Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Hi Everyone,
As we know, a number of French cities have been the scene of protest recently. The protesters, distinguished by their yellow vests, have been increasingly creative in their tactics and now seem to have a new plan.
The idea is that if enough people withdraw all their money from the bank at the same time they might be able to force a liquidity crunch requiring government intervention, possibly crashing the Euro, and send a unified message to authorities.
While I’m no fan of the fractional reserve banking system, I’m not sure that trying to topple economy is a very productive course of action.
In any case, there probably isn’t anything to worry about here as it would take several millionaires getting onboard to have the desired effect and that just doesn’t seem very likely.
@MatiGreenspan – eToro, Senior Market Analyst
Today’s Highlights
- Friendly Fed
- Shutdown: Day 20
- Crypto Drop
Please note: All data, figures & graphs are valid as of January 10th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
Stocks in the USA struggled to close in the green yesterday and by the end of the Asian session this morning it seems pretty clear that the monster rally we’ve been seeing in the markets this year is losing steam. Overall, the markets do seem to be at an inflection point right now.
Some analysts are citing the fact that the US-China talks ended without resolution as a contributing factor, but I’m not so sure. What’s really strange to me is the market almost completely ignoring recent signals from the Fed that it is willing to be more supportive.
Fed Chair Jerome Powell will be taking questions at an event this evening and we hope he’ll be able to clarify the Fed’s stance. At the moment, pundits are having a bit of trouble predicting what the largest player in the financial markets will do next.
A supportive Fed could really help the markets out right now. So could an agreement to reopen the US government, but let’s not get greedy.
Suspicious Rally
The recent rally has been suspicious because, despite rising prices, stocks are still extremely volatile. Gold continues to surge forward and is again giving a serious test of $1,300. Should the market turmoil continue and the US Dollar continues to weaken, it could very well blast right through that barrier.
Crypto Drop
Many have been asking about the sudden drop in the crypto markets this morning. In my view, there doesn’t seem to be any real reason for this drop, neither technical nor fundamental.
The one interesting thing about this movement is that it seems to be an exact reversal of the surge that happened on Sunday afternoon. At this point, the gains made since the start of the year have now been reversed and we’re back to a neutral 2019.
Wishing you an excellent day ahead!
This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.
Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.
The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.
eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
About the Author: Mati Greenspan is a Senior Market Analyst at eToro Connect with Mati on…. eToro: http://etoro.tw/Mati Twitter: https://twitter.com/matigreenspan LinkedIn: https://www.linkedin.com/in/matisyahu/ Telegram: https://t.me/MatiGreenspan Office Phone: +44-203-1500308 (ext:311)
Disclaimer: The opinions expressed in this article do not represent the views of NewsBTC or any of its team members. NewsBTC is neither responsible nor liable for the accuracy of any of the information supplied in Sponsored Stories/Press Releases such as this one.
