Economists, investors, enthusiasts and naysayers love to argue about the nature of bitcoin. Is it the future of money? A hedge against chaos? A pile of cash doused in lighter fluid? The thing is, it's hard to tackle the big questions unless you know something about the inner workings of bitcoin. So here's your guide to the basics of how the cryptocurrency functions: the concepts and vocabulary you need to know before you can start winning arguments on reddit.
Trading in U.S. equities was approximately 40% below the 30 day moving average on Thursday, despite this the major equities markets in the USA experienced rises during the New York session. The medium to high impact economic calendar news generally missed the targets, adding to concerns regarding how much room the equity markets have to grow in 2018 if, (as suspected by many analysts), the recent tax cuts have already been priced in. The advanced goods trade balance for November missed the prediction, by registering a -$69.7b deficit, whilst wholesale inventories in the USA grew by 0.7% during the month.
Trading in U.S. equities was approx 43% below its average 2017 level on Wednesday. The U.S. dollar fell sharply versus the: Aussie, sterling, euro, the Canadian dollar and the Swiss franc. The U.S. dollar index fell by approximately 0.4% on the day. A suggested reason for the drop in value of the USD is related to traders betting on global central banks finally withdrawing stimulus and raising interest rates in early 2018, as global growth figures have sufficiently improved.
As the FX markets reopened on Boxing Day, liquidity and consequently the trading in currencies was significantly reduced, as many institutional traders at major banks and funds remained out of the markets, or on holiday. Many currency pairs experienced whipsawing conditions during the trading sessions, which provided both challenging conditions and opportunities for many retail FX day traders. Certain global stock markets were also closed, therefore the impact of any significant economic calendar news proved to be benign. For example, the news circulating that USA shoppers may have generated their best shopping figures in over a decade, did little to boost U.S. equity markets, despite the underpinning revelation that confidence must be high in the USA, for consumers to take on more debt and spend.
Also known as the “December Effect”, the Santa rally refers to the market’s tendency to rise in the last five trading days of the year and the first two days of the new year. But Crypto-currencies are not enjoying any kind of Santa rally. Bitcoin, Ethereum, and Bitcoin Cash are all crashing quite significantly. This is not a small drop and is not limited to a specific coin, but seems like a wider sell-off. The leading coin, bitcoin, is not immune to the fall and stalled before making the big leap towards $20,000. Here are updates on 5 cryptocurrencies:
We now know that the tax reduction plan is happening, the fiscal stimulus spend (as much as one trillion dollars promised to rebuild crumbling infrastructure), has curiously disappeared from the Republicans’ and Trump’s narrative over recent months. The potential infrastructure spending plan has had a negative effect on the U.S. dollar throughout 2017, and despite the Fed keeping to its promise to raise rates by three times in 2017 investors failed to bid up the dollar, which has fallen considerably versus two of its main peers; euro and sterling throughout the year. The U.K. BoE and the Eurozone ECB have delivered dovish statements during the year with regards to interest rare rises. In terms of monetary policy actions; the BoE felt forced to raise rates by 0.25% to 0.5% in November, in order to counter inflationary pressures, whilst the only hawkish move the ECB conducted was to taper its APP (asset purchase programme) by €20b a month.