Round up of today’s market news

North American News

US Stocks Suffer Sharp Selloff Amid Rate Speculation and Tariff Concerns

Market Overview
US stocks experienced a significant pullback, erasing much of their post-election gains. The S&P 500 closed down 1.3% on Friday and finished the week 2.1% lower, while the Nasdaq lost 2.2% on the day, dropping 3.1% for the week. The DJIA and Russell 2000 also saw notable declines, with the former down 0.7% and the latter down 1.5% on the day, and 4.0% for the week. Uncertainty around tariffs and interest rates weighed heavily on market sentiment.

Tech Stocks Lead the Decline
Tech stocks were the primary drag on the Nasdaq, with giants like Meta ($META), Nvidia ($NVDA), and Amazon ($AMZN) showing significant weakness. The Nasdaq 100 ($NDX) fell 3.4%, reflecting the broad-based selling pressure in tech. However, Tesla ($TSLA) managed to buck the trend with a modest gain.

Trump’s Tariff Policies Unsettle Markets
Much of the selling pressure was attributed to concerns over President-elect Trump’s proposed economic policies, including tariffs. Markets are now focused on his promises of 60% tariffs on China, 10% tariffs across the board, and mass deportations of 11 million illegal immigrants. These issues, coupled with global trade tensions, have created uncertainty about the broader economic impact, particularly on US-China relations and consumer spending.

Corporate Moves and Market Reactions
Several notable companies faced challenges this week:

• Applied Materials ($AMAT) saw its stock drop sharply after issuing a softer revenue forecast, marking its steepest monthly drop in recent memory.
• Pharmaceutical companies ($MRNA, $PFE) came under pressure following the appointment of Robert F. Kennedy Jr., a known vaccine skeptic, to a high-level health policy role.

Fed Insights Affect Market Sentiment
Fed Chair Jerome Powell reiterated the importance of patience in monetary policy. Meanwhile, Boston Fed President Collins left a December rate cut “on the table,” though traders are now adjusting their expectations, with a 56% chance of a rate cut in December, down from 80% earlier in the week. Chicago Fed President Goolsbee echoed the need for a gradual policy approach, suggesting that rates could decline “a lot” over the next 12-18 months if inflation continues to cool.

Economic Data Points to Mixed Outlook
US October retail sales exceeded expectations with a 0.4% monthly rise, but future consumer spending remains uncertain amid broader economic headwinds. Additionally, Treasury yields briefly reached 4.5% before retreating to 4.44%, prompting bond buyers to return.

Currency and Crypto Movements
The US Dollar softened, snapping its previous winning streak, while Bitcoin ($BTC) surged 3.4%, trading around $91,200, though still below its record high earlier this week. The euro held steady at $1.05, while the Japanese yen gained 1.2% against the dollar.

Global Impact
The MSCI World Index dropped 1.1%, with European yields ticking slightly higher as German 10-year bonds rose to 2.36%. Meanwhile, UK yields dipped, reflecting a mixed sentiment in the global fixed income market.

Commodities Face Pressure
Oil prices saw a sharp decline, with WTI crude dropping 2.4% to $67.02, weighed down by concerns over weakening demand. Gold held steady, closing flat as investors continue to assess the impact of inflation risks and interest rate policies.

Atlanta Fed Q4 GDPNow unchanged @ 2.5%

• The latest GDP tracking data

It’s still very early for Q4 GDP estimates but the Atlanta Fed is at 2.5%, unchanged compared to the prior update.

“An increase in the nowcast of fourth-quarter real personal consumption expenditures growth was offset by a decrease in the nowcast of fourth-quarter real gross private domestic investment growth,” the report said.

US October retail sales control group -0.1% vs +0.3% expected

• US October 2024 data on retail sales from the Census Bureau

• Prior control group was +0.7% (revised to +1.2%)
• Headline retail sales +0.4% versus +0.3% expected
• Prior m/m sales +0.1% (revised to +0.8%)
• Retail sales $718.9 billion versus $714.4 billion prior
• Retail sales y/y +2.8% versus +1.7% prior
• Ex autos +0.1% versus +0.3% expected
• Prior ex autos +0.5% prior (revised to +1.0%)
• Ex autos and gas +0.1% versus +0.7% prior

US October import prices YoY 0.8% vs -0.1% prior

• US import and export prices for October 2024

• Prior month import prices YoY -0.1%
• US import prices MoM 0.3% vs -0.1% expected and-0.4% prior
• US export prices MoM 0.8% vs -0.1% expected and -0.6% prior
• US export prices YoY -0.1% vs -2.1% prior

US November Empire Fed manufacturing survey +31.2 vs -0.7 expected

• The New York-area manufacturing survey
• Prior was -11.9

Six Month Forward-Looking Indicators

US October industrial production -0.3% vs -0.3% expected

• US October data

• Prior was -0.4% (revised to -0.5%)
• Capacity utilization 77.1% 77.2% expected
• Prior utilization 77.4%

US September business inventories +0.1% vs +0.2% expected

• US September 2024 business and retail inventory data

• Prior was +0.3%
• Retail inventories ex-autos +0.2% vs +0.1% prior

Fed’s Barkin: I always have expected core PCE to stay in the “high twos”

• Comments from Barkin

• I hope and expect that in Q1, inflation will come down
• Pricing power is more limited
• I am still seeing progress on inflation
• We are a long way from knowing what will happen with tariffs

Fed’s Goolsbee: Unless conditions change, I feel good about 12-18 month path to neutral

• Comments from the Chicago Fed President

• We for sure should watch long rates
• Fed has to figure out why 10-year is rising and keep an eye on long rates
• This 12-18 month timeline is very interesting as it sounds like a much slower process.
• I don’t think we’re at neutral now
• Core PCE is still too high
• If there is disagreement over the neutral rate, it does make sense to start slowing the pace of rate cuts
• The basic story of the economy remains falling inflation, labor market cooling to full employment
• Do not think rates will go back to where they were before the pandemic

Fed’s Collins: Won’t take a December easing off the table, doesn’t see big urgency

• Remarks by Boston Fed president, Susan Collins, to the Wall St Journal

• There is more data that we will see between now and December
• Have to continue to weigh what makes sense
• Fed could eventually slow down pace of rate cuts but too soon to say if it will be in December
• Fed policy is restrictive
• Don’t see evidence of new price pressures
• Economy is in a very good place right now
• No preset path for monetary policy
• Won’t take a December easing off the table
• What’s really elevated is shelter inflation, I’m not seeing evidence of new price pressures
• I think it’s important to stay the course
• Doesn’t see a big urgency to lower rates but wants to preserve a healthy economy
• There are a lot of special factors in employment data but I see a labor market that’s similar to full employment
• Won’t speculate about what Trump will do
• Tariffs can be a driver of inflation

Canada Sept wholesale sales +0.8% vs +0.9% expected

• September 2024 Canadian data on wholesale trade

• Prior was -0.6%
• Manufacturing sales -0.5% vs -0.8% expected

Goldman: Forecasts BOC to cut rates by 50 basis points December (up from 25 basis points)

• Goldman Sachs sees a larger cut from the Bank of Canada

Goldman Sachs forecasts that the Bank of Canada is to cut interest rates by 50 basis points in its December meeting versus prior forecast of 25 basis points.

• Forecasts BOC will continue to cut her interest rates until reaching a terminal rate of 2.25% in June 2025 versus prior forecast of 2.5%

BOC senior loan officer survey: 1.71% vs 6.85% prior

• Worsening conditions for business lending

This is a lower-tier indicator but something the Bank of Canada is watching. Despite rate cuts, lending conditions worsened in Q3. They may also be concerned that rising yields could further impair lending in Q4.

Commodities

Gold Remains Steady Despite Strong US Retail Sales and Fed Commentary

Market Overview
Gold held steady on Friday, trading in the $2,570s after making a slight recovery from the two-month lows reached earlier in the week. Despite positive US retail sales data and comments from Fed Chairman Jerome Powell, which boosted the US Dollar, the precious metal saw minimal reaction. Gold’s outlook continues to be shaped by the broader economic context, particularly concerns around US interest rates and political dynamics.

US Retail Sales and Fed Commentary
The US Retail Sales report for October showed a 0.4% month-over-month increase, surpassing expectations of 0.3%, though still below the previous month’s revised-up 0.8%. Retail sales excluding autos posted a modest 0.1% rise, falling short of the 0.3% expected increase. While the data indicates consumers are still spending freely, which bodes well for US economic growth, it also reinforces the Fed’s hawkish stance on interest rates.

Powell’s comments on Thursday, declaring the US economy to be in “remarkably good” shape, further fueled expectations that the Fed may not be as aggressive in cutting rates as initially feared. This is positive for the US Dollar but negative for Gold, as higher interest rates reduce the appeal of non-yielding assets like Gold.

Gold’s Decline Amid Strong USD and Political Developments
Gold’s decline continued, breaking below a key trendline and reaching the $2,530s on Thursday. The move lower was driven by a combination of stronger US factory-gate inflation data, lower unemployment claims, and Powell’s optimistic economic outlook. These factors, alongside the Republican party gaining control of the US House of Representatives, added further pressure. The shift in political power is seen as potentially leading to more inflationary policies under President-elect Donald Trump, which could support the USD but limit Gold’s appeal as an inflation hedge due to potential higher interest rates.

Gold ETF Outflows
Gold faced additional pressure from outflows in Gold Exchange Traded Funds (ETFs), with the World Gold Council reporting that Gold ETFs saw a net outflow of around $809 million (12 tonnes) in early November. The outflows were driven primarily by North American investors, although there was some offset from Asian inflows. This marks a shift from October’s record highs for Gold, as large hedge funds, which previously benefitted from the uptrend, appear to be exiting their positions.

Geopolitical Support
While geopolitical risks remain elevated, providing some underlying support for Gold as a safe-haven asset, reports of tentative progress in ceasefire negotiations in Lebanon have reduced immediate concerns. Still, the broader risk environment continues to support Gold’s role as a store of value amid uncertainties.

Traders’ Takeaway
Gold is navigating a complex environment, with strong US economic data and hawkish Fed signals weighing on its price. Political developments, particularly in the US, and recent outflows from Gold ETFs suggest that the precious metal’s uptrend may be losing steam. However, geopolitical tensions continue to provide a floor for prices, keeping Gold in the $2,570s range for now. The balance between US rate expectations and geopolitical risk will likely determine Gold’s near-term trajectory.

Baker Hughes Rig Count: US and Canada Decline Amid Industry Adjustments

US Rig Count Overview
The US rig count saw a slight decline, down by 1 to 584 rigs. Specifically, the count for oil rigs dropped by 1 to 478, gas rigs decreased by 1 to 101, while miscellaneous rigs increased by 1 to 5. Year-over-year, the US rig count has decreased by 34 rigs from 618, with oil rigs down 22 and gas rigs down 13. The offshore rig count remained steady at 14, although it’s down 5 from last year.

Canada Rig Count Overview
In Canada, the rig count dropped by 7 to 200 rigs. Oil rigs were down by 5 to 137, and gas rigs fell by 2 to 63, while miscellaneous rigs remained unchanged at 0. Compared to last year, Canada’s rig count is up by 4 rigs, with oil rigs increasing by 14, while gas rigs saw a decline of 10.

Market Sentiment
The US rig count’s slight decrease suggests a minor pullback in drilling activity, with a clear drop in both oil and gas rigs. Despite these reductions, the miscellaneous rigs category remains relatively stable, indicating that niche sectors may still be seeing some activity. The Canada rig count’s decline reflects a reduction in oil and gas rigs, though the increase in oil rigs from the previous year suggests a minor shift in priorities or regional demand. These trends are indicative of ongoing adjustments in response to market conditions and oil price fluctuations.

Silver market remains significantly undersupplied due to rising demand – Commerzbank

The Silver Institute, in cooperation with the precious metals research firm Metals Focus, published updated forecasts for the Silver market this week, Commerzbank’s commodity analyst Carsten Fritsch notes.

Silver loses almost 15% from its 12-year high in October

“According to the report, Silver demand should increase by 1% to 1.21 billion ounces, reaching the second-highest level since records began. However, in the spring, the Silver Institute and Metals Focus were still expecting somewhat stronger demand. Industrial demand is expected to increase by 7% to a record level, driven by electrical and electronic applications. Increases are also expected for jewellery and Silverware.”

“In contrast, physical investment demand is expected to fall by 15% to a four-year low. Silver supply is expected to increase by 2% to 1.03 billion ounces. The Silver Institute and Metals Focus had previously expected a decline here. Both rising mine production and a stronger supply of Silver scrap are contributing to the higher supply. The latter is expected to reach a 12-year high, reflecting the higher price level. This year, the Silver market is expected to show a supply deficit for the fourth year in a row, which at 182 million ounces is likely to be considerable again.”

“In spring, however, the Silver Institute and Metals Focus had expected an even larger deficit. If the ETF inflows of 100 million ounces assumed by the Silver Institute are included, the deficit is even larger. Nevertheless, Silver came under pressure this week and yesterday temporarily slid below the 30 USD per troy ounce mark for the first time in almost two months. Silver has lost almost 15% from its 12-year high in October. The most important reason is the simultaneous correction in the Gold price, which Silver was unable to escape.”

Copper price falls below $9,000 despite increasing scarcity of copper concentrate – Commerzbank

The strong US Dollar (USD) continues to weigh on metal prices. Copper slipped below the $9,000 per ton mark this week, Commerzbank’s commodity analyst Volkmar Baur notes.

Copper price can fall towards $8,500

“According to a survey of participants at a major copper conference in Asia, the price could even fall to $8,500 per ton in the first quarter of 2025. However, there are also many critical voices pointing to the scarcity of copper concentrate, which is slowing down production. One analyst puts next year’s deficit at over 1 million tons.”

“The capacities of Chinese copper smelters, which are expected to increase by a further 1 million tons next year, are likely to be utilized at only 75%. A slowdown in activity is also becoming apparent at the current margin. A company specializing in satellite observation reports that the proportion of inactive Chinese copper smelters has risen by almost 5 percentage points to 15.5%.”

“This means that capacity utilization is likely to be as low as in April, when smelting was restricted by maintenance work. Official data on Chinese copper production will probably be released in the next few days. The data published today on industrial production did not yet include these details.”

EU News

European Equity close: Unable to maintain yesterday’s momentum

• Closing changes on the day and the week

On the day:

• Stoxx 600 -0.8%
• German DAX -0.1%
• France CAC -0.5%
• UK FTSE 100 -0.2%
• Spain IBEX +0.7%
• Italy’s FTSE MIB -0.5%

On the week:

• Stoxx 600 -0.7%
• German DAX flat
• France CAC -0.9%
• UK FTSE 100 -0.1%
• Spain IBEX +0.6%
• Italy’s FTSE MIB +1.1%

Germany October wholesale price index +0.4% vs -0.3% m/m prior

• Latest data released by Destatis – 15 November 2024

German wholesale prices bounced back in October but on an annual basis are still down 0.8% compared to the same month last year. Most of the drag for the annual estimate comes from lower prices for mineral oil products, down 11.5% year-on-year.

Italy October final CPI +0.9% vs +0.9% y/y prelim

• Latest data released by Istat – 15 November 2024

• Prior +0.7%
• HICP +1.0% vs +1.0% y/y prelim
• Prior +0.7%

France October final CPI +1.2% vs +1.2% y/y prelim

• Latest data released by INSEE – 15 November 2024

• Prior +1.1%
• HICP +1.6% vs +1.5% y/y prelim
• Prior +1.4%

UK Q3 preliminary GDP +0.1% vs +0.2% q/q expected

• Latest data released by ONS – 15 November 2024

• Prior +0.5%
• GDP +1.0% vs +1.0% y/y expected
• Prior +0.7%

UK September monthly GDP -0.1% vs +0.2% m/m expected

• Latest data released by ONS – 15 November 2024

• Prior +0.2%
• Services 0.0% vs +0.2% m/m expected
• Prior +0.1%
• Industrial output -0.5% vs +0.1% m/m expected
• Prior +0.5%
• Manufacturing output -1.0% vs -0.1% m/m expected
• Prior +1.1%; revised to +1.3%
• Construction output +0.1% vs +0.2% m/m expected
• Prior +0.4%; revised to +0.6%

Switzerland October producer and import prices -0.3% vs -0.1% m/m prior

• Latest data released by the Federal Statistics Office – 15 November 2024

Looking at the breakdown, producer prices were down 0.3% while import prices were seen down 0.4% on the month. Compared to the same month last year, producer and import prices were seen down 1.8%. Overall, the recent trend will be one that the SNB can find comfort with.

ECB’s Cipollone: We can and should reduce the level of monetary policy restriction

• Comments from the ECB policymaker

• The pace and extent of reduction will depend on data
• Developments remain consistent with a consumption-led recovery
• Whether the recovery will firm up remains to be confirmed
• We should not be more restrictive than what is necessary to ensure timely convergence of inflation to target
• It could be self-defeating to tolerate an economy running persistently below potential as an insurance against possible future inflationary shocks

European Commission sees Eurozone economy picking up in 2025 and 2026

• However, the commission warns of rising risks to global trade now that Trump is in the White House

• Sees Eurozone economic growth at 0.8% in 2024, 1.3% in 2025, and 1.6% in 2026
• Sees Eurozone inflation at 2.4% in 2024, 2.1% in 2025, and 1.9% in 2026

Of note, they are forecasting the German economy to contract by 0.1% this year as compared to their previous forecast of 0.1% growth in the spring. Meanwhile, the French economy is forecast to expand by 1.1% this year. Looking to next year, the commission notes that:

“Geopolitical risks and policy uncertainty have further increased. In addition to the risks related to the wars in Ukraine and the Middle East, a further increase in protectionist measures by trading partners could weigh on international trade.”

Asia-Pacific-World News

China has shifted from population increment to a decrease, says president Xi

• China president, Xi Jinping, touches on demographic developments in the country

• Necessary to establish, improve fertility support policies to promote long-term population development
• Efforts should be made to maintain a moderate fertility level and population size
• Necessary to better coordinate relation between population and economy
• To strengthen demographic statistics, dynamic monitoring, early warning and improve legal system for population and birth security

China’s stats Bureau : “Domestic demand is still insufficient”, but seeing green shoots

• Discover the latest on China’s economic recovery as domestic demand lags but signs of improvement emerge in key indicators.

China’s Stat Bureau spokesperson:

• Domestic demand is still insufficient
• But also noted major economic indicators recovered markedly in October
• China’s consumer expectations improved in October
• Will consolidate trend in economic recovery

China retail sales YoY for October 4.8% versus 3.8% expected

• Retail sales for October 2024

• Prior month 3.2%
• Retail sales 4.8% versus 3.8% expected

China October unemployment rate for 5.0% versus 5.1% expected

• Unemployment rate for October

• Prior month 5.1%
• Unemployment rate 5.0% versus 5.1% expected

China industrial production 5.3% versus 5.6% estimate

• Industrial production for October 2024

• Prior month 5.4%
• industrial production 5.3% versus 5.6% estimate

China’s home prices year on year for October -5.9% (previous -5.8%)

• All China Oct New Home Prices: -5.9% YoY (Sept -5.8%)
• All China Oct New Home Prices: -0.5% MoM (Sept -0.7%)

Regionally:

• China Oct Shenzhen New Home Prices: -8.1% YoY (Sept -8.6%)
• China Oct Shenzhen New Home Prices: +0.1% MoM (Sept -1.0%)
• China Oct Guangzhou New Home Prices: -10.4% YoY (Sept -10.3%)
• China Oct Guangzhou New Home Prices: -0.7% MoM (Sept -0.9%)
• China Oct Shanghai New Home Prices: +5.0% YoY (Sept +4.9%)
• China Oct Shanghai New Home Prices: +0.3% MoM (Sept +0.6%)
• China Oct Beijing New Home Prices: -4.9% YoY (Sept -4.6%)
• China Oct Beijing New Home Prices: -0.7% MoM (Sept -0.7%)

Japan preliminary Q3 GDP 0.2% versus 0.2% estimate

• Japan preliminary GDP for the third quarter

• Prior month 0.7%
• GDP QoQ 3Q 0.2% vs 0.2% estimate
• GDP Annualized 0.9% vs 0.7% estimate
• Annualize last quarter 2.9%
• Capital expenditures -0.2% versus -0.2% expected. Previous quarter +0.8%.
• Private consumption preliminary 0.9% versus 0.2% expected. Previous quarter 0.9%.
• External demand -0.4% versus expected 0.1%. Previous quarter -0.1%.

Japan’s economy minister : Expects modest economic recovery to continue

• Japan’s Economy Minister Akazawa speaking

• Expects modest economic recovery to continue, driven by improving employment and wage environment.
• Need to carefully monitor downside risk from overseas economies and volatility in financial, capital markets.
• It’s up to Bank of Japan to decide on monetary policy.

Japan finance minister Kato: Will take appropriate action versus excessive FX moves

• Japan finance minister Kato speaking

• Will take appropriate action versus excessive FX moves
• one-sided, sharp moves seen in FX market.
• Important for FX rates to move stably reflecting fundamentals.
• Government will scrutinize FX market with very high vigilance including speculative moves.

Japan sells JPY 1.75 trillion of 5year JGBs at a average yield of 0.706% (vs 0.562% last)

• Japan sell 5 year JGBs

Japan sold JPY 1.75 trillion of 5-year JGBs

• Yield 0.706% versus 0.562% last month
• Bid to cover: 3.81X vs 3.73X last month
• Tail in price 0.02 vs previously 0.03

Japan revised industrial production for September 1.6% versus 1.4% estimate

• Japan industrial production and capacity utilization

• Prior +1.4%
• Revised industrial production 1.6% versus 1.4% estimate. Prior month -3.3%
• Capacity utilization 4.4% versus -5.3% last month
• Tertiary industry activity -0.2% versus +0.2% estimate. Prior month -1.1%

Cryptocurrency News

Bitcoin Climbs, Powered by Positive Momentum and Election Hopes

Market Overview
Bitcoin (BTC) is closing the week on a high note, up 3.3% today, reaching $91,200 after briefly dipping below the $88K mark in US trading earlier. The recent rally coincides with a modest rebound in risk appetite, reflecting a broad market recovery. The cryptocurrency is now eyeing the $100,000 milestone, bolstered by strong market sentiment and expectations surrounding upcoming events.

Saylor’s Bold Prediction: Bitcoin to Surge to $100K by Year-End
MicroStrategy Executive Chairman Michael Saylor has reaffirmed his optimistic outlook for Bitcoin, predicting that the cryptocurrency will surge to $100,000 by the end of 2024. Saylor attributes this potential surge to the US election outcome, calling it the most significant event for Bitcoin in the last four years. His comments, made during an interview on CNBC, underscore his confidence in Bitcoin’s long-term price trajectory.

Saylor also dismissed concerns over Bitcoin’s potential to fall back to $30,000, emphasizing that the floor for Bitcoin is likely above $60,000. His confidence is shared by recent price movements, with Bitcoin having recently hit an all-time high of over $93,200 on Wednesday, following the release of the US CPI report.

MicroStrategy’s Ongoing Bitcoin Strategy
MicroStrategy, the business intelligence firm led by Saylor, continues to increase its Bitcoin holdings. The company purchased an additional $2.03 billion in Bitcoin this week, raising its total holdings to 279,420 BTC. This move further signals Saylor’s belief in Bitcoin’s long-term value as an asset class.

Traders’ Takeaway
Bitcoin’s recent strength and Saylor’s bullish outlook provide a strong foundation for the cryptocurrency as it eyes potential further gains into $100,000. With the US election and broader market dynamics in play, Bitcoin’s rally could continue, making it a key asset to watch in the coming months.

Ripple Hits New 2024 High Amid Robinhood Listing and Gensler Speculation

Market Overview
Ripple (XRP) continues its strong ascent, gaining nearly 6% on Friday after a 12% surge on Thursday, reaching a new year-to-date high of $0.847. The primary catalysts behind this rally are the Robinhood listing of XRP and growing market speculation surrounding Gary Gensler’s potential departure as chair of the US Securities and Exchange Commission (SEC). Over the course of the week, XRP has surged more than 30%, driven by these factors and positive developments related to its future integration in the financial ecosystem.

Catalysts Driving XRP’s Price Surge

1. Robinhood Listing: XRP’s listing on Robinhood on Wednesday alongside other popular cryptocurrencies like Solana (SOL), Cardano (ADA), and Pepe (PEPE) has significantly boosted its market liquidity and accessibility. This increased exposure is expected to attract more traders and investors, further elevating XRP’s price outlook.
2. Speculation on SEC Chair Resignation: Market participants are reacting positively to growing speculation about Gary Gensler’s potential resignation as SEC Chair. Gensler’s tenure has been marked by a heavy-handed regulatory approach toward cryptocurrencies, particularly affecting Ripple in its ongoing legal battle with the SEC. While Gensler has not confirmed any departure, his remarks hinting at an exit have spurred optimism in the market, suggesting that a more crypto-friendly SEC chair could lead to a favorable resolution for Ripple.
3. SG-FORGE’s EURCV on XRP Ledger: SG-FORGE, a subsidiary of Societe Generale, announced its plan to launch the EUR CoinVertible (EURCV) stablecoin on the XRP Ledger (XRPL) by 2025. This move positions XRP as a key player in the growing stablecoin and cross-border payment space, adding further legitimacy to the network and its utility.

Technical Analysis and Price Outlook
XRP’s breakout above $0.744 earlier this week and its new year-to-date high at $0.847 puts it in striking distance of key resistance at $0.863. A weekly close above this level could set the stage for a rally toward $1.26, aligning with the 50% price retracement level from the April 2021 high of $1.96 to the June 2022 low of $0.286.

The Relative Strength Index (RSI) on XRP’s weekly chart stands at 68, indicating strong bullish momentum. As the rally continues, traders are looking for a break above the next resistance level, potentially marking a significant upward trend for XRP.

Traders’ Takeaway
Ripple’s recent gains reflect a confluence of favorable factors, including a listing on Robinhood, potential changes in US regulatory leadership, and broader integration within the financial system. With continued momentum and positive news, XRP appears well-positioned to extend its rally, potentially reaching new price milestones in the coming weeks.

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