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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- Interestingly, bitcoin prices have remained 'stable' recently despite the rebound in inflation expectations.
- The chart below shows the divergence between the two time series in the past few weeks; while US 5Y breakeven inflation has surged back towards the 3% level, bitcoin continues to trade in the mid-40,000 levels (slightly below its 200DMA).
- We previously saw that the cryptocurrency has been more sensitive to the dynamics of inflation expectations in the past 18 months than gold.
- Historically, gold has been a better hedge against rising uncertainty and market shocks rather than an 'inflation-hedge'.
- Therefore, there has not been any relationship between gold and some inflation metrics recently.
- Should we expect the divergence to continue in the near term or will the momentum on bitcoin resume amid growing inflation concerns?
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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