- USD shows some signs of strength
- Bitcoin and crude oil prices edging higher
- Oil price also moving higher
Unlike last Monday, forex markets were unusually quiet yesterday. That meant fewer traders and reduced liquidity – and some rather unexpected spikes.
The USD started to show signs of strength yesterday morning, but this ended before most people even noticed it.
Crude oil and the Bitcoin cryptocurrency, however, made some noteworthy moves. Perhaps some of the liquidity that left the forex markets found its way to these two assets. On the H4 chart, WTI Crude Oil managed to break above its 200 SMA. Bitcoin is also above the moving average, so the trend is upbeat here.
The JPY was boosted overnight by higher Japanese yields, and the USD initially traded about 70 pips lower against this currency before showing some signs of strengthening.
An increase in the Swiss money supply was the only major news coming out of Europe. The cash in circulation, plus deposits, increased by 2.9% annually.
Bitcoin remained bullish, with some noteworthy bids in the morning. It started at $7,370 and climbed to $7,770 from there. It is now trading above its 100 SMA, and the buyers are definitely dominating.
Oil began to strengthen last week after losing close to $10 from its highest level in July. Yesterday, buyers made another move and the price broke through its 200 SMA, which served as a resistance level last week. The mood here is definitely confident at the moment.
Some time ago, a spokesperson for the EU Commission said that the meeting between US President Donald Trump and European Commission President Jean-Claude Juncker will “de-dramatize” trade discussions, but observers will be watching what happens closely to see how it impacts markets.