The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Daily News: Wednesday, February 21
The US dollar is recovering. Let’s look how it is affecting other currencies.
- The dollar index rose for the second day after it reached the three-year lows last week. Traders are waiting for the FOMC minutes. The FOMC will give explanations about the most recent meeting and give some clues about the future monetary policy. The Fed is anticipated to raise interest rates at the upcoming March meeting, it should support the greenback.
- The USD/JPY pair is climbing to resistance levels (108-108.30). The pair recovered because of comments of the Japanese vice minister of finance for international affairs. He sees the yen’s rise as excessive. Also, he supposes that the US economy will be robust, and the interest rate will rise. The increase of US Treasury yields will continue to support the US dollar as well. Such comments had the negative impact on the yen, so it will be difficult for Japanese currency to rise in the soon future.
- More data from Australia. The Australian dollar is continuing to fall. Data for the construction work in the fourth quarter of the year was much less than expected, however, it was not the most important indicator. Wage prices appeared bigger than expected, but it did not support the Aussie. The AUD/USD reached the level of 0.79, however, could not fix there and fell back to 0.7855.
- The pound is falling. GBP/USD is still below 1.40. As we expected yesterday, today data of average earnings index and inflation report hearings has not affected the cable. The data will be released at 11:30 MT time and the pound will have chance to rise only if the figures are much better than expected.
- Oil prices fell. The recovering US dollar and anticipated growth of the US production (data is tomorrow at 18:00 MT time) put the oil prices under pressure. WTI fell from $62.38 a barrel to $61.20 a barrel. Brent decreased from 65.67 to 64.80.
- Bitcoin met a resistance and turned back. Bitcoin could not rise above $11,500, the candle opened at $11,172 and closed at $11,218, it is called the shooting star. Such candle means the subsequent fall. So this day the cryptocurrency started with decline.
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