Bitcoin lost over 2.5% on Tuesday, trending lower for the first time in four days amid risk aversion following US producer prices data, which hurt the odds of an early Fed interest rate cut. 

Now traders await more clues later today, including a speech by Fed Chair Jerome Powell in Holland. 

The Price 

Bitcoin fell 2.8% at Bitstamp today, or $1,766 to $61,151, with a session-high at $63,075. 

Bitcoin rose 2.4% on Monday, the third profit in a row amid strong purchases around the $60,000 barrier. 

Crypto Market Value 

Crypto market value fell by over $40 billion today to a total of $2.380 trillion as both ethereum and bitcoin carry losses.

US Yields 

US 10-year treasury yields rallied by a single basis point to a week high at 4.534%, hurting risk appetite.

The gains came after earlier US producer prices data, which surpassed estimates and underlined the ongoing threat of inflation.

US Rates

Following the data, the market odds of a July interest rate cut stood at 25%, and the odds of a September rate cut stood at 63%. 

Powell

Fed Chair Jerome Powell is expected to speak in Amsterdam later today, and will take audience questions on the future of inflation and interest rates.

Dollar fell in European trade on Tuesday against a basket of major rivals, on track for the second loss in a row, under pressure from lower US treasury yields, which undermine the dollar's standing. 

Now investors await important US inflation data, in addition to Fed Chair Jerome Powell’s speech this week, to look for clues on the future of monetary policy.

The Index 

The dollar index fell 0.1% today to 105.18, with a session-high at 105.35.

The index fell 0.1% yesterday, the second loss in three days as demand slowed down. 

US Yields 

US 10-year treasury yields fell by 0.4 basis points on Tuesday on track for the second loss in a row, which provides support for non-yielding assets. 

The developments came ahead of crucial US inflation data for April, in addition to Fed Chair Jerome Powell’s speech this week. 

US Rates

The markets are pricing in a 3.5% chance of a June Fed rate cut, and a 25% chance of a July cut, and a 63% chance of a September cut.

According to the Fedwatch tool, the markets expect two Fed interest rate cuts this year in September and November. 

US Inflation Data

Later today, US producer prices data will be released for April, while tomorrow, US consumer prices data is scheduled for release, and it’ll be crucial for gauging the likely path ahead of monetary policies. 

Powell

Fed Chair Jerome Powell is expected to speak in Amsterdam later today, and will take audience questions on the future of inflation and interest rates.

Gold prices rose in European trade on Tuesday, resuming gains after a short hiatus, as US 10-year treasury yields slowed down. 

Investors are looking for fresh clues on this year’s interest rate cuts by the Federal Reserve, as investors await crucial US inflation data and Fed Chair Jerome Powell’s speech. 

Prices

Gold prices rose 0.4% today to $2345.99 an ounce, with a session-low at $2334. 

The precious metal lost over 1% on Monday, the first loss in three days away from a two-week high on Friday at $2378. 

US 10-year treasury yields fell by 0.4 basis points on Tuesday on track for the second loss in a row, which provides support for non-yielding assets. 

The developments came ahead of crucial US inflation data for April, in addition to Fed Chair Jerome Powell’s speech this week. 

US Rates

The markets are pricing in a 3.5% chance of a June Fed rate cut, and a 25% chance of a July cut, and a 63% chance of a September cut.

According to the Fedwatch tool, the markets expect two Fed interest rate cuts this year in September and November. 

US Inflation Data

Later today, US producer prices data will be released for April, while tomorrow, US consumer prices data is scheduled for release, and it’ll be crucial for gauging the likely path ahead of monetary policies. 

Powell

Fed Chair Jerome Powell is expected to speak in Amsterdam later today, and will take audience questions on the future of inflation and interest rates.

The SPDR 

Gold holdings at the SPDR Gold Trust remained flat yesterday at 831.93 tonnes, a week high. 

Yen fell in Asian trade on Tuesday against a basket of major rivals, sharpening losses for the third straight session against the dollar and plumbing two-week lows, triggering concerns of yet another intervention by Japanese authorities. 

Yen is approaching the red line that the Bank of Japan seemed to have demarcated with serious intentions to intervene in order to defend. 

Otherwise, traders await important US inflation data this week, which will provide important clues on the future of monetary policy.

The Pair 

The USD/JPY pair rose 0.2% to 156.50 yen, the highest since May 1, with a session-low at 156.12. 

The yen lost 0.3% against the dollar yesterday, the second loss in a row as markets focus on the Japan-US interest rate gap. 

The 160 Red Line

The 160 has become a red line for the Bank of Japan, so it’s likely it’ll intervene if the USD/JPY pair threatens to fall once again below.

Japanese authorities intervened last week and pumped $60 billion in the forex market to bring the yen higher against main rivals after it hit 1990 lows. 

Japanese Government 

Japan’s finance minister Shinuchi Suzuki said the government will work closely with the Bank of Japan to monitor the forex market and ensure stability. 

He added the government is also monitoring interest rates closely when asked about his reaction to the BOJ’s sudden decisions to cut the amount of government bonds it purchased this week. 

The IMF

The International Monetary Fund said that Japan should allow the yen to move flexibly, which would help the BOJ to focus on stabilizing prices through monetary measures. 

US Inflation

Later today, US producer prices data will be released for April, while tomorrow, US consumer prices data is scheduled for release, and it’ll be crucial for gauging the likely path ahead of monetary policies.