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XTB TRADEBEAT

Bitcoin hits new record high; CAD slips after CPI data

Summary:

  • Bitcoin makes new all-time high just shy of $8000
  • CAD under pressure after CPI release
  • Gold edging higher despite rebound in US housing data
  • US yield curve at flattest level since 2007
  • Turkish Lira set for record low weekly close

It’s been the amazing week on Bitcoin as the most famous digital currency has made a tremendous U-turn falling from almost $8000 to close to $5500 just to climb once again towards $8000 - all it means that volatility has reached as much as 29%. Let us remind that Bitcoin has bounced back after trimming $38 billion in market capitalization on Monday following the cancellation of a technology upgrade as known as SegWit2x.

The final major economic data release of the week has seen Canadian inflation figures come in inline with forecasts with a M/M CPI reading of +0.1% vs +0.1% expected and +0.2% previously. The Y/Y figures were also inline with a print of 1.4% matching expectations. The market has seen a little weakness in the Canadian dollar post-release with USDCAD rising above the 1.28 handle to its highest level of the week.

Gold has risen this afternoon despite some strong data on the US housing market and a relatively benign session for US stocks. The market attempted to break out of the range seen over the last month (from 1260-1290) back on Wednesday but the rally was met with a stern rebuttal. 

Over the course of the recent days there have been many stories with regard to the flattening US yield curve, regardless of which a part of the curve we mean. For instance the 2s10s spread has narrowed from 1.3% to below 0.65% since the beginning of this year making itself the lowest since October 2007. 

It’s been another week of declines for the Turkish Lira, with the currency falling to its lowest ever level against the Euro on Tuesday. Barring a dramatic reversal before tonight’s close the EURTRY pair is set for its highest ever weekly close with the 15 year uptrend showing little sign of abating

 

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