[ad_1]
Markets ended the week a bit stronger again, with NASDAQ closing higher by (NASDAQ⬆️2.1%) at $11.461 and S&P 500 higher by (S&P500⬆️1.1%) at $4.072. On the digital asset side, Ethereum outperformed equity markets and closed higher by (ETH⬆️7.1%) at $1.280, while Bitcoin ended the week higher by (BTC⬆️4.2%), closing at $17.130.
The Fed had sent a strong signal last week that it is preparing to slow the pace of interest rate rises this month and it will raise the fund rates by only 0.50%. As a result, the US equity markets saw an uptick in prices as investors felt the Fed is becoming more dovish, with signs that also the US CPI is finally retracing. It must be pointed out that the Fed had also emphasised that the job is not done yet and inflation remains highly uncertain.
We forecast the YoY inflation for November 2022 dropped to 7.5%, with core CPI dropping slightly to around 6.2%. The last published US CPI for October 2022 stood at 7.7% and the core CPI at 6.3% (see chart below), compared to 8.20% and 6.64% in September.
We also reiterate that if the inflation continues to drop down stronger than expected, we will see an increased likelihood of a risk asset rebound before the year end. Therefore, the next CPI reading, released next week on the December 13th, 2022, is going to be closely watched.
The crypto market continues to be exposed to higher downside risks, as many crypto analysts and traders believing the bottom is still not in for the crypto market. The market continues to receive more negative news associated with the FTX collapse last month.
The Digital Asset market sentiment (Crypto Fear & Greed Index) went lower to ⬇️26/100, indicating Fear. The Total Cryptocurrency Market Cap went up to roughly 860 billion on Sunday’s close, around ⬆️3.0% higher compared to a week ago. Ethereum (ETH)’s Dominance increased to 18%, higher by ⬆️1.6%, while Bitcoin (BTC)’s Dominance went up by ⬆️1.2% to 38%.
WHAT TO WATCH FOR: The next monetary policy meeting for the FED: December 13–14th, 2022 and for the ECB: December 15th, 2022; US CPI for November 2022 will be released on December 13th, 2022.
New to trading? Try crypto trading bots or copy trading
[ad_2]
Source link