The price of crude oil retreated slightly on Tuesday after Russia managed to pay a dollar-denominated bond. The payment was made by JP Morgan, the American bank. In another statement, the head of Vitol warned that Europe will soon move to ration diesel because of the disruption of Russian supplies. Vitol is the biggest independent oil trader in the world. He said that the shift from petrol to diesel in the continent had helped to create shortages. While oil continues to flow from Russia, analysts warn that the situation will continue worsening in the coming months. For example, the International Energy Agency said that Russian supplies will fall by about 3 million barrels per day in April.
Cryptocurrency prices advanced on Monday even after the hawkish statement by the Federal Reserve chair. In a statement on Monday, Jerome Powell said that the bank will be more aggressive in the coming months in a bid to slow the advancing inflation. He also said that he will be supportive of a 0.50% rate hike in the next meeting. Historically, cryptocurrencies tend to underperform when the Federal Reserve is hawkish. Bitcoin rose to over $43,000 while ether moved above $3,000. The total market cap of all cryptocurrencies rose to over $1.9 billion.
The Japanese yen declined sharply after talks between Russia and Japan on several disputed islands. The currency also declined as investors reflected on a violent earthquake in north-eastern Japan last week. In a statement, the government asked residents to limit their electricity. Failure to do that will lead to a major blackout in Tokyo, the country’s biggest city. This was the first blackout alert since 2011. Earthquake risks are slowing the country’s economy at a time when most manufacturers are struggling with parts shortages.
USD/JPY
The USDJPY soared to a multi-year high as the Japanese yen continued its bearish trend. It moved to a high of 120.70, which was significantly higher than this year’s low of 102. On the daily chart, the pair has moved above the 25-day and 50-day moving averages. It is also along the upper side of the Bollinger Bands while the Relative Strength Index (RSI) has moved above the overbought level. Therefore, the pair will likely have a pullback later today.
ETH/USD
The ETHUSD pair jumped to a high of 3,056, which was the highest level since May 1. This is an important resistance level. On the four-hour chart, the bullish trend is being supported by the 25-day and 50-day moving averages. The pair also seems like it is forming a cup and handle pattern that is usually a sign of bullish continuation. The RSI and MACD have also kept rising. Therefore, a bullish breakout will be confirmed if the price moves above the resistance at 3060.
EUR/USD
The EURUSD pair was in a tight range after the hawkish Federal Reserve decision. On the four-hour chart, the pair is trading at 1.100, which is lower than last week’s high of 1.1138. The pair has moved slightly below the 25-day and 50-day moving averages. It is also slightly above the 23.6% Fibonacci retracement level. Therefore, the pair will likely resume the downward trend during the American session.
