The Norwegian krone rallied against its major trading partners following the resilience with crude prices. Recent weakness for the krone stemmed from the sharp increase in coronavirus infections for the Nordic country. Oslo already announced that they will tighten lockdown measures for two weeks, but some are concerned that was not swift enough.
Euro under pressure
The euro tentatively broke below the 1.20 level against the dollar but has since stabilized following a return to risk appetite for European equities. The euro hasn’t had a winning day since Thursday and EUR/USD remains close to the 1.20 line, which is a psychologically important level. Currency markets are in wait-and-see mode for Fed speak that will signal yield curve control could be on the table if yields skyrocket again. The significant movement in US Treasury yields led to volatility in the currency markets. The euro sustained sharp losses late last week as US 10-year bonds rose as high as 1.61%. With the 10-year bonds stabilizing and back below the 1.50% level, the euro has also steadied.
The copper pullback could be limited as short-term demand headwinds from China will likely be temporary. The green initiative demand from the US has yet to begin and that should provide further catalysts for higher copper prices later this year.
Mainstream acceptance and regulatory hurdles appear to be the only obstacle for bitcoin. Today, Bitcoin took another great step towards widespread adoption after Sino-Global Shipping America, Ltd, a non-asset based global shipping and freight logistical integrated solutions provider, announced they will accept Bitcoin as a form of payment for its global shipping, freight, and logistics services. Bitcoin is still too volatile and payments with cryptocurrencies won’t take off until prices steady.
In early trade, Bitcoin tested the USD50,000 level but has since turned negative following a choppy session on Wall Street.
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