Key Highlights

• BTBT shares decline following announcement of WhiteFiber credit facility.

• Bit Digital provides $100M delayed draw loan to WhiteFiber subsidiary.

• Ethereum-backed financing strategy deployed to fund AI infrastructure expansion.

• Strategic asset approach faces market scrutiny with WhiteFiber lending deal.

• Pre-market trading shows investor concern over ETH treasury deployment beyond staking.

Shares of Bit Digital experienced downward pressure in early trading hours following disclosure of a substantial WhiteFiber financing arrangement. While BTBT finished the previous session at $2.03 with a gain of 2.01%, the stock retreated to $1.9631 during pre-market activity, representing a decline of 3.30%. The pullback occurred as investors digested news of a $100 million credit facility connected to the company’s Ethereum holdings strategy.

WhiteFiber Secures Major Credit Facility from Bit Digital

According to the announcement, Bit Digital structured and funded a $100 million delayed draw term loan arrangement. The recipient is an entity within WhiteFiber, a company focused on artificial intelligence infrastructure and high-performance computing solutions. WhiteFiber operates as a publicly traded company on Nasdaq with the ticker WYFI, where Bit Digital maintains majority ownership.

Under the agreement terms, WhiteFiber can access up to $100 million through the delayed draw structure. Additionally, both parties retained the option to increase the total facility size to $150 million subject to mutual consent. This financing framework provides WhiteFiber with significant capital resources to accelerate its expansion initiatives within AI and HPC sectors.

A portion of the term loan was acquired by B. Riley Securities from Bit Digital Capital. Consequently, the arrangement features third-party involvement while maintaining Bit Digital’s primary role in the financing structure. Management indicated the transaction aligns with strategic holdings throughout its broader operational ecosystem.

Ethereum Holdings Deployed in Novel Lending Strategy

According to Bit Digital, funding for the loan advances will partially derive from an Ethereum-denominated secured credit arrangement. Through this mechanism, the company seeks to maintain its ETH holdings while generating returns from the lending operation. This methodology connects treasury asset management with credit-based revenue generation rather than relying exclusively on staking rewards.

Management positioned the transaction within its Strategic Asset Company framework. The company suggested the lending arrangement’s economics could potentially surpass conventional ETH staking returns. Furthermore, the structure enables WhiteFiber’s operational expansion while maintaining Bit Digital’s cryptocurrency exposure.

This initiative represents an untested application of Bit Digital’s balance sheet philosophy. The organization now leverages Ethereum-backed financing to generate income from a related infrastructure business. Yet the immediate market response demonstrated selling pressure on BTBT shares during pre-market hours.

Board Oversight Process Evaluates WhiteFiber Arrangement

Bit Digital disclosed that its board of directors authorized the transaction following comprehensive governance procedures. A committee composed of independent, disinterested directors conducted a separate evaluation of the deal’s financial merits, structural components, risk factors, and shareholder value considerations. The assessment particularly examined the intercompany relationship dynamics.

Needham and Company provided Bit Digital’s board with a formal fairness assessment in writing. Separately, Seaport Global Securities delivered an independent written fairness evaluation to WhiteFiber’s board. Both advisory opinions contributed to the deliberation process before final board approvals were granted.

The transaction positions Bit Digital at the intersection of three converging investment narratives. It merges Ethereum treasury deployment, artificial intelligence infrastructure participation, and strategic lending operations within a single framework. The pre-market weakness in BTBT shares suggests investors quickly incorporated concerns about the financing structure into their valuations.

CME Group has officially entered the always-on crypto market. Beginning Friday, CME Bitcoin futures and options now trade 24 hours a day, seven days a week on Globex, CME’s electronic trading platform, with only a 60-minute weekly maintenance pause between 10PM and 11PM UTC each Sunday.

While weekend trades will still clear on the next business day, the broader implication is significant as the long-standing CME weekend gap has effectively disappeared.

For years, the Friday close through Sunday reopen created one of bitcoin’s most recognizable structural inefficiencies. Traders routinely positioned around “gap fills,” exploiting the disconnect between CME’s limited trading hours and Bitcoin’s continuous spot market. Thin weekend liquidity often exaggerated those moves, turning the CME gap into both a technical indicator and a speculative strategy.

Volatility would often spike sharply at the 11PM UTC Sunday reopen as futures markets recalibrated to wherever spot had drifted over the weekend. That weekend price action was characteristically low-volume and largely noise, thin order books amplifying moves that would frequently snap back once institutional participants logged on late Sunday.

With CME’s maintenance window now scheduled for that same 10PM–11PM UTC Sunday slot, it’s worth noting that window may retain some of its old character. Liquidity will thin as Globex goes offline, and the reopen at 11PM could still see brief volatility bursts as the market finds its footing. It’s a dynamic worth monitoring closely in the weeks ahead.

That era is now largely over. By aligning futures trading with bitcoin’s native 24/7 market structure, CME is reducing weekend risk premia and improving hedging efficiency for institutional participants. Asset managers, hedge funds, and corporate treasury desks can now manage exposure continuously rather than waiting for markets to reopen.

Still, CME remains behind where liquidity truly sits. Founder & CEO, Cole Kennelly at Volmex Labs, told CoinDesk, BlackRock’s IBIT ETF options currently holds roughly $27 billion to $30 billion in open interest, dwarfing CME Bitcoin futures options, which sit closer to $800 million to $900 million. That imbalance helps explain why the BVIV-US Index (BVUS), derived from IBIT’s deeper options market, has emerged as the preferred institutional benchmark for Bitcoin volatility.

Offshore perpetual futures and ETF options will likely retain their dominance for now. But CME’s shift to 24/7 trading removes a critical friction point.

As it stands, there are currently three open CME gaps, all created this year. Two sit above Bitcoin’s current spot price of roughly $73,000, one formed in late January near $80,000 and another around $78,500. The third remains open below the market, just under $70,000.

Italy’s Banca Sella has completed the notification process required under the European Union’s Markets in Crypto-Assets regulation (MiCA) with the Bank of Italy, unlocking authorization to offer crypto-asset services. The institution asserts that it becomes the first Italian bank to be authorized to provide crypto-asset services under MiCA, with plans to roll out a custody, transfer, and receipt solution for digital assets in 2026 targeting selected customer segments.

The Sella Group characterized the milestone as a meaningful step for Italy’s banking sector, providing a regulated entry point into digital assets amid a broader EU shift from crypto pilots to licensed custody, tokenized payments, and stablecoin infrastructure. The group notes that Banca Sella, the commercial bank of the Sella Group, operates nearly 300 branches and employs more than 2,400 people.

Andrea Tessera, managing director of digital banking at Banca Sella, framed tokenization as a driver of a payments landscape that will be “instant, interoperable, and programmable,” and positioned the bank’s forthcoming crypto service as part of that ongoing transformation.

According to the bank, MiCA authorization represents a regulated entry point for Italy’s banking sector into digital assets moving beyond pilots and partnerships toward full custody and related services under a harmonized EU framework.

In what prefaces a broader integration of crypto into traditional banking, Banca Sella also highlighted its prior crypto-related engagements, including participation in a distributed ledger technology (DLT) pilot promoted by the Bank of Italy’s Fintech Milano Hub in 2022.

The bank also noted its role in the creation of internal DLT and digital assets capabilities, and it is among the founders of Qivalis, a consortium of 37 European banks that aims to issue a euro-denominated stablecoin.

The legacy of Banca Sella’s crypto activities goes back to its digital banking brand, Hype, which partnered with Italian crypto firm Conio to offer Bitcoin wallet services. Conio has described its first banking integration as operational in March 2020 through the Hype partnership, enabling retail customers to buy, sell, send, and receive digital assets. Today, Hype’s offerings include a Bitcoin wallet accessed via the Hype app for seamless on-ramp/off-ramp activity.

Reflecting on scale, Reuters reported in 2024 that Banca Sella serviced roughly 1.3 million customers, while Hype served about 1.7 million customers, underscoring the breadth of the group’s reach prior to MiCA-aligned expansion.

This development arrives as European financial institutions increasingly align with MiCA’s regulatory framework, transitioning from crypto experiments to licensed custody, payments, and infrastructure for tokenized assets and stablecoins. The MiCA regime is designed to create a consistent, pan-EU standard for crypto-asset service providers, with implications for licensing, supervision, AML/KYC practices, and cross-border activity among banks, exchanges, and other financial institutions.

With Italy’s largest commercial bank brands edging into regulated crypto services, observers will watch whether additional lenders follow Sella’s lead, how custodial and settlement capabilities evolve, and what this means for cross-border operations within the Eurozone. The move also places regulatory and enforcement considerations at the forefront—clarifying licensing requirements, customer protections, custody standards, and the governance of tokenized payments and stablecoin arrangements across European jurisdictions.

Key takeaways

• Banca Sella has obtained MiCA-related authorization from the Bank of Italy to offer crypto-asset services, becoming the first Italian bank to do so under the regulation.
• The bank plans to launch a crypto service in 2026 focused on custody, transfer, and receipt of digital assets for selected customer segments.
• The milestone marks a regulated entry point for Italy’s banking sector into digital assets within a harmonized EU framework, signaling a shift from pilots to licensed infrastructure for custody, tokenized payments, and stablecoins.
• Banca Sella’s crypto footprint includes prior exposure through Hype (its digital banking brand) and Conio, as well as participation in the Bank of Italy’s 2022 Fintech Milano Hub DLT pilot.
• The group is a founder of Qivalis, a European bank consortium pursuing a euro-denominated stablecoin, reflecting broader industry moves toward central-bank–backed or tokenized monetary infrastructure.

Regulatory and ecosystem context: MiCA, governance, and cross-border implications

MiCA provides a unified regulatory approach for crypto-asset service providers across the European Union, aimed at aligning supervision, licensing, and consumer protections. The Italian authorization for Banca Sella demonstrates how national regulators are translating MiCA into concrete operating licenses for traditional financial institutions willing to expand into digital assets. This evolution matters for banks, exchanges, and custodians seeking scalable, compliant access points to crypto markets, as well as for institutional investors evaluating regulated custody and settlement environments across Europe.

From a policy perspective, the development highlights the interplay between supervision and innovation: authorities are calibrating enforcement, risk management standards, AML/KYC controls, and governance practices as licensed entities handle tokenized assets and potential stablecoin infrastructure. For banks, regulatory clarity on custody standards and the scope of permissible crypto activities under MiCA will influence licensing strategies, internal risk frameworks, and the design of customer protections in digital assets programs.

Historical context and ecosystem implications

The Sella Group’s crypto trajectory has been characterized by a blend of internal capability-building and external collaboration. The Bank of Italy’s 2022 DLT pilot, conducted through the Fintech Milano Hub, provided early exposure to distributed ledger technology and its potential applicability to financial services. Banca Sella’s subsequent formation of an internal DLT and digital assets team signals an intent to operationalize crypto capabilities within a regulated banking framework.

As a founder of Qivalis, Sella aligns with a broader European push to explore euro-denominated stablecoins as a bridge between traditional financial rails and new digital settlement mechanisms. The Qivalis initiative, backed by a coalition of European banks, signals industry readiness to consider standardized, cross-border settlement formats that leverage digital currency tokens while adhering to prudential and consumer-protection standards.

Conio’s 2020 integration with Hype marked an earlier, practical foray into consumer crypto services within a banking-enabled ecosystem. Hype’s Bitcoin wallet functionality—available to retail customers—illustrates how bank-affiliated digital brands have historically served as early on-ramps, even as MiCA regulatory expectations matured. The ongoing transition from such pilots to licensed, institutionally governed services represents a notable shift in the European crypto infrastructure landscape.

Market observers also note the regulatory implications for banks’ relationships with crypto firms and fintechs. As institutions begin to offer compliant crypto custody and settlement, third-party service providers and partner ecosystems will need to align with enhanced AML/KYC standards and custody governance. This alignment is critical not only for consumer protection but also for ensuring the resilience of broader financial market infrastructure as digital-asset activity scales within regulated channels.

Closing perspective

Italy’s MiCA milestone for Banca Sella signals a tangible step toward a more integrated, regulated digital-asset ecosystem within Europe. The next developments to watch include how additional Italian banks pursue MiCA authorizations, how custody and settlement infrastructure evolves for licensed institutions, and how cross-border supervisory coordination shapes the deployment of tokenized payments and stablecoins within the Eurozone. While the regulatory path remains dynamic, the alignment between traditional banking and digital-asset services appears to be gaining regulatory legitimacy and operational clarity, underpinned by MiCA’s harmonized framework.

Bitcoin price has fallen toward the $73,000 region after a wave of ETF outflows, derivatives pressure, and long liquidations triggered fresh panic across the crypto market.

According to crypto.news price data, Bitcoin (BTC) price dropped more than 4% over the past 24 hours and briefly touched the $72,800 area on May 28 after bulls failed to reclaim the $80,000 psychological resistance zone earlier this week. Ethereum, Solana, XRP, BNB, and Hyperliquid also posted sharp losses as total crypto market capitalization slid below $2.5 trillion.

The latest sell-off came as institutional investors rapidly reduced exposure through spot Bitcoin ETFs. Data from SoSoValue showed U.S. spot Bitcoin ETFs recorded nearly $733 million in net outflows on Wednesday alone, the largest single-day withdrawal since February. BlackRock’s iShares Bitcoin Trust led the decline with roughly $527.8 million in outflows, its second-largest daily bleed on record.

Over the past three weeks, spot Bitcoin ETFs have collectively lost more than $3 billion. The sustained withdrawals have removed a major source of spot demand that helped drive Bitcoin’s recovery earlier this year. At the same time, Coinbase Premium has turned negative, showing weakening buying activity from U.S.-based institutional and retail participants.

Macro pressure has also intensified after oil prices surged amid renewed Middle East tensions. Traders have reduced exposure to risk assets after reports surrounding potential disruptions tied to the Strait of Hormuz and uncertainty around U.S.-Iran negotiations.

Rising energy prices have complicated expectations for Federal Reserve rate cuts, especially as investors remain cautious ahead of upcoming U.S. inflation data.

Meanwhile, derivatives traders are now focused on one of the largest Bitcoin options expiries of the year. Data from Deribit shows over  $6.25 billion worth of Bitcoin options contracts, representing around 85,679 BTC contracts, are set to expire on Friday, May 29.

The largest concentration of call options sits near the $80,000 strike, while heavy put positioning has formed around the $75,000 region. Deribit’s max pain level currently stands at $75,000, the price where the highest number of contracts would expire worthless.

Options positioning has become increasingly problematic for bulls because Bitcoin is now trading well below the main concentration zones heading into settlement.

Analysts tracking derivatives flows noted that traders had spent much of the past month positioning for BTC to stabilize near higher expiry regions before the market abruptly reversed lower this week.

Analyst Ardi warned that Bitcoin’s move away from the major options positioning zones ahead of expiry could leave bullish traders trapped.

“When we see price moving away from the major areas of options positioning into expiry, it usually means one side of the market is about to get trapped badly….So right now, the bulls are the ones under pressure,” said Ardi

At the same time, liquidation activity has intensified across leveraged markets. CoinGlass data shows nearly $330 million in Bitcoin long positions were liquidated over the past 24 hours, contributing to more than $870 million in total bullish liquidations across the broader crypto market.

Bitcoin loses key support as liquidation clusters build near $71K

The technical structure has also weakened considerably following Bitcoin’s rejection from the $82,000 region earlier this month. On the daily chart, BTC has now broken below several short-term moving averages while continuing to print lower highs and lower lows.

The MACD histogram has extended deeper into negative territory, while the MACD line itself remains below the signal line after confirming a bearish crossover earlier this week. Meanwhile, the Relative Strength Index has fallen toward the 35 level, placing momentum near oversold territory but without showing a confirmed bullish divergence yet.

A separate chart shared by trader Altcoin Sherpa in a May 28 X post, showed Bitcoin losing support across the 4-hour exponential moving averages after failing to hold above the $76,000 region. The analyst warned that a sustained breakdown from current levels could drag BTC toward the $71,000 area.

“BTC close here and I think we go to 71k or something around there. 4h EMAs lost the bullish trend but I still think we’re fine in the overall context,” noted the analyst.

Meanwhile, analysts at Crypto World said Bitcoin has continued showing weakness after facing rejection near the $78,000 region earlier this week. The analysts noted that $73,700 remains the immediate support level to watch on the 4-hour chart.

According to them, a successful defense of that zone could trigger a short relief rally due to a bullish RSI divergence forming at current levels. However, failure to hold above support may expose Bitcoin to a deeper decline toward the next major support area near $71,000.

CoinGlass liquidation heatmaps also show large liquidity clusters sitting between $71,000 and $72,000. Those zones often attract price action during periods of elevated leverage because market makers and large traders tend to target heavily concentrated liquidation pockets.

Below that region, thinner liquidity conditions extend toward the $70,000 psychological support level. A decisive breakdown beneath $71,000 could therefore accelerate volatility rapidly if another wave of long liquidations enters the market.

Despite the heavy selling pressure, some traders believe the current correction still remains within the structure of a larger bullish cycle. Bitcoin continues to trade above its March swing lows, and spot demand has not fully disappeared despite the ETF outflows.

ETF outflows and options expiry leave bulls defending $70K support

Institutional positioning, however, remains fragile ahead of Friday’s expiry event. Market makers often hedge aggressively near large options settlements, especially when spot price moves sharply away from major strike concentrations. With Bitcoin trading several thousand dollars below the dominant $80,000 call wall, hedging flows may continue adding pressure into settlement.

Order book data also shows buy-side liquidity concentrated primarily between $72,000 and $74,000. If those bids weaken during U.S. trading hours, traders may begin targeting the $70,000 support floor directly.

Funding conditions across derivatives exchanges have also deteriorated. Several perpetual futures markets briefly flipped negative after the latest sell-off, showing traders are increasingly positioning for further downside rather than expecting a quick rebound.

Meanwhile, open interest has started declining alongside price, a sign that leveraged positions are being forcefully closed rather than rotated into fresh longs. Combined with negative Coinbase Premium readings and continued ETF withdrawals, the setup has left bulls with limited short-term catalysts ahead of expiry.

For now, traders remain focused on whether Bitcoin can defend the $72,000-$70,000 support range through Friday’s settlement window. Failure to hold that region could expose BTC to a deeper correction toward the mid-$60,000 area, while a recovery back above $75,000 may ease immediate pressure and reduce the risk of another liquidation cascade.

• Bitcoin (BTC) is down to around $73K amid ETF outflows and geopolitical tension.
• Over $2B in ETF outflows and $900M liquidations added selling pressure.
• The key support sits at $72,650 with RSI near oversold levels at 34.82.

Bitcoin slipped below the $73,000 level as a combination of geopolitical escalation, heavy ETF redemptions, and large institutional sell pressure weighed on the market.

At the time of writing, Bitcoin was trading around $73,235, after briefly touching an intraday low of $72,604 from a high of $74,490.

The decline has extended a multi-week decline that has already erased more than 8% over the past 14 days and nearly 33% over the last year.

Geopolitical shock and forced liquidations accelerate the downtrend

The sharpest part of the decline came after renewed US military strikes on Iran, which triggered a broad risk-off reaction across global markets.

Crypto assets were hit particularly hard due to their higher leverage exposure.

During the selloff, more than $900 million in crypto positions were liquidated, according to market data compiled during the session.

The liquidations were concentrated in over-leveraged long positions, which forced additional selling into already weakening order books.

This cascade effect pushed Bitcoin below the $73,000 threshold and briefly accelerated downside momentum before stabilising within the day’s range.

The move also coincided with increased correlation to traditional risk assets, with Bitcoin’s correlation to the Nasdaq Composite reported at 0.96, one of the highest levels seen in recent months.

Bitcoin ETF outflows deepen institutional selling pressure

Alongside macro-driven volatility, institutional flows added sustained pressure on Bitcoin’s price.

Spot Bitcoin exchange-traded funds recorded eight consecutive days of net outflows, marking one of the longest negative streaks since their introduction.

On May 27 alone, ETF outflows reached approximately $733 million, contributing to a broader net withdrawal exceeding $2 billion since mid-May.

These redemptions reflect consistent selling pressure from institutional investors, reducing exposure during the recent downturn.

The largest pressure point during the session was linked to a reported $1.3 billion institutional ETF-related block trade, involving approximately 29.2 million shares of BlackRock’s iShares Bitcoin Trust (IBIT), executed at an estimated price of $43.16 per share.

The trade was reportedly processed through private market channels before the impact was reflected in spot markets.

Following the execution, Bitcoin dropped roughly 1.4% to 1.5% within minutes, suggesting that liquidity conditions were thin enough for large orders to influence short-term pricing.

This added to the existing ETF-driven selling momentum already in place across the market.

Bitcoin price outlook

Over the past month, Bitcoin has declined by about 4.7%, while the 14-day drop of 8.4% points to a broader downtrend that has steadily developed in recent weeks.

The asset remains well below its highs, trading roughly 42% under the $126,080 peak recorded in October 2025.

Even with the pullback, market activity has remained elevated, with daily trading volume above $44 billion, suggesting that both institutional and retail participants are still actively positioning rather than exiting the market entirely.

This sustained activity suggests that the current move is being driven more by repositioning and flow shifts than by a drop in overall participation.

From a technical perspective, Bitcoin has broken below its 20-day, 50-day, and 100-day moving averages, reinforcing a bearish short-term structure.

The immediate focus is now on the $72,650 support level, which represents the most recent swing low and the key area separating consolidation from deeper downside pressure.

On the upside, the nearest resistance is the 50% Fibonacci retracement level at $74,332, which has now become the first meaningful barrier for any recovery attempt.

If ETF outflows continue or geopolitical tensions remain elevated, a decisive break below $72,650 could expose the market to a potential move toward the psychologically important $70,000 level, where liquidity and buyer interest may be tested more aggressively.

At the same time, momentum indicators are showing early signs of exhaustion on the downside, with the 14-day RSI at 34.82, placing Bitcoin near oversold territory and increasing the likelihood of short-term relief bounces within the broader downtrend.

Aave Labs subsidiaries Push Labs Limited and Push Virtual Assets Limited have received approval from the UK Financial Conduct Authority to operate as registered cryptoasset exchange providers in the country.

According to an announcement shared with crypto.news, the registrations add to the group’s existing FCA Electronic Money Institution authorization and create a dual regulatory structure that allows the company to offer regulated cryptoasset services alongside electronic money operations in the UK.

The approvals come as Aave Labs continues expanding its regulated presence across Europe following its November 2025 authorization under the European Union’s Markets in Crypto-Assets Regulation framework. At the time, Push Virtual Assets Ireland Limited secured a Crypto-Asset Service Provider license from the Central Bank of Ireland, allowing the company to passport services across the European Economic Area.

Stani Kulechov, founder and CEO of Aave Labs, said the UK registrations provide the regulatory base needed to launch “next-generation, zero-fee onchain consumer financial products” in the market.

“With regulatory permissions now established across both the UK and EEA, we are well positioned to scale product development and deliver secure, trusted user experiences across these markets in line with applicable regulatory requirements,” he added.

UK approvals expand Aave Labs’ regulated footprint

Operating under the FCA’s Electronic Money Regulations 2011, Push Labs Limited is authorized to issue electronic money in the UK. Combined with the new cryptoasset registration, Aave Labs said the structure allows the company to build fiat-to-crypto infrastructure designed for onchain financial services.

Within the announcement, the company also linked the regulatory approvals to its strategy of combining blockchain infrastructure with regulated financial products targeted at mainstream users. Aave Labs said the UK and European permissions would support the rollout of zero-fee stablecoin and on-and-off ramp services.

Under the FCA registration framework, Push Labs Limited and Push Virtual Assets Limited were approved as cryptoasset exchange providers for anti-money laundering purposes under the UK’s Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

DAO funding plan backs expansion efforts

As previously reported by crypto.news, Aave Labs received fresh backing from the Aave DAO after token holders approved a funding package worth $25 million in stablecoins and 75,000 AAVE tokens under the “Aave Will Win” framework. 

According to the governance proposal, the stablecoin allocation will cover operational costs over the next 12 months, while the AAVE token allocation will vest across four years.

At the same time, the proposal changed how revenue generated by products tied to the Aave ecosystem would be handled. According to the approved framework, income from services such as Aave Pro will move directly into the DAO treasury, while the community treasury assumes responsibility for funding Aave Labs’ operations.

Aave Labs previously said the strategy was designed to position the protocol for increased institutional participation as more financial firms move on-chain under emerging regulatory frameworks. The company also confirmed Aave V4 as the protocol’s long-term technical architecture.

Despite the proposal receiving roughly 75% support from token holders, some community members questioned the size of the funding package and the governance influence tied to the token allocation. Concerns around the handling of the proposal process later prompted the Aave Chan Initiative, one of the protocol’s prominent delegates, to reduce its involvement in DAO governance.

European currencies continue to trade within established ranges following the heightened volatility of recent weeks. Last week, both EUR/USD and GBP/USD declined before staging a recovery; however, the pairs are once again testing important support levels without developing a sustained directional impulse. Market participants remain cautious amid the absence of fresh geopolitical catalysts and ahead of key macroeconomic data releases from the United States.

Investor attention is primarily focused on the publication of US core Personal Consumption Expenditures (PCE) data, GDP figures, and durable goods orders. These indicators could significantly influence expectations regarding future Federal Reserve policy and determine the next direction for the dollar. Additional market influence is also coming from comments by Bank of England officials and European data on business activity and consumer confidence.

EUR/USD

EUR/USD continues to display sideways dynamics within the 1.1600–1.1660 range. Technical analysis of EUR/USD points to the possibility of a retest of last week’s low near 1.1570 should 1.1600 shift into resistance territory. A resumption of upward movement would only become likely after a confident break and consolidation above 1.1660.

Key events for EUR/USD:

• today at 11:00 (GMT+3): Italian consumer confidence index;
• today at 13:00 (GMT+3): Spanish business confidence index;
• today at 15:30 (GMT+3): US core Personal Consumption Expenditures (PCE) price index.

GBP/USD

Following an upward correction, GBP/USD has once again come under pressure. However, the recent low near 1.3300 remains intact, preserving the likelihood of continued range-bound trading. Technical analysis of GBP/USD indicates the possibility of a test of the nearest support zone at 1.3370–1.3390. A break below this area could lead to a decline towards 1.3300, while a confident rebound from it may return the pair to the 1.3460–1.3500 range.

Key events for GBP/USD:

• today at 11:05 (GMT+3): speech by Bank of England Financial Policy Committee member Sarah Breeden;
• today at 15:30 (GMT+3): US GDP data;
• today at 17:00 (GMT+3): US new home sales.

Overall, EUR/USD and GBP/USD continue to trade in conditions of range-bound price action and subdued market activity. The further direction of European currencies will depend on the release of key US economic data, comments from central bank officials, and the broader dynamics of geopolitical risks across global markets.

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