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Palladium starts the European session lower at $959.22 per troy ounce.
Platinum Group Metals are seeing a drop early on Friday. Palladium is priced at $959.22 per ounce, down slightly from $964.05.
Platinum is also down slightly, trading at $991.20 compared to $994.10 before. Both metals are under pressure during the early European trading hours.
New Zealand’s rising inflation expectations lead the RBNZ to reevaluate monetary policy strategies.
The Reserve Bank of New Zealand (RBNZ) survey for Q2 2025 shows an increase in both 1-year and 2-year inflation expectations. The 1-year forecast jumped to 2.41% from 2.15%, and the 2-year forecast rose to 2.3% from 2.1%.
RBNZ surveys gather insights from business leaders and experts about inflation expectations. In recent quarters, these surveys indicated a general decline in inflation expectations, approaching the RBNZ’s target range of 1–3%. The 1-year expectation slightly increased in Q1 2025, while the 2-year expectation continued to fall, indicating confidence in stable prices in the medium term.
Inflation Trends Over Prior Quarters
In Q1 2025, the 1-year expectation rose to 2.15% from 2.05%, while the 2-year expectation dropped to 2.06% from 2.12%. In Q4 2024, the 1-year expectation fell to 2.05% from 2.40%, and the 2-year expectation went up to 2.12% from 2.03%. In Q3 2024, the 1-year expectation decreased to 2.40% from 2.73%, while the 2-year expectation dropped to 2.03% from 2.33%. The RBNZ uses these expectations to shape its monetary policy. Lower medium-term expectations support the RBNZ’s inflation targets and may enable them to adopt more flexible policies. A rise in the two-year expectation could strengthen the New Zealand dollar (NZD). The latest RBNZ survey shows a significant change. After several quarters of falling projections, especially for the 2-year outlook, we now see an upward trend in both the short and longer terms. The 1-year inflation estimate increased by 26 basis points, while the 2-year estimate rose by 20 basis points. These are the largest consecutive increases since late 2023, indicating a shift in how experts view the pricing landscape for the next couple of years. Previously, markets believed the RBNZ’s view that inflation would gradually return to target, which would allow for relaxed monetary settings. This belief was reflected in interest rate expectations and general market sentiment, supported by declining inflation projections. However, the Q2 figures challenge that viewpoint.Implications for Markets and Policy
The increase in the two-year expectation is particularly noteworthy. This time frame is more important to the RBNZ since it relates closely to the current monetary policy’s effects. A stronger two-year forecast may indicate that the current policy isn’t as restrictive as needed, or that it takes longer to influence actual prices. While the rise in the one-year expectation might stem from short-term concerns, like fuel costs or import prices, the change in both forecasts requires careful consideration. Orr’s team might now be less inclined to maintain the current policy. They are aware of the need to avoid overreacting but face rising inflation expectations, which they monitor for credibility. This situation raises the possibility of postponing any discussions about loosening policies and might even bring discussions of rate hikes back to the table if inflation pressures increase. For market participants who focus on where interest rates might move over the next few months, these developments alter the assumptions that were previously in place. The RBNZ won’t rush to change its stance, but it may adopt a more cautious forward outlook. This shift impacts curve positioning, especially in swaptions or steepeners, which may need reassessment. It’s essential to keep an eye on what influences these expectations. Are they just reacting to recent Consumer Price Index (CPI) data, or has something fundamental in their analysis changed? If they begin to factor in lasting supply-side problems or stronger domestic demand than anticipated, that would indicate more persistent medium-term inflation and lessen the chances of rate cuts. We can also expect increased volatility in the NZD. The uptick in the two-year expectation emphasizes rate differentials as a key factor in currency movements. If the next policy statement highlights concerns about inflation expectations, we could see upward pressure on the short end of the yield curve, impacting spot and adjusted carry positions. The time between this data release and the next policy decision is short, so we might see the market shift towards resistance against easing or at least recalibrating timelines. Traders should be alert to any developments from local data or PMIs, as even minor positive shifts could reinforce the new outlook for long-term interest rates. Given these changes, any strategies based on expectations of easing should be reconsidered. A more sensible approach might involve shorting the mid-range of the yield curve or guarding against a flattening trend. The risk-reward scenario has shifted, even if only slightly, and previous assumptions no longer align with current expectations. Create your live VT Markets account and start trading now.GBP/USD rises during Asian trading hours, drawing buyers near the 1.3310 level
The GBP/USD pair rose to about 1.3310 during Asian trading hours. This increase is due to a weaker US Dollar and positive UK GDP data. A disappointing US economic outlook, highlighted by unexpected drops in producer prices, is leading to market expectations of more Federal Reserve rate cuts this year.
For the US, the Producer Price Index (PPI) rose by 2.4% year-over-year in April, slightly missing expectations, while initial jobless claims remained steady at 229,000. In the UK, GDP growth for the first quarter exceeded forecasts, increasing by 0.7% quarter-on-quarter. As a result, the GBP/USD is now around 1.3293, up by 0.31%.
Pound Gains from Inflation Data
Weak US inflation and retail data further strengthened the Pound. The US PPI fell by 0.5% month-on-month in April, contrary to a predicted rise of 0.2%. Excluding volatile items, the core PPI dropped by 0.4% month-on-month, below the expected 0.3% increase. These trends helped push GBP/USD higher as expectations of a slowing US economy grow. This article discusses recent movements in the GBP/USD exchange rate, noting a modest increase during Asian trading, currently just below the 1.33 mark. This rise is supported by softening US economic data and unexpectedly strong UK economic performance in the first quarter. The decline in US producer prices and weak jobless figures suggest that the US economy might be slowing down more quickly than expected, while UK GDP growth has turned out to be surprisingly strong. The US Producer Price Index, an important measure of inflation, fell short of expectations. Although April’s PPI rose 2.4% year-over-year, it dropped 0.5% month-on-month, contrary to forecasts of a slight increase. The core PPI also fell, indicating that underlying inflation pressures are easing. This is significant because pricing pressures affect the policies of central banks, especially regarding interest rates. Jobless claims staying steady at 229,000 suggest the labor market isn’t collapsing but may be softening. The disappointing inflation and weak retail numbers strengthen the case for a more cautious Federal Reserve in the coming months. Markets are increasingly anticipating that rate cuts could happen sooner and more frequently than previously thought.UK GDP Beats Expectations
In the UK, quarterly GDP growth showed a 0.7% increase, much better than expected. This surprise helps bolster the pound, especially against a backdrop of weak US data. The focus is not just on the UK economy’s strength but also on how it contrasts with the underperforming US economy. From a strategic perspective, it’s crucial to focus on rate expectations, as they drive the conversation across currency pairs. With US inflation lower than forecast and growth concerns emerging, it’s becoming harder for the Fed to maintain a hawkish stance without concrete data to support it. For traders dealing with rate-sensitive positions, it’s essential to consider not just inflation or growth levels, but also the differences in direction between the Federal Reserve and the Bank of England. This disparity is actively being reassessed, influencing the pound’s movements. The shift in GBP/USD isn’t random. It’s a reaction to the expectation that the Fed will need to ease policy sooner, likely scaling back earlier aggressive guidance. This change is dragging the dollar lower across many pairs, with the impact most noticeable where the opposing economy—like the UK—is showing stronger results. In the coming sessions, the market may react more to upcoming inflation indicators and messages from officials. Small shifts in tone can trigger sharp intraday moves, making timing and size critical. This week’s volatility has been driven by data, with implied volatility increasing alongside macroeconomic releases. This not only affects direction but also influences option pricing and premium costs for those with short-dated contracts. As the calendar fills with political and economic events across the Atlantic, managing risk becomes crucial. Those with leveraged positions need to carefully evaluate probability distributions, especially as expectations shift with new data. While the current trend favors a stronger pound against the dollar, this trend does not occur without checks. It results from identifiable data patterns and market adjustments, which we must continue to monitor. Create your live VT Markets account and start trading now.South Korea’s finance ministry reports rising economic challenges from weak exports and domestic demand
South Korea’s Green Book from the Ministry of Economy and Finance shows that the economy is facing “increasing” downward pressure. This is mainly due to a drop in exports and lower domestic spending amid ongoing trade uncertainties.
For five months in a row, the Ministry has said that recovering domestic demand is slow, and the job market is struggling, especially in vulnerable sectors. Additionally, tougher external conditions from U.S. tariff policies have made the export slowdown worse.
The latest issue of South Korea’s Green Book paints a clear picture. The economy is feeling more downward pressure than it has in recent months. Exports are struggling, affected not just by seasonal changes but also by international policy issues. Domestically, spending is decreasing—households are buying less, and businesses are investing less confidently.
This is the fifth consecutive update pointing to weak or declining demand, indicating a trend rather than a temporary issue. When we see this consistency in official statements, especially from a finance ministry with access to a lot of data, we can’t ignore it. Adding to this are the growing job pressures in fragile areas of the labor market, revealing systemic stress. These aren’t just minor changes; they reflect deeper issues in the real economy.
American tariff strategies have worsened the situation for South Korean exporters. The challenges are not limited to a few sectors; they affect a broader range. Manufacturing output for international buyers is decreasing, impacting both sales volume and pricing. If global demand drops and trade barriers rise, profit margins shrink. Lower margins lead to less confidence in hedging.
People involved in options or futures contracts should take notice—not just due to volatility, but because the causes of that volatility are clearer and harder to manage. There are obvious pressures from both domestic and international fronts, which reduce a historical cushion. This isn’t a reason to act hastily, but it’s a time to rethink risk profiles. When both consumption and exports signal contraction at the same time, it may require adjusting expectations across multiple areas.
What worries us is that this situation isn’t just a one-time issue. The consistent tone over five months suggests we should adjust expectations for a quick recovery. Recovery timelines may extend, and contracts based on the assumption of a cyclical upswing might need reevaluation.
While the ministry doesn’t give specific predictions, we should pay close attention to their messaging. The focus on “increasing” pressure is significant—it suggests a growing concern, not just a slowing decline. This points to a potentially sharper downturn than some models anticipated.
In planning future strategies, it’s wiser to be cautious with short-term positions. With slow domestic activity and increasing global challenges, flexibility in exposure is more important than the amount of exposure. Being early could be less costly than being poorly positioned.
We should also keep an eye on employment concerns—especially in vulnerable sectors—not just for labor data but for their effects on consumption. If job security falters, even in small sectors, it can negatively affect overall sentiment and spending. Consumption relies not just on disposable income but also on confidence. Without it, pricing and sales volumes suffer.
As the data clarifies the direction, we aim to distinguish between noise and meaningful trends. The tone has changed. Corrections may not be quick, and pressures may take time to ease.
The EUR/JPY currency pair keeps falling, approaching 162.50 while remaining in a bullish channel.
Currency Performance Analysis
EUR/JPY is currently declining, trading at about 162.80, but is still within a rising channel. Key technical indicators show that the pair is facing resistance around the nine-day EMA at 163.41. The 14-day RSI has dipped below 50, indicating a bearish trend. Support for EUR/JPY sits near the channel’s lower boundary at approximately 162.50, with further support at the 50-day EMA around 162.23. If it falls below these levels, the currency pair might drop to a two-month low of 155.59, which was recorded in early March, and potentially to 154.41. The pair may encounter resistance at the nine-day EMA of 163.42, with potential targets at a six-month high of 165.21 and a nine-month high of 166.69 if it breaks above. The Euro is the weakest compared to the New Zealand Dollar but performs moderately against other major currencies. A heat map shows the Euro’s performance against major currencies, illustrating its relative strength or weakness. These currency movements are informational, and thorough research is recommended when making market decisions. All market activities carry risks, emphasizing the importance of informed decision-making. The recent pullback in EUR/JPY has brought it back to the lower part of its upward channel, around the 162.80 mark. There is hesitation just above the 162.50 level, which has been a stable point since late April. Price action remains reactive, staying within the overall uptrend, despite some signs of short-term weakness.Support and Resistance Levels
Technical momentum appears to be fading. The nine-day EMA at 163.41 is a short-term resistance point, and we haven’t seen convincing closes above this level lately. When the 14-day RSI drops below the midpoint, as it just has, it often indicates a potential for further declines. However, price movement carries more weight as indicators typically follow. The 50-day EMA around 162.23 serves as the next significant test. While this level hasn’t been challenged meaningfully since March, if it doesn’t hold, we could see a quick drop. Additional support lies further down, with the March low of 155.59 not far in percentage terms from current levels. A fall to 154.41, last seen in early February, may also come into play. We’re closely monitoring this trend. On the upside, the immediate barrier is around the nine-day EMA. Tracking 163.42 is crucial. A close above it doesn’t guarantee stability on its own; it’s what happens next that matters. Further upward movement to the six-month high of 165.21 and the nine-month peak of 166.69 is possible if the pair re-enters a solid buying zone. However, this seems unlikely without outside factors and stronger Euro performance. Cross-pair momentum confirms the Euro’s recent softness. It has been underperforming against higher-yielding currencies like the New Zealand Dollar and remains flat or slightly better against most others. This relative position hints at where speculative flows have recently shifted. The heat map visually displays the currency’s dynamic behavior. Moving forward, short-term derivative strategies likely depend on whether the channel floor holds or breaks under pressure. We recommend allowing the current test at 162.50 to play out before making adjustments. If the price drops to 162.00, we expect some base-building unless sentiment changes dramatically. Timing will rely less on indicators and more on trader behavior around these levels. With low volatility and options skews leaning slightly down, we might see smaller price movements with occasional bursts instead of consistent trends. Clarity may not come all at once. Our approach should remain responsive, keeping positions light enough to pivot easily, with exposure adjusted around potential market-moving events or data releases. Create your live VT Markets account and start trading now.ECB Chief Economist Lane may share insights on future rate decisions in panel discussion
European Central Bank Chief Economist Philip Lane is expected to share insights about the ECB’s future interest rate decisions. He will join a Policymaker Panel at an event organized by the Federal Reserve Board in Washington, D.C.
This panel is part of the 2nd Thomas Laubach Research Conference, scheduled for 1500 GMT, which is 1100 Eastern Time in the U.S.
Implications of Lane’s Participation
Lane’s involvement in this event may provide a better understanding of the ECB’s plans, especially as future rate expectations shift due to recent data. Although the conference has an academic focus, such panels often reveal current internal discussions and emerging consensus, even without formal policy announcements. His comments may come at a time when interest rate outlooks remain uncertain. Some inflation data has eased, but strong labor markets and wage growth complicate the central bank’s efforts. A simple change in Lane’s tone can significantly impact rate markets, particularly when there are already stretched positions in certain maturities. Traders should closely observe how Lane expresses his views, rather than just his exact words. If he emphasizes disinflation trends or notes weakening core price pressures, it could indicate a leaning towards easing rates. Conversely, if he highlights risks from wage growth or international influences, then aggressive rate-cut expectations may be misguided for now.Market Reactions and Future Implications
It might be wise to prepare models for a narrower range of possible outcomes. Currently, short-end rate derivatives hold the most speculative juice, but volatility across the curve may not wait for formal meetings to react. Once Lane speaks, the swaps market may quickly adjust its expectations for the pace and extent of any easing well before official decisions are made. Keep in mind that, based on previous speeches from other officials, tone can influence the market just as much—if not more—than the actual content. Casual comments or prolonged discussions about structural inflation issues have notably impacted pricing in recent months. If Lane leans in a particular direction, you can expect swaps and futures positioning to shift shortly afterward. Successful positioning doesn’t require being the first to react, but rather understanding how much weight the market places on such inputs and adjusting accordingly. Timing is also crucial. This event occurs just days ahead of a busy calendar in Europe. Due to Lane’s role, what he says could be referenced or interpreted in early-week price movements. There won’t be many days to recalibrate before the market digests larger signals from both sides of the Atlantic. We should view his remarks from this session as a valuable glimpse into ECB thinking—filtered, but still informative. Create your live VT Markets account and start trading now.The Vice President of China says there are many opportunities for collaboration between the US and China.
China’s Vice President, Han Zheng, said on Friday that there is room for cooperation between the US and China. He hopes US businesses can help improve US-China relations.
The US Dollar Index dropped by 0.22%, now at 100.58.
Understanding The Trade War
A trade war is an economic conflict where countries impose trade barriers, like tariffs, to raise import costs. The US-China trade war began in 2018 during President Donald Trump’s term. It involved tariffs on many products and increased economic tensions. The Phase One deal in 2020 aimed to ease these tensions, but the pandemic shifted priorities temporarily. President Joe Biden kept the tariffs and added new ones. With Donald Trump potentially returning to the presidency, tensions are rising again. He has suggested imposing 60% tariffs on China. This tension affects global supply chains and inflation, impacting consumer spending and investments. Vice President Han’s comments show a small shift towards cooperation. He is suggesting that economic sense may outweigh ongoing conflict. His encouragement for American companies to help shape relations signals a desire to restore investment confidence amid uncertain trade expectations. We’ve seen how shifts in policy affect financial markets. The US Dollar Index’s slight drop to 100.58 reflects changes in expectations about interest rates and overall market risk. Currency markets provide immediate insight into sentiment. A weaker dollar may indicate that markets are reconsidering growth forecasts or that risk appetite is growing, as trade disputes seem less damaging in the short term.Pricing The Risk
When discussing trade wars, traders must keep a long-term view. Though the trade conflict started in 2018, the same tools of economic policy are still in play. Under Biden, there has been no significant shift away from tariffs, and new tech restrictions and tax measures keep the pressure on. The possibility of Trump returning to power threatens to increase tariffs again, changing risk pricing significantly. This is evident in volatility curves and hedging strategies. Looking ahead, traders should focus on inflation forecasts and changes in global logistics. If tariffs are taken seriously, the impact will be felt well beyond China. We’re already seeing movements in equity-linked options and some commodity-linked derivatives. Supply chains don’t adjust quickly, and markets often react to potential disruptions before they happen, suggesting traders with longer contracts should prepare for changes. Remember, any major policy proposal—like Trump’s suggested tariff hikes—creates secondary effects, such as increasing costs, potential retaliation, and lower corporate profits. These effects influence earnings predictions and inflation expectations, which then affect derivatives. Now, it’s crucial to monitor where capital flows. If traders increase hedging in Asia-focused ETFs or raise put options on consumer discretionary sectors, they may expect decreased consumer spending. This would cause higher implied volatility, especially for firms heavily involved in trade. Also, watch how the bond market responds to these concerns. If investors demand higher yields on medium-term Treasuries, it suggests worries about inflation and policy mistakes. Such macro signs often lead to adjustments in swaps and futures markets before any official actions occur. Overall, we need to pay close attention to market spreads and correlations instead of just reacting to headlines. When political statements impact the market, it’s about how these changes are interpreted by the instruments, not just the content of the statements. We’re not starting from scratch, but we are in a phase where familiar patterns may emerge in surprising ways. Create your live VT Markets account and start trading now.PBOC’s USD/CNY reference rate is 7.1938, with 106.5 billion yuan injected through repos
The People’s Bank of China (PBOC) decides a daily midpoint for the yuan, also called the renminbi or RMB. This is part of a managed floating exchange rate system, which allows the yuan to move within a specific range around this midpoint.
Right now, the fluctuation band is set at +/- 2%. The yuan recently closed at 7.2067.
Recently, the PBOC put 106.5 billion yuan into the market using 7-day reverse repos, with an interest rate of 1.40%.
By establishing a midpoint each morning, the PBOC clearly indicates where it expects the yuan to be against other currencies that day. While the market has some flexibility, the 2% fluctuation band restricts how much traders can influence the yuan. The recent close at 7.2067 illustrates the overall market sentiment and hints at the PBOC’s strong control over expectations given the current liquidity situation.
The liquidity operation of injecting 106.5 billion yuan through the reverse repos is intentional. At 1.40%, this rate not only makes funds available temporarily but also fine-tunes short-term market rates. This level of central bank involvement signals a desire to manage cash conditions and market sentiment.
What stands out is the dual message: a strong rule on the currency’s trading limits, and a clear effort to ensure stable funding markets.
For those involved in short-term rate derivatives or FX-linked products, it’s important to recognize the current tolerance levels set by the PBOC. While the upper limit of the currency band restrains dollar gains against the yuan, it also restricts any upward movement. This creates a tight space for trading, where quick changes in sentiment can lead to limited responses—unless the central bank adjusts intervention levels.
Liquidity injections like this one usually convey subtle signals rather than loud proclamations. With a 1.40% repo rate, there’s no rush indicated, but a clear intent to keep market conditions aligned with policy objectives. Money markets will likely stay around these established levels. For short-dated interest rate products, this suggests a soft ceiling and a somewhat sticky floor.
Recent actions show comfort in maintaining a stable but slightly shifting range. This means we shouldn’t expect sudden shifts, but rather small adjustments each day. We should keep an eye out for any fixing patterns that don’t fit typical models; these can hint at future changes if you pay attention to past behavior.
For spread trades, especially those linked to repo rate predictions or FX movements in Asia, it’s wise to adopt a cautious approach until clearer trends emerge. While there’s no indication of drastic changes, slight shifts in liquidity can affect expectations about carry dynamics and implied volatility.
The fixing will reveal what the central bank intends to communicate, often more than its actual actions. It’s important to focus on the daily reference rate compared to previous closes, observing the tolerance levels in ticks against the set bounds.
In the end, this framework isn’t aimed at major changes but is designed to soothe market nerves. Precision in timing is more vital than the overall direction. Subtle signals, repeated over time, are building clear signals. Those who pay close attention and act swiftly will likely gain an advantage.
In March, Japan’s capacity utilization decreased to -2.4%, down from -1.1% previously.
Japan’s capacity utilization dropped by 2.4% in March, following a previous decrease of 1.1%. This decline shows less efficient use of the country’s resources during this time.
In other market news, the EUR/USD moved up toward 1.1200, influenced by a weaker US Dollar due to recent economic data. Likewise, GBP/USD rose above 1.3300, driven by positive GDP figures from the UK and a softer Dollar.
Gold Price and Bitcoin Resistance Levels
Gold prices have paused in their recovery near the 200-period SMA on H4 charts, amid less pressure from global markets thanks to the US-China trade truce. Meanwhile, Bitcoin is testing a key resistance level at $105,000, with a possible breakthrough suggesting strong bullish control. In the UK, economic growth in the first quarter hints at a recovery from last year’s stagnation, although questions about the data’s accuracy remain. A recommendation list of the best brokers for trading EUR/USD in 2025 includes those with competitive spreads and efficient platforms, suitable for both new and experienced Forex traders. Japan’s recent 2.4% drop in capacity utilization in March, following a 1.1% decline, indicates a further fall in production efficiency. This suggests that fewer resources are generating productive outcomes compared to earlier times, typically linked to weak domestic demand or hesitation from manufacturers to increase production. Such declines, especially when consecutive, often reflect a broader slowdown in industrial activity rather than just a temporary issue. Caution is advised for strategies tied to Japanese output or manufacturing benchmarks, particularly with leveraged positions related to industrial performance. The rise of EUR/USD near 1.1200 largely stems from a weakening Dollar, as recent U.S. data lowers expectations for aggressive monetary tightening. This currency shift can affect rate-sensitive instruments. The euro’s gains are not driven by optimism in the eurozone but rather by the Dollar’s decline, making this distinction critical for identifying potential resistance ahead. Monitoring short-term interest rate swaps is crucial as they can signal early directional changes before market responses materialize.Sterling Gaining Ground Against the Dollar
The British Pound gained against the Dollar, pushing past 1.3300, following positive GDP reports from the UK. While quarterly growth hints at cyclical strength, there are still concerns about the reliability of the underlying data, which may dampen enthusiasm. Policymakers’ guidance might hold more importance than the headline figures, especially if growth momentum proves fragile. Observing the yield spread between UK gilts and US Treasuries is important when the currency pair strengthens, as shifts in yield differences can amplify or diminish upward moves. Gold’s price remains stuck around the 200-period simple moving average on the four-hour chart, unable to break higher convincingly. Its earlier momentum has slowed due to decreased demand for safe-haven assets, thanks to improved relations between the US and China. However, if external pressures rise, such as unexpected inflation or hawkish central bank statements, prices could swing sharply. This SMA level is watched closely for trend confirmation, so price movements around it may influence risk models. Bitcoin approaching $105,000 is significant. This level serves as a temporary ceiling that has halted further price increases. Notably, compressions like this below resistance can lead to increased volatility. A clean breakout with volume could lead to a sharp price rise. Long positions should consider tighter trailing stops or planned exits at known liquidity levels above. Increased leverage in this space adds short-term momentum if prices begin to rise. For trade setups involving the euro-dollar into 2025, don’t overlook brokerage platforms with low spreads and excellent execution. Effective infrastructure is crucial, particularly during volatile times when every millisecond counts. Adjusting systems for margin efficiency and filtering out slower platforms are essential actions to take now. Ultimately, it’s not just about identifying a breakout or following a trend—maintaining disciplined execution and adapting to data changes is what makes the biggest difference. Create your live VT Markets account and start trading now.JP Morgan analysts predict Bitcoin will outperform gold in the coming months
JP Morgan analysts predict that Bitcoin will outperform gold for the rest of the year. This change is linked to a shift in the “debasement trade” strategy, which involves buying gold and Bitcoin as a hedge against weakening currencies. By 2025, this strategy may become a zero-sum game.
Gold prices had been rising while Bitcoin was declining, but this trend has reversed recently. After peaking in April, gold prices have fallen, while Bitcoin has gained popularity. This shift is due to funds moving out of gold ETFs and into Bitcoin and other crypto funds.
