market news summary

The price of the cryptocurrency Bitcoin reached its highest level in over a month during trading on Wednesday, June 21. Traders were optimistic about the possibility of Bitcoin exchange-traded funds (ETFs) being made available, following recent applications by companies including BlackRock.

Bitcoin’s price jumped by 10% to $29,405.22, its highest level since May 6, according to CoinGecko data, adding to earlier gains made during the day.

Technology stocks led European stock markets to decline on Wednesday after comments leaning towards monetary tightening from Jerome Powell, the Chairman of the Federal Reserve. Real estate company stocks also fell as expectations of interest rate hikes raised concerns about mortgage loan costs amid ongoing inflation declines in the UK.

Dollar index (USDX)

Powell told US lawmakers that the battle against inflation still has a “long way to go” and that officials agree on the need to lean towards raising borrowing costs despite temporarily pausing interest rate hikes in the latest meetings of the monetary policy committee. He also said in his remarks that raising interest rates again is a “very good guess” for where the Federal Reserve is headed if the economy continues on its current path.

The dollar index fell 0.5% after Powell’s testimony began.

Pivot point: 101.85

Resistance level	Support level
102.10	101.40
102.50	101.15
102.75	100.75

Spot Gold (XAUUSD)

Gold trimmed its losses yesterday, Wednesday, supported by the decline of the dollar. However, the rise in bond yields after Jerome Powell’s testimony before Congress kept the precious metal near its lowest levels in three months.

Gold settled at $1,936.96 per ounce in spot trading. US gold futures fell 0.1% to $1,944.9 at the close.

Pivot point: 1930

Support level	Resistance level
1920	1941
1909	1950
1900	1961

Dow Jones Index (DJ30ft – US30)

US indices closed with collective declines in yesterday’s session, marking the third consecutive daily decline. Federal Reserve Chairman Jerome Powell’s testimony before Congress reinforced the central bank’s goal of curbing inflation, hinting at the possibility of another interest rate hike.

Financial markets priced in a 74% probability of a 25 basis point interest rate increase at the upcoming monetary policy meeting in July.

The Dow Jones Industrial Average fell by approximately 0.3%, equivalent to around 100 points, in yesterday’s session, extending the losses to 1.3% over the past three sessions.

Pivot point: 34260

Support level	Resistance level
34140	34365
34035	34485
33915	34590

US Crude (USOUSD)

Oil prices rose by one dollar per barrel yesterday, Wednesday, as US corn and soybean prices reached their highest levels in several months, raising expectations that global corn shortage would reduce biofuel blending operations and increase demand for oil.

Brent crude futures rose by $1.22, or 1.6%, to $77.12 per barrel at the close. West Texas Intermediate (WTI) crude futures increased by $1.34, or 1.9%, to settle at $72.53 per barrel.

Pivot point: 71.95

Support level	Resistance level
71.20	73.10
70.05	73.85
69.30	74.90

Risk Warning

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