Is the winter of cryptomarket finally over? Or do we get ahead of ourselves when making this statement?
Greenback soars in the face of the US-North Korea summit
On Tuesday, the evergreen buck rallied to a three-week maximum due to the fact that traders are hoping for a positive outcome from the long-awaited summit of North Korea and America that could potentially relieve tensions on the Korean peninsula.
US leader Donald Trump started a historic meeting with North Korean dictator Kim Jong Ne in Singapore. Apparently, both sides expressed their wish to terminate differences on how to stop the nuclear conflict on the Korean peninsula.
On Twitter Trump posted that he enjoyed his visit to Singapore.
Reflecting the actual strength of the US currency against the group of six main currencies, the US dollar index jumped by 0.17% coming up with a reading of 93.72.
The currency pair USD/JPY tacked on 0.25% being worth 110.32, hitting a three-week maximum.
As the safe-haven currency, the Japanese often goes up in times of political tension as well as market turmoil. The surge of the evergreen buck versus Japan’s currency actually reflects upbeat mood that the summit will give a good outcome for the denuclearization of the isolated country.
Additionally, the currency pair USD/CNY managed to ascend to 6.4044. Besides this, China’s key financial institution set a base rate for the Chinese Yuan at about 6.4121 in contrast with yesterday's reading of 6.4064.
The next signals as for the outlook for the evergreen buck will probably come from the FOMC gathering expected to start on Wednesday. It’s highly anticipated that the Federal Reserve will have interest rates lifted for the second time this year, although traders pay more attention to whether there will be up to four rounds of policy tightening this year or not.
In addition to this, the Bank of Japan is going to have its monetary policy reviewed at a two-day gathering later this week. However, no adjustment is anticipated.
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