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
Both the economic reports and comments from the Federal Reserve caused the American Dollar to lose some value last week, though we somewhat expected this following the rally the week before. We’ll pay close attention to new reports emerging this week, including consumer and producer price index estimates.
As expected, Brexit chaos continues. Newly elected PM Boris Johnson is experiencing a vicious showdown with parliament which, unsurprisingly, caused the Pound to lose its value even further. The prospects of a suspended parliament, hard Brexit, and a snap general election all paint a grim picture for Sterling this week.
As investors looked to avoid the riskier markets, both the Canadian Dollar and Euro were able to have mixed weeks—even in the face of economic turmoil nearby. On the other side of the planet, both the Aussie and New Zealand Dollars were able to have very enjoyable weeks. At the same time, the Japanese Yen went downwards, largely due to geopolitical issues within the Far East region.
Stock Market Overview
Over the past two weeks, we’ve witnessed the S&P 500 increase by more than 100 points and is once again on the verge of breaking the 3,000 point mark for the first time since the end of July. As the market continues to digest new data, the index may reach new highs by the end of the month. Still, in the face of global uncertainty, some investors are remaining cautious.
This week, we’ll keep a close eye on Boeing, who many investors are predicting will rally to $500. The positive outlook is much welcomed, following continuous fallout from ongoing issues regarding the airline’s 737 MAX airplane.
We’re also watching WeWork, a company that is apparently plagued with financial issues. Though the head of the company still remains optimistic about it’s upcoming IPO, others are calling for a delay in the IPO until these issues can be sorted out. The WeWork IPO is probably going to be one of the biggest of the year.
Crypto Market Overview
It’s been a surprisingly uneventful September for Bitcoin, which has been contained within a $400 range since the turn of the new month. This news comes as a relief to some conservative Bitcoin holders who have seen a summer characterized by plenty of ups and downs.
This week, we’ll watch as Stellar airdrops 2 billion new tokens. Valued at roughly six cents apiece, this sudden drop is expected to be worth $120 million.
Taking a Closer Look at Stellar Lumens XLM/USD
Stellar Lumens (XLM) price has been on a sharp downtrend since May. It has since broken below the daily Ichimoku cloud. All Ichimoku Kinko Hyo moving averages are downward as well. XLM/USD reached an all-time-low on September 6th. It has since been supported at 0.05755.
Investors are looking to see if the new XLM airdrop could shift the momentum to the upside. Crypto Briefing’s Simetri has graded Stellar Lumens at B-, citing advances well in accordance with roadmap but lags in other factors.
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.
Elsewhere in the crypto market, Ethereum plans on testing Istanbul for an upcoming hard fork. As one of the world’s most important cryptocurrencies, this recent development is one that investors are sure to pay very close attention to.
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.