Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 19 June 09:06 (GMT -05:00)



Foreign exchange market

Forex Forecast and Cryptocurrencies Forecast for May 27 - 31, 2019


  • EUR/USD. Complaints and sometimes even moans have been heard everywhere in the last months about the low volatility of this pair. The same is true about last week, until the second half of Thursday, the maximum range of its fluctuations did not exceed 45 points. The pair spent most of the time napping, sleepily crawling along the narrow corridor of 25 points. However, the events of the week, from the aggravation of the US-China trade war and the upcoming elections to the European Parliament to the statements by the Fed leadership and poor data on business activity in Germany and the Eurozone, played into the hands of the dollar. As a result, the pair, as most experts had suggested (75%), fell to the two-year lows, stopping at $1.1105 per euro.


But it is not only the economy of Europe, but also that of the USA which is experiencing problems. The unexpectedly weak preliminary business activity index Markit (50.9 instead of the expected 53.0) and the weak statistics on the real estate market led to a collapse in the yield of US government bonds and a sharp reversal of the EUR/USD pair to the north.


The euro's recovery was also facilitated by the closure of short positions at the lows reached before the three-day weekend in the USA and the UK. Apparently, the European currency and the statement of the British Prime Minister Theresa May about her resignation added to this. As a result, the euro won back 100 points, and the pair finished the week at 1.1205;

 

  • GBP/USD. So, Mrs. May is leaving. Her version of the Brexit agreement will not be voted once again in Parliament. And the country is in for the next reshuffle in the leadership of the Conservative Party. According to many analysts, the head of the government can now be someone from the supporters of a hard exit from the EU, like the former mayor of London and Foreign Minister Boris Johnson. How will the market react? Most likely the reaction will be negative. But this news has not so far greatly affected investor sentiment: following the euro, taking advantage of weak US macroeconomic statistics, supported by the elimination of short positions, the pair pushed off from the two-year low in the 1.2600 zone and went up, putting the final point in this session at 1.2710;
  • USD/JPY. The Japanese yen could not resist the dollar in the first half of the week either. Recall that 50% of analysts had expected the pair to rise to the height of 111.00, and one third of them has called the highest resistance 110.00 The truth, as often happens, was somewhere in the middle, and the pair fixed the week high at 110.65. After that, investors started to doubt: thanks to the harsh statements of Chinese leader Xi Jinping about the “new Great March” and “independence”, they began to realize that the yen could be a more reliable haven than the dollar. The yield on US government bonds went down, while Wall Street analysts started to talk about a high probability of deterioration in the financial results of American companies in the second half of the year and that the US economy could now be under attack due to rising prices and lower consumer demand. As a result, the pair turned around and, returning to the values of a week ago, completed the five-day week at 109.30;
  • Cryptocurrencies. The crypto market capitalization schedule almost repeats what happens to the reference coin. Bitcoin dropped from $8,335 to $7,000 - capitalization fell from $255.8 billion to $229.2 billion. Bitcoin adjusted to $8.265, and capitalization rose to $255.5 billion. Quite often, this graph can be successfully used as a leading indicator.

It should be recalled that only 25% of experts predicted a trend reversal last week. The overwhelming majority voted for its continuation, finding that the decline in the BTC/USD pair to the level of $7,000 is just a temporary correction. In their opinion, it had to return to the $8,000 zone, after which it should move for some time in the side channel, then approaching the resistance level of 8,500, where its growth was stopped last July, then moving away from it. That's exactly what happened.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Masterforex-V Names 135 Most Popular Forex Brokers 2019

When trying to increase the amount of new clients, many brokers start massive ad campaigns online. Most of the time, you can see or hear those brokers call themselves the leading players in the industry, the best of the best, which is obviously not true because all of them cannot be as good as they claim to be. This actually makes it really difficult for the common trader or investor to make up their mind when choosing the next broker to go with.

Publication date: 12 June 08:22 PM

Central Banks Cut Down On Their Dollar Reserves

Central banks all over the world are loading up on euros, yuans, and yens while getting rid of their dollar reserves. The IMF's report for the 4th quarter of 2018 confirms that. They say this has to do with the redistribution of currency reserves in the Russian Federation.

Publication date: 31 May 12:59 PM

Forex and Cryptocurrency Forecast by NordFX. May 20-24, 2019

Roman Boutko, an analyst for NordFX, has come up with another consensus forecast for the forex and cryptocurrency markets for the forthcoming trading week starting on May 20, 2019.


Publication date: 20 May 03:50 AM

U.S. Sanction Trap For Russian Rouble

It's not a secret that the amount of sanctions against Russia has been growing over the last few years. At the same time, experts are losing faith in the stability of the Russian Rouble. Washington is discussing more and more variants to impose even more sanctions on Russia to undermine its economy and national currency.

Publication date: 18 May 03:25 PM

Facebook articles contest from FortFS

FortFS offers you to show off your writing skills and compete with other traders for a prize fund of 1000 USD, which will be distributed among the authors of the most interesting articles about our company!

Publication date: 18 May 12:24 AM

BTC Market Will Set New Highs In 2020

Tom Lee, Chief Analyst for Fundstrat Global Advisors, has recently shared his optimistic view on the future of Bitcoin (BTC). In early May, he said that the BTC exchange rate is undervalued and, given some fundamental factors, it should be somewhere around 14K dollars per coin. At this point, he thinks that the current all-time highs may well be renewed this year. This means BTC prices above $20K per coin and market cap well over 830 billion dollars within the next 20 months.

 

Publication date: 15 May 10:05 AM

U.S. Unemployment Rate Drops To Nearly 50-Year Low

The U.S. Department of Labor has released another unemployment reports. For the first time in over 49 years, the unemployment rate dropped all the way down to 3,9%. For the most part, this has to do with a considerable decline in the economically active population.

Publication date: 13 May 11:22 AM

Six main components of Alpha Bonus from FortFS

From 06 of May till 07 of June 2019 become the owner of a unique artifact called Alpha Bonus and subdue the financial element!


Publication date: 13 May 01:40 AM

Bitcoin Reaches 5-Month High

The cryptocurrency has been maintaining a stable bullish trend. over the last few days, the market cap has exceeded 185 billion dollars. According to CoinMarketCap, the market cap used to be 179 billion dollars on Tuesday. Over the last few days, the cost of all the cryptocurrencies circulating in the global market has grow considerably. 

 
Publication date: 27 April 10:24 AM

ETH's At Local Highs: What's In For Ethereum And ICO?

Ethereum is back in the game! It's currently trading around 5-month lows. Still, the market seems to be showing some confidence that the coin has already overcome its existential crisis and managed to recover from crisis that started after the ICO bubble burst in 2018. Will ETH and ICO revive?

Publication date: 17 April 10:42 AM