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XTB TRADEBEAT

USD rise gaining traction; Bitcoin pulls back to test key level

Summary:

  • USD adds to recent gains. Bond market suggests further upside ahead
  • USDCAD rises off 3-month low
  • Bitcoin has found some support today at an interesting level
  • Oil.WTI makes another break higher to trade at levels not seen since 2014
  • Euro area jobless rate falls to lowest level this decade

It’s been another day of appreciation for the US dollar, with the world’s reserve currency moving away from the lows seen last week. The EURUSD has fallen down to trade in the low 1.19s and a quick look at the bond market suggests there could be further downside ahead.

 Another pair which is showing the strength of the US dollar is USDCAD which has moved off a 3-month low on Friday and looking to recover the declines seen after both the US and Canadian jobs reports. This pair could be particularly interesting in the coming days with US data and the BOC meeting next week where they are expected to raise rates for the third time in 6 months.

 Bitcoin began the day under pressure once more after news from South Korea that officials are investigating banks that offer trading in the cryptocurrency. However, this weakness has subsided as the day wore on and with price holding above the 50 day SMA there could be a recovery of the recent declines ahead. 

Oil benchmarks have made a move higher this afternoon with Oil.WTI taking out its previous peak to trade at its highest level since December 2014. The market has enjoyed an incredible run higher over the past 6 months and traders will be eagerly anticipating tonight’s API inventory data and tomorrow’s ODE equivalent for signs of further gains or a potential pullback. A technical overview of the market can be found here.

Although wage pressure across the European economy keeps moving below ECB’s expectations, the labour market continues improving on the back of strong economic momentum. The unemployment rate for November fell to 8.7% - the lowest level since January 2009 in another strong data point from the bloc. Even as the jobless rate sticks to its downward trend the single currency did not take advantage of the reading and the EURUSD has fallen lower on on the day. 

 

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