Key Forex and Crypto fundamentals this week

September 02, 2019 | AtoZ MarketsAfter US-China trade war which is getting more intensified since the past few months, US President Donald Trump and Chinese officials called for calm and more convinced markets. This will help the greenback to strengthen against major currencies. The yield curve inversion also serves as a worrying sign of an upcoming financial crisis.

The Brexit reached new highs after prime minister Boris Johnson announced a five-week suspension from the parliament, this might limit the opposition’s chances of blocking a no-deal Brexit. Sluggish euro-zone figures weighed on the euro and eventually pushed EURUSD pair below 1.10.

On the other hand, Bitcoin dropped below $10,000 mark and have a market cap of $175 Billion market cap as per data. Also, Bitcoin dominance reached to 70% which somehow leads other big altcoins to drop below the 3 months lows. What is next in forex and cryptocurrency space this week, let’s focus!

UK parliament to battle Brexit

From Tuesday, the House of Commons returns after the summer break to a shortened session after Johnson’s dramatic announcement of its suspension. From the second week of Sept until Oct 14, the opposition parties will try to bring new rules to block leaving the EU without a deal and the government will fight back.

Moreover, two UK courts will hear urgent appeals that will try to undo the suspension of parliament. Negotiations continue between EU and UK officials, with David Frost scheduled for more meetings.

US ISM Manufacturing PMI on Tuesday 

Tuesday at 14:00 we will see a survey of the US manufacturing sector which has been showing signs of a slowdown with a score of 51.2 points in July. The indicator also serves as a hint toward the all-important jobs report later in the week.

Canadian rate decision

On Wednesday, at 14:00 The Bank of Canada stood out early in the year by holding up its hawkish bias but has recently dropped its intentions to raise interest rates. Nevertheless, recent growth figures which are annualized at 3.7% in the second quarter give no reason for the BOC to join its peers by signaling rate cuts.

Governor Stephen Poloz and his colleagues are set to leave rates unchanged at 1.75% and might express concern about the global economy.

US ISM Non-Manufacturing PMI On Thursday

On Thursday at 14: 00 US ISM Non-Manufacturing PMI will be live. The services sector outweighs the manufacturing sector and its perceived health, according to the survey it has an impact on markets. After scoring 53.7 points in July which is above the 50-point threshold that separates expansion from contraction, a similar score of 54 points projected for August. This could be the last hint before Friday’s labor market report.

Fed Chair Jerome Powell talks in Zurich

On Friday at 16:30, Powell speaks in Zurich just four hours after the NFP and might provide more clarity after the balanced speech at Jackson Hole. The address is titled “Economic Outlook and Monetary Policy” which may be leaving no doubt about the importance of the event. 

Global Digital Forum 2019 in CA, USA

Global Digital Forum will take place on 04-05 September 2019 in California, US. It is about creating communities of technology providers and consumers, who are brought together to share problems and challenges, ideas, knowledge, and best practices. The event will have a focus on edge computing, AI, blockchain, etc. 

Crypto weekly outlook – ETHUSD, BCHUSD, LTCUSD

This week has been a rough journey for all the cryptocurrencies. The week started after recovery from last week, and every currency saw an upward trend till 27th August. After that, we saw a decline in almost all the digital currencies, and the downward correction was so strong in the charts that they haven’t recovered from the fall yet.

Read more: Top 10 Cryptocurrencies 2019

ETHUSD – ETH is trading at $171.71 with resistances forming at $173 and $175. If the bulls fail to defend this spot, we can see the price testing the support levels of $165 and $160 in the coming week.

BCHUSD – Currently, BCH is trading at $287.46, and the chart is suggesting a further decline in the price. So we can expect the price to test the $270 support levels in the coming week. If the bulls can break the trend and provide a push, we can expect the price to go to $295 levels.

LTCUSD – It’s hard to say whether the next week will be beneficial for Litecoin, but from the chart, we can expect an upward trend in the coming days. The RSI is below 50 for LTC.

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