image

business forward

Forex Today: Markets cautious amid mixed covid news, Bitcoin soars toward $40K, Fed awaited - FXStreet

Here is what you need to know on Monday, July 26:

The market mood is mixed as optimism about falling UK covid cases contrasts worries about the US and a new Chinese techlash. Bitcoin is benefiting from fresh speculation. Investors are eyeing several data points and awaiting the Fed decision.

UK coronavirus cases dropped for the fifth consecutive day, one week after the country abandoned most restrictions. The successful vaccine rollout seems to be turning the tie against the highly transmissible Delta variant. 

In the US, Dr. Anothoni Fauci said that "we are going in the wrong direction" with surging covid cases and added that the high number of unvaccinated people is a problem. He suggested a booster immunization shot could be needed. 

China cracked down on education technology firms, sending EdTech and broader markets lower early on Monday. Beijing's move comes after removing access to Didi – the "Chinese Uber" – from application stores and other curbs against large companies. 

SP 500 futures are down on Monday after the index hit record highs on Friday. Apart from the Chinese techlash, investors are cautious ahead of the Federal Reserve's decision on Wednesday. The world's most powerful central bank is grappling with strong growth and higher inflation, against concerns about the virus.

When will the US Fed decide on tapering?

American lawmakers have continued deliberating the bipartisan infrastructure bill over the weekend, hoping to make progress and close the deal as early as Monday. 

Bitcoin soared roughly 10% toward $40,000, carrying other cryptocurrencies higher with it. Ethereum changes hands above $2,300. Speculation that Amazon is venturing into digital assets – following a job post on its site – is cited as the reason for this spike. Last week, BTC received support from cheerleaders Elon Musk Cathy Wood and Jack Dorsey.

Bitcoin price hits $40,000 as Amazon allegedly prepares for cryptocurrency payments

EUR/USD is trading under 1.18, marginally higher ahead of IFO's German Business Climate figures. US New Home Sales are also eyed later in the day. 

AUD/USD is on the back foot amid speculation that Sydney's lockdown would be extended through September. Most of Australia is under lockdown as covid continues spreading, while the vaccination campaign is struggling to pick up. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.