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Stocks getting a lift out of this headline (and also after US500 spike lower held above 6000)
Meta’s Bitcoin rejection means Big Tech is still skeptical
Strategy became the first publicly traded company to adopt Bitcoin as its primary treasury reserve asset in August 2020, but not many major tech firms have followed since.
Treasury reserves, sometimes called cash reserves, are held by corporations to fund short-term or emergency obligations. These are typically cash or cash equivalents like money market funds or three-month US Treasury bills.
The social media giant Meta keeps $72 billion in liquid assets in its reserve. But at its annual meeting on May 28, shareholders turned back a proposal to assess whether Bitcoin BTCUSD might qualify as a future treasury reserve asset. The proposal was dismissed by a ratio of 1,221 to 1.
That rejection in itself is not so surprising. Despite growing corporate Bitcoin adoption, Big Tech and most mainstream corporations remain cautious. US tech giant Microsoft also voted down similar proposals in December 2024.
Meta’s failed Bitcoin proposal, rejected by an overwhelming majority, raises questions about institutional readiness to adopt crypto.
Bitcoin’s volatility weakens its treasury asset case
This could all just be a misunderstanding. Crypto partisans may have failed to realize that corporate treasuries are more like emergency funds: to be used in the event of natural disasters or pandemics or to support day-to-day business operations, but not as a platform for speculative investing.
FTSE 100 Eyes Record Close on Continued BOE Rate Cut Hopes
London’s FTSE 100 is on track to close at a new record high. Investors hope the Bank of England will continue to cut rates after data showed unemployment rising and wage growth falling. The index is currently 0.5% higher at 8872.58, having hit an intraday high of 8879.64 and closing at its third highest level Monday. The FTSE hit a record close of 8871.31 on March 3. Housebuilders lead the index after Bellway raised its home sales forecast for the year amid a strong spring season. Energy stocks are also on the rise on higher oil prices. Persimmon and Barratt Redrow are up 3.9% and 3.4%, respectively, while Shell and BP rise 2.2% and 1.85%.
BTCUSD
BTC tested resistance at 110.800 and failed – for now…
Supports: 108.850, 107.150 & 106.300
As long as it stays above 106.300 it is just an intraday correction and nothing changes in Bullish view.
Lots also depends on where it is going to close tonight.
If it manages to stay above 109.500 in next 3 h , it can test that resistance again.
DAX
Dax tested the support at 23.965 and on the first attack it held.
If that support lost, situation will turn sour for the DAX – at least for a couple of days.
Resistances are now at 24.200 & 24.350
Another support might provide footing – 23.750
Right now the direction is Down – supports are targets
EURUSD 4h
The picture is starting to be pretty clear -:
There are two obstacles in front of EURUSD right now: 1.14550 & 1.14950
If any of it proves to be too much to handle, EUR would fail and start going for 1.12250
However, if we put aside dark thoughts, breaking above 1.14950 would open a road for testing the previous high at 1.15750
Supports that have to hold for this scenario are:
1.14250, 1.13950 & extension at 1.13850
Direction on Intraday is UP
i was just asked about how to trade after US-China talks end and there are headlines.
This is a tough one as if you go by the last time there was postiive trade news with China, the dollar spiked higher and stocks shot up.
If this is the blueprint, one would expect the dollar to have a bid but instead it is basically unchanged to softer now except vs. a weaker GBP (but GBP{USD is well off its low). .
On the other hand, any signs of disappointment would hit risk and assume the dollar with it.
This is sort of unchartered territory with the dollar losing some of its teflon coating. Stocks, on the other hand, are l;ooking for reasons to rally.
So, maybe let the dust settle on any knee jerk reaction would be the safer play.
Time to revisit this article…. one that has stood the test of time and helps explain the price action today
Forex Trading Tip: Watch Out for Stops and Use Them to Your Advantage!
GBPUSD
Tug-of-war with EURUSD after weak UK jobs report raised expectations of BOE rate cuts.
With stoos run to 1.3456, only below this level would trigger fresh ones.
On the upside, 1.3508+ is needed to neutralize the downside risk but only back above 1.3546 would fully negate it.
Trading tip: When there are no more stops left to run a market will lose interest on that side and either go sideways or probe the other side.
GBPUSD 1 HOUR CHART
Trade Views Marginally Lift Wall Street Pre-Bell; Asia Choppy, Europe Off
Wall Street futures pointed marginally higher pre-bell Tuesday as investors awaited developments in China-US trade talks underway in London, amid a general lack of fresh market catalysts.
In the futures, the S&P 500 rose 0.1%, the Nasdaq inclined 0.1% and the Dow Jones was flat.
Asian exchanges traded unevenly higher overnight, while European bourses inched lower midday on the continent.
Casey’s General Stores (CASY) rose 10.6% pre-bell after the US midwest- and southern states-based convenience store chain posted solid fiscal Q4 results and issued upbeat guidance late Monday.
On the economic calendar, the National Federation of Independent Business (NFIB) Small Business Optimism Index rose to 98.8 in May from 95.8 in April, but still struck below the 100-mark that separates optimism from pessimism.
In premarket action, Bitcoin traded at $109,418, West Texas Intermediate crude oil traded higher at $65.62, and 10-year US Treasuries offered 4.45%. Spot gold traded for $3,334 an ounce.
Gold
Comments From Bank of Japan Governor Briefly Trigger Yen Sell-Off, Says Mitsubishi UFG
The yen (JPY) has been one of the more volatile currencies overnight Monday, said MUFG.
USDJPYÂ briefly rose to an intra-day high of 145.29 before dropping back towards 144.50, wrote the bank in a note to clients. The yen initially weakened on the back of comments from Bank of Japan Governor Kazuo Ueda, who was speaking before parliament.
The yen weakened after Governor Ueda stated that there was still some distance for the price trend to rise to its, target of 2.0% which initially dampened expectations for further BoJ rate hikes, stated MUFG. However, Ueda went on to reiterate that if the price trend becomes more certain, then the BoJ will raise rates further.
The comments indicate that the BoJ remains cautious over raising rates further amidst the “extremely” high uncertainties surrounding the outlook for the economy. The bank isn’t expecting the BoJ to provide a stronger signal over rate hikes at next week’s policy meeting, even though recent inflation data has been stronger.
The BoJ is in no rush to hike rates further and can wait to see how trade talks play out between the United States and Japan ahead of the July 9 deadline for higher “reciprocal” tariffs. Japan’s Economic Revitalization Minister Ryosei Akazawa stated overnight that the trade negotiations with the U.S. are still in a fog.
The comment supports MUFG’s expectations that the main policy change at next week’s BoJ policy meeting will be updated plans for tapering. It has been reported that the BoJ is considering slowing the pace of tapering for the next fiscal year. The BoJ is currently slowing monthly Japanese government bond purchases by 400 billion yen every quarter.
The pace of tapering could slow to between 200 billion-400 billion yen from April next year. Market expectations for slower tapering could already be encouraging yen selling and helping to dampen upward pressure on long-term JGB yields, pointed out the bank.
At the same time, market attention is also focused on trade talks between the U.S. and China taking place in London at the start of this week. The trade talks will continue into a second day, according to a U.S. official. President Donald Trump told reporters at the White House on Monday that “we are doing well with China. China’s not easy and that “I’m only getting good reports.”
The comments have encouraged building investor optimism that a trade deal/agreement can be reached in the coming months to avoid the higher “reciprocal” tariffs being re-imposed on trade between the U.S. and China, added the bank.
According to a Bloomberg report, the U.S. has signalled a willingness to remove restrictions on some tech exports in exchange for assurances that China is easing limits on rare earth shipments. Head of the White House’s National Economic Council Kevin Hassett did add, though, that they would stop short of removing restrictions on the most sophisticated H20 chips made by Nvidia.
XAUUSD (GOLD) 1 HOUR
I am not sure what markets were trading on early in the day where stocks firmed and GOLD fell.
Pause above Monday’s 3293 low would need to break above 3338 to build some upward momentum.
Below 3293 would expose 3245-70.
Otherwise, it is consolidation between 3300-40 waiting for news from the US-China talks.
XAUUSD (GOLD) 1 HOUR CHART
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