News

Dollar Slips Further; Bitcoin Rebounds Sharply

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses falling to 90.68, the lowest level since early March. The Federal Reserve and the Treasury yields are after this downtrend move that kicked off on March 31st. Despite the solid economic indicators out of the United States, the Federal Reserve officials mentioned on every occasion that there is no willingness to change policy in a sooner manner, which weighed again on yields. Therefore, the differential between US bond yields and rivals narrowed, driving the dollar lower against rivals. Market participants are looking forward to the Federal Reserve policy meeting later this week, to grasp insight into any possible changes to the policy later this year, especially after the Bank of Canada started tapering last week. The EURUSD rose to $1.2115, the GBPUSD rallied to $1.3906, and the USDJPY declined to 107.50.

Equities

Major US stock index futures continued recovering from the mid-week dip. The headlines on Biden's plans to double capital gains tax for America's richest led to a sudden sharp drop in equity markets. However, as Wall Street assessed the chances of this being passed in the House of Senates, stock benchmarks recovered almost fully. Investors will continue to watch out for any clues on the matter, while also realizing the first-quarter corporate earnings, with top US corporation revealing their numbers this week. The Dow Jones Industrial Average futures rose to 33997, the S&P500 futures advanced to 4174, and tech-heavy Nasdaq hovered near 13940.

Bitcoin

Bitcoin soared significantly during the Asian session, recovery from last week's sharp losses. The crypto market benchmark lost more than 27% from the top set on the 14th of April, with chatters on Biden applying 80% tax on cryptocurrency gains, fueling the move lower. The bitcoin found support near $47000, and rebounded sharply to $52920, gaining more than 10%.

Metals

Precious metals prices traded sideways for the past hours as US Treasury yields held steady. The US 10-year yields failed to break below 1.53%, but also didn't recover sharply yet. This is just allowing a kind of sideways movement. The price of a gold ounce held steady near $1777, the price of a silver ounce eased to $25.90, while palladium hovered near $2870.

Oil

Oil prices slipped during the Asian session as investors assessed the recent surge in covid19 cases. The world's third-largest oil consumer is suffering from a new variant that raised daily registered covid19 cases to more than 300,000. On the other hand, the supply could get a push if the world's superpowers and Iran succeed in reviving the nuclear deal. The West Texas Intermediate crude June contract dropped to $61.36, and the Brent blend June contract eased to $65.27.

Major Economic Events

GMT Country Event Expectation Previous

8:00

EZ

 German Ifo Business Climate Index (Apr)

97.8

96.6

12:30

US

 Durable Goods Orders (MoM) (Mar)

2.5%

-1.2%

 \

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