Market Compass
Geopolitical Developments Hit Markets
- Global markets sold off assets considered relatively risky in the wake of the Israeli attack on Iran, which re-escalated tensions in the Middle East. Safe havens such as oil and gold gained value, while digital assets declined.
- The Israeli attack on Iran’s nuclear facilities was the main dynamic that dominated asset prices, feeding risk aversion.
- Yesterday, statements from the US signaled that tensions could rise and despite the positive results from London on trade wars and the lower-than-expected US inflation indicators, the markets were hesitant for a new rise. President Trump’s call for Iran to make a deal via social media was the latest news flow on the subject.
- Futures contracts linked to the main Wall Street indices are pointing to a sell-off opening by over 1%. Spot European bourses have a similar outlook.
- We are concerned that the upward reactions that may occur in cryptocurrencies during the day may remain limited and we find especially leveraged long transactions risky. We believe that gradual purchases may be appropriate to add to spot units.
For the last two days, we have been stating that we foresee “a climate in which major digital assets may be pushed for further upside during the day.” We maintain this expectation for the short term. For the medium and long term, we partially change our “upside view” to “sideways” for the medium term. The main determinant of this change in our view is our expectation that the revived geopolitical risks will remain on the agenda of the markets for a while. For the long term, we see no reason to change our bullish outlook.
For a detailed review of our twice-daily technical analysis report and the latest developments in digital assets click here.
US Prelim UoM Consumer Sentiment; It is a survey conducted by the University of Michigan (UoM) with approximately 420 consumers, asking respondents to assess the relative level of current and future economic conditions. Financial confidence is a leading indicator of consumer spending, which accounts for a large share of overall economic activity. It has two cycles, 14 days apart, called Preliminary and Revised. The “Preliminary” is usually relatively more influential on prices and is published monthly in the middle of the current month. If the actual data comes in below expectations, it can have a positive impact on cryptocurrencies.
Highlights of the Day
Important Economic Calender Data
| Time | News | Expectation | Previous |
|---|---|---|---|
| Ripple and SEC Agreement (Speculative) | |||
| Immutable (IMX) 24.52MM Token Unlock | |||
| 14:00 | US Michigan 1-Year Inflation Expectations (Jun) | 6.6% | |
| 14:00 | US Michigan Consumer Sentiment (Jun) | 53.5 | 52.2 |
Information
*The calendar is based on UTC (Coordinated Universal Time) time zone.
The economic calendar content on the relevant page is obtained from reliable news and data providers. The news in the economic calendar content, the date and time of the announcement of the news, possible changes in the previous, expectations and announced figures are made by the data provider institutions. Darkex cannot be held responsible for possible changes that may arise from similar situations.
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