even algorithmic trading activity.

Key Scenarios to Watch

  • Liquidity Sweep Above: If the price breaks through the M15 supply zone and sweeps the liquidity overhead, we could see a strong reaction.
  • Rejection at Supply: A sharp rejection at the supply zone could lead to consolidation or a retracement, providing potential re-entry points for buyers.
  • Push for ATH: If the upward momentum continues, XRP might test previous demands, with the possibility of establishing a new ATH.

Final Thoughts

Trading XRP in the current conditions requires careful consideration of both the bullish and bearish possibilities. While the scenarios outlined above are plausible, the market can and will do what it wants—leaving room for surprises.

Stay cautious, employ sound risk management strategies, and don’t forget the golden rule: always protect your capital. One practical approach in this situation is using the break-even technique—move your stop loss to your entry point once the trade is in profit. This ensures that even if the market reverses, your risk is minimized.

XRP remains one of the most exciting assets to watch, and its recent price action only adds to the intrigue. Whether it’s on the path to creating a new ATH or facing short-term retracements, the journey is bound to be an exhilarating one.

What’s your XRP price prediction? Are you bullish or waiting for the next retracement?

Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.

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20 01, 2025

Bitcoin price (BTCUSD) forecast update

By |2025-01-20T12:17:26+02:00January 20, 2025|Forex News, News|0 Comments


Natural gas price surrendered to the stability of the bullish channel’s resistance line at 4.360$ on last Friday to force it to postpone the bullish rally and form temporary correctional rebound to settle near 3.800$.

 

This correctional decline won’t affect the main bullish track due to the frequent stability above the bullish channel’s support line at 3.610$, also, stochastic reach to the oversold areas will increase the chances of gathering the positive momentum to assist to form some bullish waves that might target 4.030$ level soon, followed by reaching the mentioned resistance line.

 

The expected trading range for today is between 3.800$ and 4.030$

 

Trend forecast: Bullish





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20 01, 2025

Euro holds above key technical level to begin the week

By |2025-01-20T11:06:08+02:00January 20, 2025|Forex News, News|0 Comments

  • EUR/USD trades in positive territory above 1.0300 in the European morning.
  • The near-term technical outlook points to a lack of seller interest.
  • Financial markets in the US will remain closed on Monday.

EUR/USD closed the previous week in positive territory and continued to stretch higher early Monday. The pair’s near-term technical outlook points to a bullish tilt.

Euro PRICE Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.34% -0.32% -0.03% -0.10% -0.34% -0.27% 0.02%
EUR 0.34%   -0.04% 0.21% 0.13% 0.05% -0.04% 0.24%
GBP 0.32% 0.04%   0.19% 0.17% 0.11% 0.00% 0.27%
JPY 0.03% -0.21% -0.19%   -0.07% -0.28% -0.35% -0.15%
CAD 0.10% -0.13% -0.17% 0.07%   -0.18% -0.17% 0.08%
AUD 0.34% -0.05% -0.11% 0.28% 0.18%   -0.19% 0.10%
NZD 0.27% 0.04% 0.00% 0.35% 0.17% 0.19%   0.08%
CHF -0.02% -0.24% -0.27% 0.15% -0.08% -0.10% -0.08%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

The selling pressure surrounding the US Dollar (USD) at the beginning of the new week helps EUR/USD hold its ground. 

Stock and bond markets in the US will be closed in observance of the Martin Luther King Jr. Day holiday on Monday. However, investors will pay close attention to Donald Trump’s comments on his Inauguration Day. In case Trump refrains from speaking on his tariff policy and adopts a softer tone regarding the US-China relations, the USD could have a hard time staying resilient against its rivals.

Over the weekend, Trump noted on Truth Social that he had a call with Chairman Xi Jinping of China. “It is my expectation that we will solve many problems together, and starting immediately,” Trump said.

Nevertheless, there could be a delayed reaction to this event. Once the bond market returns to action, it will likely become more clear how Trump’s inauguration could drive the USD’s performance in the near term.

EUR/USD Technical Analysis

EUR/USD holds above the Fibonacci 23.6% retracement of the December-mid-January downtrend and the Relative Strength Index (RSI) indicator on the 4-hour chart rises toward 60, reflecting a buildup of bullish momentum.

On the upside, the 100-period Simple Moving Average (SMA) forms immediate resistance at 1.0325. Once EUR/USD rises above this level and starts using it as support, 1.0390-1.0400 (Fibonacci 50% retracement, 200-period SMA) could be seen as the next bullish target. On the downside, 1.0290-1.0300 (50-period SMA; 20-period SMA, Fibonacci 23.6% retracement) aligns as strong support area before 1.0250 (static level) and 1.0200 (end-point of the downtrend).

Euro FAQs

The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.

Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.

Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

 

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