bridge21 update: USD breaks 21 MXN levels, Crude Oil goes Parabolic, and Cryptocurrencies Consolidate as the Situation the Ukraine Heats Up.
USD:MXN breaks 21 MXN : 1 USD levels, with the USD strengthening against most currencies, Crude Oil soars above 130 USD, Bitcoin slides sideways around 38k USD.
USD:MXN and Currencies Update: USD Strengthens as Geo-Political Tensions Flare
The US Dollar strengthened against the MX Peso 4.4% since the beginning of the conflict on February 24th, 2022. The US Dollar also gained 2.6% against the PHP and 2.4% against the INR since February 24th. Notably, BRL has strengthened against the USD over the same timeframe. India, the Philippines, and Mexico’s #1 export destination is the US, while Brazil’s top importer is China. It’s fascinating how a conflict between the Ukraine and Russia impacts seemingly unrelated currency pairs. With the world focused on the Donets’k and Luhansk regions in Eastern Ukraine, it may be smart to keep a close eye on China and Taiwan as well.
Crypto Price Update
Bitcoin initially strengthened against the US Dollar at the beginning of the conflict, but has since consolidated to earlier price levels, underperforming gold and other precious metals vs. the USD since February 24th. While this institutional demand led to spectacular gains over the last two bull market cycles, this demand also correlates crypto prices to equities and other traditional assets. The last year has been a nervous affair for crypto prices; but, we’re seeing strong support building at 30k USD levels with Bitcoin. Time will tell if the bull market is still in effect or if we’re heading for another “crypto winter”.
Crude Oil Update
Crude oil is up 27.5% against the US Dollar since February 24th. Wow…
Overall, we expect more volatility over the coming months, and price divergences based on major export partners as it relates to currency performance. Crypto could go either way. More real-world use cases would help the case for a crypto bull-market.