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 very volatile week for the American Dollar, which experienced major swings among an ongoing trade war with China. Following China’s announcement that it would impose more tariffs upon the United States, markets struggled to zone in on the greenback’s true value.
The Canadian Dollar also had a very up and down week, but, for the most part, experienced some sustained losses. Next week, we’ll keep a close eye on new GDP reports, along with oil futures.
As the trade war surged on, many forex traders directed their wealth to the much less risky Euro and Swiss Franc. If tensions heighten, expect these major currencies to increase in relative value even further.
It was an unusually positive week for the British Pound, suggesting that sterling may have finally discovered a new price floor. Elsewhere, the Aussie Dollar was weighed down by ongoing trade tensions while the Japanese Yen remained somewhat stable. With a new month right around the corner, we’ll have plenty of reports to look forward to.
Stock Market Overview
Unsurprisingly, the ongoing trade war with China has been reflected throughout most major stock markets. Following the announcement of new tariffs last Friday, the S&P 500 managed to lose 50 points in the matter of just a few hours.
Right before the tariff news broke last week, Fed Chair Jerome Powell announced that the fed is prepared to offer stimulus if the economy begins to slow down. The announcement came amidst an ongoing feud between the Central Bank and the Whitehouse.
Elsewhere, the mortgage market has expanded and is now appealing to risky borrowers in a manner that is reminiscent of the pre-recession era. This week, we’ll pay attention to a major G7 summit, where the United States will attempt to ease over tensions with some of the world’s largest economies.
We’ll also keep a close eye on whether Bristol-Myers is able to acquire Celgene
Crypto Market Overview
After a relatively boring week last week, Bitcoin opened this week with a positive surge, eventually breaking the $10,500 mark. This progress was great news for Bitcoin holders who had previously experienced a surprising mid-August price drop.
Some Crypto Headlines
One of the biggest news stories coming from the crypto world was Binance’s decision to begin a crypto lending program, which may charge up to 15 percent annual interest. This marks a major turning point for the industry as it diversifies and expands its commercial reach.
In the regulatory world, we saw both Australia and Switzerland clarify new rules and legal requirements for coin producers. At the same time, Facebook’s status with its proposed coin Libra has inspired a wide range of new questions.
Taking a Closer Look at BTC/USD
On the charts, BTC/USD is still consolidating right around the $10K pivot level, below the daily Ichimoku cloud. The volatility is getting lower and lower… and this could just be the calm before the next storm that could take the markets by surprise. We currently have a bunch of mixed signals on the chart, with a potential double bottom bullish reversal chart pattern forming… and the Ichimoku Kinko Hyo indicator all over the place.
So brace yourselves for some surprise in either direction and make sure your portfolio is ready for any type of hurricane in Bitcoin prices.
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.
We’ll pay close attention as the developing trade war unfolds, but as always, 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.