Risk-on mood weighs on the dollar, cryptocurrency whipsaw continues, US data eyed

The market mood is upbeat on Tuesday, with stocks rising and the dollar on the back foot in response to Fed dovishness. High volatility in cryptocurrencies prevails in response to new comments from Musk. US consumer confidence and housing data are awaited.

Lael Brainard, a Governor at the Federal Reserve, reiterated the bank’s position that the economy has a long way to go and that inflation is transitory. Her supportive comments were the latest to boost sentiment and weigh on the safe-haven dollar. His colleagues Charles Evans and Randal Quarles are due to speak later in the day.

The Conference Board’s Consumer Confidence measure, the Housing Price Index (HPI), and the S&P/CS Composite HPI figures are eyed.

EUR/USD is trading above 1.22, benefiting from dollar weakness and Europe’s reopening. Several countries in the old continent are returning from a long weekend and the German IFO Business Climate figures are eyed.

GBP/USD is hovering under 1.42, buoyed by comments from Bank of England Governor Andrew Bailey, who brushed off concerns about rising inflation.

Cryptocurrencies have been edging lower early on Tuesday after jumping on Monday and tumbling over the weekend. Tesla’s founder Elon Musk said he spoke with North American Bitcoin miners and said they may have promising solutions. That contrasts his previous criticism against the granddaddy of digital assets.

Ethereum founder Vitalik Buterin has been clashing with Musk over energy and scalability issues.

WTI Crude Oil has advanced to $66 despite speculation that Iran will be returning to international markets and Gold has been stabilizing under $1,880.

US stocks have been on the rise, including interest-rate-sensitive tech stocks. Additional gains are eyed.

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