Bitcoin, the broader cryptocurrency market, commodities like gold, silver, and oil, and the stock market remain in the green this week except for the U.S. dollar.
The DXY index saw a sharp slump this month, as the U.S. dollar fell from a high of 104 to a low of 102.83 on Tuesday. Gold prices climbed above the $2,170 mark and Bitcoin breached the $72,000 level this week. While all possible assets are skyrocketing in price, the U.S. dollar is retracing its gains.
Even other leading currencies like the Euro and Pound performed better against the USD. Euro had reached a two-month high vs the USD, while the Pound rose 0.08% to $1.2822.
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The U.S. dollar is dipping as currency investors await for the key inflation report on Tuesday. Currency investors remain on guard and are not going full in on the USD due to the upcoming CPI data. A negative report could send the USD swindling further, therefore, investors remain cautious of the markets today.
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Investors minimized trading with the USD citing the CPI data could eat into their profits. However, Tuesday’s inflation report will provide further clarity on how the U.S. dollar currency will pick up steam and move forward in the DXY index.
In addition, currency investors are also looking at the Federal Reserve’s commencement of the interest rate easing cycle in June. The CME FedWatch tool reported that the Feds could raise interest rates during Q2 of 2024.
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“Were we to get a 0.2 percent, I think the market will be back on the scent of a possible May first Fed rate cut, and if we were to get a 0.4 percent, I think the market will be casting some doubt on a cut as early as June,” said Ray Attrill, Head of FX Strategy at National Australia Bank (NAB).
Disclaimer: Our articles are NOT financial advice, we are not financial advisors. All investments are your own decisions. Please conduct your own research and seek advice from a licensed financial advisor.
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