This is never a market moving release. Mortgage applications are generally inversely correlated to mortgage rates.
This article was written by Giuseppe Dellamotta at investinglive.com.
The shutdown may end soon. Increased volatility supports the dollar. The Bank of Japan recalls deflation. The pound is frightened by tax increases. Progress in negotiations between Democrats and Republicans on resuming government operations has cooled the enthusiasm for the US dollar among bulls. The dollar index has taken a step back from its local […]
The post Forex Goes to Safe Havens appeared first on Action Forex.
Market Overview The crypto market continues its impressive decline, losing another 2.4% over the past 24 hours. Having fallen to a low of $3.3 trillion, the market is now at its lowest point since early July. A steady move below the 200-day moving average and a drop of more than 20% from its peak are […]
The post If the 4-Year Cycles are Still Alive, BTC Faces a Pullback to $70K appeared first on Action Forex.
As the chart shows, the Nikkei 225 stock index (Japan 225 on FXOpen) formed a historic peak around 52,500 points only yesterday — but today it has fallen sharply, with losses at the session low reaching approximately 7%. Bearish sentiment was fuelled in part by a slump in shares of Japanese investment giant SoftBank, which […]
The post Nikkei 225 Plunges from Record High appeared first on Action Forex.
The big topic on Wall Street is on Palantir and perhaps Nvidia, not withstanding the whole China issue after the meeting between Trump and Xi not bearing any fruit. That’s stirring up some nerves as evident with the risk selloff so far this week, in particular the one yesterday.
It once again highlights the vulnerabilities to the AI trade to certain news and/or market developments. But perhaps, one of the most thought-provoking headlines actually came from an interview with Microsoft CEO, Satya Nadella, and OpenAI CEO, Sam Altman, earlier in the week. This was what Nadella had to say:
“The biggest issue we’re now having is not a compute glut. It’s power. You may actually have a bunch of chips sitting in inventory that you can’t plug in – in fact, that is my problem today. It’s not a supply issue of chips. It is actually the fact that I don’t have warm shells to plug into.”
And by “warm shells” here, he’s making reference to data center shells. In other words, the whole basis of the AI trade/argument might have to be relooked into. AI isn’t limited by silicon and chips. It is limited by electricity. In other words, the real constraint is not compute but being able to access power and data center spaces.
Nadella’s point is that AI growth has taken on such a rapid pace that even the big guns are struggling to keep up with infrastructure development.
Just imagine Microsoft pouring billions into buying Nvidia chips and processors to “bolster AI investment”. Wall Street will cheer that on as it hopes for more innovative progress in the next six to twelve months.
However, what happens if Microsoft cannot actually find a home for these chips and processors due to the bottleneck above?
Essentially, those chips and processors are just sitting in boxes and not generating the desired revenue or AI progress that Microsoft actually would like. One can train AI models to better themselves and improve in six to twelve months. But setting up a data center to get access to power? It’s going to take way longer than that.
Every new data center that these guys i.e. Microsoft, Google, Meta etc are looking to set up would need hundreds of megawatts of power. And to set up that kind of infrastructure and energy resource might take years.
That means the current demand set and bottleneck points to the narrative that “AI investment” should not reward those who pour the most money into chips and processors, but rather those who managed to lock in power early and get the right infrastructure set up quicker than anyone else.
It’s easy and sexy to talk about progress in terms of AI innovation, with model improvements and flashy algorithms to show for. However, that might not count for anything if you don’t have sufficient access to power to keep that up and scale bigger as demand continues to grow at such breathtaking pace.
Besides that, Nadella also makes mention to not wanting to overbuy one particular generation of GPUs considering the present bottleneck situation. And that’s also another important thing to note. If the useful life of a particular GPU model is only going to be cut even shorter by power bottlenecks, it makes no sense for tech firms to be pouring in so much capital when Nvidia is just going to release better and faster chips every year.
As such, the negative impact from this bottleneck on power is not only hitting at the likes of Microsoft but it also will tie back to Nvidia at the end of the day.
Why is all this important?
The thing is Wall Street might still be partying like it’s 2023 and 2024 in cheering on the AI boom. However, the landscape and meaning of that might have just changed completely under our noses. It’s no longer just about who has the best chips and the best AI models. It’s also about who can have the most reliable and scalable access to power and electricity to keep the butter churning.
And so whichever name gets to take the lead in that space, will be the one that investors reward very handsomely next in the AI trade.
This article was written by Justin Low at investinglive.com.
By Jonatan Randin, Market Analyst at PrimeXBT
Despite stronger dollar momentum, gold remains technically constructive, consolidating near key Fibonacci levels. Meanwhile, gold’s relative performance against Bitcoin shows signs of strength, a familiar pattern during risk-off conditions.
This market outlook explores gold’s behaviour against both the US dollar and Bitcoin, featuring XAU/BTC, one of the newly introduced cross-pairs now available on PrimeXBT, part of the broker’s latest expansion that adds new commodity and crypto-based instruments across its MT5 platform.
Macro perspective: The debasement trade
The United States economy continues to show impressive resilience. Growth remains steady, balance sheets are strong, and consumer spending has held up despite higher interest rates. The ongoing boom in artificial intelligence has only added fuel to this expansion, creating a feedback loop of optimism across equities and risk assets.
This backdrop has produced what many analysts describe as a Goldilocks scenario, an environment that is not too hot and not too cold. Inflation has cooled from its 2022 peaks, but the economy hasn’t rolled over. In these conditions, gold often trades sideways as investors favour risk assets, yet beneath the surface, a structural shift is taking place.
After the Russia–Ukraine war began in February 2022, Western sanctions included freezing Russia’s foreign reserves. This sent a powerful message to policymakers worldwide, assets held within the traditional financial system can be restricted or weaponised. In response, central banks across emerging markets began diversifying away from the US dollar, increasing their gold holdings at the fastest pace in decades.
At the same time, persistent inflation and expanding fiscal deficits continue to erode confidence in fiat currencies. Together, these forces underpin what many now call the debasement trade, the steady accumulation of scarce assets such as gold and Bitcoin as protection against currency devaluation.
Gold represents the traditional store of value, while Bitcoin has emerged as its digital counterpart. Both assets thrive in environments of high liquidity and declining real yields, though they tend to move at different phases of the cycle, gold leading during uncertainty, Bitcoin leading during reflation.
Technical analysis: XAU/USD
On the daily chart, gold is hovering around the 0.382 Fibonacci retracement level just below $4,000, aligning with the midpoint of a defined range. This area marks a potential short-term base following the parabolic advance that began after breaking above an ascending triangle on 1 September.
While the recent pullback follows what many view as an euphoric phase, the broader debasement trade narrative remains supportive. In strong bull markets, the 0.382–0.5 retracement levels often act as key support zones, while a deeper correction could extend toward the 0.618 – 0.785 reload zone.
A breakout above $4,040 would confirm a continuation of the long-term uptrend, whereas failure to hold current levels could open the door for a test of the 0.618–0.786 zone, a region often associated with long-term accumulation. These are the critical levels to watch as gold consolidates within its larger bullish structure.
Technical analysis: XAU/BTC
While XAU/USD reflects gold’s performance relative to fiat currency, the XAU/BTC chart offers a unique view of gold’s strength compared with another key asset in the debasement trade, Bitcoin. Both assets tend to move in opposite phases of the liquidity cycle, gold often outperforms when markets turn defensive, while Bitcoin leads during risk-on periods of abundant liquidity.
In the current environment, renewed US dollar strength is adding downside pressure to both gold and risk assets like Bitcoin. However, the interesting observation here is that while XAU/USD has been ranging, XAU/BTC is showing signs of forming a solid swing low. This creates a compelling setup where gold holds steady against the dollar but begins to gain strength relative to Bitcoin, a typical pattern during risk-off conditions.
This dynamic provides a clear example of how traders can use XAU/BTC to capitalise on the interplay between macro fundamentals and market sentiment, combining a bullish long-term view on gold with a short-term defensive move in Bitcoin to capture relative upside potential.
Trading Gold and Synthetic Cross-Pairs with PrimeXBT
Gold’s resilience amid shifting market sentiment is now easier to trade through PrimeXBT’s latest expansion on MT5. The rollout introduces a new range of gold-based pairs, including XAU/BTC and multiple new crosses against major currencies such as EUR, GBP, JPY, alongside other newly added commodity and crypto pairs.
Available across MT5 Standard, ZeroStop, and MT5 Pro accounts, this update combines flexibility and precision, from competitive conditions for everyday traders to advanced features and raw spreads for active traders. With leverage up to 1:1000 on commodities and up to 1:500 on crypto pairs, PrimeXBT continues to deliver accessible, high-performance trading for every strategy.
As gold steadies amid market uncertainty, the addition of XAU/BTC and other metal-based pairs underscores PrimeXBT’s commitment to bridging traditional and digital markets, where macro themes meet trading opportunities.
Start trading with PrimeXBT
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