The strong dollar overestimates gold and distances the euro

An ounce of gold today is around $ 1, down for the fourth consecutive week from around $ 825. One of the factors behind the sell-off of the precious metal may be the strengthening US dollar.

The recent appreciation of the USD may be related to the publication of data on consumer and producer inflation in the US. 8,3% price dynamics in April this year. strengthens expectations for aggressive interest rate hikes by Federal Reserve.

The Fed is working, the ECB is waiting

Markets estimate movements of 50 basis points up at each of the next two Fed meetings in June and July. This, in turn, may contribute to increasing the demand for the USD, affecting the performance of the main EUR / USD pair. This week, the rate approached 1,0350, the lowest value since December 2016.

The recent appreciation of the USD may also be related to divergence in monetary policy on both sides of the Atlantic. As far as the Fed is going towards aggressive rate hikes, so much European Central Bank is delaying action, and market expectations assume that the bank will raise interest rates in total by 50-75 basis points by the end of the year. Therefore, the scale of the discrepancies seems to be very large.

Bitcoin bounced back from the bottom

On the cryptocurrency market, the defense against possible further declines is ongoing. Bitcoin bounced yesterday from the lowest level in almost 17 months and today exceeded the mark of 30 thousand. USD. Despite this, the most popular and used cryptocurrency in the world is now on its way to the worst week in four months, falling by more than 10%.

There was panic in the cryptocurrency market yesterday over the exit tether exchange rate to USD at the 1: 1 level. At the height of fear of the biggest stablecoin collapse, the cryptocurrency market seemed to be reaching its weekly lows.