Forex Update: Bitcoin recovering, USD on the upper end of its range and drop in treasury yields

On the 10th of June 2021, the markets were experiencing the calm before the double storm of US CPI and the ECB decision. In spite of the drop in the treasury yields with the dollar has been holding up while gold and oil are on a downward slide and cryptocurrencies are getting together the gains it received on Wednesday. Treasury yields have been at a disadvantage, as returns on 10-year bonds are dropping below 1.50%, repudiating the rise in the dollar and the decrease in gold and oil price. The pound sterling also has been strengthening to 1.41 in the midst of several concerns and the highest number of daily cases being reported today since late February of 2021 while the Delta COVID-19 variant continues infecting a lot of people notwithstanding Britain’s well-advanced immunization strategies.

Ahead of the release of US Consumer price index data the US dollar is in the higher end of the spectrum. Headline inflation predicted to expedite to 4.7% YoY and a reading of 5% could activate a visible upside move in the US dollar. In addition to that core CPI is estimated to rise to 3.5% YoY. Lastly, Bitcoin has also on the path to recovery after its recent downfall and has received a boost from El Salvador’s decision to include the father of all cryptocurrencies as a legal tender. Furthermore, one of the world’s largest trading houses, Interactive Brokers, is reported to allow trading cryptos.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More