Forex today: Daily analysis

Trading Discussion Trade Journals
44

Euro hits 3-day maximum on trade talk expectations

26.07.2018

On Thursday, the common currency kept to a three-day maximum because concerns as for a global trade conflict relieved after the USA along with the European bloc made up their mind to start negotiations on lowering duties.

Following Wednesday’s negotiations with European Commission President Jean-Claude Juncker, American leader Donald Trump informed that they had decided to fruitfully cooperate toward zero duties, zero non-tariff barriers as well as zero subsidies on non-auto industrial products.

However, the moves in the EU’s major currency turned out to be far more subdued compared to stocks. As a matter of fact, car equities managed to ascend 2%, bond profits rallied because traders awaited the fine print to show up on the trade discussions.

The common currency rallied 0.1% being worth $1.1738, extending its soar after leaping 0.4% yesterday, Before the Trump-Juncker negotiations, the euro sank to a minimum of $1.1664.

The very focus for currency markets was the ECB’s policy verdict due later on Thursday exactly where market participants are going to study remarks by Governor Mario Draghi for any further clues on the tempo of policy normalization.

However, another sink of the Chinese Yuan after yesterday’s bounce actually undermined broader risk hunger in the financial markets. The Chinese Yuan edged down 0,5% hitting 6.79.

Apparently, a more than 6% slump in the value of the Chinese Yuan versus the evergreen buck since mid-June as trade clashes worsened has pressured export-oriented emerging markets.

For the last two weeks market participants ramped up bearish deals on all emerging Asian currencies, as follows from a Reuters survey.

Additionally, the USD index kept to a two-week minimum versus a group of six key currencies and it declined 0.25% hitting 94.131.

The UK currency stood still showing $1.3202 because hopes as for a rate lift next week from Britain’s key bank backed the British pound.

45

#WeeklyCryptoNews

27.07.2018

Tim Draper, investor: the world currency market will rise to $140 trillion in 10 years. The rise will be supported by cryptocurrencies. The fiat money will be used less, digital currencies will prevail in the world financial market.

Marc Lasry, billionaire, the head of Avenue Capital Group: everyone will come to Bitcoin. That’s why I like it.

Cryptocurrencies

This week Bitcoin has reached the highest level since the end of May. The cryptocurrency tested the level of $8,336. However, it didn’t get enough support to stick at it. Up to now, Bitcoin has been moving down to the psychological level at $7,500. 100-day MA lies at this level. As a result, there are odds of the rebound. The resistance will lie near $8,340. If there is negative news in the cryptocurrency world, the digital currency will break the support and will move to $7,000.

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Users of the MyEtherWallet can buy ЕТН for fiat money. For buying, they can use Visa or MasterCard.
The American company “Тhe Entrepreneurs Headquarters” stole investors’ $500 000. CFTC has amerced the company for $2 million. Moreover, The Entrepreneurs Headquarters has to compensate all losses for investors.
Individual users of Bittrex can withdraw the fiat USD. However, the users have to be from California, Washington, New York or Montana.
A new Voyager platform will be launched in the US. The platform will serve operations without commissions. In the beginning, users will be able to trade 15 cryptocurrencies including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic. Later, the company will add other assets that are not provided at most major American platforms including XRP and Stellar.

Regulation

G20 countries will make a regulation against money laundering with cryptocurrencies. Although countries don’t consider cryptocurrencies as a risk for the world the financial stability, the regulation should be implemented.
Venezuela wants to replace the national currency with a new one that will be tied to the national cryptocurrency El Petro to lower the hyperinflation. The denomination will start on August 20.
Iran plans to launch the national cryptocurrency to circumvent American sanctions. The Central Bank plans to implement the blockchain technology in 3 months.
To circumvent national cryptocurrency banning, Chinese bitcoin-millionaires buy American real estates.

Blockchain

A new payment system of the Bank of England that will be launched in 2020 will be compatible with blockchain. Before the Central Bank planned to use the blockchain in the gross settlement system but refused this idea.

Just for fun

The first purchase with Bitcoin that was registered by blockchain happened in California.

Users of the blockchain platform Augur bet on crimes, death and etc. Users have already bet on the date of death of Warren Buffet and Donald Trump’s murder.

Bitcoin $7,933.9 (-3.95%)

DASH $240.00 (-3.26%)

Ethereum $461.83 (-3.54%)

Litecoin $82.524 (-5.59%)

46

Daily News: a lot of news

30.07.2018

The US dollar index is above the psychological level at $94.50. However, there are no significant data that could support the rise to $95. Up to now, the index has been falling to the support at $94.50. If no crucial news shakes the market, the fall below $94.50 is anticipated.

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News on the Brexit deal! To hit the deadlock in the Brexit negotiation, Britain agreed that the European Court of Justice would give a final word in the arbitration of arguments over the working of Brexit, any disputes over Britain’s £39 billion bill, and Irish border But not all are happy with this concession. This issue will bring more dissensions in the UK government.

What about the pound?

GBP/USD has been moving up (any progress in the Brexit deal always support the GBP). The trading isn’t extensive. However, there is a gap that may signal about the further upward movement. The resistance lies at 1.3125 (the pivot point). As soon as the pair sticks above this level, chances of the rise will increase. Otherwise, the fall to 1.3040 may happen.

47

Federal Reserve’s Meeting

31.07.2018

The Federal Reserve strongly influences the USD exchange rate. The central bank has already raised the interest rate 2 times this year. The market anticipates 1-2 additional rate hikes. However, just recently, the US president’s top economic adviser urged the Fed to raise interest rates “very slowly”, despite the fact that usually the administration avoids comments on monetary policy.

The US dollar needs some support to continue its upward movement. The Fed will release the interest rate and the economic outlook on August 1 at 21:00 MT time. If the Fed takes the administration’s comments into consideration, traders may anticipate a more dovish statement of the central bank.

• If the Fed is hawkish, the USD will move up;

• If the Fed is dovish, the USD will lose momentum.

Check the economic calendar

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Source of the picture: TRADINGECONOMIC.COM|FEDERAL RESERVE

48

Global factory surge speeds down due to US-China trade clashes

01.08.2018

In July, factory surge speeded down around the globe, raising worries as for the global economic outlook because an escalating trade war between China and the USA affected the global economy.

Global economic activity is still firm, although it has already passed its maximum, according to market experts surveyed by Reuters in July. They actually expect protectionist policies on trade that don’t demonstrate any indications of relief to tap the brakes.

However, decelerating surge, diving confidence as well as trade war worries won’t probably deter key financial institutions from giving up their ultra-loose monetary policies activated during the last financial downtime.

Surge is still resilient. Wages and inflation go up, while unemployment rates happen to be low. All of this gives major banks grounds to proceed with tightening, as some financial analysts pointed out.

The previous month, the United States and China slapped tit-for-tat duties on $34 billion of each other’s products and another round of duties on $16 billion is anticipated to kick in August.

According to some sources, the current US presidential administration is braced for slapping 25% duties on a further $200 billion of imports, in contrast with an initial proposal of 10%. Trump’s threat of tariffs on the entire $500 billion worth of Chinese products is still actual.

The Chinese government has promised equal retaliation. However, this Asian country imports approximately $130 billion of American products.

On Wednesday, world equities headed south and the evergreen buck rallied on worries of an approaching escalation in the US-China trade conflict.

In America, surge is anticipated to speed down a bit, although remain firm enough for the Fed to remain on track for two rate lifts in 2018.

European factory surge was still sluggish in July, while Asian manufacturers demonstrated a loss of momentum.

49

Greenback rallies on Fed statement

02.08.2018

On Thursday, the major US currency managed to leap versus its key rivals after the key US bank told that it’s on track for extra rate lifts in 2018, while the British pound dived ahead of the BoE’s policy announcement a bit later in the day.

Assessing the US currency’s purchasing potential versus its main counterparts, the USD index tacked on by 0.21% hitting 94.66.

Demand for the evergreen buck was still backed after the major US bank kept interest rates on hold as generally anticipated at the conclusion of its policy gathering on Wednesday. The Fed stressed that the American economy has been adding confidently and the job market has kept strengthening.

The evergreen buck was also backed by safe haven demand in the face of renewed worries over global trade tensions.

On Wednesday, the current US presidential administration told that it’s geared up towards ramping up duties on $200 billion worth of China’s imports to 25% having earlier setting them at 10%, thus driving a trade conflict between the world’s leading economies.

The common currency declined versus the US dollar. The currency pair EUR/USD headed south 0.21% demonstrating an outcome of 1.1634.

The evergreen buck dived a bit against Japan’s currency. The currency pair USD/JPY slumped by 0.09% trading at 111.62. However, it held on to most of its Tuesday’s revenue after the Bank of Japan promised to keep interest rates low enough. Moreover, the bank made minor tweaks to its asset purchase program for the purpose of making it more flexible.

The pound edged down. The currency pair GBP/USD declined by 0.28% reaching 1.3090 ahead of the conclusion of the BoE’s gathering later on Thursday, at which it was generally anticipated to deliver its second rate lift for a decade, notwithstanding a weakening outlook for the British economy as well as escalating uncertainty over Brexit.

50

Bitcoin dives, extending crypto descend

03.08.2018

On Friday, the worlds’ number one crypto asset, Bitcoin started lower. The digital currency is braced for six daily losses in a row, having enjoyed six successive winning marathons three weeks ago.

Having hovered above support at $7,500 on Thursday, the most popular digital currency went down to a session minimum of $7,290.02 in early New York trade. The currency pair BTC/USD hit $7,330.55, sinking 3%.

However, the recent selloff could be provoked by a single Bitcoin enthusiast. On Friday, Hong-Kong exchange OKEx came up with a statement stating it had terminated a huge trading position of up to 4168515 contracts. The huge size of the order automatically activated the so-called societal loss risk management mechanism.

The very essence of the societal-loss-risk-management mechanism is that some users holding a profit are going to be subject to a clawback and also they will surrender some profits just to have their position covered.

The exchange tried to reach out to the anonymous trader, but failed and urgent measures were taken.

On Thursday, Bloomberg informed a dismal fact that Swiss banking giant UBS told that Bitcoin can’t be a proper nominee to become a payment system for the entire world. The bank explained that this digital currency is extremely unstable by nature and it prevents it to be employed as a trustworthy means of payment for transactions worldwide. Moreover, the bank’s analysts stressed that Bitcoin should reach at least $213,000 to replace the whole American money supply.

Bitcoin futures generally slumped. As a matter of fact, the Cboe Global Markets Inc. contractXBTQ8 headed south by 2.4% coming up with an outcome of $7,345. As for the CME Group Inc.’s August contract BTCQ8, it demonstrated a reading of $7,330, dipping by 2.8%.

The currency pair ETH/USD stood still being worth $410.00.

51

China’s new loans go down in July

06.08.2018

As a Reuters survey disclosed, in July, China’s new loans sank. However, they’re still firm enough and broad money supply surge might have picked up because China’s major financial institution considered ramping up policy support for the national economy in the face of an escalating trade conflict with the United States.

The trade clash with America, soaring corporate borrowing costs as well as a steep sink in the value of the Chinese currency against the evergreen buck have increased worries that the world’s number two economy could experience a steeper deceleration.

Chinese financial institutions were estimated to have lent up to 1.2 trillion Yuan in new Yuan loans in July, dipping from June’s five-month maximum of 1.84 trillion, as follows from a Reuters poll of 36 market experts.

However, the expected July outcome seems to be firm enough in contrast with 825.5 billion Yuan in 2017. As a rule, in July, Chinese financial institutions make few loans having traditionally ramped up lending in June.

In July, broad M2 money supply was caught soaring by 8.2% from 2017, speeding up from June’s 8% ascend that turned out to be the lowest value on record, as follows from the survey.

In July, annual surge of outstanding loans speeded up to 12.8% versus June’s outcome of 12.7%.

The PBOC has been pumping out more funds for the purpose of stimulating lending but it struggles to channel credit to small businesses, which are crucial for economic surge as well as job creation, as some financial analysts pointed out.

State financial institutions of China are still reluctant to lend to small businesses, which are traditionally considered to be riskier than state-controlled ones.

The previous week a major bank adviser told that China requires limiting the credit influence of its financial deleveraging drive, expressing worries that tightening might have gone too far.

52

American equities are backed by higher crude prices

07.08.2018

On Tuesday, American equities managed to ascend because firm corporate revenue backed market sentiment, while higher crude prices underpinned energy equities.

Crude prices soared on hopes for tighter global supplies because of resumed American sanctions against crucial oil exporter Iran.

Schlumberger managed to rally by 1.2%, Exxon acquired by 0.8%, while Chevron tacked on by 0.2% in the premarket trade.

Technology equities turned out to be among the most traded, and a rebound in the Shanghai stock market drove profits in US-listed equities of China’s businesses.

On Monday, the S&P 500 approached a record maximum hit on January 26. The index concluded the trading session within a percentage point of the all-time peak for the first time since the given correction burst out.

As for the CBOE Volatility Index, a popular gauge of anticipated near-term gyrations for the S&P 500, it went down to 10.52 points. The given value hasn’t been observed since the February selloff.

Office Depot happened to be among the top-notch premarket performers. Its equities inched up by 7.1% because its quarterly outcomes surpassed experts’ forecasts.

Besides this, Walt Disney demonstrated a 0.7% leap ahead of its outcomes after market close.

Of the 413 S&P 500 businesses, which have posted revenue, up to 79.2% have surpassed forecasts. If the beat rate persists, it’s going to be the highest outcome on record, in this regard resembling the first quarter of 1994.

Dow e-minis rallied by 0.35%, S&P 500 e-minis managed to acquire 0.23%, while Nasdaq 100 e-minis ascended by 0.3%.

Besides this, Marriott International slumped by 3.3% right after the world’s number one hotel chain indicated weakness in profits per available room for the third quarter in North America.

Express Scripts went down by 1.9% after billionaire investor Carl Icahn forced Cigna’s shareholders not to vote for the health insurer’s acquisition worth $52 billion.

53

UK currency slumps below $1.29

08.08.2018

On Wednesday, the UK pound headed south below $1.29. It turned out to be the first such a tumble since last year’s August. It took place against the backdrop of concerns that Great Britain wouldn’t be able to come to a compromise with the EU before exiting this trading bloc in March of 2019.

The currency pair GBP/USD headed south by 0.27% hitting 1.2903.

The UK currency also slumped versus the common currency, reaching its lowest value since November. The currency pair EUR/GBP gained 0.28% reaching 0.8986, which is not far from an intraday maximum of 0.8992.

This week the British pound has been pressured as UK trade secretary Liam Fox told that the United Kingdom would probably abandon the European bloc without a deal, driving concerns that trade chaos would heavily affect the UK economy.

Cable’s strength that took place on Tuesday generally neglected minor movements observed in the evergreen buck versus its key counterparts.

Used to estimate the major American currency’s purchasing power against its primary rivals, the USD index almost stood still sticking with 95.03.

Market participants had been injecting funds in the evergreen buck as a safe haven asset. Meanwhile, trade tensions between America and China kept mounting.

On Tuesday, the US government told that America would start slapping 25% duties on another $16 billion of goods it buys from the Asian trade partner later this month.

The given move appears to be the latest by the American government to pressure the opponent into discussing trade concessions after it slapped duties on $34 billion of products in July, thus giving China grounds to respond.

However, market experts pointed to the Asian country’s firm trade data published on Tuesday, hinting that the world’s number two economy had yet to be knocked out by the tit-for-tat.

54

US CPI

09.08.2018

CPI is a highly important economic indicator as it corresponds to the inflation rate. The inflation rate has a significant impact on the monetary policy of the Federal Reserve. The market anticipates two additional rate hikes this year. As a result, the rise in the inflation data will confirm the possibility of rate hikes.

US CPI data will be out at 15:30 MT time on August 10.

• If the data is greater than the forecast, the USD will go up.

• If the data is weaker than the forecast, the USD will go down.

Check the economic calendar

So far, the inflation rate surged to 2.9% in June. It is the highest level since February of 2012.

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55

#WeeklyCryptoNews

10.08.2018

Cryptocurrencies

Bitcoin. The downward movement continues. This week, the further plunge of Bitcoin was caused by negative news from the SEC (Security and Exchange Commission). The Commission extended the decision period for bitcoin-ETF VanEck and SolidX to September 30. As a result, the market reacted negatively. The cryptocurrency has plunged below $6,500. The low of the week is $6,128. Up to now, Bitcoin has been trying to recover. But the psychological level of $6,500 is too strong. If there is positive news, the price will break above $6,500. The next resistance is at $6,775. Otherwise, the digital currency will fall to $6,000.

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The owner of the account with 1 billion Ripple tokens sold 10 million XRP ($5 million) again. As a result, during the first quarter of 2018, he has already sold 500 million XRP. This news caused a fall of Ripple.
Ethereum Classic is at 3-month highs. The rise might be caused by the listing on Coinbase and the addition of a coin by the Robinhood application.

Regulation

The US Drug Enforcement Administration reported a decline in bitcoin usage in crimes. Only 10% of all transactions are related to crimes. According to the Administration, during 5 years, the number of legal bitcoin transactions has exceeded illegal.
The Bank of Thailand allowed commercial banks to buy and sell cryptocurrencies but under control of the Security and Exchange Commission of Thailand.

Blockchain

Lite.IM software was released. This software will let users do transactions in the Litecoin network by text messages and Telegram.
Intuit company got a patent for processing bitcoin payments using text messages. A payment service will receive a message from a sender with the amount of payment and identification number of the receiver’s device.

Cryptocurrency exchanges

The cryptocurrency boom is beginning in Thailand. 20 cryptocurrency exchanges have applied for a license to trade cryptocurrencies.
Goldman Sachs is considering an opportunity to launch custody services for cryptocurrency funds (a service in which a brokerage or other financial institution holds securities on behalf of the client). It will lower risks of losses in case of hacking attacks.
Bittrex will add new pairs with the USD on August 20. Users will be able to trade Ethereum Classic and Ripple in a pair with the USD.
OKEx launched a CoinAll cryptocurrency exchange that is ruled by the community and released 10 billion CAC tokens.
Coinbase Pro added Ethereum Classic. Now users can trade such pairs as ETC/USD, ETC/EUR, and ETC/BTC. Moreover, the cryptocurrency exchange announced the launch of the instant trading option for users who replenish the dollar deposit by bank transaction and an increase in the daily trading limit to $25,000.

Just for fun

A group of bitcoin enthusiasts from the international #Findsatoshi team launched a fundraising to find the bitcoin creator Satoshi Nakamoto. The group is going to gain around $236,000. To find Satoshi, they are going to hire detectives from international agencies. Enthusiasts want to find out the future of bitcoin. And only Nakamoto can give the answer.Let us remind you that in July an unknown author announced a release of the Satoshi Nakamoto book. Later, experts on digital processing of databases conducted a stylometric analysis of the text, which allegedly was written by Satoshi himself. They came to the conclusion that authorship may belong to Satoshi.

Bitcoin $6,361.9 (+0.19%)

DASH $183.29 (+4.08%)

Ethereum $358.12 (-0.62%)

Litecoin $61.328 (-1.70%)

56

5 important things this week will bring us!

13.08.2018

What this week will bring us!

British Average Earnings Index (Tue, 11:30 MT time) – the forecast is neutral. Only greater economic data will pull the GBP out of the negative area.
British CPI (Wed, 11:30 MT time) – the forecast is encouraging. Will the GBP finally strengthen?
US Retail Sales and Core Retail Sales (Wed, 15:30 MT time) – the forecast is mixed. Let’s see whether the actual data brings the USD to new highs.
Australian Job data (Thu, 4:30 MT time) – the forecast is weak. Weak economic data will pull the AUD to lows of the end of 2016.
Canadian CPI (Fri, 15:30 MT time) – the Canadian dollar needs support in times of the strong USD and the unstable oil market.

Hot topics:

The Turkish lira extends fall, as there is no progress in Turkish-US tensions. Early on Monday, USD/TRY broke above 7. Although the pair has been moving down up to now, the soon recovery of the lira is not anticipated.
The fall of lira causes problems for the EUR. The European central bank is worried about the European banks’ exposure to Turkey. The euro is in the dangerous zone.
The plunge of the Turkish lira caused a fall of the emerging market currencies. The South African rand and Mexican peso significantly fell early on Monday. The further escalation of Turkish-US tensions will pull EM currencies further down.

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57

European equities bounce off, as Turkey stress relieves

14.08.2018

On Tuesday, European equities rebounded after two days of extensive selling because market participants’ worries over the Turkish currency downtime relieved a bit due to reassurances from the Turkish government and major bank.

The Turkish lira managed to strengthen after on Monday the country’s key financial institution had promised to provide liquidity responding to the downtime that unsettled the financial markets worldwide.

Market participants were also soothed by news that Finance Minister Berat Albayrak is going to hold a meeting with American investors and also with those from the Middle East and the European Union.

Financials appeared to be the top-notch driver. Euro zone bank equities SX7E managed to rally by 0.8%, assisting to push the STOXX 600 up, enabling it to gain 0.4%.

Financial institutions had been the worst impacted by worries over Turkey. As a result, the index slipped to a 21-month minimum.

The equities of Antofagasta headed south by 4.1% because the Chilean copper producer informed that first-half earnings went down because of weaker ore quality as well as higher costs. Moreover, trade tensions affected demand.

In addition to this, Swiss dental implant maker Straumann happened to be a top performer after outcomes. Its revenue soared by 4.6% after it had its full-year revenue objective raised as organic sales surge surpassed 20% for the first time for 10 years.

German utility RWE tacked on by 2.4% after it told that its Innogy deal appeared to be on track and also posted in-line first half revenue.

The equities of Siltronic inched down by 4.8% because Citi had its recommendation on the stock cut to the status “neutral”.

The equities of German industrial equipment manufacturer Duerr soared by 3.6% due to the fact that local broker M.M. Warburg upgraded the stock from “hold” to “buy.”

Saipem stocks tacked on by 2.6%.

58

China state planner speeds up approvals for infrastructure projects

16.08.2018

China nearly quadrupled the overall value of fixed-asset investment projects officially approved in July in contrast with June because the Chinese government ramped up infrastructure allocations for the purpose of stimulating surge in the world’s number two economy.

In July, the Chinese government had 17 fixed-asset investment projects approved. The projects are worth 77.69 billion Yuan. That’s what a representative of the National Development and Reform Commission, Zhao Chenxi revealed on Thursday.

The given outcome definitely differs from June’s 20.8 billion Yuan of approved fixed-asset investment projects.

The Chinese authorities are speeding up plans in order to make huge investments in infrastructure projects because its economy demonstrates signs of deceleration, with investment surge speeding down to a record minimum and Chinese customers getting more cautious.

On Wednesday, the National Development and Reform Commission also promised to keep debt levels under strict control, just one day after China posted surprisingly downbeat economic data because the Chinese government is struggling to achieve a balance between shoring up decelerating surge and also keeping up with the debt crackdown.

As of the end of July the Asian country has signed 1.73 trillion Yuan worth of debt-to-equity swap, although just 352 billion Yuan has been transferred, as Chen Hongwan told, another statesman with the National Development and Reform Commission.

Under debt-to-equity swap schemes, a great number of investors grasp equity stakes in Chinese companies, while these companies are capable of lowering their debt burden. However, the specifics of every deal turn out to be different and complex enough.

It definitely highlighted the difficulty the Chinese government faces when it comes to speeding up market-based debt-to-equity swaps in the multi-year deleveraging campaign despite July’s fresh liquidity released by the major financial institution to drastically accelerate the program.

59

Weekly CryptoNews

17.08.2018

Jeffrey C. Sprecher, CEO Intercontinental Exchange: Bitcoin will significantly simplify the promotion of the world currency. It has a potential to be the first world currency.

Cryptocurrencies

Bitcoin has suffered a great fall this week. Although the Turkish lira plunged at the beginning of the week and Turkish traders started buying Bitcoin, it didn’t support the cryptocurrency. The digital currency fell to the lows of the end of June 2018 near $5,875. However, it managed to recover. Up to now, Bitcoin has been trading near $6,430. The resistance is at $6,615. If Bitcoin can’t break this level, the fall to 5,875 is anticipated.

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The volume of trading on Turkish cryptocurrency exchanges increased by 100% because of the great plunge of the Turkish lira.
The California Court rejected the lawsuit against Ripple. The Ripple was accused of a price manipulation. Moreover, the complainant required to recognize it as unregistered security.
The head of BitMEX cryptocurrency exchange called Ethereum “shitcoin” and predicted its fall below $100. Recently the price plunged below $300.
The Venezuelan President Mr. Maduro said that both the Venezuelan bolivar and El Petro will become national currencies since August 20.

Regulation

A government of the Korean Cheju island wants the island to become a center of the blockchain industry and a free area for ICO despite the strict national policy to the cryptocurrency market.
The Saudi Arabian authorities forbade companies and individuals to trade cryptocurrencies.

Blockchain

South Korea is anticipated to spend $918 million to develop blockchain and artificial intelligence in 2019.

Cryptocurrency exchanges

Malta has the biggest volume of cryptocurrency trading on cryptocurrency exchanges in the world.
KuCoin cryptocurrency exchange is accused of a fraud. The Hong Kong head-office isn’t located at the registered address.
Jamaican stock exchange will launch cryptocurrency trading. The trading platform will start operating at the end of 2018.

Just for fun

Instead of a reward of $250,000, Bitfi wallet’s developers promised problems to hackers who claimed successful hacking.

Bitcoin $6,434.3 (-0.24%)

DASH $156.73 (-1.74%)

Ethereum $296.86 (+0.39%)

Litecoin $56.885 (-0.56%)

60

Japanese companies welcome skilled foreign employees

20.08.2018

The vast majority of Japanese companies back loosening the country’s tough immigration system aimed at coping with a terrible labor shortage, although they appreciate skilled employees capable of fitting into the Japanese workplace, and not an invasion of unskilled ones, as a Reuters survey disclosed.

In Japan, the labor market is rapidly aging for half a century. As a result, it forced the authorities to welcome foreigners in the country’s car factories, farming as well as convenience stores.

However, in a society, which has long supported its homogeneity, the authorities insist that these steps have nothing to do with welcoming immigration. According to the Reuters Corporate Survey, Japanese businesses make a distinction between employees allowed to work because they have successfully passed suitability tests and low-skilled immigrants.

In June, the Japanese government disclosed its plan to allow five-year work permits for foreign employees in some categories. The government is considering allowing those foreign employees who have passed corresponding tests to remain in the country and even bring their families. Undoubtedly, it’s going to be a revolutionary change for Japan.

According to the monthly Reuters survey, up to 57% of big as well as midsized Japanese businesses employ foreign staff members and nearly 60% back a more open immigration system. However, 38% appreciated allowing unskilled employees into the country to relieve labor shortages.

In general, Japanese companies are still cautious as for accepting foreign employees, as some market experts pointed out. Many Japanese businesses are certainly aware of the necessity to accept foreigners in the long run. Nevertheless, they’re currently attempting to cope with labor shortages by means of investment in automation as well as labor-saving technology. Retailers and restaurants are actively making use of foreigners – they allow them to work up to 28 hours a week.

61

Signals from the Federal Reserve

21.08.2018

The Federal Reserve has already raised interest rates twice this year. At its August meeting, the US central bank sounded confident enough about the country’s economic outlook and wasn’t very concerned by the threat of trade wars between the Unites States and other key economies. Traders will be able to find out the details of the meeting at 21:00 MT time on August 22. Market players are almost sure now that the Fed will increase its interest rate in September. Many traders also expect a rate hike in December.

• If the information from the central bank confirms the expectations of 2 more rate hikes in 2018, the USD will increase.

• If the central bank doesn’t hint on 2 more rate hikes this year, the USD will decline.

Check the economic calendar

62

Daily News: the AUD in troubles

23.08.2018

Yesterday the Federal Reserve released the meeting minutes. The general sentiment was hawkish: the central bank anticipates a strong economy. However, the officials of the bank see the escalation of trade wars as a big threat for the economy. Fortunately for the USD, the market was satisfied with an optimistic outlook on the economy that means further rate hikes, so the USD has been rising today. On Friday, the Fed’s Chairman Mr. Powell will give a speech at the Jackson Hole Symposium. Be careful, the USD may be volatile.

The US dollar index rebounded from the support at 95 yesterday and up to now, it has been trading near 95.30. No important economic data will be released today. However, the direction of the index will be determined by news on the NAFTA deal and trade talks with China. The supports are at 95 and 94.25. The resistance is at 95.50.

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Lots of news on the AUD.

The Australian dollar has been moving down because of several reasons. First of all, the USD has been strengthening. Secondly, the environment in the Australian government is critical. The prime minister announced a possibility of the resignation. The Australian parliament is shut down for 2 weeks. 3 minister applied for the resignation. Thirdly, the China-Australia relationship has worsened. Australia banned China’s Huawei company from participating in mobile network build.

As a result, AUD/USD has been moving down. The first support lies at 0.7275. If the USD is stronger, the pair will break below this level. The next support is at 0.7235. If the USD suffers to go further up, the pair will trade within 0.7275-0.7350.

63

THE US DOLLAR INDEX IS TESTING A TWO-WEEK LOW
Yesterday, the US dollar continued to decline against the basket of major currencies due to the political instability in the US. Legal proceedings against Donald Trump’s former lawyer, Michael Cohen, and Donald Trump’s former campaign chairman, Paul Manafort, are in the focus of attention. In addition, the US intends to impose a number of sanctions against Russia because of the “malicious” actions of the country. The US dollar index (#DX) updated a two-week low and closed in the negative zone (-0.16%). Today, during the Asian trading session, the US currency has recovered some of the losses.

Meanwhile, yesterday the FOMC minutes were published, according to which the Fed leaders positively assessed the state of the American economy and intended to raise the interest rate in the future. However, the meeting participants also expressed concerns about the US trade conflicts with key global partners. At the moment, more than 90% of financial market participants believe that the Fed will raise the interest rate at a meeting in September.

The “black gold” prices have continued to increase after the publication of the report on crude oil inventories in the US. At the moment, futures for the WTI crude oil are testing a mark of $67.80 per barrel.

Market Indicators
Yesterday, there was a variety of trends in the US stock market: #SPY (-0.06%), #DIA (-0.34%), #QQQ (+0.39%).

At the moment, the 10-year US government bonds yield is at the level of 2.81%-2.82%.

The news feed on 2018.08.23:

  • Data on economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00);
  • Publication of the ECB account of monetary policy meeting at 14:30 (GMT+3:00);
  • New home sales in the US at 17:00 (GMT+3:00).

Source - justforex.com