CEX.IO company blog | Weekly results (August 24-30): the US Federal Reserve encouraged the markets and returned positive

Alexander Yanyuk, CEX.IO Broker finance expert comments:

Last week for most financialassets took place in green territory. Brent crude oil managed to rise in price by $ 1 and gain a foothold slightly above $ 45.80 per barrel. Despite this, we maintain a negative outlook for black gold, as we believe that technical factors indicate a slowdown in demand, as well as overheating of the energy market. A correction in oil during this week is quite likely, but it will not have catastrophic consequences - Brent will remain in the range of $ 43-45 per barrel. If the North Sea oil manages to gain a foothold above the $ 46 mark, then the negative scenario will be canceled and market participants will push quotations to $ 50. Gold during the past week partially recovered its lost positions. On Friday, trading ended at $ 1,973 per troy ounce. The rebound from the all-time high is most likely of a technical nature, which means that within the current week gold will have a chance to return to the $ 2000 level. Moreover, the continuation of the super-soft policy of the US Federal Reserve in the long term will help accelerate inflation, the main protector of which is gold.

US dollar during the past weekdipped against major currencies, the USD index dropped again to 92.28. This is all due to the statements of the head of the US Federal Reserve, which spurred investors' appetite for risk. The ruble, despite the negative performance over the past week, was able to close trading on Friday at 74 per US dollar, against the opening of 74.79 on Monday. Investors take into account the oil factor, which, of course, has a positive effect on the Russian currency. However, most likely, by Friday of this week there will be a revaluation of the exchange rate due to the clarification of the risk of sanctions and the situation in the US labor market. For now, we maintain a wait-and-see attitude, but we believe that the ruble in the short term is more likely to weaken to 76-78 per US currency.

Over the past week, the crypto market was able to recapture a largepart of the lost positions. On Sunday, Ethereum quotes again returned to above $420 per unit, Bitcoin was trading at $11,643. In digital currencies, investors are waiting for drivers of movement. From a technical point of view, Ethereum on weekly charts draws a pattern of continuation of movement - a flag. If the ETH/USD pair manages to finish the current week above the $440 level, most likely we will see an upward movement towards $600 per ETH. If, on the contrary, ETH/USD quotes fall below $394, a “double top” will form - a formation for a downward movement with a target of $300.

 

Dynamics of main assets for the week (August 24-30):

Oil rose from 44.50 to 45.87 (+3.07%)

Gold rose from 1947 to 1973 (+ 1.33%)

USD / RUB pair fell from 74.79 to 74 (-1.05%)

Bitcoin fell from 11 661 to 11 643 (-0.15%)