Forex Market Overview
Last week saw disappointing results for both the Euro and the Swissy, putting some minor pressures on Europe’s most important central banks. With a limited number of reports coming out this week, the currencies are likely to maintain their current values.
The U.S. Dollar, on the other hand, enjoyed a relative increase in value compared to nearly every other major currency. The increase is largely attributed to renewed trader optimism as well as the poor performance from other currencies. As the week goes on, investors will keep a close eye on reports coming from the NFP and FOMC.
Elsewhere around the world, the British Pound Traders are eagerly awaiting the Bank of England “Super Thursday”, which will determine the fate of the Pound.
Meanwhile, the Canadian Dollar has been somewhat quiet and—with no major reports due to this week—will likely remain quite as traders explore their options elsewhere.
On the other side of the world, the Australian Dollar began to cool off, following a multi-week run as the world’s top-performing currency.
The Japanese Yen will be on vacation as our friends in the land of the rising sun take a long Golden Week break.
Taking a Closer Look at USD/CHF
On the other hand, even if we see further a gain, it may be capped at the key resistance, providing an excellent selling opportunity. For detailed investment stratgy on USD/CHF and other pairs, visit the PIG.
Crypto Market Overview
Next is the crypto market. Last week was a very active week for crypto traders. Following several legal scandals featuring Tether and Bitfinex, the value of Bitcoin managed to drop by 5.8 percent in less than five minutes last Thursday night. This news was disheartening to many Bitcoin traders, who watched the coin end a near-historic run and decline in price to around $5,100. Since then, prices have remained stable.
Don’t forget that I’ve been calling even further drops for the King of Cryptos. I’ve been calling yet another Bitcoin crash that’ll crack the $2,000 support level.
But it hasn’t all been bad news. Monday morning, E-Trade—one of the most popular trading platforms in the United States—announced plans to allow traders to trade Bitcoin and Ether directly from their platform. Newfound interest from major trading platforms helps to increase the legitimacy of the crypto industry and will likely have a positive impact on long-term values.
The rest of the news in the crypto world was a bit of a mixed bag. While there were some positive stories, such as Jaguar Land Rover’s announcement to pay crypto in exchange for driving data, there were also negative stories such as the Indian Government’s renewed commitment to ban crypto trading altogether. Overall, all of these stories will likely result in another busy week.
Stock Market Overview
With multiple earnings and economic reports coming out this week, you can expect an exceptionally active week on the stock market. The Dow achieved an all-time high last Wednesday and the S&P 500 has already reached a new zenith this Monday.
Fun fact, me and the Invest Diva PIGs took over 50% profit of some of our long-term holdings like Lockheed Martin and Xilinx right at the peak before the dropped back down.
Following the release of the newest Avengers—the first film to ever gross $1 billion in its opening weekend—Disney stock broke $142 for the first time ever. The United States also announced 3.2 percent quarterly growth, largely due to rebounding export markets. So far, 2019 has been an excellent year for American markets as a whole.
Elsewhere on Wall Street, Amazon announced record profits, despite flat-lining revenues. In response to struggles experienced by Lyft, Uber lowered its expected IPO to $80 billion. Tesla came to an agreement with the SEC about Elon Musk’s tweets, allowing the eccentric CEO to breathe a much-needed sigh of relief. The week ahead will see the release of a few more important reports and I’ll be sure to keep you updated.