Dollar rebounds, Bitcoin surges and gold steadies

US Jobs report on Friday to be the highlight of the week

By Nadia Elbilassy | @Nadia Elbilassy | 5 December 2023

  • Bitcoin reaches $42,100, driven by expectations of U.S. approval for a bitcoin ETF.

  • German exports drop unexpectedly, signaling challenges for Europe's largest economy.

  • Dollar rebounds amid uncertainty over the Fed's tightening cycle; markets await NFP data.

On the Market Watch!

Bitcoin surges to $42,100
Bitcoin surged to its highest level since April 2022, reaching over $42,100. This upward momentum is driven by anticipations that regulatory authorities in the United States will soon give their approval for a bitcoin exchange-traded fund (ETF). With now the cryptocurrency hovering near $41,912.

Germany exports drop

Data on Monday revealed an unexpected decline in exports from Germany in October, casting a shadow on the optimism surrounding the stabilization of Europe's largest economy.

German exports experienced a 0.2% decrease, while imports saw a more substantial decline of 1.2%. According to primary data from the Federal Statistical Office, there was a notable year-on-year contraction, with exports dropping by 8.1% and imports plummeting by 16.3% in comparison to October 2022.

Dollar rebounds

The dollar rebounded after falling for three consecutive weeks, struck by expectations of the end of the tightening cycle. Markets are a little at crossroads after Federal Reserve Chair Jerome Powell conveyed that the central bank was ready to implement additional tightening measures if necessary. However, he also noted that interest rates were already "well into restrictive territory," exerting a decelerating effect on inflation.

Markets will be solely focused on Friday’s NFP data, with expectations that US economy added 179,000 jobs from 150,000 jobs in October.

Gold touches all time high

Gold prices saw a slight increase, stabilizing after a rapid surge to record highs earlier in the week. On the back of expectations of a less dovish stance from the Federal Reserve, coupled with heightened demand for the precious metal as a safe haven amid escalating geopolitical tensions.