Market Snapshot – Cryptos Rebound, Dollar Firm

Cryptos Rebound

The cryptocurrency market rebounded during the course of the day though the BTC and the ETH prices continue to stay within their overall range. The bounce in the BTC prices has helped to carry it over the $10000 mark once again but considering the fact that it has been chopping around this region over the last week or so, there is not much to be excited by the bounce above the region once again. What matters is whether the bulls are able to push this higher and make the prices sustain above the $10000 region for a long time so that it gives enough confidence to the investors and traders to get back into the markets. If they do get back in large numbers, then it would mean that they would be increasing the demand for BTC and this should help the prices to remain buoyant. This is happening at the same time when there is increased scrutiny over the ICOs as most of the ICOs over the last few months have failed and have only acted as vehicles for a select few behind the ICO to make some quick money.

Dollar Chops Around

In the FX markets, the dollar bulls continue to remain in control and this is likely to last for the short and medium term. We are heading towards the end of the month and hence we are likely to see some trade positioning and month end flows which is likely to dominate the price action over the next few days. The traders and the investors have to make sure that they dont get carried away by the price action over the next few days and it is important for them to keep this in mind while they trade during this period. We have the new Fed Chief Powell testify later in the week and the market will be watching that carefully for signs of when the next rate hike would come.