Loony and Bitcoin Lift Strongly as USD Falls

It’s been all about the United States today in global markets as the dollar slipped lower as investors flocked to riskier assets. This was on the back of the trade agreement between the US and Mexico, which is looking positive for the US economy in the long run. There are however a number of issues around it including Canada not being a part of it, but more importantly the need for Congress and the Senate to ratify anything. With upcoming mid-term elections in the US in the next 3 months, it’s unlikely anything could be officially signed and sorted until then, and there is the very real prospect of the Democrats gaining some traction according to recent polls. So I would expect more drama in the long run around this proposed deal, as it’s very hard to do anything without Congress on your side as previous administrations have noted.

Given the big rise, one that is worth noting has been of course the USDCAD which has fallen sharply on the recent news. With the CAD has been the bigger winner currency in all of this, support at 1.2881 was only just able to hold back the bearish side as of late. Looking at the chart we can see that resistance levels can be found at 1.2960 and 1.3041 at present. The 100-day moving average also continues to act as dynamic resistance and support, but only when the economic and political news is light. There is further potential for things to move lower, but at this stage, the bulls have fought back quite hard.

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BTC/USD has been one of the big winners on the weaker USD as it lifted sharply on the back of an increase in risk appetite as well. The cryptocurrency king has been moving rapidly as of late with the fluctuations of the USD, and many are comparing it to another silver or gold where it’s treated as a store of wealth in the long run, just in an online format.

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