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BTC at new highs, while the yen struggles
BoJ Ueda’s remarks move the yen lower overnight while BTC sees fresh new highs
Bitcoin hits record high, exceeding $72,000 with a 4.4% increase, propelled by new spot bitcoin ETF investments.
Yen weakens by 0.3% against the dollar following comments from BOJ Governor Kazuo Ueda on signs of weakness in the Japanese economy.
Focus shifts to upcoming CPI data, indicating persistent inflation above the Fed's 2% target, with monthly CPI expected at 0.4% and yearly CPI at 3.1%.
On the Market Watch:
In Cryptos, Bitcoin reached an all-time high, surpassing $72,000. The cryptocurrency's value increased by 4.4%, reaching $72,649, with a peak at $72,739.
Bitcoin, the most valuable cryptocurrency globally, has seen a significant boost from a substantial influx of funds into new spot bitcoin exchange-traded funds and optimistic expectations of interest rate cut by the Federal Reserve.
In currencies, the yen experienced a 0.3% decline against the dollar, pulling back from the over one-month high recorded on Monday. After comments from BOJ Governor Kazuo Ueda, who noted that although the Japanese economy was in a recovery phase, there were indications of weakness, especially in consumption.
Markets were quick to translate this message into a less optimistic stance compared to previous expectations.
On the data side, focus now will be on the release of CPI data, which will play a key role in the Feds rate cut roadmap for the year.
Forecasts suggest that the CPI data will reveal persistent inflation, consistently surpassing the Federal Reserve's annual target of 2% throughout February. Monthly CPI data is expected to come at 0.4% an uptick from the previous 0.3%. Whilst the yearly CPI is expected to come at 3.1% in line with the previous figure.
