This Week In Forex, Crypto, And Stocks – July 30, 2019

Forex Market Overview

Last week was a stellar week for the US Dollar, which worked its way to the top of the forex list following several positive trade developments. Looking forward, we’ll keep a close eye on statements from the FOMC and other major market makers.

North of the border, the Canadian Dollar also fared quite well. Oil tensions in the Middle East have allowed the Looney to benefit from its own nation’s stability. Beyond oil prices, pay attention to Canada’s upcoming trade reports.

The biggest mover last week was the British pound. This was largely due to the recent election of Boris Johnson as prime minister. Contrary to his predecessor Theresa May, Johnson seems committed to following through with Brexit, regardless of whether the British government can secure a workable deal.

Elsewhere around the world, we saw a modest performance from the Euro, which was indirectly weighed down by the new Brexit outlook. Currencies in Japan, Australia, and New Zealand all experienced negative weeks. With several major reports coming up at the end of the month, expect the forex market to be more active than usual.

Crypto Market Overview

After opening the month with a surge nearing $13,000, Bitcoin has reversed it’s July gains and is now trading around the $9,500 mark.

Most of the crypto market moved along with Bitcoin. This resulted in a generally disappointing month for the industry as a whole. However, there are multiple positive developments that may result in a productive August. With more governments and markets opening up to the use of crypto, you can expect some productive competition.

Other developing crypto stories to watch include:

  • Tether Stablecoin’s newest launch,
  • The development of the finance app Aximetria,
  • Facebook’s Libra hearings in Washington, DC.

Depending on how the hearings play out, the crypto world may experience a major transformation.

Taking a Closer Look at BTC/USD

We actually identified a double top bearish reversal chart pattern in BTC/USD at the beginning of July, and the pair has also broken below the daily Ichimoku cloud.

 

Bitcoin technical analysis

BTC/USD Bearish Reversal Indications – Ichimoku Cloud, Double Top Chart Patern

On top of this, Bitcoin has generally been inversely correlated to the US stock market as many institutional investors have been using it as a hedge. With a potential rate cut by the Fed this week, the US stock could see further gains. Double down on that if the Fed hints on more cuts in 2019.

With that, the combination of technicals and fundamentals point to potential further declines for Bitcoin, to at least $8,792.

Stock Market Overview

Last week was a generally positive week for the stock market, which witnessed the S&P 500 reverse its fortunes and once again break the 3,000 mark. The DOW experienced a bit less movement throughout the week, though still managed to finish with positive gains.These can be attributed with the Fed rate cut already being priced in the markets.

The approved merger of Sprint and T-Mobile caused both of the telecom giants to experience a more than 5 percent increase in value. The merger marks one of the largest in an industry that, generally, is well-known for monopolies and trustbusting.

Some traders believe that small companies falling behind is a sign of upcoming economic turmoil. These feelings are further reflected by Jerome Powell, who has once again hinted that the Federal Reserve is planning a rate cut. Nevertheless, the US continues to outpace many of the world’s largest markets.

This week, we’ll keep a close eye on monthly earnings reports and see how the market reacts. We’ll also monitor the effects of Pfizer merging with generic drug maker Mylan, along with ongoing stock issues at Boeing.

This article is originally published on Investdiva.