Forex Today – 29/02: Bitcoin Hits 2-Year High Over $63,000

The strong bullish trend in Bitcoin, aided by the new Bitcoin ETFs, has sent Bitcoin strongly higher to a new 2-year high price above $63,000.

1. Bitcoin is rising firmly to reach a new 2-year high price above $63,000. Trend traders and investors will be interested here on the long side, and this has become easier since Bitcoin ETFs were approved for sale a few weeks ago. Bitcoin is more likely than not to reach even higher prices.
2. The Japanese Yen has made some gains after the Bank of Japan’s Tanaka stated that the Bank’s price target is finally coming into sight amid signs that wage inflation is picking up. This means that the Bank is likely close to being able to end its ultra-loose monetary policy. When this happens, it will likely be bullish for the Japanese Yen.
3. Officials at the US Federal Reserve (Williams and Bostic) stated that the implementation of changes to interest rates will be data rather than calendar dependent.
4. In the Forex market, the Japanese Yen has been the strongest major currency since the Tokyo open today. The Euro has been the weakest. This puts the USD/JPY currency pair and the EUR/JPY currency cross in focus today.
5. Cocoa futures fell strongly yesterday, calling into question its long-term bullish trend.
6. Yesterday’s release of Preliminary US GDP data showed the US economy grew by a fraction less than expected, with annualized growth of 3.2%.
7. There will three high-impact economic data releases later today:

• US Core PCE Price Index data – the Fed will watch this very closely for clues about the rate of inflation.
• German Preliminary CPI (inflation) data
• US Unemployment Claims