Weekly Cryptonews
Cryptocurrencies are going down... What may signal a recovery?
Greenback dives to wager on Fed rate reversal
On Thursday, the evergreen buck faced heavy losses in Asia because the key US bank shocked the financial markets by giving up all of its plans to have rates lifted in 2019, which appears to be an indication that its three-year campaign to stabilize its monetary policy might be at an end.
Market participants rushed to price in the likelihood of rate cuts a bit later in 2019. Meanwhile, Treasury yields headed south to their lowest value since early last year.
The Fed's swerve pressured the evergreen buck, pushing it down to 110.67 yen – a 0.6% dive – the most impressive descend since the flash crash of early January.
As for the common currency, it rallied to a seven-week maximum, hitting $1.1424, rebounding from its recent minimum of $1.1177. It pushed the greenback down to 95.929 versus a group of currencies, having dived 0.5% overnight.
Previously, the Fed had tipped two rate lifts in 2019. Additionally, the major US financial institution also trimmed its estimates for inflation and economic surge, while increasing that for unemployment.
Yields on two-year notes headed south to 2.40%, which is in line with the effective funds rate, while five-year yields declined to 2.33%.
For the US currency, the only solace was the fact that other major banks worldwide have also turned quite dovish for recent months as surge speeded down pretty much everywhere.
The given need for stimulus simply means that many major financial institutions won’t be willing to see their currencies appreciate versus the evergreen buck, providing them with a reason to sound more accommodative.
Meanwhile, firm household spending along with business investment raised New Zealand’s GDP by 0.6% in the December quarter, assisting the New Zealand dollar to get to a seven-week maximum of $0.6923.
Similar
Jobs data for Australia may support the AUD
Australia will release the level of employment change and unemployment rate on August 15, at 4:30 MT time.
Wait for the inflation data for the US
The USA will release the levels of CPI and core CPI on August 13, at 15:30 MT time.
Latest news
Crypto assets decline as OECD demands global ICO regulation
On Monday, crypto assets tumbled due to the fact that the Organization for Economic Cooperation and Development drew attention to the necessity of the global regulation of initial coin offerings…
German exporters don’t care about stronger euro
German exporters demonstrate ascending optimism as for their business prospects because growing demand from other euro zone countries helps to compensate worries regarding the strengthening currency, as the Ifo economic institute told on Wednesday…
Japan's October machinery orders tack on
In October, Japanese machinery orders rebounded with a faster soar than anticipated, thus re-affirming the resilience of capital spending, which is a major driver in the Japanese economy's almost two-year expansion…
Deposit with your local payment systems
