As data drops, the dollar weakens vs the euro, while bitcoin hits a record high

As data drops, the dollar weakens vs the euro, while bitcoin hits a record high

Tuesday saw Bitcoin reach a new high as a result of investors flooding US spot exchange-traded cryptocurrency products with cash and the potential for a decline in interest rates globally.

Tuesday saw a decline in the value of the dollar relative to the euro as investors braced themselves for a busy week that would include the European Central Bank's rate decision, Federal Reserve Chairman Jerome Powell's testimony to Congress, and U.S. employment data.

Tuesday saw Bitcoin reach a new high as a result of investors flooding US spot exchange-traded cryptocurrency products with cash and the potential for a decline in interest rates globally.

According to the Institute for Supply Management (ISM), employment declined in February, which coincided with a small slowdown in the expansion of the US service sector. A separate set of statistics revealed that January saw a larger than anticipated drop in new orders for items manufactured in the US.

"ISM data shows that professional services sector growth slowed in February, largely due to an overall drop in employment levels, and this raised a few concerns about the condition of the US economy," said Equity's chief economist, Stuart Cole. Are." in big letters.

At $1.08675, the euro moved up 0.11% against the dollar.

However, the majority of significant currency pairings trade in well-known ranges.

According to Michael Brown, a market analyst at London-based online broker Pepperstone, "the G10 FX world remains incredibly quiet."

"There is some reluctance within most market participants to trade with determination ahead of Powell tomorrow, the ECB on Thursday as well as certainly the NFP (nonfarm payrolls) on Friday, perhaps exacerbating the cool settings at the start of the week," he said. Is not."

Better-than-expected U.S. economic data has helped the dollar index, which gauges the strength of the dollar against a basket of six currencies, rise almost 2.3% this year. However, the currency's surge has paused in recent sessions as investors wait for clarification. Regarding Fed policies.

When Chair Powell speaks before Congress on Wednesday and Thursday about inflation and the economy, she is expected to reiterate the Fed's position that it wants to wait for further evidence before reducing interest rates.

According to Christopher Wong, a currency strategist at OCBC in Singapore, "we should expect Fed Chairman Powell for staying patient and emphasize that it is no rush to cut rates."

The European Central Bank (ECB) is anticipated to maintain record-low interest rates at 4% during its meeting on Thursday to discuss policy. Investors will be monitoring fresh economic estimates and searching for any indications of when interest rates may begin to decline.

Business activity in the euro zone seemed to be improving last month, according to survey data released on Tuesday.

On Friday, the US jobs report for February is probably going to cause a stir in the markets. Although hiring was more than projected last month, which surprised economists, it may contribute to the dollar's advances this year.

Amidst this, there were some unexpected announcements from China's National People's Congress, stating that Beijing intends to maintain a 3% budget deficit and a 5% goal for economic development. Without more assistance, Nomura analysts predicted that meeting the growth objective would be difficult.

At $7.2116, the offshore yuan showed little movement. [CNY/]

The dollar dropped from its peak of 150.85 last week by 0.27% to 150.13 vs the yen.

The November high of 151.92 would be accessible with a break higher, but there would also be a chance of inciting Japanese involvement.

Wednesday saw a 0.24% increase in sterling to $1.2721 ahead of the British budget. In the run-up to the election, Finance Minister Jeremy Hunt is attempting to downplay rumors of a significant tax reduction.

After peaking at $69,202, which was higher than the top from November 2021, bitcoin was down 2.91% at $65,534.