Financial Markets Last Round News For This Week
By Rubika Ventures® on The Capital
What is causing investors the most in recent days is the sudden drop in the dollar against most of the state currencies.
DXY dollar index wanting to break. Main supports being violated literally. Next days we can see the touch of one of the channel’s high trend lines, and according to our previous analysis made.
What Caused The Dollar Price To Drop?
The mood in general, explained cointimes, with economic data in the Chinese service sector showing strong recovery. In the United States, despite the crisis and protests, the US economy lost just 2.76 million more jobs in May, when it was expected to reach 9 million.
Locally, investors are eyeing the loosening of isolation rules and since the release of the “devastating video,” confidence in the Stock Exchange has increased. It remains to be seen whether the mood is well-founded or we are seeing a chicken flight.
We need to keep an eye on rising tensions in the United States and on trade clashes with China which can cause even more volatility in the dollar price.
The Immediate Response Of The United States
According to infomoney, The US economy gained 2.5 million jobs in May 2020, according to an employment report (known as Payroll) released on Friday (5).
The result was much better than the market estimate, which was the destruction of 7.5 million jobs last month, according to the median of financial market economists’ projections compiled in a Bloomberg survey.
The number signals that the economy is recovering earlier than previously thought from the impacts caused by the Coronavirus pandemic.
In April, the US had lost 20.5 million jobs, due to the economic impact of social isolation measures taken to stem the proliferation of Coronavirus.
The unemployment rate fell in May from 14.7% to 13.3%. The expectation in the Bloomberg consensus was that unemployment would rise to 19.1%.
The Great Waste Of Euro
The euro has made strong progress at the beginning of the trading day this Friday in Europe, as the decision of the European Central Bank to extend its stimulus measures has fueled optimism for a global economic recovery, as reported investing.
At 9:40 a.m. (CET), the EUR/USD pair reached the 1.1357 level, up 0.2%, just above its nearly three-month highs, and with its peak of 9 March 1,1495 now on the horizon. On a weekly basis, the single currency is up 2.4% and on track for its third consecutive week of gains.
These gains follow the ECB’s move on Thursday to increase its emergency bond purchase plan by 600 billion euros, above the 500 billion expected by the markets, to a total of 1.35 trillion euros, and expand the plan until mid-2021.
These “easing measures were yet another sign that the ECB wants to do business and is willing to do whatever it takes to help the eurozone survive the Coronavirus crisis in one piece,” Nordea analysts have said (ST: NDASE) in a research note.
It also adds to the series of positive surprises that have recently come out of Europe, including the EU Recovery Fund and another stimulus package from Germany.
Wall Street Closure Restrained By Resistances
The last report made by investing says that Wall Street closed this week with great barriers to overcome and in the middle of that these are the following considerations that we must follow.
Nasdaq With Overload
The Nasdaq has already been in trouble for two days at the height of the previous highs. If the oversold was extreme at the minimum peak, now that you have traveled the exact same distance but upwards the overbought is huge.
NDX NASDAQ 100 index at a critical point. If we don’t break the current resistance at 9629.7 we can see the price correcting at 8361.6 and according to our analysis.
Indexed Recovery On SPX500
For its part, the S&P 500, as warned by several investment banks, has a difficult enemy at 3,130.
Even with all the problems that arose in these days in the United States, the main stock index SPX500 is breaking records after the last fall more or less 63 days ago. With the price at 3112.35 approximately remaining above 23% of the Fibonacci retraction line, breaking the main resistances and supports.
Both must break so that the market can progress, if not, here we have come.
New Millionaires After The Gap
It is approximately 65 days after USOIL (oil) fell below zero. Apparently now there are new millionaires with a recovery of more than 100x.
After Bitcoin Comes Gold
It won’t be long before the GOLDUSD gold hits its all-time high. Current price around 1712.10.
There Is A Lot Of Caution
There is a lot of caution and presumably, profit taking by operators who have hit the upward movement and do not want to risk the volatility that can give the employment data that occurs before the opening, also as reported investing.
The FED Controversies
The disconnection of the market from reality due to the FED liquidity rain remains very high. Today we have commented in some videos how individuals, for example, are receiving much more money than for their normal wages. An amount never seen before in history, this gives us an idea of the magnitude of the money rain, wrote investing.
Ethereum Is A Great Option
In any case, on the other hand, it is excellent to know that the FED is eyeing Ethereum as a viable platform for the administration of the network of banks, and just as it made it known criptonoticias.
It says that the president of the Federal Reserve (Fed) of EE. The US, Jerome Powell, said on May 28 that the benchmark Ethereum-based index, Ameribor, is a “totally appropriate” alternative to replace the Libor (London’s interbank offer rate) used by the world’s central banks.
Libor is used by financial institutions to establish a benchmark rate for corporate loans, student debt, and other credit instruments. For several years, the financial world has been looking for an alternative to replace it.
Powell directed a written statement to answer Senator Tom Cotton’s question about whether the Fed supports alternative benchmark interest rates, to replace Libor.
In his response, the Federal Reserve Chairman described Ameribor as “a benchmark rate created by the American Financial Exchange (AFX), based on a consistent and well-defined market, that complies with the principles of the International Organization Commission of Securities (IOSCO) for financial benchmarks ”, as reported by Forbes.
Weak Europe Markets And Bonds
Europe’s weakness has spread to Wall Street and has been another bearish factor. Europe did not like Lagarde to say, and rightly so, that the V-shaped economic recovery is not going to happen.
He said that there will be no full recovery until 2023 in the intermediate scenario. In other words, the ECB is not satisfied with the overly optimistic scenario that the stock markets discount.
The bonds for the second consecutive day have had a lot of selling pressure without the reasons being too clear.
Between A Rock And A Hard Place
Additionally investing says that Some banks like Goldman are beginning to warn that the market will not take it well as polls continue to emerge in which Trump does not take the lead. The market fears Biden’s electoral program and wants Trump to win. And if things continue like this, you can start to be negatively affected.
The trade war is also a factor that is out there. Today in the US, the government has reiterated its accusations that China is breaching the trade agreement. Well, the macroeconomic data cannot be clearer and allow us to affirm without a doubt that they are not complying, but the United States is not complying.
Try not to get involved in aubergines on this topic surely and precisely for the electoral reasons mentioned above.
According to Lipper, despite the increases of the week, the funds based on US equity have had outflows of 1.6 billion dollars. Bond funds have strong inflows of more than 13,000 million and beware, monetary funds have outflows of more than 30,000 million, which is the largest cash outflow since 2002 in no less than a week.
In other words, the strong hand leaves cash and goes largely to bonds, which is logical, less fear of course, but not too much confidence either because the money does not go public.
Some chronicles say that the weakness near the closure on Wall Street has been due in part to Trump’s announcement that he was determined to send the army for the riots, although we are not very clear that it was because of this.
A Lateral Feeling
The cryptocurrency market is ending its week with a neutral sentiment in the direction of the deadline. Until today, the total market capitalization totaled around USD 275 bn, a figure that still tells us that there is still a long way to go for the new rally.
Bitcoin dominating the market with a market index of approximately 65% of the entire market, converges on a side slope after having invalidated our low black diamond that we had anticipated in previous analyzes.
The curious thing is that the current price at USD 9636.45 is being supported by EMA9, which for us is not very safe. At any moment, we could have a simple surprise.
Another curious aspect is that after a few, the EMA50 is looking for the price and Ichimoku shows the follow-up of the trend. Main support to keep in mind, USD 8912.57.
See you in the next story! With love 💛 Rubika Ventures® Team!
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