After the Bitcoin market fell below $7300, new support was found at levels close to the $7025-$7000 mark, where bulls finally seized the initiative, taking advantage of the sell-off in the equity markets and massive sales in the European currency market.

Yesterday's trading session was negative for the first cryptocurrency market - it was not unexpected as the sentiment in the equity markets improved, and traders moved out of digital currencies and returned to traditional centralized markets. Nevertheless, those trader played their necessary role.

Today, Bitcoin price continued to recover and gained to $7521 dollars. The emerging technical picture suggests that, perhaps, Bitcoin will test the $7800 level in the days to come.

However, there should be a significant surge in volume in the coming trading sessions in order to exceeded the mark of $7800 and test the short-term resistance level of $8500. The recent rally from $7020 up to $7500 was amid a weak volume inflow approximately 10,000 Bitcoins were purchased, which is significantly lower than the volume seen in previous corrective pullbacks. This is a alarming sign, since the growth discussed is not confirmed by a necessary increase in trading volume.

If Bitcoin returns down to $7300 and moves again lower to the region of $7020, further decline to a lower level of $6000 will be unavoidable.

FortFS

GOLD

Gold futures were higher in Asian hours on Thursday, as market participants prepared for fresh batch of inflation data.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.20 percent at $1,309.10 a troy ounce as of 10:00 GMT.

The yellow metal settled around the $1,300 psychological mark at the end of the previous session, with US 10-year Treasury bond yield supporting the dollar’s demand.

Gold is sensitive to moves in the US dollar. As the metal is denominated in US dollars, a stronger currency makes it more expensive for investors holding other currencies.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.40 percent at 93.74 by the time of this writing.

On Wednesday, gold futures traded in a narrow range as fears over the political future of Italy and the rest of Europe eased, weighing on demand for safe-haven asset such as gold or the yen.

Market participants seemed to have priced in the possibility of snap elections in autumn, despite the recently nominated Prime Minister Carlo Cottarelli has repeatedly insisted on “new possibilities” to form a government.

On the other side, China said it was ready for any trade war in response to the decision made by the Trump administration to move forward with a list of $50 billion worth of tariffs on Chinese goods as soon as next month.

Ahead in the session, traders will directing their attention to the US core PCE Price Index for April and initial jobless claims at 12:30 GMT, which come along with personal spending for April. Pending home sales for April are scheduled at 14:00 GMT. The Energy Information Administration will release its weekly crude and refined product stockpile as of 15:00 GMT.

OIL

Oil futures were down in early trading hours on Thursday following an unexpected increase in crude supplies in the US.

The US West Texas Intermediate crude contracts eased 0.57 percent to $67.82 per barrel as of 10:00 GMT. Meanwhile, Brent futures were down 0.19 percent at $75.35 a barrel.

The build in inventories is not only bearish for crude benchmarks, but news also fuelled speculation about potential reduction on output cuts by the Organisation of the Petroleum Exporting Countries and Russia.

According to the American Petroleum Institute, crude supplies increased by 1 million barrels in the week ended May 25 to 434.9 million barrels. US production is currently standing at 10.73 million bpd, close to Russia - the world’s largest oil producer - with 11 million bpd.

OPEC and Russia might begin to increase their crude production in the second-half of 2018 by 1 million barrels per day, which would leave output cuts at 800,000 barrels per day. The move is expected to avoid excess in demand due to expected reductions in Venezuela and Iran.

OPEC and non-OPEC producers will gather in Vienna on June 22 to discuss the future of production cuts. Any signs that the cartel and its allies will move forward with an output increase would certainly weigh hard on prices.

FortFS

The dollar was trading 0.08 percent higher vs the yen at 109.00 as of 10:00 GMT on Thursday, amid easing political worries and as traders eyed inflation figures in the United States.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.40 percent at 93.74 by the time of this writing.

Market participants seemed to have priced in the possibility of snap elections in autumn, despite the recently nominated Prime Minister Carlo Cottarelli has repeatedly insisted on “new possibilities” to form a government.

On the other side, China said it was ready for any trade war in response to the decision made by the Trump administration to move forward with a list of $50 billion worth of tariffs on Chinese goods as soon as next month.

On the data front, China’s manufacturing Purchasing Managers’ Index (PMI) for May came in at 51.9 points, above an estimated reading of 51.4 points. The non-manufacturing PMI for May also outperformed expectations at 54.9 points.

The USDJPY is widely dominated by risk sentiment. The USD is seen as the risky side, while the Japanese yen plays as the safe-haven component. At the moment, and despite some recent panic scenes, the fundamental picture remains bullish and risk demand continues to be solid. For such reason, we expect an upward extension of this pair in the medium term.

From a technical view, key indicators predict further loses in the short run. First support is found at 108.57 and first resistance at 108.75. The current pivot point for the pair is placed at 108.69.

Ahead in the session, traders will directing their attention to the US core PCE Price Index for April and initial jobless claims at 12:30 GMT, which come along with personal spending for April. Pending home sales for April are scheduled at 14:00 GMT. The Energy Information Administration will release its weekly crude and refined product stockpile as of 15:00 GMT.

FortFS

Monday

Europe: The UK Construction PMI for May is up at 08:30 GMT. Later on, the British Retail Consortium will present its Sales Monitor.

United States: Factory orders for April are due for release as of 14:00 GMT.

Asia: Japan’s household spending for April is expected for publishing at 23:30 GMT.

Tuesday

Asia: Caixin’s services PMI for May is scheduled for release at 01:45 GMT.

Europe: Germany, the Eurozone and the United Kingdom will present their services PMIs for May at 07:55 GMT, 08:00 GMT and 08:30 GMT, respectively. Attention will also be directed at EU’s retail sales for April at 09:00 GMT.

United States: Markit Economics and the Institute for Supply Management will unveil their services (also non-manufacturing) PMIs for May at 14:00 GMT. JOLTs job openings for April will be out by the same hour.

Wednesday

United States: Q1 nonfarm productivity, unit labor costs and the trade balance for April are all coming together at 12:30 GMT.

Thursday

Europe: Germany factory orders for April are up at 06:00 GMT, followed by UK Halifax House Price Index for May at 07:30 GMT. The Eurozone will also present a fresh estimation on its first quarter GDP, with a quarterly advance of 0.6 percent seen.

Asia: Japan’s current account for April and a fresh reading on the first quarter Gross Domestic Product are scheduled for release at 23:50 GMT.

Friday

Asia: China’s export/imports and trade balance for May is due at 03:00 GMT. Also, the Chinese government will present CPI and PPI data for May on Saturday at 01:30 GMT.

Europe: Germany’s trade balance for April is up at 06:00 GMT.

FortFS

Asian equity markets were slightly higher on Thursday as traders began to digest Italy’s political turmoil while keeping an eye on fresh economic reports due later in the day.

In Japan, the Nikkei 225 benchmark was up 0.90 percent at 22,216.00 points. An overnight recovery in crude prices supported the index. The broader Topix grew 0.65 percent.

A similar dynamic was spotted in Australia, with the S&P/ASX 200 rising 0.45 percent, also based on gains by energy-related names.

Meanwhile, Seoul’s Kospi added 0.58 percent to end Thursday operations at 2,423.01 percent. Investors were cheered by news of a meeting between US Secretary of State Mike Pompeo and the vice-chairman of the Central Committee of the Workers' Party of Korea Kim Yong Chol.

Pompeo tweeted following the encounter: "Good working dinner with Kim Yong Chol in New York tonight. Steak, corn, and cheese on the menu."

Kim Yong Chol is the first North Korean top official to visit the United States since 2000. The White House confirmed the Trump-Kim summit remains on track for June 22 in Singapore.

Hong Kong's Hang Seng Index was trading 1.27 percent into green territory by the time of this writing. The Shanghai composite and the Shenzhen gained 1.86 and 1.72 percent respectively.

On the data front, China’s manufacturing Purchasing Managers’ Index (PMI) for May came in at 51.9 points, above an estimated reading of 51.4 points. The non-manufacturing PMI for May also outperformed expectations at 54.9 points.

Fear over Italy’s political future eased following reports the newly appointed Prime Minister Carlo Cottarelli held informal talks with President Sergio Mattarella.

Mattarella’s decision to appoint Cottarelli to lead the country is seen as a bloc to the ultra-right anti-EU opposition parties, which are currently leading opinion polls in the country.

Economic calendar:

Europe: Germany’s retail sales for April will be published at 06:00 GMT. Traders will also pay attention to Eurozone’s consumer price index for May at 09:00 GMT, as well as the unemployment rate for april, seen at 8.5 percent.

United States: Core PCE Price Index for April and initial jobless claims will be published at 12:30 GMT, along with personal spending for April. Pending home sales for April are scheduled at 14:00 GMT. The Energy Information Administration will release its weekly crude and refined product stockpile as of 15:00 GMT.

FortFS

It is quite possible that the threat of an economic crisis and the threat of unity of the European Union were required in order for the cryptocurrency markets to see the light at the end of the tunnel. It is interesting that yesterday, the Bitcoin digital currency market moved to growth after almost three weeks of non-stop decline, bitcoin showed an impressive gain rebounding from local lows around the round mark of $7000 and rose to $7500.

For the equity markets as well as for the European currency, the day was extremely negative. The political crisis in Italy has exerted strong pressure on the euro. Italian bonds were sold out on the background of risks for the third largest economy in Europe, and the Italian version of Brexit.

Global stock markets were under strong pressure, and the single European currency fell to the level of seven-month lows. Over the course of the trading day, safe haven assets such as gold, US bonds and... Bitcoin were in demand.

Once again we are witnessing a curious situation when the decline in equity markets, the high volatility of the foreign exchange market and just high economic and political risks dramatically increase the demand for digital decentralized currencies.

The intrigue with the fate of Italy in the EU is just beginning to unfold, in the coming months, the country will be forming regular elections. In addition, this means medium-term risks for the euro and medium-term support for the Bitcoin market. However, other digital currencies, such as Ether and Bitcoin cash also traded positively.

Technically, the nearest local resistance is in the $7570 zone. More significant and stronger resistance is located at $7690-$7740.

FortFS

GOLD

Gold futures were trading higher on Wednesday as market participants digested the possibility of fresh elections in Italy next autumn.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.25 percent at $1,302.30 a troy ounce as of 7:40 GMT.

Market participants fear that another Italian election, which could take place as soon as August, would serve as an opportunity for anti-establishment parties to set themselves in power.

Gold - one of the most popular safe-haven assets - tends to perform well in periods of high uncertainty and instability as investors look for options to safeguard their money.

The political turmoil in Italy also weighed on the euro, allowing the dollar to reach a 10-month high against it. EU exporters, however, favored from a cheap euro, which makes their products more competitive abroad.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.13 percent at 94.67 by the time of this writing.

On the other hand, the dollar-denominated metal is sensitive to moves in the US dollar. A stronger greenback makes gold less attractive for holders of foreign currency, damping demand for safe-havens.

The dollar is also supported by news that a summit between President Donald Trump and North Korean leader Kim Jong Un is back on track.

Ahead in today’s session, traders will be monitoring the following releases: Germany’s unemployment change and rate at 08:00 GMT, followed by the latest reading on consumer prices.

In the US, attention will be directed to ADP nonfarm employment change for May at 12:15 GMT. A fresh reading on the Q1 GDP is due fifteen minutes later, along with the goods trade balance for April. The Federal Reserve will unveil its Beige Book at 18:00 GMT.

Later on, Japan’s industrial production figures for April are due at 23:50 GMT.

OIL

Oil futures were down in early trading hours on Wednesday as market participants continued to weigh a potential reduction on crude output cuts by OPEC and Russia.

The US West Texas Intermediate crude contracts eased 0.04 percent to $66.73 per barrel as of 08:40 GMT. Meanwhile, Brent futures were down 0.19 percent at $75.25 a barrel.

The Organization of the Petroleum Exporting Countries and energy ministers of non-OPEC countries such as Russia are gathering in Vienna on June 22 to discuss the possibility to partially halt production cuts to avoid market disorders.

Representatives from Saudi Arabia and Russia have already expressed concerns about the situation surrounding Venezuela and Iran. Both nations could potentially face US sanctions in the near term, which would certainly push them to reduce output levels far beyond.

The Trump administration is expected to impose a batch of fresh economic sanctions against Tehran following the President’s decision to pull out from the 2015 nuclear deal.

On the other hand, Trump is also targeting Venezuela’s Nicolas Maduro for incurring on what he described as “unconstitutional practices” in the latest national elections.

Venezuela has been cutting its production more than it should according to OPEC’s figures. The Caribbean country is facing a deep economic crisis.

Sources believe OPEC and Russia could decide to increase by 1 million barrels per day the crude production in the next meeting. The oil cartel and its allies have maintain 1.8 million barrels per day cuts for the last two years.

Meanwhile, a strong dollar continues to weigh on crude prices as energy commodities are denominated in the US currency. A stronger greenback makes oil more expensive for investors holding other currencies, therefore dampening demand for these assets.

FortFS

As the sentiment in European markets worsens in the light of the recent political developments in Italy and Spain, Billionaire investor George Soros anticipates “another major financial crisis”.

“The European Union is in an existential crisis. Everything that could go wrong has gone wrong,” Soros said at a meeting hosted by the European Council on Foreign Relations.

In his opinion, the only way out for the EU is “to reinvent itself.” Soros - founder and chairman of the Open Society Foundation - identifies three problems that are currently threatening the future of the bloc: the refugee crisis, separation of key states (Ex. Brexit) and austerity policies.

These factors have been limiting the development of the European economy for the past few years, as Soros explains. Despite the fact Soros proclaims to be pro-European Union, he insists that each nation should have the right to decide on whether or not to accept refugees and in which quantity.

According to the Dublin regulation, the country the refugee first enters is largely responsible for processing the asylum. This measure has created a strong unbalance between nations within the union, especially for those with borders in the Mediterranean sea.

Regarding the “addiction to austerity”, Soros believes it’s time for the European Central Bank to start correcting its path into policy normalization. The delicate state of mind among European citizens is being used for advantage of populist and anti-EU politicians.

Meanwhile, Bank of Italy governor Ignazio Visco warned that the nation is at risk of losing the “asset of trust”, referring to antiseptic parties leading opinion polls.

“The rules of the game can be debated, even criticised; they can surely be improved,” Visco said in his annual speech. “Yet, we cannot disregard constitutional constraints: protecting savings, balancing the accounts and respecting the treaties.”

FortFS

Markets in Asia extended losses on Wednesday as sentiment remained under pressure due to increasing concerns over Italy’s political turmoil and its implications for the rest of the bloc.

In Japan, the Nikkei 225 closed in red territory at 22,022.50 points, down 1.50 percent, with banking and metals pushing lower. The broader Topix dropped 1.46 percent.

South Korea’s Kospi benchmark slipped 1.96 percent, with technology names such as Samsung Electronics and Posco falling more than one and a half percent in the day.

The S&P/ASX 200 index eased 0.48 percent, with financials leading decliners but safe-haven assets such as gold offering some support.

Hong Kong's Hang Seng Index was down 1.68 percent, while mainland Shanghai composite ended 2.53 percent lower and the Shenzhen posted a 2.37 percent loss.

Market sentiment continued to be dominated by prospects of fresh elections in Italy, with anti-EU anti-establishment parties gaining popularity among society, according to opinion polls.

Earlier this week, the President appointed a former IMF economists as Prime Minister. A measure that was mainly designed to block the nomination of an eurosceptic politician.

The instability in Europe’s third largest economy is reflected in rising bond yields, with Italy’s two-year bond yield adding more than 180 basis points in the last session.

In the US, Wall Street indexes began on the downside this week. The Dow Jones industrial average was down 1.58 percent, with a massive sell off weighing on the benchmark.

In other news, the Trump administration confirmed on Tuesday that it will release a list of nearly $50 billion worth of Chinese goods that will be subject to a 25 percent tariff by June 15. The decision comes after intense negotiations between Washington and Beijing last week.

Economic calendar:

Europe: Germany’s unemployment change and rate will be released at 08:00 GMT, followed by the latest reading on consumer prices.

United States: ADP nonfarm employment change for May will be out at 12:15 GMT. A fresh reading on the Q1 GDP is due fifteen minutes later, along with the goods trade balance for April. The Federal Reserve will unveil its Beige Book at 18:00 GMT.

Asia: Japan’s industrial production figures for April are due at 23:50 GMT.

FortFS

The dollar was trading 0.04 percent lower vs the yen at 108.80 as of 07:45 GMT on Wednesday, with the Italian turmoil continuing to weigh on sentiment.

Investors are weighing the possibility of Italian snap election in August, which could serve as an opportunity for anti-establishment parties to settle in power.

Safe-haven assets such as the yen tend to perform well in periods of high uncertainty and instability as market participants look for options to safeguard their money.

The political turmoil in Italy weighed on the euro, allowing the dollar to reach a 10-month high against it. EU exporters, however, favored from a cheap euro, which makes their products more competitive abroad.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.13 percent at 94.67 by the time of this writing.

The dollar is also supported by news that a summit between President Donald Trump and North Korean leader Kim Jong Un is back on track.

The pair is likely to extend to the upside as the dollar recovers from previous days loses. The American currency remains on positive vias. If the pair breaks above 109.00, we could see an upward extension in the near term.

Ahead in today’s session, attention will be directed to ADP nonfarm employment change for May at 12:15 GMT. A fresh reading on the Q1 GDP is due fifteen minutes later, along with the goods trade balance for April. The Federal Reserve will unveil its Beige Book at 18:00 GMT.

Later on, Japan’s industrial production figures for April are due at 23:50 GMT.

FortFS

After yesterday's impressive drop, when the digital currency Ether decreased by more than 6 percent in 24 hours, the market is experiencing some recovery after previous losses today. Shortly before the start of US trading session, the Ether is traded at around $542 for one digital coin, growing by 6% on daily basis. Thus, yesterday's decline was short-term and probably was caused not only by the activation of stop orders under a significant support level, as we initially thought.

It is very likely that yesterday's large-scale sell-off was the result of massive transfer of a digital currency to USD dollars after a series or one large ICO. After the launch of ICO, and the exchange of new tokens to Ether, the developers of the new project must exchange the collected Ether for fiat money for further financing and development of new project.

Most large ICO projects tend to eliminate or diversify their ethers on crypto-exchange such as Bitfinex, causing a domino effect for other cryptocurrencies sending them into the red zone.

It is characteristic that the decline in the prices caused by such actions is of a short-term nature, and the market wins all the losses suffered the next day.

Thus, today the market shows positive signals. However Ether bulls have yet to gain a foothold above the significant level of $550, recent support, and now the new and the nearest level of resistance. Today’s close above this mark will confirm the false yesterday's breakdown and indicate the presence of buyers in the market.

There are also positive trends in the Bitcoin market. After reaching recent lows at $7020-$7050, the market gained in the $7440 zone. The nearest resistance is in the $7630-$7760 zone.

The total capitalization of the cryptocurrency market increased to 323 billion dollars.

FortFS

While for many Italians he continues to be an unknown political figure, yesterday he was named Prime Minister. Yes, we are talking about the Former IMF Director Carlo Cottarelli.

Political uncertainty was risen in Italy and the Eurozone following his appointment. But why? Basically, because Cottarelli seems to be a last resource used by President Sergio Mottarella to block the nomination of eurosceptic finance minister Paolo Savona.

Mottarella’s block was applauded by the French President Emmanuel Macron, who claimed his support for what he described as a “great spirit of responsibility”.

“The Italian economy is still growing and public finances are under control,” Cottarelli said. “Dialogue with the EU to defend our interests is essential and we can do better [but] it has to be constructive.”

Cottarelli tried to smooth market sentiment by delivering a few words on the economy, but investors are skeptical about his potential, and mostly likely see new elections in autumn.

The European currency reacted as expected - the EURUSD fell to a six-month low of 1.1619 by mid-session, its weakest level since November 8.

The euro has been facing strong pressure in the last year, always due a certain political context. Not long ago, German Chancellor Angela Merkel was struggling to form a government, putting at risk the political status-quo of Europe’s first economy.

Italy has played an important role for the euro too, not only because of its political opera but also due to its weak banking system, which has required the assistance of state institutions in multiple occasions to avoid a major financial crisis.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.16 percent at 94.29 by the time of this writing.

Also weighing on the euro were lower-than-usual trading and liquidity volumes. US markets were closed on Monday in observance of the Memorial Day holiday.

FortFS

GOLD

Gold prices were lower on Tuesday in Asian hours, as interest on risk assets continued to recover despite Italy’s political turmoil.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.45 percent at $1,297.80 a troy ounce as of 6:00 GMT.

The yellow metal extended loses on Monday, moving below the $1,300 mark amid a weaker safe haven demand as geopolitical tensions continued to ease.

Appetite for safe-haven assets such as gold was decrease after US President Donald Trump said on Sunday that a US team had arrived to North Korea to ultimate details for a summit between him and North Korean leader Kim Jong Un.

However, losses for the metal were capped by Italy’s appointment of a new Prime Minister. President Sergio Mattarella blocked the nomination of a eurosceptic finance minister.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.16 percent at 94.29 by the time of this writing.

The dollar-denominated metal is sensitive to moves in the US dollar. A weaker greenback makes gold more attractive for holders of foreign currency, increasing demand for safe-havens.

No economic news were released on Monday. Volatility and trading volumes remained below average as US and UK markets were shut for holidays.

OIL

Crude oil prices were mixed on Tuesday early trading hours, with concerns that Saudi Arabia and Russia would increase production in the near still weighing on sentiment.

The US West Texas Intermediate crude contracts dropped 1.71 percent to $66.73 per barrel as of 07:00 GMT. Meanwhile, Brent futures were up 0.28 percent at $75.51 a barrel.

Market participants are pricing in the possibility that Saudi Arabia and Russia will soon begin to raise oil production to keep the oil market balanced.

However, no decisions are expected to be announced before June 22, when the representatives from the Organization of the Petroleum Exporting Countries and other external producers will gather in Vienna.

Sources said Saudi Arabia and Russia have already discussed a potential increase of 1 million barrels per day in supply for the second-half of the year to counteract shortages from Venezuela and Iran.

OPEC and Russia are both heavily oil-depending economies, but pushing prices too high would again reactivate a large set of shale producers in the US, which threatens to weigh on prices such as it happened back in 2015.

Last week, General Electric’s Baker Hughes rig count increased by 15 units to a total count of 859 rigs, the highest level since March 2015.

FortFS

Asian equity indexes were mainly lower on Tuesday, with traders focusing on unstable oil prices and Italy’s political turmoil.

In Japan, the Nikkei 225 was down 0.59 percent, with exporters falling under pressure on the back of a stronger yen. The broader Topix eased 0.48 percent.

South Korea’s Kospi benchmark dropped 0.76 percent, with technology, banking and manufacturing names weighing on the index.

Hong Kong’s Hang Seng traded 0.83 percent to the downside by the time of this writing, with financial components pushing the index lower. Mainland Shanghai and Shenzhen were down 0.47 and 1.12 percent respectively.

In Australia, the S&P/ASX 200 was able to end in green territory, with a 0.16 percent gain as the country’s main banks were on a bullish side.

Markets in Singapore, Malaysia and Thailand were closed on Tuesday for a holiday.

Monday was an empty day for traders, with trading volumes remaining below average as US and UK markets remained shut for a holiday. Today is also a weak day on the data front.

In Europe, attention is directed exclusively to Italy, where President Sergio Mattarella opted to appoint a former International Monetary Fund Director as prime minister to avoid the nomination of an eurosceptic politician. However, snap elections are expected in autumn.

In other news, the Indonesian rupiah is getting weaker and the country's regulator will meet on Wednesday to define an action plan on how to prevent a crisis.

The currency’s dynamic seems to be reaction to investors pulling out of the Indonesian stock and bond markets to move their cash to US Treasury yields and the dollar.

FortFS

The dollar was trading 0.29 percent lower vs the yen at 109.09 as of 06:00 GMT on Tuesday, despite the dollar began to recover across the board.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.16 percent at 94.29 by the time of this writing.

Demand for the American currency was boosted amid decreasing geopolitical tension involving the United States and its relation with North Korea.

Risk appetite increase following US President Donald Trump’s announcement on Sunday that a US team was in North Korea ultimating details for a summit between him and Kim Jong Un.

Nevertheless, market players kept an eye on another front of political instability: Italy. President Sergio Mattarella blocked the nomination of a eurosceptic finance minister by appointing former International Monetary Fund Director Carlo Cottarelli as Prime Minister.

No economic news were released on Monday. Volatility and trading volumes remained below average as US and UK markets were shut for holidays.

As of 23:50 GMT, Japan will present retail sales data for April, with a 0.9 percent increase seen.

The pair is expected to find support at the 109.00 level. Breaking that level will open the doors for further downward extension. On the other hand, buyers could use the level to reopen long positions as prospects for the dollar continue to be bullish.

FortFS

The decline of the cryptocurrency market continues on Monday 28 May. The price of the Ethereum, the cryptocurrency of the blockchain network Etherium, fell by 6 percent per night, while other major digital currencies, such as Bitcoin, Ripple and Bitcoin cache, fell in the range of 1.5% - 6%.

Earlier today, with a break of support at $545 within one hour, the price of the Ethereum dropped from $540 to $500. Most likely, there was a so-called short-squeeze, the activation of stop orders concentrated under long-term support in the $530-$540 area.

The price of global cryptocurrency Bitcoin continued to decline in today's Asian trading. However, with the start of European trading, players bought the market up and returned it to $7256. Local lows at the beginning of the American session are located at $7146. It is noteworthy that Bitcoin was able to maintain some stability compared to other major cryptocurrencies, thanks to the technical conditions and the reselling factor. We wrote earlier that right from $7100 levels down to $6500 a strategic support zone begins. Historically the market bounced several times from these levels.

Based on the decline in the Ethereum and the high probability of further declines in Bitcoin and other major currencies, the likelihood that the total capitalization of the market will fall below $300 billion is very high. On Monday May 27, the capitalization of the entire digital market is at around $315 billion. Nevertheless, analysts are still optimistic about the potential market growth in the third quarter of 2018.

FortFS

GOLD

Gold prices moved lower on Monday following news that the summit between President Donald Trump and North Korean leader Kim Jong-un is back on track.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.54 percent at $1,296.60 a troy ounce as of 7:10 GMT.

Trump tweeted on Sunday: “Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself.”

He added: “I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!”

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.32 percent at 93.83 by the time of this writing.

The dollar-denominated metal is sensitive to moves in the US dollar. A weaker greenback makes gold more attractive for holders of foreign currency, increasing demand for safe-havens.

Last week, the metal was supported by Trump’s decision to unexpectedly call off the meeting. However, efforts by South Korea and North Korea revived the initiative.

No economic data is due on Monday. US markets will remain closed in observance of the Memorial Day holiday and therefore, attention will turn to the news front.

Ahead this week, traders will count on a fresh employment report by the US Labor Department on Friday, which is key data for the Federal Open Market Committee.

OIL

Oil futures extended losses in Asian hours on Monday as market participants weighed a possible halt on OPEC and non-OPEC output cuts.

Last week, Russia and Saudi Arabia oil ministers said the possibility of reducing production cuts in the near term was still up for discussion.

In the last few days, speculation has been building up about a potential increase of production levels in order to avoid market unbalance.

This idea gained popularity among investors following the recent developments in the Middle East. As the US is preparing a batch of new sanctions against Iran after pulling off from the Nuclear deal, traders believe those measures would push down Iranian oil exports.

On the other hand is Venezuela, which could also be target of US economic sanctions following President Donald Trump’s accusations against newly-elected President Nicolas Maduro about unconstitutional practices.

The US West Texas Intermediate crude contracts dropped 1.93 percent to $66.57 per barrel as of 08:20 GMT. Meanwhile, Brent futures were down 1.70 percent at $75.14 a barrel.

On Friday, Baker Hughes oil rig count showed an increase of 15 units, bringing the total count to 859 rigs, the highest level since March 2015.

FortFS

Stock indexes in Asia closed mainly higher on Monday, reversing early losses following positive developments regarding US-North Korea relations.

Investors kept an eye in geopolitics over the weekend, as a US delegation arrived to North Korea for discussions about the still unconfirmed Summit between Trump and Kim Jong Un.

President Trump tweeted: “Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself. I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!”

This improvement followed a meeting between South Korean President Moon Jae-in and his North Korean counterpart on Saturday. Last week, market participants flew to safe-havens as Trump called off the meeting with Kim due to Pyongyang’s “inflammatory comments”.

In Japan, the Nikkei 225 ended at 22,475.50 points, rising 0.11 percent, while the broader Topix was down 0.07 percent at 1,770.42 points. Oil-related components weighed on the index.

South Korea’s Kospi was boosted by US-North Korea news, adding 0.74 percent in today’s session. Hyundai Steel was among the best performers, sky-rocketing nearly 17 percent.

Hong Kong’s Hang Seng Index was about 0.72 percent higher by the time of this writing, while mainland Shanghai eased 0.19 percent and the Shenzhen rose 0.06 percent.

Down under, Australia’s S&P/ASX 200 was down 0.48 percent, with energy and materials pushing the benchmark to the downside.

The drop in crude prices was a result of rising concerns that the Organization of the Petroleum Exporting Countries would decide to partially increase output levels to avoid market disbalance.

"We've been calling for oil prices this year to be relatively range-bound around the mid-$60s level and I think that's a level that OPEC's relatively comfortable with," JP Morgan Asset Management Strategist Hannah Anderson said in an interview.

Ahead in the day, markets will experience low volatility as the US will remain closed in observance of the Memorial Day holiday.

FortFS

We’ve all heard about them… Millennials, also known as Generation Y. There is no exact dates to define whether you are or not part of this generational cohort, but if you were born between the early 1980’s and mid-1990’s then you are most likely in this group.

Don’t worry, there is nothing wrong with being a millennial. But I totally get it, this age group hasn’t built a good reputation among employers, although things are slowly starting to change.

The fact is that millennials are free spirits. They are the ones who hate being tied up to structure and make unnecessary compromises with corporations. Flexibility is their second name and Starbucks their third one. Instagram is just an extension of their body.

And of course, millennials are certainly not part of the financial stereotype of what would make a great Forex trader. But they can be and I am about to explain you why:

Forex is all about flexibility

If there is one type of investment that can be called flexible is Forex. You just need an internet connection and you are ready to trade. Yes, THAT easy.

Oh, and have I mentioned you can trade anytime from Monday to Friday? So, no matter if you are an early bird or a night owl, you decide when to sit down to work on your investment.

Forex is a DIY investment

Let’s put like this, if you are a millennial and you love those DIY guides in Pinterest on how to make a coffee table with Coca-Cola cans, then Forex is your kind of investment. Why? Because you can learn how to trade all by yourself from home, or wherever you want.

It’s not complicated. Just find a few reliable well-known sources and stick to them. Make a plan and practice on everyday basis with a demo account for about 3 months. Once you understand your trading skills are solid enough not to make stupid mistakes, it’s time to open a real account.

Forex can be your freelance job

And we all know millennials always have a few projects on the side. So well,... this can be one to consider. Investment can be small and profit opportunities are endless. And most importantly, you are your own boss, so you can make as many coffee breaks as you want.

FortFS

The dollar was trading 0.20 percent higher vs the yen at 109.58 as of 07:10 GMT on Monday, as market participants digested improvements in the US-North Korea relation.

Trump tweeted on Sunday: “Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself.”

He added: “I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!”

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was down 0.32 percent at 93.83 by the time of this writing.

Last week, the dollar dropped following Trump’s decision to unexpectedly call off the meeting. However, efforts by South Korea and North Korea revived the initiative.

"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting," Trump said.

No economic data is due on Monday. US markets will remain closed in observance of the Memorial Day holiday and therefore, attention will turn to the news front.

Ahead this week, traders will count on a fresh employment report by the US Labor Department on Friday, which is key data for the Federal Open Market Committee.

FortFS

As FortFS analysts expected, Bitcoin market found support on the $7240-$7300 region. Shortly before the Friday start of US trading, the market bounced off yesterday's lows and is trading at $7400.

Earlier the price fell below $7250, on the background of increased sales. After three consecutive red trading sessions, the Bitcoin price dropped from 7900 to 7250 dollars, eventually stabilizing at the level of 7300 dollars.

It is obvious that the cryptocurrency market is in the short-term bearish cycle. In a very volatile bear market environment, positive market and near-market events often do not affect the market and are simply ignored. Although the positive news has not been in the crypto market for a long time. The only factors that matters for bear market are - in addition to the constant desire to sell - the technical factors and overboughtness factors.

Although now bulls have everything necessary to intercept the initiative and stop the market at current levels, if the pressure of the bears continues, the next level of support will be the $6580 zone.

It is interesting enough that during its short history over the past 12 months, Bitcoin recorded three large-scale declines. All three downward movements were stopped at the same level of support in the region of 6600-6000 US dollars. Bitcoin fell from $20000 to $ 6000, but then again recovered to $12000.

A similar trend occurred when the price rose from $6400 to $11000. It is possible that the price will again fall to the region of $6000-$6400 dollars and will immediately indicate a strong rally to up the region of 11000 dollars - 12000 dollars. We will find out how the events will develop next week.

FortFS

Stock markets in Asia continued to trader lower on Friday following an unexpected cancellation of the Trump-Kim summit by Washington.

In Japan, the Nikkei 225 hovered near the flat line during the session to end at 22,463.00 points. The broader Topix fell 0.22 percent to 1,771.70 points, with oil-related stocks weighing on it.

South Korea's Kospi benchmark eased 0.21 percent, with gains in the technology sector being capped by falling steelmakers and heavyweight financials.

Australia’s S&P/ASX 200 was down 0.07 percent, with the energy subindex easing more than one and a half percent during the day.

Hong Kong's Hang Seng Index was down 0.78 by the time of this writing, while mainland Shanghai and Shenzhen closed 0.40 and 1.09 percent lower respectively.

On Thursday, President Donald Trump cancelled his meeting with North Korean leader Kim Jong Un, pushing the dollar even lower and boosting demand for safe-havens such as the yen.

"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting," Trump said.

The Republican leader said it was Pyongyang’s fault due to a constant inflammatory rhetoric against the United States. Trump also said the US military forces remained in standby.

"I have spoken to South Korea and Japan and they are not only ready should foolish or reckless acts be taken by North Korea, but they are willing to shoulder much of the cost of any financial burden — any of the costs associated by the United States in operations, if such an unfortunate situation is forced upon us," Trump told reports.

However, South Korea President Moon Jae-in wrote on Twitter he was "embarrassed and regretful that the North American summit was not held on June 12 that was scheduled.”

He also added that the “denuclearization of the Korean peninsular and enduring peace are historic tasks that can not be abandoned or delayed."

Economic Calendar:

Ahead in today’s session, Germany’s business expectations, current assessment and lfo business climate for May are all to be released at 08:00 GMT. Analysts are forecasting 98.5, 105.5 and 102 respectively. Investors will get a look at the UK Q1 GDP half an hour later.

In the United States, focus will be at durable goods orders for April at 12:30 GMT. Federal Reserve Chair Powell will speak at 13:00 GMT, followed by FOMC Bostic and Kaplan at 15:45 GMT. Michigan’s consumer sentiment for May is up at 14:00 GMT.

FortFS

Monday

United States: Memorial Day

Asia: Japan’s jobs/applications ratio for April is due at 23:30 GMT.

Tuesday

Europe: UK Nationwide HPI is expected in morning hours.

United States: FOMC Bullard will speak at 04:40 GMT. The Conference Board will release its consumer confidence index for May as of 14:00 GMT.

Asia: Japan’s retail sales for April are up at 23:50 GMT.

Wednesday

Europe: Germany’s unemployment change and rate will be released at 08:00 GMT, followed by the latest reading on consumer prices.

United States: ADP nonfarm employment change for May will be out at 12:15 GMT. A fresh reading on the Q1 GDP is due fifteen minutes later, along with the goods trade balance for April. The Federal Reserve will unveil its Beige Book at 18:00 GMT.

Asia: Japan’s industrial production figures for April are due at 23:50 GMT.

Thursday

Asia: China’s manufacturing and non-manufacturing PMI indexes for May are up at 01:00 GMT

Europe: Germany’s retail sales for April will be published at 06:00 GMT. Traders will also pay attention to Eurozone’s consumer price index for May at 09:00 GMT, as well as the unemployment rate for april, seen at 8.5 percent.

United States: Core PCE Price Index for April and initial jobless claims will be published at 12:30 GMT, along with personal spending for April. Pending home sales for April are scheduled at 14:00 GMT. The Energy Information Administration will release its weekly crude and refined product stockpile as of 15:00 GMT.

Friday

Asia: China’s Caixin manufacturing PMI for May will be published at 01:45 GMT.

Europe: Germany and the EU will release their manufacturing PMI indexes for May at 07:55 GMT and 08:00 GMT respectively. The UK will also present this report at 08:30 GMT.

United States: the Labor Department will present its employment figures for May at 12:30 GMT, including nonfarm payrolls, the participation and unemployement rate and average hourly earnings. ISM manufacturing PMI for May is due at 14:00 GMT.

FortFS

GOLD

Gold futures eased in early trading hours on Friday as the dollar bounced despite downbeat geopolitical news and as traders awaited fresh reports later in the day.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.15 percent at 93.84 by the time of this writing.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.20 percent at $1,301.80 a troy ounce as of 6:15 GMT.

The yellow metal added more than 1 percent on Thursday as safe-haven spiked after President Donald Trump cancelled his meeting with North Korean leader Kim Jong Un.

However, the Republican leader said it was Pyongyang’s fault due to a constant inflammatory rhetoric against the United States. Trump also said the US military forces remained in standby.

"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting," Trump said.

Investors quickly decided to leave behind risky investments in search for shelter, moving its money to the precious metal, which is seen as one of the favorite safe-havens out there.

Also, Federal Reserve minutes were not digested as positively as initially thought, lowering expectations for a fourth interest rate hike in 2018.

The dollar-denominated metal is sensitive to moves in the US dollar. A weaker greenback makes gold more attractive for holders of foreign currency, increasing demand for safe-havens.

Ahead in today’s session, Germany’s business expectations, current assessment and lfo business climate for May are all to be released at 08:00 GMT. Analysts are forecasting 98.5, 105.5 and 102 respectively. Investors will get a look at the UK Q1 GDP half an hour later.

In the United States, focus will be at durable goods orders for April at 12:30 GMT. Federal Reserve Chair Powell will speak at 13:00 GMT, followed by FOMC Bostic and Kaplan at 15:45 GMT. Michigan’s consumer sentiment for May is up at 14:00 GMT.

OIL

Oil futures were lower in Asian hours on Friday after Russia hinted about a possible increase of crude production in the near future.

The US West Texas Intermediate crude contracts eased 0.10 percent to $70.64 per barrel as of 06:20 GMT. Meanwhile, Brent futures were down 0.19 percent at $78.64 a barrel.

The Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC countries led by Russia start reducing production levels in 2017 in order to boost oil prices.

The cartel and its allies agreed on target cuts of around 1.8 million barrels per day, a level that has not been modified since the original agreement.

Russian Energy Minister Alexander Novak said Thursday oil cuts could be eased “softly” if OPEC and non-OPEC nations understand the oil market finds balance by June.

The next OPEC + non-OPEC meeting will take place in Vienna on June 22.

From a fundamental view, any signs of halting or softening output cuts will considerably push oil prices to the downside. For such reason, the next meeting is a key event.

Oil prices have risen more than 20 percent in 2018, reaching levels not seen since 2014. Also, geopolitical tensions in Middle East have provided extra support.

Earlier this week, the US Energy Information Administration said crude supplies rose 5.8 million barrels in the week to May 18, against expectations for a 1.6 million barrels draw.

Ahead in today’s session, attention will be directed to Baker Hughes’ weekly rig count.

FortFS

The dollar was trading 0.30 percent higher vs the yen at 109.57 as of 06:15 GMT on Friday, with investors weighing in North Korea’s news and looking ahead to fresh reports.

The US dollar index, which measures the greenback’s strength against a basket of six major competitors, was up 0.15 percent at 93.84 by the time of this writing.

On Thursday, President Donald Trump cancelled his meeting with North Korean leader Kim Jong Un, pushing the dollar even lower and boosting demand for safe-havens such as the yen.

However, the Republican leader said it was Pyongyang’s fault due to a constant inflammatory rhetoric against the United States. Trump also said the US military forces remained in standby.

"Sadly, based on the tremendous anger and open hostility displayed in your most recent statement, I feel it is inappropriate, at this time, to have the long-planned meeting," Trump said.

Meanwhile, South Korea President Moon Jae-in said via Twitter that he was "embarrassed and regretful that the North American summit was not held on June 12 that was scheduled.”

He also added that the “denuclearization of the Korean peninsular and enduring peace are historic tasks that can not be abandoned or delayed."

Earlier, the yen was supported by Federal Reserve minutes, which were not digested as positively as initially thought, lowering expectations for a fourth interest rate hike in 2018.

Ahead in today’s session, focus will be at US durable goods orders for April at 12:30 GMT. Federal Reserve Chair Powell will speak at 13:00 GMT, followed by FOMC Bostic and Kaplan at 15:45 GMT. Michigan’s consumer sentiment for May is up at 14:00 GMT.

FortFS

One more negative thing happened today for the cryptocurrency market. Bloomberg reports that the United States Department of Justice has initiated a criminal investigation into possible manipulation of market prices on Bitcoin cryptocurrency market.

It is reported that the United States Department of Justice (DOJ) is working with the Commission on Commodity and Futures Trading (CFTC), the main US market regulator, to focus on investigating illegal trading activities in cryptocurrency markets. In particular, we are talking about the so-called "spoofing", a kind of market manipulation, when traders introduce a flood of false orders into the market to deceive other market participants about the majority's intentions, and also attract new traders to the market. While the investigation is at the initial stage there is no more information regarding the issue. The stage of collecting information and studying the cryptocurrency markets will surely take some time.

It is interesting that the news about investigations coincided with another decline in prices for Bitcoin. Today, the price of the main digital currency broke through support at $7700 and the market moved down to a new 6-week local minimum around $7236. After that, there was a local pullback and market gained to the $7490 area. The market capitalization continued its decline and today it was around 332 billion dollars.

FortFS