With another busy week of trading news behind us, here are the hottest stories in the forex, stocks and the cryptocurrency markets for you to pay attention to.
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Forex Market Overview
The EU Brexit Summit, scheduled to occur this Wednesday, will likely have a major impact on the values of both the Euro and the Pound. With Brexit scheduled to occur this Friday, the council’s decision whether to grant an extension will be immediately reflected in forex markets.
Last week saw a surprisingly strong performance from the pound, while the Euro experienced an above average level of volatility. This volatility will likely continue for both currencies and will last until the emergency summit is completed.
Outside of Europe, the US Dollar was able to enjoy some mild growth throughout the week. The release of the ISM manufacturing PMI, as well as the US employment report, allowed the dollar to be the second-best performing currency of the week. However, looking at the U.S. Dollar Currency Index, the DXY, on the weekly chart, you’d notice that it may be in the process of forming a Double Top bearish reversal chart pattern. It still remains above the daily Ichimoku cloud though. The hardcore resistance is at the 61% Fibonacci retracement level which traces DXY’s downtrend from December 2016 to January 2018.
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The top-performing currency was the Australian Dollar, which was supported by positive reports coming out of both Australia and China. The New Zealand and Canadian Dollars both experienced negative growth for the week, but are looking to turn things around in the wake of European uncertainty. Upcoming OPEC meetings may also spark some major trading activity, depending on whether any major announcements are made.
Crypto Market Overview
The world of crypto trading was even busier than forex. At the beginning of last week, Bitcoin experienced a major market cap increase, rising from about $145 billion to more than $160 billion in roughly one hour. Following the exciting jump at the beginning of the week, Bitcoin finished out the week strong, eventually topping out at $5,303.85.
The past week for Bitcoin has been the most profitable since the world’s largest cryptocurrency bottomed out in mid-December. Investors across the world are now reevaluating where the proper Bitcoin trading floor and ceiling ought to be.
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There were several other major events in the crypto world as well. Coinbase announced that it will now accept cross-border payments, helping further its push into an increasingly competitive international space. PayPal’s interest in Cambridge Blockchain and Pakistan’s commitment to creating a national digital currency also helped promote the increased legitimacy of crypto. These positive developments, alongside increased Bitcoin prices, will likely cause the second week of April to witness a considerable amount of crypto action.
Stock Market Overview
The beginning of a new month helped revitalize Wall Street, with all major indexes closing last week at a point much higher than they started it. However, some of this ground was lost on Monday morning, as both the S&P 500 and Dow opened up with 0.4% losses.
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In the backlash of the Ethiopian Airlines disaster, both Boeing and Southwest Airlines opened their weeks with major losses. Despite, investors still remain much more optimistic than they were one month ago, with many industry experts claiming a recession may not occur for several more years.
Still, the stock market appears to be generally bullish, largely due to the fact “earnings season” is now well underway. Both JPMorgan Chase and Wells Fargo will be issuing major reports this Friday, which will likely have a major impact on the market.
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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.
