Bitcoin Price Back on The Rise, Consumer Spending In The UK Falls In Light Of Inflation And The US Dollar Continues to Strengthen

Saxo Bank: When growth stocks are no longer growth

Summary:

  • Bitcoin prices are increasing today after breaking support levels overnight.
  • With consumer spending decreasing in the UK, the GBP is struggling to fight against the US dollar strengthening.
  • With Australian inflation continuing to rise, the currency is weakening against and already strong USD.

BTC/USD prices are increasing despite bearish market sentiment.

We know that Bitcoin was the world's first digital currency and that its price is very volatile, making it historically popular for speculating traders. On Friday the price of Bitcoin dropped below $40 000, this reflected the midpoint of a 3 month long trade range. The price of bitcoin has increased by 5.55% since this morning. While market sentiment remains uncertain, current rises in the price of Bitcoin will likely be limited.

As of this morning news broke that U.S Fidelity will allow employees to put Bitcoin into their 401(k) retirement savings accounts starting later this year, giving more people access to cryptocurrencies.

BTC/USD | Bitcoin To USD

Bitcoin Price Chart


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GBP Weakening against the USD.

Market sentiment for this currency pair is bearish at the moment, the USD has been strengthening against the GBP over the past week. This strengthening comes with investor confidence being restored in the US dollar as a result of the Fed increasing yields for the 7th week in a row. The GBP inflation is causing a problem for this currency, as consumer spending decreases, the economy can expect a knock.

GBP To USD | GBP/USD

GBP/USD Price Chart

AUD Weakens against the USD.

Since the market opened this morning, investor sentiment for the AUD/USD pair is bearish. Yesterday the price of the AUD/USD pair hit its lowest since March. This comes with the USD strengthening, once again thanks to rising U.S yields as well as the negative news out of China causing investors to short riskier assets. In addition, the AUD is struggling post inflation expectation announcements, the inflation is expected to increase for 2 consecutive quarters. Inlight of this, the USD is benefiting hugely from the AUD weakening.

AUD/USD | Australian Dollar To US Dollar

AUD/USD Price Chart


Read next: U.S Yields Expecting Further Increases!?, Announcement Of PMIs Prelims For The Private Sector - FOREX Today 


Sources: dailyfx.com, finance.yahoo.com

Saxo Bank: When growth stocks are no longer growth

Rebecca Duthie

Remote Editor and writer Intern
FXMAG.COM

Rebecca has a bachelors degree in Investment Management, a Post Graduate Diploma in Financial Planning and is currently enrolled in a Masters program in International Management with a Specialization in International Finance.