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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
- In the past year, momentum on gold has been bearish despite the significant surge in inflation.
- The precious metal has been constantly reaching lower highs since its peak reached in early August 2020.
- 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.
- On the other hand, we have seen that Bitcoin has been sensitive to the dynamics of inflation expectations.
- The chart below shows the strong co-movement between Bitcoin and 5Y US Breakeven.
- The rise in US 5Y breakeven from 2.40% to 3.20% was associated with a surge in Bitcoin from $40,000 to nearly $70,000 before the recent consolidation.
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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