Bitcoin rallies from last week s dramatic plunge greekherald.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from greekherald.com Daily Mail and Mail on Sunday newspapers.
Last week, bitcoin slumped below $50,000 for the first time since early March after a proposed capital gains tax hike from U.S. President Joe Biden led to a wave of selling. The entire crypto market shed more than $200 billion of value in a single day.
Biden is expected to raise the long-term capital gains tax for the wealthiest Americans to 43.4%, including a surtax. That triggered a brief dip in stock markets, and analysts said fears over the proposal may have extended to the crypto market.
Bitcoin has risen around 80% since the start of the year as more institutional investors and major companies like Tesla have jumped into the market, believing it to be a portfolio diversifier in the event of rising inflation. It s down roughly 17% from an all-time high of nearly $65,000, however.
Euro Forecast: EUR/USD Outlook Still Constructive After Break Above 1.20
Fundamental Euro Forecast: Neutral
Near-term, EUR/USD will likely pause for breath after breaching the 1.20 level last week for the first time since March 4.
After that, however, further strength is possible, with the February 25 high at 1.2243 still a sensible longer-term target.
In the meantime, the end of the coming week is packed with Eurozone economic data that could provide further evidence that the next move will be upwards, or change the outlook to a more negative one.
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Euro price well placed for further gains
The outlook for EUR/USD remains rosy after last week’s break above 1.20 for the first time since early last month but there could be a delay of a few days or more as the bulls realize their gains before reinstating long positions.
US dollar falls as the euro receives extra late-day lift
Reuters
The US dollar on Friday fell against major currencies as US yields languished and the euro got an extra late-day lift following a earlier boost from an upbeat survey of purchasing managers.
The US dollar index fell 0.5 percent to 90.808, down 0.8 percent from a week earlier, after the euro climbed 0.7 percent to US$1.2098, pushing through its earlier high for the week.
More than half of the euro’s appreciation came late in the day after the market digested earlier economic news.
“This is thin markets on a Friday afternoon,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. “The euro making new highs for the week late in the day suggests it is going to have momentum into next week.”