CRYPTOCURRENCY AND STOCKS FUTURES SLUMP AS MARKET FEARS RISE

Cryptocurrency prices continued their sell-off during the weekend as investors continued focusing on multiple events. For example, there are worries about the rising bond yields in the United States. Just last week, the ten-year bond yields rose to a two-year high while the 2-year and the 10-year rose to a two-year high. Rising bond yields are a sign that investors expect the Federal Reserve will start hiking rates. They also declined as investors continued worrying about the regulatory environment. On Thursday, Bank of Russia warned that the country should ban cryptocurrencies.

American futures tilted lower on Monday as investors worried about the rising risks in the market. The losses accelerated after the weak quarterly results by the likes of Netflix and the weak announcement by Peloton. Later this week, US indices like the Dow Jones and S&P 500 will react to the latest results by most American giants. Some of the top companies that will publish their quarterly results this week are Microsoft, IBM, Verizon, Texas Instruments, and Raytheon, Tesla, Intel, and Abbott Labs. According to FactSet, the S&P 500 is likely to report earnings growth of more than 25% for the fourth quarter straight.

The economic calendar will have no major events today. The most important ones will be the flash manufacturing and services PMI data from several countries. Economists expect the data to show that business activity in key countries like the US, UK, and Europe bounced back in January as countries assessed the impacts of the omicron variant. Investors will also focus on the price of oil and natural gas as tensions between the US and Russia escalated.

EURUSD

The EURUSD pair was little changed on Monday morning. The pair is trading at 1.1340, where it has been in the past few days. The pair is slightly above the ascending trendline that connects the lowest levels since December. It is also below the upper side of the ascending triangle pattern. The pair is along the 25-day and 50-day moving averages. Therefore, the pair will likely remain in this range today.

GBPUSD

The GBPUSD pair continued its downward trend on Monday morning. It is trading at 1.3550, which was lower than this year’s high of 1.3748. It has moved below the 61.8% Fibonacci Retracement level. At the same time, the 25-day and 50-day moving averages have made a bearish crossover pattern. The Relative Strength Index (RSI) has also dropped. Therefore, the pair will likely keep falling as bears target the 50% retracement level at 1.3500.

CADJPY

The CADJPY pair has been in a strong bearish trend in the past few days. The pair dropped to a low of 90.28, which was the lowest level since January 3. The pair managed to move below the key support at 90.55, which was the lowest level on January 14 while the Relative Strength Index has been in a bearish trend. Therefore, there is a likelihood that the pair will keep falling with the next target at 90.75.