ForexLive Americas FX news wrap: Bitcoin goes for a wild ride

Author: Adam Button | Category: News

Forex news for New York trading on Feb 22, 2021:

Markets:

  • Gold up $24 to $1808
  • US 10-year yields up 2.7 bps to 1.36%
  • S&P 500 down 30 points to 3876 with tech badly lagging (NQ -2.5%)
  • WTI crude up $2.25 to $61.50
  • AUD leads, CHF lags
Commodities are booming and tech is busting, we've gone from 1999 to 2003 in a few weeks.

There are divergent themes all over markets but rising yields and inflation are overshadowing everything else. There was an initial pop in yields in Asia/Europe but they were reeled in early in New York before a second wave hit late.

There's a reflexivity between bonds and other markets that's dominating. The dollar was solid early but slumped hard when yields reversed lower, only to get a small late lift on another risk averse move.

The winner continues to be cable, which shook off some long timelines on reopening and hit a long-term high of 1.4086 before giving back a quarter-cent late.

The dollar sag even extended to USD/JPY, which fell 80 pips from the Asian highs and briefly fell below 105.00 before finishing on the lows.

The big story was also a brief one was bitcoin crumbled to $46,616 in minutes and then bounced all the way back to $54,000 in a wild trip that's reminiscent of the many big swings in bitcoin before. The rebound is impressive.

Forex news for New York trading on Feb 22, 2021:
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