Italy’s consumer confidence in January fell to 96.8, below the expected 97. Meanwhile, the Bank of Canada is likely to keep its benchmark rate at 2.25% during its Wednesday meeting, following a pause since December. This week’s stock market trends could be influenced by four key companies, with guidance being more important than overall earnings. Additionally, Bitcoin Cash (BCH) is trading around $600 and may be reversing with a potential double bottom pattern, as it sees new capital entering its futures contracts.

Disclaimer And The Nature Of The Newsletter

This newsletter contains a disclaimer stating that neither the author nor FXStreet provides investment advice. The Orange Juice Newsletter aims to offer analysis rather than just news headlines. Recent signs indicate softness in the Eurozone, as Italy’s consumer confidence fell slightly below forecasts. This aligns with broader European Commission data showing that consumer sentiment has remained below -14, a level not seen since before the pandemic. For traders, this could signal an opportunity to consider short-term put options on the EUR/USD, as a weaker consumer may pressure the currency. Today, the Bank of Canada will announce its rate decision. While we expect it to remain at 3.5%, the real market influence will come from the Monetary Policy Report. After an aggressive rate hike cycle throughout 2025, any hints of a softer approach in the report could weaken the Canadian dollar. Traders should be prepared for possible fluctuations in the USD/CAD around 14:45 GMT, and using options straddles could be a good strategy to capitalize on significant moves.

Focus On Big Tech Earnings

This week, big tech earnings are in the spotlight. They will help determine whether the AI-driven rally that lifted the Nasdaq 100 by over 30% in 2025 has further potential. We believe insights into future growth will be more critical than last quarter’s performance due to high valuations. Any indications of a slowdown could lead to a sharp sell-off, making protective puts on tech-heavy indexes a smart choice for the upcoming weeks. In the crypto market, we are closely monitoring Bitcoin Cash as it develops a bullish pattern near $480. Renewed interest is clear, as open interest in its futures contracts increases and funding rates stay positive. This suggests that traders are willing to pay more to hold long positions. This situation offers a chance to gain upside exposure by buying call options or taking long positions on perpetual swaps. Create your live VT Markets account and start trading now.

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