Forex Today: Musk launches Bitcoin rally, dollar falls with yields, stimulus and vaccine eyed

Yohay Elam FXStreet

Here is what you need to know on Tuesday, February 9:

Markets have been fascinated with Tesla's Bitcoin investment, which has sent BTC/USD to $48,000. The dollar is on the decline alongside yields and a risk-on mood as US fiscal stimulus speculation continues. Vaccine news and a handful of economic indicators are eyed.

Tesla, the world's leading electric vehicle maker, has pushed Bitcoin to above $48,000 after announcing a $1.5 billion investment in the cryptocurrency. Elon Musk's company will also accept BTC under certain conditions. The founder billionaire has also been touting Dogecoin in recent weeks. Some speculate that additional firms would follow Tesla's lead.

US bonds have attracted fresh interest after falling beforehand, and the consequent drop in yields has been weighing on the dollar. The greenback has somewhat returned to its safe-haven status and optimism – as seen in new records in US shares – is pushing the world's reserve currency lower. EUR/USD has advanced toward 1.21 and GBP/USD is zooming in on 1.38.

Stimulus: US President Joe Biden and Democrats continue discussing details of a fiscal relief plan that they plan to pass later in February. Moderates and liberals in the ruling party are at odds over eligibility to $1,400 checks to Americans, which is proving a sticking point.

Political attention is set to move to former President Donald Trump's impeachment trial which begins on Tuesday, yet investors are eyeing the final price tag for the stimulus boost – which may reach $1.9 trillion. Earlier in the month, the dollar advanced in response to prospects of higher spending.

Gold has been taking advantage of rising stimulus prospects and is changing hands at around $1,840. Silver, a temporary darling of retail traders on Reddit, is lagging behind.

Covid: The EU is making a fresh push vaccination drive after receiving doses from AstraZeneca. Nevertheless, the Anglo-Swedish firm's jabs have failed to prove efficient against the South African coronavirus variant. The UK and the US continue pushing immunization with full force.

Oil prices continue their upward march, with WTI Crude topping $58, a day after Brent surpassed the $60 mark. Expectations for more robust demand are boosting the the "black gold."

Top commodities to trade during 2021 amid global reflation theme: Silver and copper to outshine gold price

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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