Seeing Bitcoin and Ethereum both in double digit gains this morning is certainly a welcome sight. Let’s hope this continues.
The Bitcoin scalability issue is currently coming to a head. The website known as bitcoin.org has recently published this statement on their site.
Without going into too much detail, they’ve basically said to stop all Bitcoin transactions from August 1st until the confusion clears up but did not specify when that might occur.
Of course, the most alarming statement…
So yeah. This is real. This is happening to our beloved original digital form of money. We sincerely hope the changes will be for the better.
More details will be published in coming market updates. For now, let’s take a look at some other things that are moving. What I will say is to please be prepared for extra volatility within the crypto markets.
Of course, we’re already speaking about the most volatile asset class since the beginning of time. It’s quite possible that in the coming days, even these limits will be stretched.
eToro, Senior Market Analyst
Please note: All data, figures & graphs below are valid as of July 18th. All trading carries risk. Only risk capital you can afford to lose.
Shock and awe gripped Washington DC yesterday when a vote to repeal Obamacare was squashed in the Senate.
With the Republicans controlling three out of three branches of the US government, getting rid of one of the most opposed policies from the previous president should have been a walk in the park.
Good thing the stock markets were closed when the vote was finalized. Wall Street was not damaged in the least. Perhaps the news cycle will move on by the time they open today.
Other markets were certainly affected. Asian markets appear to be down so far this morning.
Most notably though, is the US Dollar, which took a massive hit. The Inflation figures that came out on Friday had sent it to the lowest point since before the US elections (yellow circle). Last night’s bad news has sent the US Dollar back to the levels it was trading last August.
Carney’s Novel Opinion
At 2:30 PM London time Mark Carney will be unveiling the new £10 note, featuring Jane Austen. Apparently, they can’t put JK Rowling on any money just yet, so they decided to go with one of her favorite authors.
This event will be a welcome intermission for the troubled central banker. Politics and Policy have put the Canadian born Governor of the Bank of England at wit’s end.
His recent turnaround in attitude towards lifting rates has been pushing the Pound higher lately. At the time of this writing, the GBPUSD is giving the 1.3100 level a serious test.
Could the late Jane Austin spark further demand and cause investors to start speaking about a Sterling recovery?
The Australian Dollar is stretching its limits today as speculation builds on the Reserve Bank of Australia.
RBA Governor Philip Lowe opted to play it safe during their last meeting and did not raise the interest rates. However, the minutes of that meeting which were published last night indicated that they are indeed happy with the way the economy is going.
This optimism directly reflects the attitude of the European Central Bank and the Bank of Canada, who just raised their interest rates last week.
The thought that the Australian Dollar might soon be offering a higher rate on deposits has many traders on the edge of ecstasy. This is already a very lucrative carry trade opportunity. The thought that the value of the currency can go higher and that the rollover payments could increase has caused a virtual explosion in the price.
Put all that against a weaker greenback and we can see some real satisfaction on this graph of the AUDUSD.
Have an awesome day!!
This content is provided for information and educational purposes only and should not be considered to be an 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.