Hi investors! Here’s your 5-minute overview of the forex, crypto and stock markets. Check it out for hot stories that may have an impact on your investment strategy.
Forex Market Overview
Last week, the US dollar experienced a dramatic decrease in value. This was followed by a confirmation of planned interest-rate cuts from Fed chair Jerome Powell. Powell is expected to make another major announcement, which, along with upcoming retail reports, will result in a very exciting week.
It was an up and down week for the euro, which began the week with a positive upswing. However, it lost some of its progress following the release of minutes from the European Central Bank. The Canadian dollar, anchored by a statement from the Bank of Canada, experienced a very similar sequence of events. Meanwhile, the Swiss franc remained strong for the entire week.
Elsewhere, we saw the pound have one of its most stable weeks since the most recent Brexit announcements. With several major reports coming up this week, we’ll see if Sterling has finally reached a sustainable bottom.
The effects of the dollar’s decline were reflected in the Aussie, the Kiwi and Japanese yen. All of these major currencies experienced simultaneous value increases.
Taking A Closer Look at CAD/JPY
The CAD/JPY pair, the pair broke above the daily Ichimoku cloud last week and appears to be in the pullback mode at the moment. If you’ve read my book, Ichimoku Secrets, you probably know that the pullback mode is where investors with moderate risk-tolerance can consider a bullish position, taking profit at the next Fibonacci retracement level.
CAD/JPY technical analysis based on Ichimoku & Fibonacci - forex overview:
For long-term investors, the next resistance level is at the 50% Fibonacci retracement of 84.53. This traces CAD/JPY’s price from the highs of October 2018 to the lows of June 2019. The forex market has had an unusually active July, so we’ll be sure to keep you updated.
Crypto Market Overview
It was another shaky week for Bitcoin, which after breaking the $13,000 earlier this month, experienced another week of decline, bringing it down to around the $10,000 mark. While concerns from various governments and major market makers have created some complications, many traders remain optimistic about the fact cryptocurrency is being accepted into the mainstream marketplace.
Congress’ upcoming questioning of Facebook (NASDAQ:FB) and their new cryptocurrency “Libra” will test the legislative body’s views on both cryptocurrency and the power wielded by the major tech companies. If Libra is able to survive congressional grilling, expect most other cryptocurrencies to increase in value in response. But at the same time, keep in mind that Libra isn’t a true cryptocurrency so its fate is irrelevant to the market in the long run.
This week, we’ll see if trueDigital is able to successfully penetrate the Bitcoin derivatives market. The digital platform will first need to gain approval from the CFTC. Other American organizations are looking to reshape the crypto market, including an innovative new crypto partnership between Litecoin and the Miami Dolphins.
Stock Market Overview
Last week was a huge week for the stock market, which witnessed nearly every major index break records. For the first time ever, the S&P 500 is trading above the 3,000 mark, after beginning last week at 2,965.
While American investors are largely pleased with their 401(k)s, some remain skeptical about the most recent round of gains. The market has not experienced any true major changes, rather, pessimistic views about the dollar and bond market have inspired portfolio managers to redistribute capital. Below average earnings reports still have many economists predicting a recession will occur within the next 18 months.
Looking at the banking industry, as Deutsche Bank (DE:DBKGn) undergoes a period of major reconstruction, the bank’s stock has steadily fallen. Elsewhere, HSBC announced it was hiring a Citigroup (NYSE:C) veteran to handle American business, causing their stock to experience a mild upward tick.
The Dow also had a record-breaking week, climbing over the 27,000 mark for the first time in the company’s extensive history. While the index’s gains were wide-reaching, changes in the healthcare market were a major cause of its progress.
Elsewhere in the world, AB InBev decided to cancel a multiple billion-dollar IPO in Asia, which would have been the largest IPO thus far in 2019. We’ll see if the beer and beverage giant makes any other major changes. That does it for this week’s news roundup. I’ll be sharing my personal investment strategies for forex, stocks, and cryptocurrency in Invest Diva’s Premium Investing Group, also known as the "PIG."
*This article was originally published on Invest Diva: