How the Markets React to the Weakness of the Dollar [Market Commentary]

The US currency may have had one of the worst days in two months. EUR / USD exchange rate rose from the region of 1,1530 to over 1,1600, which may indicate a more significant turn. The sell-off of the dollar in the global currency market could in turn affect many other markets quoted in the US currency. We are talking about energy resources, gold and bitcoinie.

Gold with the best week since May

The price of gold had risen from around $ 1720 to $ 1800 since the end of September, and this increase seemed to accelerate along with the depreciating dollar just after the publication of the last minutes of the meeting. FOMCwhen the market learned that tapering could be carried out in mid-November or mid-December, for an amount not exceeding USD 15 billion per month. Interest rate hikes seem more likely towards the end of 2022. Moreover, inflation remains elevated in the US, and Fed officials are beginning to believe that it will not be as temporary as originally assumed.

Crude oil with more than 3% growth

Oil price may increase by more than 3% this week, and the WTI barrel is still over $ 81 and is at its highest level in 7 years. According to this week's data, US crude oil inventories have fallen the most since June. In turn, the agency EIA believes that US oil production will fall more than previously expected in 2021. An increase in production is not expected until 2022.

Wall Street steadily up

The US earnings season that has just started did not bring disappointment. Banks publishing their data: Citigroup, Wells Fargo and Bank of America beat analysts' forecasts. As a result, as reported by Bloomberg, S&P 500 index recorded its best session since March. Summing up yesterday's session, the Dow Jones jumped 534,75 points or 1,6% to 34, the S&P 912,56 added 500%, as did the Nasdaq which also climbed 1,7%.

Bitcoin close to the all-time peak

It seems that the cryptocurrency market has revived again, as the price of bitcoin increased by about 50% in three weeks, to nearly 60. USD per piece, so it is already less than 9 percent. since the peak of all time. Bitcoin may have gotten support after reports that US SEC will not mind approving the US's first bitcoin ETF. According to the market, this is to be an introduction to the introduction of a proper ETF for bitcoin. The deadline for the SEC to issue a decision expires at the end of the year.