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 an up and down week for the US dollar, which was boosted by some risk aversion practices but weakened by the success of other currencies. With an important retail sales report due this week, the US dollar may experience an above-average amount of movement.
Like its American counterpart, the Canadian Dollar also experienced a mixed week. Disappointing jobs numbers have caused many Loonie holders to anticipate a Bank of Canada rate cut.
As the market pursued low-risk vehicles, the Japanese Yen came out on top. The Euro also experienced a few risk-aversion gains, though it’s gains were not particularly impressive. Elsewhere, the Australian Dollar was brought down due to trade tensions, while the Kiwi dropped as a result of rate cuts.
The Pound experienced yet another negative week, suggesting that market views of Brexit are yet to improve. Still, with multiple major reports—including CPI, jobs data, and retail numbers—on the horizon, the Pound may finally begin to turn around.
Stock Market Overview
Last week was pretty volatile for the stock market. But at the end most indexes finishing the week near where they opened. With multiple key issues—such as Brexit, the Federal Reserve, and international trade wars—stuck in limo, markets may be on the verge of making some major adjustments. On Monday the Dow fell about 400 points. If the market is to repeat last week’s movements, we could see some rebounds throughout the week.
CBS and Viacom are on the verge of a major merger, continuing a summer-long trend of consolidation in the media industry. Elsewhere, GE, Sysco, and BlackRock are all expecting to have very volatile weeks.
The end of August could be concerning for summer long-term investors. If the proposed 25 percent tariff is applied to goods coming from China—as it seems will likely happen—both profit margins and consumer spending power will fall as a result.
Crypto Market Overview
Following a major rally to open the month of August, Bitcoin’s price finally began to stabilize last week. It has been a very volatile summer for the world’s largest cryptocurrency. This has caused traders everywhere to wonder whether this newfound stability will actually last. Currently, Bitcoin is trading around $11,300.
Some Crypto Headlines
The IRS issued a series of advisory warnings to 10,000 Bitcoin traders, suggesting that formal legislation is likely on its way. While additional guidelines and taxes may cause crypto trading to become more complicated, it also suggests that the industry is becoming more legitimate.
There have been several other major industry developments as well. In New Zealand, legislators determined that employers are allowed to pay their employees in cryptocurrency. In China, the central bank is close to launching its own digital currency, a coin that, without a doubt, would have a major impact on how crypto is traded.
Taking a Closer Look at BTC/USD
On the charts, BTC/USD is being supported by the upper band of the daily Ichimoku cloud and the pivot level of $11,254. Other Ichimoku moving averages are sending mixed signals.
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.