The US dollar rose against other key currencies after the last minutes of the Federal Open Market Commission (FOMC). During the meeting, the bank left its pandemic response tools like interest rates and quantitative easing unchanged, as expected. In the minutes, officials said the current simple money policy will remain in place until the economy recovers. It is not adjusted based on forecasts. With the unemployment rate currently at 6%, it will therefore take longer for the bank to raise interest rates. However, if bond yields rise, there is a chance the Fed will change its mind sooner.
Cryptocurrency prices fell sharply in the overnight session as US bond yields rose. Bitcoin fell more than $ 1,500 to $ 56,260, while Ether and XRP fell more than 6% and 15%, respectively. Other altcoins like Litecoin, Bitcoin Cash and Stellar also declined. That feat was achieved when the U.S. 10-year return rose to 1.66% while the 30-year return rose to 2.335%. The decline is also due to profit taking as currencies have rallied significantly over the past few days. Still, some analysts are optimistic about the coins. Bloomberg economists say BTC could soar to $ 400,000.
The price of crude oil fell slightly despite rising inventories. According to the Energy Information Administration (EIA), inventory levels have declined by more than 3.5 million barrels in the past week. This was a deeper drop after the 876,000 the previous week. Previous data from the American Petroleum Institute (API) showed inventory levels decreased by more than 2.6 million barrels. Elsewhere, the Canadian dollar also fell after relatively strong numbers. The Ivey PMI rose from 60 in February to 72.9 in the previous month.
USD / CAD
The USD / CAD price rose to a high of 1.2635 during the overnight session. On the four-hour chart, the price moved above the Fibonacci retracement level of 61.8%. It is also slightly above all moving averages and slightly below the key resistance level of 1.2648, which was the highest on March 30th. The Relative Strength Index (RSI) has also risen. A break above this resistance level therefore means that bulls have prevailed to push the pair higher.
The EUR / USD pair fell slightly during the overnight session. It trades at 1.1870, which is slightly below this week’s high of 1.1915. This drop is partly due to the pair testing the top of the descending channel on the daily chart. During the four hours, the couple also formed an inverted hammer pattern, which is usually a sign of reversal. It’s also slightly above the 15-day and 25-day moving averages. Hence, the pair may continue to fall, with the next key target being 1.1800.
BTC / USD
BTC / USD fell to a low of 55,526 in the overnight session. On the four-hour chart, that price was slightly below the key support at 56,000. It has also moved below the moving averages as the RSI approaches oversold levels. The DeMarker has already moved to the oversold zone. Therefore, while the longer term trend is bullish, there is a possibility that the pair will fall in the short term.