quick take

The US Dollar Index (DXY) is trending downwards, breaking below 100 for the first time since April 2022’s big rally. A year earlier, in May 2021, the DXY index dropped to 90, but has since dropped to just 90. It is expected to hit an impressive high of 114 by October 2022.

This sharp rate hike was the result of the Federal Reserve’s decision to raise rates quickly and significantly, making it the largest rate hike in 40 years. The immediate result was a significant decline in risk assets.

Nevertheless, inflation is currently on a disinflationary trajectory. Market expectations are for the Federal Reserve to raise another modest 25 basis points, pushing rates down to a range of 5.25% to 5.50%.

Major currencies such as the British pound (GBP), the Japanese yen (JPY) and the euro (EUR) have risen in the foreign exchange market. The pound gained significantly and reached the $1.30 level. On the contrary, the JPYUSD exchange rate is below 140 yen.

This shift has paved the way for a rally in risk-on assets, which is already evident in US equities.

Despite this, Bitcoin maintains a clear lack of correlation with US stocks. Furthermore, it also shows that Bitcoin has the lowest correlation with: Money, by the 30-day moving average (30DMA). So it looks like we may have to wait a little longer for Bitcoin to shine.

DXY: (Source: TV)
DXY: (Source: TV)

 

The post Changes in global currency and asset market trends have been displayed for the first time on CryptoSlate.

By Jules

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