1 Minute Market Rundown – 8th June 2022
Trade the Extremes
Crypto Needs to Bounce Soon
A generally quiet and rangy day for the markets which taught us little new but served to demonstrate the themes continue. All eyes are focused on the US CPI on Friday and the ECB on Thursday for clues to the relative interest rate paths. There is a little new to add before that bar a couple of themes that look to be playing out. The market is trading like it is very short of GBP. The fact that Boris only won his confidence motion by a narrow margin and is sabre rattling over the NI protocol were shrugged off and the pound surged over 1% yesterday. We are approaching key levels at 1.2630/50 and whilst we respect them for now, a move above opens the door to a nasty squeeze towards 1.2800. The short yen trade continues unabated, Usdyen vaulting to 20 year highs and all cross yen pairs following suit. It is hard to argue with the logic of the trade with the BOJ continuing its solo low rate policy, however the pace of the move causes concern to this scribe. Any sign of inflation dipping on Friday could see this trade take a nasty hit so we urge caution and look for better levels to enter.
In Crypto a late surge on the news checkout.com and Paypal were stepping up their Crypto acceptance and offering has been unsustained for now. Whilst I continue to view this current malaise as consolidation and I get more bullish for the medium term, I am getting more and more concerned that another leg lower to wash out the short term speculative longs is coming. The ability of ETH in particular to hold the key 1700 level has been impressive but its inability to rally away from the zone is equally disturbing. I feel a move to 1500/50 is required to cleanse the market before the next big rally. Sell through 1700 is the trade for me. A break above 2000 and 32,000 is required to indicate the base may be in place earlier than I expected.
For more information and industry insights, visit www.bcbgroup.com
Disclaimer
BCB Payments Limited is regulated by the Financial Conduct Authority, no. 807377, under the Payment Services Regulations 2017 as an Authorised Payment Institution. BCB Prime Services (Switzerland) LLC, a company incorporated under the laws of the Swiss Confederation in the canton of Neuchâtel with business identification number CHE-415.135.958, is an SRO member of VQF, an officially recognized self-regulatory organization (SRO) according to the Swiss Anti-Money Laundering Act.
The information contained in this document should not be relied upon by investors or any other persons to make financial decisions. It is gathered from various sources and should not be construed as guidance. The information contained herein is for informational purposes only and should not be construed as an offer, solicitation of an offer, or an inducement to buy or sell digital assets or any equivalents or any security or investment product of any kind either generally or in any jurisdiction where the offer or sale is not permitted. The views expressed in this document about the markets, market participants and/or digital assets accurately reflect the views of BCB Group. While opinions stated are honestly held, they are not guarantees, should not be relied on and are subject to change. The information or opinions provided should not be taken as specific advice on the merits of any investment decision. This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, new legislation and regulatory actions, competitive and general economic factors and conditions and the occurrence of unexpected events. Past performance of the digital asset markets or markets in their derivative instruments is not a viable indication of future performance with actual results possibly differing materially from those stated herein. We will not be responsible for any losses incurred by a client as a result of decisions made based on any information provided.