fbpx
elsalvador

Forex News January 26

#edgeforex #trading #market #money #forex #countries #dollar #currencies #trade #equities #elsalvador #experiment #indexes #crypto #bitcoin

El Salvador

  • El Salvador Is Considering Abandoning The four-month experiment with Bitcoin may be coming to an end.
  • Bitcoin fell 0.6 percent on Tuesday, closing around $36,600, while Ethereum fell 1.1 percent. Other top ten cryptocurrencies experienced diverse dynamics, ranging from a 7.4 percent drop in Terra to a 2.3 percent growth in Polkadot. Over the last day, the entire capitalization of the crypto market fell 1.1 percent to $1.74 trillion, according to CoinGecko.
  • In sum, the crypto market reversed its previous loss after bitcoin reached six-month lows on Monday, falling below $33,000. This was followed by a substantial increase to $37,500. The cause was the US market.\
  • Stocks have been sliding throughout January in expectation of the Fed tightening monetary policy. The drop in hazardous assets has also had a detrimental influence on bitcoin, which has already lost roughly 20% of its value since the beginning of the month.
  • According to Bloomberg, the connection between the benchmark cryptocurrency and the Nasdaq has set a new all-time high.
  • The FOMC meeting on Wednesday will be the centre of attention. If the Fed hardens its rhetoric and announces a rate rise as soon as March, all risky assets, including cryptocurrencies, may suffer severely.
  • Meanwhile, the International Monetary Fund (IMF) has advised El Salvador to discontinue the use of bitcoin as a legal tender. Despite BTC’s recent drop, MicroStrategy has declared that it would continue to acquire it.
  • It’s worth mentioning that crypto funds had their first influx of capital into their assets in six weeks a week ago.

 Switzerland

Switzerland January Credit Suisse investor sentiment 9.5 vs 0.0 prior

  • Latest data released by Credit Suisse and CFA Society Switzerland shows a modest improvement in investor sentiment as omicron fears continue to be brushed aside for the most part. Credit Suisse notes that:
  • Financial analysts are looking beyond the temporary challenges pose by the omicron wave and anticipate a marked recovery in the spring.
  • Of note, the current conditions index was also seen improving from 34.2 in December to 50.0 in January.

OPEC+

OPEC+ delegates reportedly expect to stick with the plan for a modest hike in output

This doesn’t come as too much of a surprise given their decision earlier this month already. The oil market outlook is little changed since then, although there is the whole Ukraine-Russia thing going on I guess it will be a play-by-ear situation.

WTI is up 0.3% on the day to $85.90 as the price continues to hold up, following the solid rebound yesterday.

Markets

  • Markets have not reached the danger zone levels that precede a bear market; instead, markets are at levels that are normally associated with corrections and relatively modest returns over the following 1 to 5 years.
  • That’s an intriguing viewpoint, but given the inflation and central bank backdrop, it’s possible. However, there is still a lot of money flying around, and with actual returns hardly attractive, TINA may still be the way to go if we see any significant retracements/corrections in the coming months.
  •  Following yesterday’s decline, the S&P 500 is down 8.6 percent for the year. While breaching some important support levels recently, this is scarcely a significant correction for something that is still up roughly 95 percent from the pandemic’s inception.

Leave a Comment

LinkedIn
Share
Telegram
WhatsApp