The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Daily News: Thursday, February 22
The Fed’s meeting caused a lot of events on the FX market. Let’s look!
- The US dollar remains strong after the Fed’s minutes. Yesterday Fed’s meeting minutes just strengthened the confidence of soon rate hikes based on the upgraded forecast for the economic outlook since December. Talks about the fourth rise of the interest rate appeared immediately, however, it is too early to talk about it. The soonest rate hike is anticipated in March.
- The Fed meeting was followed by several consequents. The US stock market closed lower. The S&P 500 Index fell by 0.67%. Despite the Fed’s positive comments on the economy, investors focused on the rate hikes that will have a negative effect on the stock market in a short-term.
- The strengthening of the greenback led to the further plunge of the euro. The EUR/USD pair is lower 1.23. The only thing that can support the euro now is today ECB monetary policy meeting accounts (14:30 MT time) with views on a potential change in the forward guidance.
- The dollar is appreciating against all currencies except the yen. The USD/JPY pair is falling again. The yen is a safe haven currency that increases during times of uncertainty and decrease of risk appetite. As soon as speculations of a soon rise of the US interest rate reduced investor’s risk appetite and affected equities’ growth, the Japanese currency jumped.
- Canadian retail sales and core retail sales figures will be released today at 15:30 MT time. The forecast is lower than the previous data, so. The USD/CAD pair is climbing to 38.2 Fibonacci retracement level at 1.2720.
- Oil is continuing to fall. Strong dollar and today crude oil inventories data have affected oil prices again, so an increase of the American oil production is anticipated. WTI is trading near $61 a barrel, Brent is near $65 a barrel.
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.