Key Forex and Crypto fundamentals: Bitcoin dominance reaches 70%

September 09, 2019, | AtoZ Markets – After a tumultuous week including the big Brexit battle, escalating trade wars, the NFP, and Powell´s speech, the focus shifts to the ECB and its upcoming stimulus. In addition, US inflation and retail sales stand out.

On the other hand, after going above $10,000, the Bitcoin price was able to extend its upward trend to $10,700 before retracting 10,500 today and Bitcoin dominance goes up to 70%. However, this upward trend in bitcoin’s price was perceived as negative by a few crypto analysts. Here are the Forex and crypto events that will happen this week, let’s dive deep into it!

UK job report might show a similar number

UK jobs report is going to release on Tuesday at 8:30. Back in June, wage growth accelerated and hit a high of 3.7% or 3.9% excluding bonuses. The upbeat salary numbers were only partially dampened by the rise in the unemployment rate from a low level of 3.8% to 3.9%. The report for July will likely show a similar number. The Claimant Count Change, or jobless claims, will likely show another increase.

ECB decision to introduce monetary stimulus

The ECB decision will be live on Thursday in a press conference at 12:30. The European Central Bank is set to introduce a significant package of monetary stimulus. The Frankfurt-based institution has already hinted at this in its previous meeting in July. A rising recession in Germany, slowing global demand, and passive inflation has all pushed the bank to pre-announce a move.

Moreover, a rate cut of 10 basis points from the current deposit rate of negative 0.40% which already deep in negative territory is a minimal step and priced in by markets. President Mario Draghi and his dovish colleagues may push for a deeper cut of 20bp or even a resumption of the bond-buying scheme (QE).

However, hawks such as Bundesbank President Jens Weidmann will likely push back. The euro might rise if the ECB settles for a minor rate cut especially if it is accompanied by a tiering system that exempts some banks from lower rates. If the bank goes for a more aggressive move, the common currency has room to fall.

Updated inflation data for August

On Thursday at 12:30, the US inflation data will be live. One of the main reasons for the Federal Reserve’s rate cut in July was low inflation. Less than a week ahead of the next Fed decision, it will receive fresh inflation figures for August.

Headline Consumer Price Index (CPI) rose by 0.3% in July and Core CPI by 0.3% on a monthly basis and 2.2% on an annual one. An acceleration may cast doubt on the Fed’s intentions to raise rates, while a fall back to 2% or lower may trigger speculation for a more dovish message.

US retail sales report

On Friday at 12:30, the US consumer has been on a roll in July, with headline sales jumping by 0.7% and core sales by 1%. Consumer confidence measures for August have been mixed, indicating a weaker volume of sales in August. The data also feeds into the Fed decision in the following week.

OECD Global Blockchain Policy Forum 2019

The event will take place on OECD conference centre, Paris on 12-13 Sept 2019. The 2019 Forum will include a series of small workshops as well as a Govtech Start-up showcase featuring entrepreneurs working on blockchain-based solutions for the delivery of government services and achieving policy objectives.

Crypto Weekly Outlook – EOS, Tron and Binance coin

The total crypto market cap is climbing higher and it may soon break the $265 Billion resistance zone soon.  Bitcoin (BTC), binance coin (BNB) and the crypto market cap are gaining bullish momentum. This week, we will see how the price of EOS, Tron and Binance coin reacts in an upcoming day.

Read more: Top 10 Cryptocurrencies 2019

EOSUSD – EOS coin price is in bullish mode and holding above $3.70 mark. If it continues to rise, there could be an upside reaction towards the $4.000 resistance level. The next major support is near the $3.500 level, followed by 3.200. On the upside, the main hurdles are near $4.2 and $4.400.

TRXUSD – Tron price remains in a bearish zone and it recently declined below $0.015. Tron price successfully broke the key $0.0150 support level and accelerated towards decline. The next major support is near $0.014, below which the price of the coin could even test the $0.0142 mark.

BNBUSD – Binance coin (BNB) started a nice upward move above the $22.00 resistance level. BNB coin price is currently down by 3% and it recently broke the $21.80 level. The main resistances for BNB coin is on the upside are near the $23.00 and $23.20 zone. On the downside, the $21.00 level might now act as major support.


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