USD hovers around multi-week low, with eyes focusing on the Fed’s meeting tomorrow; Bitcoin reclaimed the $54,000 level

• USD near multi-week low before Fed
• EUR holds against USD with limited loss despite disappointing business sentiment data
• Bitcoin jumped 8%, reclaiming $54,000

USD hovers near multi-week low on Tuesday, as investors anxiously waiting for the upcoming Fed’s meeting on Wednesday despite that the market expects no change on the policy. But still, investors will pay close attention to comments from Powell, who will very likely face questions over the labor market. The labor market shows impressive strength from recent data release, and the market wants to know if further improvements would warrant a withdrawal on the monetary easing.
Because of this USD weakness, EUR is able to hold itself against USD with limited loss despite disappointing sentiment survey from Germany. EURUSD currently trades around 1.2071, down about 0.11% but the mid-term uptrend is quite clear since the beginning of April. German business morale improved only marginally and missed forecast, landing at 96.8. Previous level was at 96.6 in March and the market was expecting a major increase in April to 97.8. More than 45% of the businesses have reported bottlenecks and are mostly less optimistic about the six months forward. This has in generally shown that recovery in the Eurozone is limited.

Bitcoin jumped more than 8% on Monday, living up to its great volatility. It has successfully snapped the five-straight-day of losses and reclaimed the $54,000 level. Other major coins such as Ethereum and XRP were up 5% and 11% respectively. The increase could be partly attributable to JP Morgan Chase’s announcement regarding its plan to offer a managed bitcoin fund. Elon Musk has also commented earlier that he was not selling any of his bitcoins. The news encouraged the market and helped the coin regain its loss from Biden’s tax plan.