Key points:

  • Ethereum and Bitcoin are showing growth, Ethereum has updated its monthly maximum.
  • The US dollar index fell amid investors’ wait-and-see attitude regarding the Fed’s actions.
  • The USD/JPY pair fell in price, with the yen approaching a 30-year low.

Cryptocurrency rates are showing growth. This is explained both by an increase in demand for ether and by the general positive mood of investors. Ether has seen a surge in interest driven by both favorable market conditions and the potential approval by the US Securities and Exchange Commission (SEC) of exchange-traded funds (ETFs) targeting the Ether spot market.

Meanwhile, the US dollar is struggling to find a sustainable path as investors maintain a wait-and-see approach to the timing and extent of the Federal Reserve’s monetary easing this year.

Dynamics of major currencies

In the absence of significant US macroeconomic indicators this week, investors’ focus is shifting to a series of speeches from Federal Reserve officials. Market expectations for a Fed rate cut in 2024 have changed, dropping from two to one (25 bps in the near term and a 68% chance of a second cut by December) following recent hawkish statements from Fed members. As a result, the US dollar index, which measures its value against a basket of currencies, fell 0.08% to 104.52.

The dollar/yen pair fell 0.13% to 156.41, approaching a 30-year low of 160 pips. At the same time, the yield on 10-year Japanese bonds reached an 11-year high of 0.983%.

Fears of further interventions from the Bank of Japan are holding back further decline in the yen. However, the significant difference in interest rates between the US and Japan keeps the yen attractive as a carry trading instrument.

The New Zealand dollar fell 0.02% to $0.6103 and the Australian dollar fell 0.03% to $0.6656.

Ethereum updates highs

Ethereum recorded significant growth, adding 4.5% to its value and reaching $3,663.40. Earlier in the day, it hit a new one-month high, rising to $3,720.80. It is worth noting that in the previous trading session, Ether grew by almost 14%, which was the largest daily increase since November 2022.

Bitcoin also showed positive dynamics, breaking the $70,000 level and finishing trading at $71,128, which is 2% higher than the previous value.