The cryptocurrency markets are on fire and major financial institution ING has taken notice, going as far as predicting the latest bull run could negatively impact the value of the US dollar.
“Strong commodity (and cryptocurrency) prices, plus sharply falling US dollar hedging costs should keep the dollar on the soft side this week,” warned ING‘s global head of strategy Chris Turner in his latest foreign exchange analysis.
Turner’s right: the price of the DXY index – which measures the performance of the US dollar against a basket of international currencies – has struggled to find momentum moving into the new week of trade.
Turner highlighted a few factors that could influence a USD downturn.
Jerome Powell, chairman of Federal Reserve’s board of governors, is set to deliver a speech on policy tomorrow, which is likely to make traders nervous.
The US is also set to update the personal consumption expenditure (PCE) deflator (a statistic for the US‘ gross product spending) on Friday.