Economic World News :
The dollar was higher in Asia on Tuesday morning, as the yen fell to a new three-year low. The Japanese yen has continued to plummet sharply as investors believe that rising energy prices will fuel Japan’s demand for dollars. Bets have also risen that the United States will raise interest rates much sooner than its peers.
The US Dollar Index, which measures the greenback against a basket of other currencies, had risen 0.03 percent to 94.403.
The AUD/USD pair fell 0.20 percent to 0.7337, while the NZD/USD pair fell 0.22 percent to 0.6927 and the USD/JPY pair rose 0.05 percent to 113.36, with the yen having its worst day against the dollar in five months.
Currency strategist and senior economist Kim Mundy from Commonwealth Bank of Australia said that “What we’re seeing in currency markets is a combination of the outlook for the Federal Reserve – largely markets are expecting a tapering announcement in November – and what is happening with commodities with a pretty broad rally at the moment,”
Because Japan is a net energy importer, spiking energy costs are basically a tax on consumption, and because it “reiterates the reality that the Bank of Japan will probably be one of the last major central banks to ever consider relaxing ultra-accommodative monetary policy.
Despite last Friday’s poor US jobs data, rising oil prices and their inflationary impact make it more likely that the US Federal Reserve will begin asset tapering as planned in November 2021 and raise interest rates in 2022.
Cryptocurrency News :
On October 11, Bitcoin (BTC) began its rally, climbing close to $58,000. This represents a nearly 100 percent recovery from the May low and demonstrates that any regulatory action taken by China has only a short-term impact.
The recent strong surge in Bitcoin has lifted optimism, and analysts are resuming their six-figure estimates. investors now believe Bitcoin will reach $100,000 by early next year.
Users using Bakkt debit cards will be able to use Google Pay to convert their crypto balances to fiat payments.
Bakkt announced on Friday that it had teamed with Google to enable its users to buy goods and services using Bitcoin (BTC) and other cryptocurrencies via the Google Pay wallet and payment system. Bakkt also intends to use Google Cloud capabilities to develop new analytics and geolocation functions for its platform.
The exchange anticipates that the features will broaden loyalty redemption choices “while offering Bakkt partners with useful consumer activity patterns.”
Important news that could affect the Economic Markets Today :
- German ZEW Economic Sentiment (Oct)
- JOLTs Job Openings (Aug) in the USA
- FOMC Member Bostic Speech
- Trade Balance (USD) (Sep) in China