The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Daily News: Monday, February 26
The US dollar could not continue its last week rise. Let’s look why.
- Tomorrow Mr. Powell will give his first speech as Federal Reserve Chairman (15:30 MT time). As traders are anticipating clues on US monetary policy, the US dollar is losing its positions. Powel seems to continue the Yellen policy, so the Fed will increase interest rates gradually.
- As the US dollar started Monday with the fall against the currency basket, the euro could stay steady. EUR/USD pair is rising, however, it is still moving in the channel of 1.2260-1.2360. The volatility is anticipated to continue until March 4, when results of two important for the EU elections (Italian parliamentary and German coalition) will be announced. Moreover, today we waiting for the ECB President speaks at 16:00 MT time that may affect the pair as well.
- The yen is appreciating against the US dollar again. The first reason is the dollar’s decline. The second one is hidden in the speech of the BOJ Governor Mr. Kuroda. He said that he has no plan to review the BOJ’s monetary policy. So the quantitative easing is continuing. The pair is near 106.5, moving to the crucial level of 106.
- Other currencies are also appreciating against the US dollar, however, no important events are anticipated in next couple of days.
- Gold is appreciating based on the US dollar’s decline too. Gold could recover after the worst week in more than two months. It is trading above 1340 an ounce.
- Oil was near its three-week highs supported by comments of Saudi Arabian Oil Minister. He hopes that the OPEC and its allies will be able to create frameworks to stabilize oil markets after the end of the output cuts policy at the end of 2018. So 2019 will bring an easing of the production constraints. However, oil is under the risk because of the worries over US crude production. Oil is already declining. So the volatility is high.
- Bitcoin is continuing to fall. It fell below an important level of $9,500 and now is trading near it. The next support lies at $8,300, so it has a long way to recovery. However, Bitcoin recently attracted new investors because of volatility on the stock market. So there are good chances for Bitcoin to come back above $10,000.
On Wednesday, China posted shockingly weaker surge in retail sales as well as industrial output for April, thus increasing pressure on the Chinese cabinet to roll out more stimulus because the trade conflict with America escalates…
In April, American import prices surged less than anticipated in April due to the fact that jumps in the cost of food and petroleum were tamed by the largest tumble in the price of capital goods for a decade, dropping a hint at the fact that inflation…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.