Fire in the Hole Defused

Hope you had a fantastic weekend and hope that you’re having an amazing summer so far.

Banks in the UK will be closed today for a summer holiday but markets are all open. Let’s have some fun!

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures & graphs are valid as of August 28th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

A compromise was found in the end. The central bankers who met in Jackson Hole Wyoming over the weekend, are good at compromises and even better at making sure the markets stay calm, especially when they are the problem.

In short, those who were aggressive going into this meeting have toned it way back. The United States needs to start getting serious about tightening their monetary policy. Europe has been testing the waters and trying to decide if they should do the same. Asia and emerging markets want to keep the money loose for as long as they can.

I believe this image here just says it all. Kuroda (Japan) laughing, Yellen (USA) concerned, and Draghi (Europe) pondering. Drink up that coffee Janet, there’s lots of work still to do.

Brexit Talks…

…continue today, despite the summer holiday. We still have about 1.5 years until the March 2019 deadline, which is still plenty of time to work out an excellent, mutually beneficial, deal IF they get cracking now.

So far little progress has been made but it does seem that most of the major distractions are now out of the way. So short of any new distractions, hopefully, we can get on with some substantive talks now.

The Euro has been one of the strongest performing currencies so far this year, which is why we can see this graph of the EURGBP trailing towards the sky in the last few months.

Crypto-part

The crypto market is on a very gradual rise so far this month and has had a relatively quiet weekend. The overall market cap for all cryptocurrencies broke above $150 Billion for the first time last Wednesday and has not looked back since.

Even though the overall market has been rather stable, there have been significant swings from one currency to the next. One of the winners by far is Litecoin. As the fight heats up between Bitcoin and Bitcoin Cash, Litecoin has emerged as a safe haven of cryptos.

Lasts night LTC has broken out with a new all time high of $64.79 a coin before a minor retracement this morning.

Litecoin has been receiving a lot of the crypto-magic lately. The price has risen 735% since the community decided to implement the segwit solution on April 11th. The same solution that has just been implemented on Bitcoin last week.

In that timeframe, Litcoin has been one of the fastest rising cryptocurrencies. Second only to Ripple.

Let’s have an amazing week ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.