Bitcoin Magazine: MACRO ANALYSIS: Bitcoin & Currency Markets
When it comes to investing, paying attention to macroeconomic trends can provide a quick way of determining where the economy is – and where it may be going based on recent trends.
Globally, a number of currencies are weakening relative to the US dollar. In turn, that’s a way of saying that the dollar is strengthening. Those moves have a number of implications for the global economy and for a number of major countries specifically.
Bitcoin Magazine’s latest analysis goes through some major currency charts and what it means for markets. Overall, prices may not reflect fundamentals for a number of asset classes at the moment, given the fearful sentiment out there today.
It’s easy to see fear in the markets today, and not just in the US. Germany is reporting their highest surge in CPI in 60 years. And the Eurozone inflation measures have risen to 8.1 percent.
That’s a continued rise in inflation rates, which may be 3-6 months behind the US data, which is finally starting to show a year-over-year decline based on the PCE data. This slowdown in year-over-year inflation data could also be a reason for last week’s rally in the stock market.
Investors looking for a move in the markets right now are likely to see more downside pressure in the coming months. The biggest potential catalyst for a change would be the Federal Reserve changing its policy back towards more easy money.