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Forex Today: Gold and Bitcoin reach new record highs

Forex Today: Gold and Bitcoin reach new record highs

The world's largest cryptocurrency Bitcoin has retreated after coming close to reaching its record high achieved in 2021.

➡️ IThe price of spot gold briefly surpassed the record it set last December. The price then made a bearish retracement, but the short-term price action now looks quite bullish, so another attempt at the top seems likely. Trend traders will be interested here on the long side.

➡️ Bitcoin briefly surpassed its 2021 record high yesterday, before falling nearly 10% on widespread profit-taking by investors and traders. However, Bitcoin then recovered with almost the same strength, and could threaten its high again very soon, although this seems less likely to happen than a new gold high. Trend traders will be interested in getting involved here on the Long side, and this has become easier since Bitcoin ETFs were approved for sale a few weeks ago. The increase in the last few days has been dramatic: Bitcoin has risen over 50% in value in just 5 days!

➡️ Markets today will likely be dominated by Fed Chair Jerome Powell's testimony to the House of Congress today on the semi-annual monetary policy report. Powell is expected to continue pushing his “no rush to cut rates” message of recent weeks. The potential for a surprise is mostly on the more dovish side, and if that happens, expect stocks and gold to roar higher.

➡️ The Bank of Canada is expected to hold its overnight rate at 5.00% as it holds a policy meeting.

➡️ In the Forex market, the Australian dollar has been the strongest currency since Tokyo opened today. The Swiss franc was the weakest. The Japanese yen has been one of the hottest currencies lately as the Bank of Japan's apparent willingness to abandon its long-standing ultra-loose monetary policy calls into question its long-term bearish trend.

➡️ Previously released Australian GDP data arrived exactly as expected, showing an annualized rate of 1.4%.

➡️ ISMUS PMI data released yesterday came in lower than expected, suggesting a cooling in the services sector of the economy.

➡️ Today there will be releases of some other important data:

  • US non-arms Employment forecast
  • Annual UK budget release
  • US JOLTS Work Data

 

Credit by DailyForex.com

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