Bitcoin rose to reach a new all-time high yesterday but sold off towards the New York close and ended the day below its recent high closing price.
- The cryptocurrency Bitcoin made another bullish move yesterday to reach a new record high above $109,000 but gave up its gains late in the New York session to close below the recent high closing price, preventing most trend traders from entering a long trade here. A rise to fresh highs over the coming days cannot be ruled out. Trump is seen as friendly to Bitcoin and crypto. If the price ends today above $106,500 that will signify a valid long-term bullish breakout and will attract trend and momentum traders on the long side. As well as spot Bitcoin, you can buy Bitcoin micro futures (1/10th of a Bitcoin in size), and of course CFDs on Bitcoin at many CFD brokers.
- President Trump threatened to impose a fresh 10% tariff on China next month and he also threatened the EU, but said he would wait until his entire trade team has been assembled before implementing any new tariffs. He also reiterated his threats against the Panama canal, alleging that China is receiving favourable treatment there.
- In the Forex market, the Euro has been the strongest major currency since today's Tokyo open while the New Zealand Dollar has been the weakest. Trend traders will remain interested in being short of the EUR/USD currency pair although a daily close today above $1.0430 would invalidate that trend. The Canadian Dollar reached a new 4-year low against the US Dollar following President Trump's tariff threat (see below), but the USD/CAD currency pair gave up almost all of its gains by the end of the day.
- The Bank of Japan is strongly expected to hike its interest rate by 0.25% on Friday to 0.50%, which would be the highest Japanese interest rate since 2008.
- The Trump and Melania meme coins released to coincide with yesterday's inauguration of President Trump are well off their highs, especially Melania, but both rose yesterday and now seem to be consolidating. $TRUMP may be an interesting meme coin to trade for crypto meme coin traders.
- Corn futures rose yesterday to close at a new 1-year high price, which will attract trend and momentum traders on the long side. Buying commodities at a new 6-month high has historically been a very profitable trading strategy.
- There were two high-impact data releases yesterday:
- Canadian CPI (inflation) was a bit stronger than expected. It was seen as likely to contract by 0.7% month-on-month but actually only contracted by 0.4%.
- New Zealand CPI (inflation) data was exactly as expected, showing an increase of 0.5% over the past quarter.
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