Dogecoin and Shiba Inu, popular dog-themed cryptocurrencies, continued their downward trend on Monday. The long-to-short ratio for both DOGE and SHIB trades has fallen below one, indicating that more traders are betting on these meme coins to fall. Over the last week, prices for Dogecoin and Shiba Inu corrected by more than 6%. This article is not intended as investment advice, and neither the author nor FXStreet are registered investment advisors.
In the broader financial markets, the gold price began the week on a weaker note. The USD saw a modest recovery, with the US Dollar Index bouncing back from its monthly low of 107.22. Meanwhile, the EUR/USD pair edged lower to near 1.0480 during the Asian session on Monday. Despite this modest recovery, renewed trade war fears may help limit losses for the XAU/USD pair.
Traders are closely watching developments in interest rate decisions by the US Federal Reserve and the European Central Bank. Both institutions are expected to cut interest rates, which could cap any further upward movement for the USD. Sliding US bond yields are also contributing to this potential cap.
The anticipation of interest rate cuts in both the Eurozone and the US adds an additional layer of complexity to market dynamics. Capital market participants are factoring in these potential changes as they make strategic decisions. Fed rate cut bets, along with declining bond yields, might restrict any significant upward momentum for the dollar.