Mati Greenspan, Senior Market Analyst at FX broker eToro, has provided his daily commentary on traditional and crypto markets for July 23, 2019. The text below is an excerpt and does not contain the full analysis.
A great success was seen in India today as they have now launched a groundbreaking mission to the moon.
The pilotless rocket is scheduled to land on the moon’s south pole in approximately 23 days. The milestone is being hailed as a significant step forward for India but not necessarily one of ingenuity.
As we know, the country has been shunning innovation on many fronts. The one I’ve personally been watching is in regards to cryptocurrencies. One year ago, India’s central bank has imposed a blanket ban on all banks from dealing with any crypto-related companies. This ban is currently being contested in the high court but progress is very slow.
Additionally, the government has been working on a draft bill that would bring clarity to the market but that doesn’t seem too promising either. According to this leaked version of the bill, it includes a stipulation that will send cryptotraders to prison for up to 10 years.
The incoming Minister of Finance Nirmala Sitharaman offers little hope that this status quo will change any time soon. Despite the frantic calls from India’s twitter community showing how much crypto can help the nation, it seems the government is determined to prolong their virtual monopoly in the banking and payments sector at the expense of her citizens.
- Deal for the Debt
- Eurozone Data Print
- The Bermuda Circle
Please note: All data, figures & graphs are valid as of July 23rd. All trading carries risk. Only risk capital you can afford to lose.
It’s probably the biggest political surprise of this year and an incredibly positive step for the US economy.
The debt ceiling debate is usually a time of political wrangling in the United States so to see the President agree to a deal that will push it off the table for two whole years is simply shocking.
Needless to say, the markets have responded quite positively to this news. Here’s the Dow Jones yesterday with the approximate time of the news in the purple circle.
The rally has continued into the Asian and European sessions. Even the Japanese Nikkei 225 is up by 1%.
Euro Data Print
Tomorrow morning the EU will publish some critical PMI data that could move the markets quite a bit. The PMI reading is based on a survey of purchasing managers across the union and is designed to give a good indication of the strength of the economy.
This will be especially important ahead of the ECB’s rate decision on Thursday. The European Central Bank has been hinting to the possibility that they’ll be starting a new round of quantitative easing (read: money printing) shortly.
If the manufacturing numbers end up coming out weak, as economists currently expect them to, it will strengthen the case for further stimulus and could help push the markets higher.
What a time to be alive.
The Bermuda Circle
The institutionalization of crypto took another large step forward yesterday as…
As you’ll recall, Circle are the owners of the Poloniex exchange and are currently owned by none other than Goldman Sachs. So it’s quite remarkable to see them taking crypto to a global audience.
Still, even with Bakkt’s test launch and all the other great news, it seems the market is simply not responding. At this point, volumes across the board are at their weakest levels in about a month, which creates a bit of a dangerous situation for prices.
Lower volumes usually mean less volatility but it could also mean greater price reaction should a whale decide to place a large buy or sell order.
Have an excellent day ahead!
Mati Greenspan can be found on LinkedIn, Twitter, or etoro.
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