U.S. Dollar And Bitcoin On The Rise, USDCAD Under Pressure
Categories: Crypto News US
U.S. Dollar And Bitcoin On The Rise, USD/CAD Under Pressure
The USDollar is on the rise again as we approach the opening of the US tradingsession. This is potentially due to lower inflation starting to wear off andthe Federal Reserve members refraining from a dovish tone.The speeches of various Fed membersover the past 24 hours have confirmed that inflation remains high and that wedo not yet have an indication if inflation will continue to decline. This is,of course, especially true as many assets, such as the energy market, continue to see high levels of volatility,and the employment sector continues to see higher wage growth.
Othermarket areas are also showing signs of volatility and reacting to the USDollar. The stock market futures indicate that demand for stocks continues toremain steady, with all three major US indices up today.
TheCanadian Dollar has been strengthening its position this week. This is mainly due to the US Dollarcoming under pressure after July inflation figures and the oil price soaringsince it has been correlated to the USD for several years. However, over thepast few hours, the price seems to indicate that the Dollar will not go downwithout a fight.
The USDollar Index has increased - a phenomenon which can also be seen in the USD/CAD. In addition, the price of oil hasalso slightly declined to put further pressure on the Canadian Dollar. Tradersare waiting to see if the price will be able to break higher than yesterday’sretracement, which may also entice further trend traders.
Investorswill also plan their trades for next week, where the asset is likely stronglyinfluenced by the Fed’s Meeting Minutes and the Consumer Price Index for theCanadian economy.
Manyinvestors have questioned why oil prices have increased over the past two days.They rose mainly due to robust July data on Chinese exports, which reflected anincrease of 18%, and the forecast of the International Energy Agency(IEA) for an increase in energy demand for the current year by 380 thousandbarrels per day.
This weekBitcoin looks like it's on track to end the week slightly higher. The price ofthe asset is slightly lower, with a decline measuring 0.75% today, but theweekly performance looks set to be above 2.25% unless a strong decline is witnessedin the coming hours. The total market capitalization increased to $1.134trillion, and Bitcoin's market share was just above 40%.
Thismay also be due to uncertainty specifically linked to the industry over thepast two months after several firms have closed their doors and had issues withdelays in withdrawals. On the other hand, market capitalization has increased,which may signal that investors are again returning to the market.