CME Group Bitcoin Involvement| Forex Update: We’ve got BIG news in the cryptocurrency market, and another big news from the Kiwis down in New Zealand. But things don’t end here. We also had an awesome LIVE strategy development webinar this morning for our Premium and PowerCourse members.
I covered member’s questions about things like “what happens when a stock is suspended or delisted,” and “how often you should be checking your forex/ stock portfolios.” I also conducted a thorough analysis on major and minor forex pairs including CAD/JPY, EUR/USD and GBP/USD. Additionally, we discussed some tech and defense stocks/ ETFs such as AMD, CLDR, LMT, UTC, XAR and NOC to name a few.
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CME Group Bitcoin Involvement
Big news in the Bitcoin world: derivatives marketplace CME Group, which handles $1 quadrillion worth of contracts annually, has announced it will start trading Bitcoin futures. Later this year, CME group Bitcoin involvement will begin by trading Bitcoin futures.
They’ll do so via a cash-settled contract based on its CME CF Bitcoin Reference Rate. The once-a-day rate will set the price of bitcoin futures and will be based on pricing seen on crypto exchanges such as Bitstamp, GDAX, itBit, and Kraken.
As CME notes, the combined market capitalization of crypto has reached $172 billion, with 54% of that coming from bitcoin. The Bitcoin spot market now trades roughly $1.5 billion in notional value a day.
How did Bitcoin react to the news?
While Bitcoin price itself hasn’t been too shabby recently, CME Group Bitcoin involvement push has only propped up prices. It reached new record highs of $6,404 on Tuesday, after Monday’s consolidation.
CME Group Bitcoin Involvement Pushes BTC to Record Highs
Bitcoin hit all-time high levels versus the EUR and the GBP as well, trading at 5,582 and 4,875 respectively by the end of Tuesday’s trading. Other major cryptocurrencies including Ripple, NEO, Ethereum, and Dash have been mainly consolidating.
NZD/USD Bounces Up on Awesome Jobs Report
The NZD/USD pair bounced back up from the key support level of 0.6842 earlier during today’s Asian session on the better-than-expected jobs report.
New Zealand reported its unemployment rate has fallen to its lowest level since the end of 2008 as the number of people in work grew during the September quarter. The 4.6% reading in September was down from 4.8% in the June quarter, and the lowest since the December 2008 quarter.
On the economic calendar…
Coming up on the economic calendar today, we have Markit Canada Manufacturing PMI (OCT) at 1:30 PM GMT, followed by the US ISM Manufacturing (OCT) at 2 PM.
The all-important FOMC Rate Decision will be up next at 6 PM GMT. The Fed is expected to keep the rates unchanged between the upper and lower band levels of 1.25% and 1.00% respectively.
Meanwhile, Bank of Canada’s Poloz and Wilkins will testify at Senate at 8:15 PM GMT.
During the next day’s Asian session, Japan’s Monetary Base End (OCT) will be out at 11:50 PM GMT to keep the markets moving.
The combination of this could create trading opportunity in the CAD/JPY pair, for which I created a strategy during our webinar today.
Important note on forex cryptocurrency trading: Trading Forex carries a high level of risk. Trading Forex may not be suitable for all investors. As the 4th point of the IDDA, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. We have shared a couple of medium to high-risk trading ideas with our investing group members. Join us to learn more.