Bitcoin bounceBy Peter Rosenstreich
Bitcoin has surged more than US$1,000 from below $7,000 to around $8,050 in a bizarre surge that follows months of bearish consolidation. Its rise is pulling the rest of crypto sector higher. Technicians say the technical break of $7,450 triggered a surge in Bitcoin buying.
Despite talk of a crypto bubble, there remain significant investors who believe crypto will rally. Developments behind the scenes include new technology that will power faster transactions, blockchain projects and open-minded regulators: all will spark the next wave of crypto accumulation.
Rupee rise pauseBy Vincent-Frédéric Mivelaz
USD/INR started a strong rise in January but faltered since mid-February. The current rate of 65.25 is expected to trade sideways in the short-term. This will be supported by India’s central bank, which we expect to maintain its repo rate at 6%, based on a 12-month inflation forecast of 4.50%-4.60%.
Indian inflation was contained during Q1 2018, with March’s consumer price index at 4.28% (prior: 4.44%), below its 3-year average of 4.37%. Support came from Food and Beverages (3%), which accounts for 54% of the index, as well as Fuels and Lighting (5.73%) which could drastically impact inflation, due to India’s large oil imports. February industrial production climbed 7.10% (prior: 7.40%), signalling strong economic momentum. The good news has boosted equities (+1.44% year-to-date). 2-year, 10-year and 30-year treasury yields are up this year as investor sentiment continues to improve.