“In Asia Tuesday the USD stands at a 3-month low, with little support seen and continuing strong overhead resistance”— Paul Ebeling
USD is floating at the bottom of its recent range Tuesday on insistence from Fed that policy would stay on hold allayed investor fears about inflation forcing interest rates higher.
Investors are heavily short dollars in the belief that low US rates will drive cash abroad as the world recovers from the VirusCasedemic. They have become leery of adding to positions after an April rise in inflation cast doubt on the policy outlook, but seemed to find reassurance in data and Fed remarks overnight.
Asia trade was steady, with .DXY nursing a 0.2% overnight loss at 89.853 just above a 4-month low. EUR held a 0.3% overnight gainer and, at 1.2213, is close to testing resistance around 1.2245.
The Buck eased on the Australian and New Zealand dollars and the JPY.
JPY was last at 108.79/dollar while the Aussie and Kiwi drifted round the middle of ranges that have held them since April. The Aussie bought 0.7750 and the Kiwi 0.7211.
On the Crypto front
Bitcoin, the world’s largest cryptocurrency, was last up 12% at approximately 39,400, erasing losses of 7.5% from a day earlier/
Rther jumped nearly 19% to 2,491 after slumping more than 8% Sunday to near a 2-month low.
Bitcoin added to its gains late Monday following Tweets from Elon Musk that appeared to soften his stance against the environmental impact of the cryptocurrency. He said he IS in talks with North American Bitcoin miners about the crypto’s environmental impact.
Billionaire investor Ray Dalio Monday announced that he is holding bitcoin at Coindesk’s annual Consensus conference.
Have a healthy day, Keep the Faith!