The first part of the week was more than optimistic for Bitcoin. However, now it is going through the correction phase.
Daily News: Wednesday, March 7
White House economic adviser Gary Cohn announced his resignation. Mr. Cohn’s free trade policy does not combine with Trump’s tariffs on steel and aluminum. Markets reacted to this news. Let’s see.
- Asian stocks and US stock futures declined. S&P 500 Index futures plunged over 1%.
- Bonds declined as well. The yield on 10-year Treasuries fell more than three basis point.
- The JPY is rising again based on the Cohn’s resignation. USD/JPY reached the support at 105.5 but could not break it. Now the pair is trading near 105.7.
- Oil fell based on the expansion of US crude production and risks of the US metal tariffs. According to the report of the American Petroleum Institute, the U.S. crude inventories rose by about 5.7 million barrels. WTI appeared below $62 a barrel. Brent was near $65. However, now WTI and Brent are trying to recover.
- The Aussie fell after the three-day strengthening because of the bad GDP data. The actual figure is lower than expected (0.4% vs 0.5%). The AUD/USD pair climbed to the resistance at 0.7828 but could not break it. The support lies at 0.7710.
- According to a Reuters poll, the greenback will not be able to strengthen until the Fed raises interest rates at least 5 times. The hawkish mood of the Fed will not be able to support the greenback. The fiscal stimulus will be the major factor that will influence the dollar. The budget and the current account deficits are supposed to increase in next years and reach levels that will negatively affect the dollar in the medium- to long-term.
- Negative forecasts on the dollar’s growth support the euro. The euro is improving its positions. The EUR/USD pair has reached the resistance at 1.2435, if it is able to hit it, the euro will continue to go further.
- More news on the US tariffs. The White House is considering the opportunity to put down Chinese investments in the USA and imposing tariffs on a broad range of its imports.
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.