Bitcoin-Led Crypto Markets Could Be Negatively Affecting The US Dollar Claims ING Bank
- The DXY Index registered the lowest point since March 2019
- Cryptocurrencies and strong commodity prices could have affected the US dollar
According to a recent report released by ING on June 24, strong commodity and cryptocurrency prices plus sharply falling US dollar hedging costs should negatively affect the US dollar. The report conducted by ING’s global head of strategy Chris Turner was released as his latest foreign exchange analysis and just after Bitcoin (BTC) surged above $11,100 last days.
Cryptocurrencies Affect The US Dollar
During the last few days, the US dollar has been falling compared to other currencies around the world, including the EUR, GBP, Bitcoin and even against gold. In addition to it, the price of the DXY Index that measures the performance of the US dollar against a basket of other currencies around the world has been dropping since June 18, the lowest point since March this year.
In this report released by the bank, Mr. Turner commented:
“Strong commodity (and cryptocurrency) prices, plus sharply falling US dollar hedging costs should keep the dollar on the soft side this week.”
Moreover, the U.S. is also expected to update the personal consumption expenditure (PCE) deflater as soon as on Friday. If there is another low, the Fed could eventually become worried about this issue.
There are some geopolitical and economic issues as well that can be related to the weakness of the U.S. dollar. The U.S. President Donald Trump is expected to meet his Chinese counterpart on Friday and Saturday at the G20 summit in Japan.
At the time of writing this article, Bitcoin remains the strongest cryptocurrency in the market with a price increase of 1.35% in the last 24 hours, the largest gain among the top 17 cryptos. At the same time, it has a market capitalization of $195 billion.