The Forex market session was marked by high volatility. It started out favorable to the Bitcoin Millionaire, but then turned around and the dollar lost against the major hard currencies and safe-havens such as the Bitcoin.
The EURUSD hit an intraday low at 1.1226, trading at 1.1325 at the time of writing. The monthly resistance is at 1.1424, which it touched last week.
The BTCUSD also broke through the $9,000 mark in the Asia session and then recovered to the $9,400 mark, which it is currently holding.
How can we use Forex volatility to our advantage?
Forex: Lower the Dollar
The U.S. dollar fell Monday afternoon after the Federal Reserve announced it would buy individual corporate bonds in the secondary market, triggering a risk move that caused U.S. stocks to rise and safe haven assets like the dollar to fall, according to Reuters news network.
The Fed said it will begin buying corporate bonds on Tuesday through the secondary market corporate credit line (SMCCF), one of several emergency lines recently launched by the U.S. central bank to improve market functioning in the wake of the coronavirus pandemic.
The central bank will use an indexation approach when making purchases, with the goal of creating a portfolio that is based on a broad, diversified market index of U.S. corporate bonds.
The US dollar index fell by 0.47% in US afternoon trading to 96.73.
American bags breathe
At the end of the session, Wall Street reversed the negative trend, the most significant advance being the Nasdaq technology index, which posted a gain of 1.43%.
The Dow Jones climbed 0.62% to 25,763 points, while the S&P 500 rose 0.83% to 3,066.
Tomorrow, US retail sales will be released and are expected to be up 7.9%, up from last month’s -16.4%. Any figure above the forecast can be a driver for stocks.