The foreign exchange had one of the largest reactions this week, as a historically weak Euro gained $0.009 in value against the US Dollar. The EUR/USD currency pair pierced past the 1.1300 technical barrier, surging upward for a third straight session. This increase reflects an important shift in market sentiment. Investors are pulling away from the US Dollar, as fears mount over the state of the US economy and fiscal health.
Along with a rare period of significant pressure on the US Treasury markets, this compounded the downward pressure on the Dollar. Speculators have moved on to betting against other fiat currencies and assets. Bitcoin price hits new all-time high. Bitcoin price erupted to a new all-time high price of nearly $109,500 on Wednesday. It was a solid gain that contributed to an uptick seen on Tuesday, further emphasizing the cryptocurrency’s resilience amid a dramatically unstable market.
The AUD/USD pair continued to beled their multi-week range never closing below to 6400 thus showing a very precise range bound price action. Through the Asian session on Thursday it is still hovering under the 200-day simple moving average (SMA). This indicates that traders are being cautious, anticipating a breakout in either direction.
Market analysts cite a number of factors contributing to the US Dollar’s current weakness. They further emphasize concerns over the US economic outlook, speculation around Federal Reserve rate cuts, and increasing geopolitical tensions as significant drivers. Against this shaky backdrop, investors are scrambling to find safe harbours. In reaction, gold prices have skyrocketed, reaching over $3,300/troy ounce midweek. This spike in gold prices is being ratified by increasing concerns of rising conflict in the Middle East.
The latest EUR/USD pair rally can be directly attributed to the strength of the Greenback. Market participants are shifting their positions in light of recent developments. As they navigate these waters, the landscape of global currencies and commodities is shifting in real time.
“BTC/USD rose to record highs near $109,500” – FXStreet