The Dollar’s Decline During Yesterday’s Trading

The dollar saw a decline on Thursday as traders focused on evaluating the future outlook for interest rates in the United States. This came following statements from officials at the Federal Reserve, which increased expectations that the tightening of monetary policy might continue for a longer period.

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The Dollar
Bitcoin
Gold

The Dollar

The dollar has experienced rises in recent weeks, after US economic data showed a series of strengths, which led to reduced expectations for interest rate cuts in the near future. Rising tensions in the Middle East have added to the dollar’s appeal as a safe haven. The strength of the dollar has impacted currency markets, leading to the continued decline of the yen, which is approaching its lowest levels in 34 years. These movements have sparked warnings from Japanese authorities about possible intervention. Emerging market currencies are facing pressure.

Bitcoin

Potential Decline in Bitcoin Price:

According to a research report from the prominent American investment bank J.P. Morgan, it is expected that the price of Bitcoin will decline following the anticipated halving event. This event occurs every four years and leads to a slowdown in the growth rate of Bitcoin supply. This reduction is expected to occur around April 19 to 20. The bank predicts a drop in the price of the world’s largest cryptocurrency after the halving, due to conditions of overbuying in the market, according to its analysis of open interest in Bitcoin futures contracts. Furthermore, the current price of Bitcoin, around $61,453, remains higher than the bank’s estimate based on gold price volatility, which it values at $45,000, and the expected production cost of Bitcoin after the reduction, estimated at $42,000. In the past, the production cost of Bitcoin was considered the floor for its prices.

Gold

Continued Rise in Gold Prices:

Gold prices rose during the trading session on Thursday, as a result of escalating risks related to the conflict in the Middle East, which increased the appeal of the yellow metal as a safe haven. However, these developments cast a shadow over the expectations related to longer-term interest rate increases in the United States. Uncertainty on the geopolitical front supports the prevailing upward trend in gold prices. Also, the continued rise in U.S. interest rates for an extended period may pressure the ongoing support for gold. However, we might see some enhancements and potential retreats in the short term. The rise in interest rates reduces the attractiveness of holding gold bullion, which does not provide a financial return.

The Dollar’s Decline During Yesterday’s Trading

The Dollar&#8217;s Decline During Yesterday&#8217;s Trading

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The Dollar’s Decline During Yesterday’s Trading