Macro Outlook

Argentina Wins World Cup

On Sunday, the world had its eyes on none other than the 2022 World Cup in Qatar, which came to a thrilling conclusion as Argentina, led by the legendary Lionel Messi, took home the trophy for the first time in 36 years.

The final match at Lusail Stadium was a nail-biter, with Argentina holding a two-goal lead late in the second half only to see France's Kylian Mbappe score twice to even the score. But it was Messi and his teammates who ultimately triumphed in a dramatic penalty shootout, with Emiliano Martinez making crucial saves and Gonzalo Montiel scoring the decisive goal.

The celebrations from the Argentinian team and their fans were electric, as the country secured its third World Cup title. Interestingly, the ARG fan token was trading at $3.9003, representing a 43% loss since Sunday noon (12:00 UTC) despite the historical moment.

The Fed Wants Wage Growth to Slow

On the macro front, the Federal Reserve, led by Chair Jerome Powell, is turning its attention to American paychecks as a key factor in its fight against inflation. Powell believes that by closely monitoring the cost of goods and services, including everything from health care to motels, the Fed can better understand inflation in service industries. These industries are particularly sensitive to wage costs, making the state of the labor market a key indicator of future inflation.

In a press conference following the Fed's latest interest rate hike, Powell noted that wages in the US are currently growing at a rate "well above what would be consistent with 2% inflation." This raises the question of whether the recent surge in pay is a temporary adjustment to a tight labor market and underpaid workers or a potentially dangerous feedback loop where rising prices and wages fuel each other's growth.

As the Fed looks to American paychecks as a key factor in shaping its monetary policy, it will be closely watching the state of the labor market and how it impacts the overall economy.

Anticipation For a Strong China in 2023

After a difficult few years, it seems that the tide may be turning for Asian equities. China's economic reopening and a potentially weaker dollar are expected to drive the region's outperformance in 2023. According to a survey of strategists by Bloomberg, regional equities could climb by 9% by the end of next year.

Many of the negative factors that have weighed on Asia, such as a strong dollar and Covid lockdowns in China, are starting to fade, paving the way for better earnings prospects.

Frank Benzimra, head of Asia equity strategy at Societe Generale, noted that the region is experiencing "several pivots," and he expects to see a rebound in earnings beginning in the second quarter.

Selected Technical Analysis

Bitcoin (BTC): $16,727 (+0.35%) 🔼

Bitcoin (BTC) had a volatile week and ended up with a loss of 2.2% over a seven-day period. On Wednesday, BTC rose to above $18,000 (+7.56%) in anticipation of a positive interest rate update from the Federal Reserve. However, after the Fed's announcement that it plans to keep raising rates into 2023, BTC fell as much as 10% by Friday EOD. Since Dec. 12, Bitcoin has been down by 2.29%.

For a detailed overview of today’s crypto buzzes, proceed to Daily News.

BTC Weekly timeframe:

• Major Level: 13,965 (Monthly High of Jun. 2019)
• Closest support zone: 16,875 - 16,430
• Key resistance zone: 17,090 - 17,700

BTC Weekly Resistance zones

1. 17,090 - 17,700
2. 17,815 - 18,455
3. 18,755 - 19,085

BTC Weekly Support zones

1. 16,875 - 16,430
2. 16,185 - 16,010
3. 15,525 - 15,200

BTC Daily Timeframe:

• Closest support zone: 16,745 - 16,590
• Closest resistance zone: 16,800 - 16,875
• Key Level: 15,950 (Weekly Close Between Nov. 09 - 16, 2020)

Dec. 18 19:20 UTC Update: Bitcoin (BTC) was trading at $16,743, or +0.27% in a 24hr period.

BTC Daily Resistance zones

1. 16,800 - 16,875
2. 16,995 - 17,175
3. 17,370 - 17,640

BTC Daily Support zones

1. 16,745 - 16,590
2. 16,565 - 16,410
3. 16,280 - 16,010