Brent crude extends gains on concerns about collapse in US-Iran nuclear talks
International benchmark Brent crude rose on Tuesday and extended the gains for the third straight session, amid concerns that the US-Iran nuclear talks would collapse, leading to more sanctions on the Iranian oil industry.
Oil prices are also supported by the dollar’s decline to a two-week trough against a basket of major rivals, making the greenback-denominated commodities cheaper to holders of other currencies.
Prices
Brent crude rose 0.7% today to $65.95 a barrel, with a session-low at $65.18.
Brent rose 0.25% on Monday, the second profit in a row.
US-Iran Talks
Iranian state media reported that US-Iran nuclear talks won’t bear results as Washington insists on removing Tehran’s uranium enrichment completely.
On Sunday, US Special Envoy Steve Witkoff said Washington will demand a complete ceasement from enrichment to reach a deal.
Such a potential deal would’ve led to reduced USS sanctions and allowed Iran to raise its exports between 300 to 500 thousand bpd.
US Dollar
The dollar index fell 0.4% on Tuesday to a two-week trough at 100.05 against a basket of major rivals.
Moody’s finally joined Standard & Poor and Fitch and downgraded the pristine US credit rating by one notch, pointing to the persistent US budget deficit and higher borrowing costs as reasons for concern.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
Bitcoin hovers near four-month highs on corporate purchases
Bitcoin rose on Tuesday and resumed the gains after a short hiatus yesterday, approaching four-month highs once more amid a positive sentiment in the crypto market after new purchases by major corporations.
The price is also boosted by the dollar’s drop to a two-week trough against a basket of major rivals after the US credit rating downgrade, and following renewed calls by Donald Trump on the Federal Reserve to cut interest rates.
The Price
Bitcoin rose 1.1% at Bitstamp today to $106,851, with a session-low at $104,910.
On Monday, bitcoin lost 0.85% on profit-taking away from a five-month high at $107,115.
Crypto Market Value
The market value of cryptocurrencies rose by $35 billion on Tuesday to a total of $3485 trillion.
MicroStrategy
Through the X platform, MicroStrategy’s Chairman and co-founder Micheal Saylor announced a new round of bitcoin purchases amounting to 7390 units, raising total holdings to a new record high.
The purchase occurred between May 12 and May 18, with the company spending $764.85 million in total, averaging $103,498 per unit.
Following the acquisition, the company now holds 576,230 units, averaging $69,783 per unit with a total value of $40.21 billion.
MetaPlanet
Japan’s MetaPlanet also expanded its bitcoin holdings by 1004 units, purchased between May 12 and 18, at a value of $104.29 million, averaging $103,873 per unit.
Following the new purchase, the company’s total holdings rose to a record 7800 units at a value of $712.46 million, averaging $91,341 per unit.
US Dollar
The dollar index fell 0.4% on Tuesday to a two-week trough at 100.05 against a basket of major rivals.
Moody’s finally joined Standard & Poor and Fitch and downgraded the pristine US credit rating by one notch, pointing to the persistent US budget deficit and higher borrowing costs as reasons for concern.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
US dollar extends losses to two-week trough on financial stability concerns
The US dollar fell in European trade on Tuesday against a basket of major rivals, extending losses for the second straight session and plumbing a two-week trough on concerns about the US financial stability following the credit rating cut.
US President Donald Trump once again called on the Federal Reserve to cut rates soon as a necessary measure to support the US economy against increasing global challenges.
The Index
The dollar index fell 0.4% today to 100.05, the lowest since May 9, with a session-high at 100.58.
On Monday, the index gave up 0.6%, the second loss in three days against a basket of major rivals.
Moody’s finally joined Standard & Poor and Fitch and downgraded the pristine US credit rating by one notch, pointing to the persistent US budget deficit and higher borrowing costs as reasons for concern.
US President Donald Trump once again called on the Federal Reserve to cut interest rates in posts on his social media accounts.
Atlanta Fed President Raphael Bostic said earlier this week that he’s leaning towards a single interest rate cut this year.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in June stood at just 8%.
The odds of a 0.25%% Fed rate cut in July stood at 37%.
Traders now expect 50 basis points overall of Fed rate cuts this year, likely starting in October.
New York Fed President John Williams said he hasn’t noticed a sharp decline in US assets, noting the US dollar remains the world’s reserve currency.