Hi investors! Here’s your 5-minute overview of the forex, 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
Last week was a relatively stable week for the American Dollar, though there are signs that this stability may be about to change. With the Federal Open Market Committee scheduled to release its latest minutes, major policy changes will likely trigger a new wave of volatility.
Canada is also expected to issue some important reports this week, including retail numbers and an updated consumer price index. Meanwhile, the Euro is expected to benefit from investors looking for safer bets.
Once again, the driving force behind the pound has been Brexit. With the hard Brexit date now just over ten weeks away, many investors are starting to feel nervous. Leaked warnings from the government have likely harmed the pound even further.
Elsewhere, we’ll see how the Japanese Yen responds to traders realigning their risk preferences. We’ll also keep a close eye on New Zealand’s newest retail figures and the Royal Bank of Australia’s latest meeting.
Stock Market Overview
It was yet another crazy week for the stock market, which saw the S&P 500 take a 100 point dive, only to recover and eventually return to its initial starting point. The above-average movement seen with most index funds suggests that the market as a whole has had difficulty evaluating risks and making future predictions.
Last week, the mortgage debt market hit a new peak, surpassing its 2008 levels and signaling to investors that a new bubble may be emerging. Continuing with the volatility trend, the bond market also experienced a very up and down week.
WeWork’s IPO filing revealed that while the company has been able to significantly increase its revenues, it is still operating with net losses of nearly $700 million per year. We’ll keep a close eye on the company, along with retailers such as Nordstrom, Target, and others.
In other markets, the ultra-long bond market has recently attracted the attention of both conservative investors and the US Treasury.
Crypto Market Overview
It has been a disappointing week for Bitcoin holders, who witnessed the coin lose nearly $2,000 worth of value in the span of just a few days. While Bitcoin’s price drop seems to have come to an end, it has raised quite a few concerns among crypto traders.
Some Crypto Headlines
The fall of Bitcoin came to an end when, after much speculation, Bakkt Exchanged announced that it will begin issuing Bitcoin future contracts beginning on September 23rd. As this date approaches and this story develops even further, we can expect to see a lot of movement on Bitcoin’s price chart.
In Hong Kong, Bermuda, and Seychelles, BitMEX has decided to deny access to most users. This latest move represents an ongoing conflict between coin platforms and regulating authorities.
Taking a Closer Look at BTC/USD
On the charts, BTC/USD finally broke and confirmed above the daily Ichimoku cloud after days of consolidating below it. This is normally a bullish signal. However, with the future cloud sending mixed signals, we could expect the $11,254 pivot level to act as a strong resistance.
The price has also been forming lower highs in the past couple of months. This could mean that the strong bullish rally has slowed down. Bitcoin HODLers need a major positive catalyst to start yet another rally.
In my book, Ichimoku Secrets, I explain how this could be an interesting buying opportunity provided you’re willing to take the risk. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.
This week, we’ll see how developing currency wars will be reflected in different markets.
We’ll pay close attention as the developing trade war unfolds, but I do not recommend day trading any of these assets. Patience is a profitable virtue.
This brings me back to you. Which markets you’ll be focusing on this week and why? After you subscribed, head over to the comment section, give me a shoutout and let me know.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.