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Risk-on is back with reports that Ukraine leader Zelensky is considering surrendering to Russia, while Chinese authorities have eased lockdown measures after months of lockdown.
The USD/CHF pair has weakened and strengthening in the yuan comes as China is scaling back on lockdown measures in Shanghai and Beijing, with the former also introducing measures to bolster the local economy.
The more positive risk mood is also caused the US dollar index to build on last week’s losses, with the dollar drop also extending part and parcel of the decline in USD/CNY since Friday.
The 6.80 threshold appears to be defended by Chinese authorities and that is being reaffirmed this week. The dollar’s weakness and recent positive local developments have helped to see the yuan battle back a little against the dollar and we are still in the midst of establishing the new “range” in which the currency will settle in.
The EURUSD pair remains the proxy to watch for risk and the next breakdown in the US dollar index this week could come with break above1.0800 to start the next bull run higher.
Give the overall risk-off mood we are also seeing gold and silver prices moving higher. Gold is up on the day and bulls need to defend the $1,840 support zone this week.
Silver is in a much more difficult situation, after bouncing from the yearly low, around the $20.50 level. Silver is used in many industrial goods and the global economic situation improving is good for the shiny metal.
Bitcoin is another big story today as it trades above $30,000. The top coin is up 3 percent already today and is being buoyed by the risk-on mood across the board.
Altcoins are also benefitting from the rise in Bitcoin. Ethereum, Ripple, Litecoin, and Bitcoin Cash are posting strong gains across the board and as usual follow Bitcoin higher.
Bitcoin is a big story today and is under pressure towards the yearly low. A break under the $33,000 is likely to expose further losses towards the psychological $30,000 level.
