Forex – Dollar Dips, Bitcoin Jumps as Futures Start Trading

Forex – Dollar Dips, Bitcoin Jumps as Futures Start Trading

© Reuters.  Dollar dips, bitcoin jumps as futures start trading© Reuters. Dollar dips, bitcoin jumps as futures start trading

Investing.com – The dollar edged lower against a basket of the other major currencies on Monday but remained supported by expectations of higher interest rates, while bitcoin prices jumped as futures trading in the digital currency got underway.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, edged down 0.1% to 93.75 by 06:40 AM ET (11:40 AM GMT).

Demand for the dollar continued to be underpinned after Friday’s stronger-than-expected underlined expectations for a rate hike by the Federal Reserve at its upcoming meeting.

The U.S. economy added a larger-than-forecast 228,000 jobs in November the Labor Department reported, but the report also showed that wage growth remained tepid.

The Fed is widely expected to raise interest rates at its two-day policy meeting that will end on Wednesday but the disappointing wage data could weigh on the pace of interest rate hikes next year.

The Bank of England and the European Central Bank will also meet this week and are expected to hold rates steady.

The dollar was a touch lower against the yen, with dipping 0.09% to 113.38.

The euro pushed higher against the dollar, with rising 0.13% to 1.1789, pulling back from Friday’s three week low of 1.1729.

Sterling was slightly lower but was off the lows of the day, with last at 1.3383 after British Prime Minister Theresa May hailed in Brexit talks on Monday.

May told parliament Britain and the European Union should sign off on a deal at a summit this week “to move forwards together” to discuss future trade ties.

Meanwhile, the price of the digital currency bitcoin surged following the launch of trading of the first U.S. .

On the U.S.-based Bitfinex exchange, was last at $16,206.00 after rising as high as $16,710.00 earlier.

Trading of futures tracking the cryptocurrency began at 18:00 ET on Sunday on an exchange run by Cboe Global Markets, less than 10 days after receiving a green light from the Commodity Futures Trading Commission.

Larger exchange CME Group (NASDAQ:) will begin initial listings of bitcoin futures contracts on December 18.

Bitcoin’s rally came amid fresh warnings that the cryptocurrency is a speculative bubble.

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