This Week In Forex, Crypto, And Stocks - June 11, 2019Forex Market Overview
Last week was a bit of a disappointment for those holding onto the U.S. dollar that was weighed down by trade tensions and an increasingly negative outlook from the Fed. The Fed’s recent interest in cutting interest rates is now an ongoing cause for concern.
While the USD floundered, the Canadian dollar was able to perform above investor expectations. The New Zealand dollar was also able to do surprisingly well, largely due to the fact that many of the larger currencies have been struggling.
In Europe, the pound experienced yet another disappointing performance, hurt by further Brexit uncertainties and a series of disappointing financial reports. On the mainland, the euro performed marginally better, though the continental currency still had its fair share of ups and downs.
The yen is yet another currency that has been down and with few Japanese reports on the horizon, it will likely remain down this week as well. The biggest reports to watch this week include U.S. CPI numbers and retail sales figures.
Closer Look: USD/JPY
On the charts, the USD/JPY pair appears to have completed a double top chart pattern on and attempting to bottom out at 108. On the 4-hour time frame, it is testing the lower band of the Ichimoku Cloud with the Tenkan line crossing about the Kijun line.
Crypto Market Overview
Next is the crypto market. Bitcoin began last week with a bit of a slide, dropping in value from a 2019 peak around $8,800 to a June floor around $7,500. However, things are starting to look up again for the world’s largest cryptocurrency, who opened this week with a $300 rebound.
Holders of Litecoin were greeted with good news to start this week as the coin broke the $125 mark and reached its highest price in over a year. Other alt-coins also opened this week with a rally, suggesting that the crypto industry as a whole may be experiencing a fundamental change in value.
Interest in blockchain technology from Target (NYSE:TGT) and other major retails may help fuel the mid-year bullish market. Another development to keep an eye on is the introduction of Bitwage—a new crypto payroll technology that allows employees to be paid in Ether.
Stock Market Overview
Last week was a good week for most major indexes in the United States, including the S&P 500, which increased in value by nearly 150 points. However, this unexpected rally was mostly caused by negative signals coming from the Federal Reserve, prompting a shift away from the U.S. dollar.
Despite last week’s rallies, many major investors have a pessimistic future outlook. Citigroup (NYSE:C) opened the week predicting a “full-scale bear market”, a forecast that has been reflected by many others in the industry. Even as an end to trade disputes may stimulate markets for a short amount of time, investor sentiment continues to fall.
Here's my latest Tweet on what NOT to do during uncertain times; Don't let FOMO (fear of missing out) be your investment strategy.
Markets are erasing May’s losses... but it’s more important than ever NOT to make #FOMO your investment strategy. FOMO: Fear Of Missing Out #investing101 #markets #investing #investmentstrategy pic.twitter.com/5zn0LpPqGW
— Kiana Danial (@KianaDanial) June 10, 2019
Stocks To Watch
As talks between a Fiat-Chrysler and Renault (PA:RENA) fell apart last week, talks of a merger between Raytheon (NYSE:RTN) and United Technologies (NYSE:UTX) attracted interest around the world. If approved, the merger would result in one of the aerospace conglomerations ever formed.
Elsewhere in the merger market, T Mobile and Sprint are taking steps towards consolidating, though there is still a lot more work that needs to be done. Other companies to an eye on this week include Facebook (NASDAQ:FB) and Google (NASDAQ:GOOGL), who are becoming increasingly vulnerable for trust-busting.
We’ll be keeping an eye on fallingoil prices as well.