It seems as though investors have dismissed the dollar. Despite better data, it is not returning to grace. Meanwhile, the Hungarians are taking a break in the cycle of interest rate cuts. On the crypto market, big fund movements have caused a resurgence of fear, leading to depreciation.
Better data from the USA
Yesterday, several important readings from the USA were released. The most important seems to be the consumer confidence index – Conference Board. It showed clearly better levels than expected. The result was the best since March. If we add to this faster-than-expected rising property prices in the biggest cities, you might get the impression that the economy across the ocean is doing really well and there are no threats to the job market. However, looking at the reaction of currency markets, investors were not swayed by this data and are waiting for hard data on Thursday.
Depreciation on the crypto market
Despite the fact that over the weekend Bitcoin, still the most popular cryptocurrency, was testing the $65,000 level, today we see it already below the $59,000 barrier. Many analysts point out that the current declines are related to a very large increase in turnover, which shows that investors are divided on the direction of movement. Large transfers from wallets with a lot of capital to one of the most popular crypto exchanges are indicated as the direct reason. If they were to be cashed in, it can be expected that the price would fall much more than it is currently.
Hungary without changes
Following ten consecutive interest rate cuts, yesterday’s meeting of the Hungarian National Bank did not produce another rate cut. Some analysts point out that in July inflation jumped from 3.7% to 4.1%, which obviously could potentially be a problem. However, it must be said that this 0.4% increase came just after a month when we had a 0.3% drop. This indicator has been quite stable since the beginning of the year, oscillating in a relatively narrow range of 3.6%-4.1%. Although the majority of investors anticipated this outcome, looking at market reactions, there were some who expected another reduction. It was evident in the clear strengthening of the forint after this decision.
There are no important macroeconomic data readings in today’s calendar.
Maciej Przygórzewski – Chief Analyst at InternetowyKantor.pl and Walutomat.pl
Source: https://ceo.com.pl/dobre-dane-nie-pomogly-dolarowi-przecena-bitcoina-73096
