Bitcoin has continued to rise to reach new record highs, trading well over $93,000 yesterday, which suggests that it could reach $100,000 soon.
- The cryptocurrency Bitcoin has continued its strong bull run, rising yesterday to trade at almost $93,500. Bitcoin has been given a political boost by the victory of President Trump and Congressional Republicans and there seems to be strong bullish momentum. It is looking increasingly likely that Bitcoin could reach $100,000 per coin very soon, but that would likely bring profit-taking which could trigger a deep bearish retracement. Trend and momentum traders will be interested in staying long of Bitcoin, which can be traded as spot Bitcoin, as CFDs, as futures (there is a micro future on the CME which is sized at only 10% of a coin), or as options.
- In the Forex market, the US Dollar has continued to advance and is trading above the former strong technical resistance at 105.81 in the US Dollar Index, which has reached a new 1-year high. Like Bitcoin, the Dollar is also being driven higher by the Trump victory. The USD/CAD currency pair is trading at a 4-year high above $1.4000 and the EUR/USD, GBP/USD, USD/CHF, and USD/JPY currency pairs are also seeing long-term highs in their USD component. However, I believe these are not quite valid long-term trends yet as the moves are too fast, but EUR/USD is not far away. In the exotics market, the USD/INR currency pair is trading at a multi-year high.
- US CPI data came in as expected yesterday, with month-on-month inflation rising by 0.2%, core inflation rising by 0.3%, and the annualized headline rate rising from 2.4% to 2.6% as a result. Over the past hours, several Fed members have publicly worried about far the Fed will be able to cut interest rates given the stickiness of inflation. This is helping boost the US Dollar but also to cause a bit of a bearish retracement in major US stock market indices such as the NASDAQ 100 and the S&P 500.
- Stock markets are mostly lower today. Fears that President-elect Trump will impose new trade tariffs upon assuming office are driving non-US stocks lower, which overall are trading at 3-month lows. The price action in the NASDAQ 100 and S&P 500 indices suggests their prices are going to fall some more over the near term.
- The Australian Unemployment Rate remained stead as expected at 4.1%.
- There will be two important data releases today in the USA:
- PPI (purchasing power index) – this is a key inflation-related metric, so will be closely watched to see if it is the same as yesterday’s CPI, which is the expected outcome.
- Unemployment Claims
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