Forex Today: Softs Outperform
Markets by TradingView
After advancing to long-term highs above $30k, Bitcoin seems to have topped out convincingly, falling back below $30k in its biggest daily drop in one month.
- Several soft commodities are performing well, with the Sugar ETF CANE and the Cocoa ETN NIB reaching new multi-year high prices, while the Coffee ETF JO has also made a strong bullish breakout.
- In the Forex market, the US Dollar has firmed against its long-term bearish trend, boosted by rising short-term US Treasury yields. Trend traders may be watching for a new short trade if confirmed by a renewed weakening in the greenback, probably looking to be long of the EUR/USD or GBP/USD currency pairs, both of which are in confirmed long-term bullish trends. Over today’s Asian session, the US Dollar looked like the strongest major currency, while the Japanese Yen was the weakest.
- Canadian CPI (inflation) data released yesterday showed annualized inflation falling from 6.4% to 5.9%, slightly lower than the 6.0% which was the consensus forecast.
- Bitcoin has rebounded bullishly back to its highs above $30k, but the highs and the bearish topping formation remain intact.
- Today will see a release of British CPI (inflation) data, which is expected to show a fall in the annualized rate from 10.4% to 9.8%.
- There will be a release of New Zealand CPI (inflation) data later today.