After cryptocurrencies faced a major sell-off, Solend, a lending platform built on the Solana blockchain, attempted to gain control of its most extensive account to stop it from collapsing the system. The largest account, the so-called “whale” account, might influence the market movements significantly if the largest account holder decided to sell- off its assets. Over the weekend, Solend has passed the proposal permission to take over the “whale” account, which is an unprecedented move in the DeFi world. According to Solend, the decision that it made allowed it to liquidate assets through OTC, to avoid a possible collapse in the market.

As the war between Russia and Ukraine continues, gas supplies remain in shortage. Economy Minister Robert Habeck warned that the situation will be intense and tight in winter if there are no precautionary measures. As a result, Germany mentions that it will seek to compensate for a cut in Russian gas supplies by burning more coal, the most carbon-intensive fossil fuel in terms of emission.

Main Pairs Movement

AUD/USD was up 0.2% and closed at 0.69499 on Monday. The Aussie was favourable in an upbeat market due to China’s Covid news and the US weighing lifting restrictions on China. Further price movements eye on the RBA meeting on Tuesday.

EUR/USD was up 0.16% at the end of the day. The market was relatively quiet due to a bank holiday. In the meantime, the ECB has foreseen hiking rates in July and September, slightly boosting the euro dollar.

Bitcoin and Ethereum both rebounded on Monday, edging up more than 8% and 13%, respectively after falling below their 2017 high over the weekend. However, Bitcoin still sits 70% below its all-time high. The cryptocurrency markets remain under pressure and have been plagued by several issues, starting with the collapse of the stable coin terraUSD.

Gold price oscillated on Monday ahead of Fed Chairman Jerome Powell’s testimony. Gold is confronting the headwinds of an extremely tight monetary policy period with the odds of a consecutive 75 basis points rate hike in the US.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD traded higher on the first trading day of the week. The German CPI came in above expected at a 1.6% increase, month over month. Last week’s ECB conference presented a more hawkish outlook for the Eurozone’s monetary policy; however, while leaving negative interest rates could ease the soaring inflation, market participants should still be aware of the slowing economy and price pressures from global commodities. ECB’s president Lagarde is due to speak during today’s European trading session.

On the technical side, EURUSD has rebounded from our previously estimated support level of 1.04035 and is on a gradual downtrend despite last week’s positive correction. RSI for the pair sits at 51.69, as of writing. On the four-hour chart, EURUSD is currently trading below its 50, 100, and 200-day SMA.

Resistance: 1.05483, 1.07691

Support: 1.04036, 1.03783

GBPUSD (4-Hour Chart)

GBPUSD advanced on the first trading day of the week after falling more than 1% on Friday’s trading. The British Pound took full advantage of the easing demand for the U.S. Greenback. The 25 basis point interest rate hike by the BoE is poised to ease soaring inflation in the U.K.; however, the slowing British economy poses longer-term threats to the Pound. U.S. existing home sales figures will be released during the American session and should provide a gauge of the real estate market and the overall economic health of the U.S. public.

On the technical side, GBPUSD met fresh resistance at around the 1.239 price region. The 1.2 support level remains firmly intact. RSI for Cable sits at 43.26, as of writing. On the four-hour chart, GBPUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.25944, 1.239

Support: 1.2173, 1.20824

USDJPY (4-Hour Chart)

USDJPY continued its upward movement on the first trading day of the week. Following a 2.04% gain from last Friday, USDJPY has continued to inch towards its previous high. The losing demand for the U.S. Greenback did not affect the overall movement of USDJPY as the Japanese Yen continues to depreciate against the U.S. Dollar. The benchmark U.S. 10-year Treasury yield currently sits at 3.231%. On the economic docket, the U.S. is due to release its initial jobless claims figures on Thursday and Fed chair Jerome Powell will speak later on the same day.

On the technical side, USDJPY has rebounded strongly from our previously estimated support level of 132.5 and is closing in our estimated resistance level of 135.5. RSI for the pair has once again reached overbought territory and sits at 65.98, as of writing. On the four-hour chart, USDJPY is currently trading above its 50, 100, and 200-day SMA.

Resistance: 135.56

Support: 133.5, 132.5

Economic Data

Dear Client,

In order to provide you with a better user experience, VT Markets will upgrade our MT4 software and server to version 1353 on July 2, 2022 (Saturday).

Please ensure that your MT4 is up to date after July 2, 2022, as outdated versions (ver1340 and below) might experience issues connecting to the server.

Check your MT4 software version with the following steps:
※ PC: Open the MT4 software – Click “About” in “Help” in the toolbar;
※ Android: Open the MT4 app – Click “About” in the left toolbar;
※ iOS: Open the MT4 app-Settings – Click “Settings” in Settings page.

For PC users, please uninstall the software and install the latest version from the following link:
https://vtmarketscn.com/trading/platforms/metatrader-4/

For Android users, please go to the following link to update your MT4 version:
https://play.google.com/store/apps/details?id=net.metaquotes.metatrader4

For iOS mobile users, please go to the following link to update your MT4 version:
https://apps.apple.com/au/app/metatrader-4/id496212596

If you have any questions, our team will be happy to help. Please email [email protected] or contact our online service.

The Nasdaq Composite and the S&P 500 bounced slightly on Friday as investors attempted to find some footing following a brutal week. All three US indices ended the week with a negative. The Nasdaq rose 1.43% while the S&P 500 climbed 0.22% to 3,674.84. The Dow Jones Industrial Average declined 0.13%, remaining below 30,000. Given the speech from the Federal Reserve Chairman Jerome Powell on Friday, the Fed rolled out strong language to promise a full effort to restore price stability and inflation. In the meantime, Jerome Powell addressed that the possibility of a recession can be avoided by the Fed is trying to impose its monetary tightening.

It is been another bad week for the cryptocurrency market; over the weekend, the world’s largest cryptocurrency, Bitcoin, was once plunged below $19,000 and Ethereum was once down below $950. The cryptocurrency market continued to face heavy selling pressures following the Federal Reserve was aggressively rising the interest rates in response to the inflation, prompting investors to sell off risky assets like cryptocurrencies. In the meantime, Celsius Network, the lending and trading platform has announced that it would be pausing all crypto transfers and withdrawals, and Coinbase, a crypto trading platform, started laying off approximately 18% of its workforce.

Main Pairs Movement

EUR/USD was down 0.5%, finished with 1.04933 on Friday. The US dollar gained traction following the Fed Chairman reiterated on Friday, promising to continue tackling the inflation and focus on returning inflation to 2%.

USD/JPY was back to a bullish move after a two-consecutive day of correction; USD/JPY was up 2.04% and closed at 134.855 at the end of the day. The Japanese Yen witnessed a volatile day amid the dovish comments from the Bank of Japan.

Gold retreated south amid the speech from the Fed Chairman Jerome Powell and recovering US Treasury bond yields in the second half of the day on Friday. Gold posted a 0.88% loss, closing with $1,840.40 on Friday.

WTI dipped to a fresh weekly low and was down 5.15% following an unexpected rise in the US oil inventories. The EIA showed that crude oil production climbed from 12000K to 11,900K every week. In the meantime, the US might influence oil prices ahead of the OPEC+ meeting on June 30.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD edged lower on the last trading day of the week. The U.S. Greenback recovered after a large sell-off on Thursday as market participants return to risk-off sentiment. The U.S. 10-year Treasury yield continued to fall as market participants weight economic concerns and soared inflation. The ECB’s decision to rotate into higher-yielding bonds has prevented the shared currency to fall further and retain some of the gains from Thursday.

On the technical side, EURUSD has met fresh resistance at 1.05483 after a three-day winning streak. Fresh support has formed at 1.04036 for EURUSD. RSI for the pair sits at 42.85, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.05483, 1.07691

Support: 1.04036, 1.03783

GBPUSD (4-Hour Chart)

GBPUSD experienced a correction on the last trading day of the week. As market participants process the most recent interest rate hike by the BoE, economic worries and inflation again weigh on the British Pound. The U.S. Greenback has also gained steam as risk-off sentiment continues to evolve around global markets. U.K. treasury bond yields have retreated 1.5%, while the U.S. treasury yield is rising modestly.

On the technical side, GBPUSD has met fresh resistance at 1.23806 and a new support level at 1.2173. RSI for Cable sits at 50.4371, as of writing. On the four-hour chart, GBPUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.25944, 1.23806

Support: 1.2173, 1.20824

USDJPY (4-Hour Chart)

The BoJ announced its interest rate policy during the Asia trading session. The Japanese central bank retains its easy money policy and announces that the bank will conduct 12 trillion yens of purchase of fixed-rate 10-year JGBs at 0.25% for consecutive days, to support the economy. In sharp contrast to the Fed, the BoJ’s monetary policy has continued to disfavour the Japanese Yen in the foreseeable future.

On the technical side, USDJPY found support at our previously estimated support level of 133.5 and fresh resistance at 135.16. RSI for the pair sits at 56.98, as of writing. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

US equity markets sank on Thursday and reversed the gains from Wednesday as investors worried the Fed’s aggressive monetary policy might lead the US economy into a recession. The Dow Jones Industrial Average tumbled below the psychological and key 30,000 level for the first time since early 2021. And the S&P 500 shed 3.25% while the Nasdaq Composite plunged more than 4%, to 10,646.10, the lowest level since late 2020.

The market sentiment appeared to sour and intensify once again on Thursday as several central banks started adopting a more tightening monetary policy cycle. The Swiss National Bank raised its interest rates for the first time in more than a decade; it increased its rate from -0.75% to -0.25% and in the meantime raised its inflation prediction for 2022 to 2.8%, 0.7% higher than the prediction made in March. Moreover, the Bank of England also raised rates for the fifth time in a row as the inflationary pressure continued and the UK economy shrank 0.3% in April and a 0.1% contraction in March. Its monetary policy committee decided to raise another 25 basis points to 1.25%, attempting to ease the inflation.

Main Pairs Movement

EUR/USD soared above the 1.0500 level for the first time in a week following the US Fed’s interest rate hikes. EUR/USD was up 1.01%, finishing with 1.05459 at the end of the day.

GBP/USD rallied more than 1.40% on Thursday following the Bank of England aggressively lifted its interest rates for the fifth time in a row, boosting the British Pound.

USD/JPY’s rally took a pause two days in a row as investors await ahead of the Bank of Japan’s monetary policy report on Friday. In the meantime, investors also stay cautious before the speech from Fed Chairman Jerome Powell. On Thursday, USD/JPY pared 1.23% and closed at 132.156.

AUD/USD established above 0.7040 level, was up 0.58%. The Aussie stayed strong for a two-consecutive days as the Reserve Bank of Australia Philip Lowe mentioned that he is confident to bring back the inflation rate back to the 2% to 3% range. In the meantime, the demand for the US dollar stayed quite ahead of the speech from Jerome Powell.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD extends its gain for the second consecutive day after the Federal Reserve hiked interest rates by 75 basis points. The Dollar continues to lose steam as Fed chair Jerome Powell leaves an additional 75 basis point interest rate hike on the table for July. The weak U.S. job report also weakened the U.S. Greenback and added worries to a slowing U.S. economy. Eurozone CPI is set to release during the European trading session on the 17th.

On the technical side, EURUSD has rebounded strongly from our previously estimated support level of 1.03783. The 50% Fibonacci retracement at 1.0586 presents a near-term resistance level. RSI for the pair sits at 46.75, as of writing. On the four-hour chart, EURUSD currently trades below its 50, 100, and 200-day SMA.

Resistance: 1.07691

Support: 1.03783

GBPUSD (4-Hour Chart)

GBPUSD extends its gains from the previous trading day. The BoE has hiked its rates for the fifth time of the year in an attempt to tame inflation. Economic guidance provided by the BoE remains gloomy as energy and food prices continue to soar; furthermore, the BoE has forecasted inflation to rise slightly above 11% by October. While the BoE is adamant about raising interest rates, the central bank is still juggling the possibility of stagflation in the near term.

On the technical side, GBPUSD has bounced strongly off our estimated support level of 1.20824. Near-term resistance sits at 1.25047 and 1.27143. RSI for the pair has recovered to 47.24, as of writing. On the four-hour chart, GBPUSD is currently trading below its 50, 100, and 200-day SMA.

Resistance: 1.25944

Support: 1.20824

USDJPY (4-Hour Chart)

USDJPY enters its second day of retreat as the U.S. Greenback loses demand. As the U.S. 10-year Treasury yield retreats below 3.4%, market participants are now turning their focus on the BoJ’s monetary policy announcement scheduled during the Asia trading session on the 17th. In the near term, the Japanese Yen remains weak compared to the U.S. Greenback as the Japanese central bank remains firm with their easy money policy.

On the technical side, USDJPY enters its second day of correction but support levels still hold firm at our previously estimated levels of 133.5 and 132.5. RSI for USDJPY currently indicates 56.2, retreating from overbought territory. On the four-hour chart, USDJPY currently trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ”.

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution date may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact [email protected]

US shares rallied on Wednesday after the Fed raised the interest rates by 75 basis points, the largest increase since 1994. In the meantime, the Fed chairman, Jerome Powell signalled that the Fed could raise interest rates by a similar magnitude in July, promising to tackle the inflation. The markets were boosted and given confidence, thus three major US indices jumped at the end of the day on Wednesday; the Nasdaq Composite rallied 2.5% and the S&P 500 climbed 1.46% to 3789.99; the Dow Jones Industrial Average rose 1%, ending a five- day losing streak. Despite rising rates at such a rapid pace from the Fed had no surprise to the general, the market seemed to cheer for the confirmation of the Fed’s commitment to fighting the inflation battle.

The ECB announced that it plans to create a new tool to tackle the risk of eurozone fragmentation, attempting to calm the fears of a new debt crisis. The new decision came after the ECB surprised markets with an emergency meeting to address higher borrowing costs for several European governments compared to the benchmark German bonds. In response to the fragmentations, the ECB mentioned that it would reinvest redemptions from its emergency bond-purchasing program, the so-called PEPP. In the meantime, the ECB promised that it will accelerate the completion of the design of a new anti-bond fragmentation instrument.

Main Pairs Movement

NZD/USD traded 1.17% higher and closed at 0.62853 on Wednesday. The greenback lost ground after the FOMC interest rates decision as Fed Chairman Powell said the next hike could either be 50 or 75 basis points, causing the demand for the greenback goes down.

EUR/USD was up 0.24% and closed at 1.04403 at the end of the day. The greenback seemed to lose interest on Wednesday, the day that the US Fed was in the spotlight. Though the Fed raised the rates by 75 basis points, the highest since 1994, the greenback lost interest after the Fed dismissed the chances of 100 basis points.

The US dollar Index was on the backfoot, dropping 0.6%. The demand for the greenback declined after a dovish hawkish Fed following the comment from Fed Chairman Powell, denying the possibility of a 100 basis point hike in July. With the dovish move from a hawkish Fed, most of the G-10 currencies got boosted, and so did the precious metal, gold, edging 1.41% higher, to $1833.97 per ounce.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD rebounded throughout Thursday’s trading. The dollar fell sharply after the FOMC raised interest rates by 75 basis points. The broad-based Dollar weakness allowed the Euro to rebound from earlier losses during the Europan and Asia trading hours. This short-term rebound, however, might not be sustainable as the interest rate difference between the Fed and the ECB has now increased even further.

On the technical side, EURUSD has found fresh support around the 1.038 price region. Near-term resistance has formed near the 1.049 price region. RSI for the pair has recovered from the oversold territory and is currently indicating 43.6. On the four-hour chart, EURUSD trades below its 50, 100, and 200-day SMA.

Resistance: 1.049

Support: 1.03783

GBPUSD (4-Hour Chart)

GBPUSD gained 1.5% throughout Thursday’s trading. The FOMC has increased interest rate by the most significant margin in 40 years, in an attempt to control soaring inflation. Fed chair Jerome Powell has also indicated that either a 50 or 75 basis point interest rate hike is likely at the FOMC’s July meeting. The BoE is set to announce its interest rate policy and financial guidance during the European trading session.

On the technical side, GBPUSD has rebounded strongly from our previously estimated support level of 1.20824, the pair met fresh resistance around the 1.218 price region. RSI for Cable is currently sitting at 66.16. On the four-hour chart, GBPUSD is trading above its 50-day SMA, but below its 100 and 200-day SMA.

Resistance: 1.25944

Support: 1.20824

USDJPY (4-Hour Chart)

USDJPY fell 1.23% throughout Thursday’s trading. The 75 basis point increase in interest rates has weakened the Dollar as the U.S. 10-year Treasury yield retreats below the 3.3% level. The interest rate difference between the U.S. and Japan will further encourage carry trades as the interest rate differential increases. The BoJ’s insistence on an easy money policy shows a stark contrast between the two central banks.

On the technical side, USDJPY has met its fresh resistance at 135.6, while support levels at 133.5 and 132.5 remain firmly intact. RSI for USDJPY indicates 66.18, as of writing. On the four-hour chart, USDJPy currently trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data

US markets were mixed on Tuesday as investors continued to brace for further rate hikes from the Fed and wait for the tier-1 economic data on Wednesday. The S&P 500 fell for a fifth day, dropping 0.38%. The Nasdaq Composite slightly rose 0.18% to close with 10,828.35 while the Dow Jones Industrial Averages declined 0.5%, settling at 30,364.83 at the end of the day. The downside in equities came as rates surged again in anticipation of more aggressive tightening monetary policies from the Fed. Major sell-off would possibly not stop until the rates are settled.

Moving on to cryptocurrency markets, two of the biggest cryptocurrencies, Bitcoin and Ethereum, sank more than 17% in a week. Investors worried about another possible crypto winter and collapse, bringing down other key players, like crypto lending firm Celsius. Celsius recently moved to pause all withdrawals due to the liquidity crisis, sparking fears that Celsius might confront some financial problems. In the meantime, Coinbase has announced that it will cut 18% of its full-time jobs as its executives are preparing for recession and cryptocurrency winter.

Main Pairs Movement

The 10- year benchmark Treasury yield hit its highest level, 3.475%, in 11 years as investors continued to assess the prospect of the Fed, imposing more aggressive interest rate hikes. At the same time, the 2- year Treasury yield jumped to 3.437%, the highest since 2007.

GBP/USD declined 1.11% and finished at 1.19958 at the end of the day. The cable plunged following the disappointing figures from the UK unemployment rate and the Claimant Count Change; the UK unemployment edged higher to 3.8%, higher than expected, while the Claimant Count change figure was worse than the estimate.

Gold fell for a two-consecutive day, holding slight above $1,800 ahead of the FOMC meeting. Gold remained downside and under pressure following the rumours that the Fed might consider hiking rates by 75 basis points in response to the inflationary pressure, thus giving the bullion a downside look.

EUR/USD flirted with 1.0400 ahead of the FOMC meeting. However, further price movement might start reacting before Thursday’s meeting, as the US will publish the tier-1 data, and retail sales figure on Wednesday.

Technical Analysis

EURUSD (4-Hour Chart)

EURUSD has temporarily rebounded after a three-day losing streak. Market sentiment, however, continues to look bearish for the Euro as market participants are now pricing in a possible 75 basis point interest rate hike by the Fed. The Federal Reserve is set to convene tomorrow and provide forward guidance on the U.S. economy. Important retail sales figures are also due tomorrow during the American trading session.

On the technical side, EURUSD has found support near the 1.04038 price region. The secondary support level sits at 1.03783. RSI for the pair has dropped to 35.5, as of writing. On the four-hour chart, EURUSD is trading below its 50, 100, and 200-day SMA.

Resistance: 1.07454

Support: 1.04038, 1.03783

GBPUSD (4-Hour Chart)

GBPUSD extends its losing streak as market participants continue to sell off the British Pound. The National Statistics of the U.K. reported a higher unemployment rate for May, thus exerting more pressure on the U.K.’s economic outlook. While the Federal Reserve is set to announce its interest rate policy tomorrow, the BoE continues to find itself in a hard place, facing soaring inflation while the economy is contracting. Risk-averse market sentiment further supports the U.S. Greenback in the short term. The U.S. 10-year Treasury yield has marched past 3.44%.

On the technical side, GBPUSD has reached its lowest point in two years. The short-term support level at 1.20824 seems weak, but the next level support level sits close at 1.19189. RSI for the pair sits at an oversold territory of 15.52, as of writing. On the four-hour chart, Cable trades well below its 50, 100, and 200-day SMA.

Resistance: 1.25944

Support: 1.20824

USDJPY (4-Hour Chart)

The U.S. Greenback continue to gain appeal as global market sentiment continues to sour. Global equities have retreated significantly since the start of the month. Red hot U.S. PPI has market participants pricing in a 75 basis point hike by the Fed. As of writing, the U.S. 10-year Treasury yield has soared past 3.45%. The further interest rate differential between the U.S. and Japan will continue to provide upward momentum for the USDJPY pair.

On the technical side, USDJPY has found a near-term support level around the 134.1 price region. The short-term resistance level at around 135 seems weak as the Fed is due to announce monumental monetary policy statements tomorrow. RSI for the pair sits at 62.5, as of writing. On the four-hour chart, USDJPY trades above its 50, 100, and 200-day SMA.

Resistance: 134.56

Support: 133.5, 132.5

Economic Data