Posts belonging to Category FOREX



“Due To Popular Demand” Goldman Starts Covering Bitcoin

Bitcoin officially made its way to Wall Street

It’s official: not only has bitcoin officially made its way to Wall Street, but confirming rumors that emerged over the weekend, “hedge” funds – starved of volatility in virtually all other asset classes –  are now not only actively trading the volatile digital currency, but as clients of the vampire squid, have petitioned Goldman’s chief technician, Sheba Jafari to start covering it.

In the report that Goldman released this afternoon ago, Jafaru concludes that “the balance of signals are looking broadly heavy” with the following view: “wary of a near-term top ahead of 3,134. Consider re-establishing bullish exposure between 2,330 and no lower than 1,915.

http://www.zerohedge.com…   Wed.,  14  June 2017

“Soft Brexit” looks more likely

Britain’s political outlook seems toxic to investors

The combination of a weak Conservative prime minister and the potential for a Corbyn government does not look attractive. Suddenly Britain looks a lot less attractive as a home for international investors. The Conservative party under Theresa May gambled on a snap election to deliver a “mandate for Brexit”. It unveiled a muddled manifesto that alienated voters and was out-campaigned by the veteran left-winger Jeremy Corbyn. The party lost its overall majority and will now be propped up by the very odd ducks in Ulster’s Democratic Unionist party.

The markets reacted less severely than might have been expected. That seems to be based on the view that a “soft Brexit” looks more likely. But it is far from clear that this is the case. David Davis, Britain’s Brexit minister, seems to be ploughing ahead with plans to leave the single market and the and the Labour leadership is unlikely to oppose this.

http://www.economist.com…   Tue.,  13  June 2017

US debt default would be like Lehman crash

Raising the debt ceiling

A U.S. debt default would create significant confusion and uncertainty in financial markets and could prove as catastrophic as the failure of Lehman Brothers in 2008, the Organization for Economic Cooperation and Development (OECD) said in a new report.

Lawmakers in the U.S. side-stepped a debt default at the 11th eleventh hour in October and brought an end to prolonged negotiations over raising the debt ceiling. But talks are set to resume in the new year with the debt ceiling extended until February 7 and funding approved until January 15.

“An outright default would have extremely severe effects” the OECD said in the report, released on Tuesday.

http://www.cnbc.com…  Mon.,  12  June 2017

The Pound weakness

It’s ‘time to get bearish’ on the pound again

Deutsche Bank has turned bearish on the pound once again, saying that any possible upside for the currency from next week’s election has already been priced into the market.
Writing on Tuesday, Deutsche Bank strategists Alan Ruskin and George Saravelos used their latest FX Blueprint note to warn investors it is “time to get bearish on GBP again,” after just over one and a half months of a positive outlook on the UK’s currency.

http://www.businessinsider.com…  Wed.,  31  May 2017

Icelandic bitcoin mine

Bitcoin is going nuclear

The digital currency is hitting all-time highs, with a single coin going for more than $2,197. It’s an epic bull run that has accelerated in recent months: Just a year ago, it was sitting at just $443. This is great news for bitcoin miners, the people responsible for creating new bitcoins. Their mining infrastructure is the backbone of bitcoin. Anyone who contributes computing power to help process transactions on the network is rewarded with the chance to “mine” bitcoin.

In plain English, in return for helping keep the network up and running, they have the chance of being given a newly created piece of the digital currency. This payout makes the entire process — with the right equipment — incredibly lucrative. It has helped spawned a huge and surreal industry.

You can mine at home, and many people do. But companies dedicated to mining have also sprung up, some worth tens of millions of dollars. These companies build huge data centres, or mines, that consume vast amounts of power and perform insane computations on the hunt for digital gold.

http://www.businessinsider.com…  Thu.,  25  May 2017

Crypto-Currencies Bubble

A surge in the value of crypto-currencies provokes alarm

IT IS hard to predict when bubbles will pop, in particular when they are nested within each other. It helps to keep this image in mind when considering one of the biggest surges in asset values of recent years: the market value of all the world’s crypto-currencies has trebled since the beginning of the year, and is now worth more than $60bn (see chart).

http://www.economist.com …  Fri.,  19  May 2017

Pro-European Macron wins a crucial election

Europe stronger with Macron victory

Europe’s political establishment entered 2017 in a state of panic. Britain had voted to leave the European Union six months before and the United States had just elected a president who was hostile to their grand project and the values it stood for. The same forces that had led to Brexit and Donald Trump – popular anger with distant elites, economic inequality and immigration – threatened to hit the continent hard in a year in which Europe’s largest countries were holding elections. The biggest risk of all was France, a country with an ailing economy, historic ambivalence toward the EU and a politician, in National Front leader Marine Le Pen, who seemed well positioned to seize on voter fears.

Instead, on Sunday, Le Pen was soundly defeated by Emmanuel Macron, a 39-year-old independent who ran on an unashamedly pro-European platform. Macron urged the French to embrace rather than reject globalization. And he vowed to work with Germany to relaunch the European Union, a project long seen as a guarantor of peace and prosperity but one which is now struggling to find its “raison d’etre” after years of crisis. Macron’s victory represents a reprieve for Europe and the liberal democratic values for which it has stood for more than half a century.

http://www.reuters.com…  Mon.,  08  May 2017

Oil price dives

Oil at its lowest levels since late November

Crude futures slumped anew on Friday, at one point tumbling 3% within minutes, reflecting fast-deteriorating confidence in ongoing production cuts.

Prices tumbled nearly 5% as of Thursday’s settlement in New York, putting oil at its lowest levels since late November, when the Organization of the Petroleum Exporting Countries agreed to cut output for six months. After nearly eight hours of subsequently steady trading, prices started to slightly ease before slumping shortly after 11 p.m. Eastern Thursday. At one point in Asia, prices slid 3% quickly.

No immediate catalyst was identified, but “the selloff means Asian investors are resonating with the bearish sentiment saw overnight in New York,” said Gao Jian, an energy analyst SCI International. He estimated price could drop another dollar or two before staging a mild rebound.

http://www.marketwatch.comFri.,  05  May 2017

BREXIT: JPMorgan to move massively staff out of London

Dublin, Frankfurt and Luxembourg, new destinations for bankers

JPMorgan Chase & Co. plans to move hundreds of London-based bankers to expanded offices in Dublin, Frankfurt and Luxembourg as it prepares for the U.K. to lose easy access to the European Union’s single market after Brexit, the firm’s head of investment banking said.

“We are going to use the three banks we already have in Europe as the anchors for our operations,” Daniel Pinto said in an interview Tuesday in Riyadh, referring to the New York-based firm’s local entities. “We will have to move hundreds of people in the short term to be ready for day one, when negotiations finish, and then we will look at the longer-term numbers.”

http://www.bloomberg.com…  Wed.,  03 May 2017

White House: Trump will not immediately bolt NAFTA

Trump wants to renegociate NAFTA

President Donald Trump on Wednesday told the leaders of Mexico and Canada that he will not immediately pull out of the North American Free Trade Agreement, just hours after administration officials said he was considering a draft executive order to do just that.

The White House made the surprise announcement in a read-out of calls between Trump, Mexican President Enrique Pe?a Nieto and Canadian Prime Minister Justin Trudeau.

http://www.abcnews.go.com…  Thu.,  27 April 2017