Hi investors! Here’s your 5-minute overview of the crypto and stock markets. Remember that investing in the financial markets involves risk of loss. You should only invest the money that you can afford to lose. Make sure to calculate your risk tolerance before selecting the assets to invest in. Forex and crypto are especially high risk.
Forex Market Overview
The Trade war talks continued to take its toll on the Chinese Yuan, especially versus the US dollar. Oil prices also took a hit over the trade deal wariness. On Tuesday the UK will take the stage as BOE Governor Mark Carney Speaks In Parliamentary Testimony. We also have the Euro-Zone ZEW Survey for October and New Zealand’s consumer price index for Q3.
Taking a Closer Look at AUD/USD
Australia is China’s trading buddy, and right there next to New Zealand so today I’m looking at the AUD/USD pair which is still struggling to pierce through the daily Ichimoku cloud. Just like the NZD/JPY pair that I covered yesterday, the AUD/USD pair also appears to be in the process of forming a double bottom bearish reversal chart pattern.
However, the Aussie is less bullish than Kiwi. Regardless, we may be able to see the pair at least travel through the Ichimoku cloud and test the neckline of the double bottom chart pattern which also falls on the all-important 50$ Fibonacci retracement level.
Crypto Market Overview
It’s been another tough week for Bitcoin, which has experienced two sudden price drops over the past few days. It’s currently trading around $8,000. The fall was largely attributed to the disappointing launch of Bakkt futures market. Although additional market factors have contributed as well. Other coins have also fallen.
However, there are quite a few indicators suggesting prices are likely to stabilize by the end of the week.
This week, we’ll pay attention to how the G7—representing some of the most powerful countries in the world—chooses to approach the perceived risks presented by the crypto industry. The meeting may have a tremendous impact on how coins are traded and exchanged between individuals in different nations.
We’ll also pay close attention to Facebook’s continually developing Libra issues. According to US Treasury Secretary Munchin, there are already signs that Facebook does not believe the coin will be able to satisfy all regulations. Whether this leads to the eventual abandonment or modification of the project remains to be seen.
As the crypto industry has sought to further integrate into the retail space, FXCM has decided to issue five new “retail friendly” coins. Additionally, players in lightly regulated markets such as Switzerland have been looking for methods to bring crypto into the tourist space. South Korea, once again, has also been developing its industry. My sure to check out investdiva.com or my youTube channel for my thoughts on what facebook’s Libra means to the crypto world.
Stock Market Overview
After a bit of a rough week, stocks have managed to experience a modest rally. The S&P 500 is hoping to once again break the 3,000 point mark, something that traders were once hoping would represent the index fund’s newest trading floor.
Many of last week’s financial woes came in response to the United States announcing that it would actively expand its exporting blacklist. The tightening of markets—in addition to a still bitter trade war with China—have caused the market for global capital to become noticeably less liquid. Markets were also hindered by many Q3 earnings reports that failed to meet expectations.
Elsewhere, traders are addressing a sudden price drop in many commodities markets, including the market for crude oil. Investors are also responding to the fact an estimated $60 billion have been pulled from stock funds and moved towards more conservative investments.
The closing quarter of 2019 is one that is sure to be interesting. In the retail space, Apple announced that it plans for much of its near future growth to come from the sale of a $399 iPhone. We’ll watch as many of today’s top retail companies attempt to win over price-conscious shoppers this holiday season.