The US currency may have scored one of its worst days in two months. The EUR/USD pair rose from the 1.1530 region to above 1.1600, which could indicate a more significant turnaround.
The dollar's depreciation on the global currency market may in turn affect many other markets quoted in the US currency. We are talking about energy commodities, gold, as well as bitcoin.
Gold with its best week since May
The price of gold has risen since late September from around $1,720 to $1,800, and the rally seemed to accelerate with the losing dollar right after the release of the latest FOMC meeting minutes, when the market learned that tapering could take place in mid-November or mid-December, and for no more than $15 billion per month. Interest rate hikes seem more likely in late 2022. Moreover, inflation remains elevated in the U.S., and Fed officials are beginning to believe that it will not be at all as transitory as originally anticipated.
Oil with more than 3 percent increase
The price of crude oil may rise more than 3 percent this week, with a barrel of WTI still costing more than $81 and at its highest level in 7 years. According to this week's data, crude inventories in the United States fell by the strongest amount since June. In turn, the EIA agency believes that oil production in the USA will fall in 2021 more than previously expected. Production is not expected to increase until 2022.
Wall Street solidly up
The beginning of the results season in the USA did not bring disappointment. Banks publishing their data: Citigroup, Wells Fargo and Bank of America beat analysts' forecasts. As a result, S&P 500 index had its best session since March, according to Bloomberg agency. Summing up yesterday's session, the Dow Jones jumped 534.75 points, or 1.6 percent, to 34,912.56, the S&P 500 added 1.7 percent, as did the Nasdaq, which also climbed 1.7 percent.
Bitcoin near all-time high
The cryptocurrency market seems to have rebounded, as the price of bitcoin has risen about 50 percent in three weeks, to nearly $60,000 apiece, and is therefore already less than 9 percent away from its all-time peak. Bitcoin may have received support after news that the U.S. SEC will not mind approving the first ETF in the U.S. for bitcoin contracts. This, in turn, is expected to be a prelude to the introduction of a proper ETF for bitcoin, according to the market. The deadline for the SEC to issue a decision expires at the end of the year.
Daniel Kostecki, Director of the Polish branch of Conotoxia Ltd. (Forex service)
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