USD/JPY: the era of legal stablecoins is coming to Japan
The US currency shows a moderate decline during the Asian session, testing the mark of 131.00 at the local maximum of May 9, thanks to a moderate momentum for growth on the publication of positive employment market data in the United States.
At the same time, the Japanese authorities are stepping up efforts to control the crypto market on a national scale. According to sources, lawmakers approved a project that provides for the legalization of stablecoins as official digital money in 2023. The issue of electronic currency will be available only to financial institutions, licensed intermediaries in payment systems and trust firms. Electronic assets will have the support of the Japanese yen or other national currency, having a ratio of 1:1, allowing holders to redeem them at any time according to face value.
- Resistance levels: 131.00, 132.00, 133.00, 134.00.
- Support levels: 130.00, 129.39, 128.62, 128.00.
USD/CAD: the "American" is trading in pressure
During the Asian trading session, the USD/CAD instrument returned to decline, approaching the previously reached lows on April 21.
According to informants, last Friday was interesting only with the release of labor productivity data in Canada, which decreased by 0.5% in quarterly terms, exceeding the expectations of experts who predicted a decline of 1.2%. Meanwhile, inflationary pressure in April reached the maximum in recent decades -6.8%, surpassing the 2.0% target set by the regulator, meanwhile, the cost of gas increased by more than 35%, and products by 10%. The negative dynamics, according to the authorities, is caused by the war in Ukraine, which has caused the rise in price of grain, a significant part of which is imported from its territory. According to the assessment of the deputy head of the Central Bank of Canada, Paul Baudry, there is a high probability of an increase in global inflation, which forces us to continue the policy of further interest rate increases and gradual tightening of monetary parameters.
- Resistance levels: 1.2600, 1.2650, 1.2700, 1.2750.
- Support levels: 1.2549, 1.2500, 1.2450, 1.2400.
Gold Prices
The value of the precious metal is trading in a weak corrective growth during the trading session of the Asia-Pacific countries, restoring positions after completing the stage of a strong decline last Friday, in which the asset left the positions of the local maximum of May 9. The unexpected reversal of the instrument was due to the publication of the employment market report for May in the United States, strengthening hopes for further stages of tightening monetary parameters from the US Federal Reserve. According to May statistics, the non-agricultural sector helped the US economy to increase 390 thousand new vacancies, maintaining the previous unemployment rate within 3.6%. Experts allowed the sector to strengthen by 235 thousand new vacancies, while predicting a slight decrease in unemployment to 3.5%. Gold is under pressure amid new statements by "hawks" from other central banks. So, the ECB may soon announce a reduction in the framework of the quantitative easing program. While the RBA may also decide to raise the key rate by 25 basis points to achieve the target within 0.6%.
- Resistance levels: 1866.0, 1917.0.
- Support levels: 1810.0, 1770.0.
Cryptocurrency Market Overview
For four weeks in a row, BTC position holders have observed the instrument at strong support at the level of 28800.00, which remained insurmountable. The reason for this was the decline in the activity of the "bears", which gives the prospect of the instrument to start intensively restoring positions, approaching the level of 34500.00.
The cryptocurrency continues to remain under pressure due to the policy of the American regulator aimed at continuing to tighten monetary parameters. The next meeting will be held on June 15, at which the dominance of "hawkish" rhetoric will continue, experts say. Meanwhile, market participants expect a 50 basis point rate hike. Investors became interested in the US currency by the end of the previous year, where BTC positions reached 68200.00. At the same time, cryptocurrency assets remain interesting for investors, taking into account the geopolitical crisis on the eastern flank of NATO, which gives growth potential for inflation in all developed economies of the world.
- Resistance levels: 30650.00, 34050.00, 37340.00.
- Support levels: 28500.00, 26800.00.