Recent events in the Forex industry

Published:
December 13, 2021
Последние события в индустрии Forex

Recent events in the Forex industry: due to the influence of negative factors, the fall of cryptocurrencies and world markets continues

The decline of the global stock market in the near future is due to many extremely negative factors. American indices recently fell 1.7% after actively growing up for 3 days, on news that the new omicron coronavirus strain is not as bad as previously thought.

The market was supported by the statistics on employment in the USA. Compared to previous weeks, the number of applications for unemployment benefits fell by 43 thousand. However, despite this, there is a correctional decline in the American market, investors fix the previously received profit.

On Friday, Asian stock exchanges lost 0.8% on indices. Moreover, investors fear a tightening of US monetary policy following the publication of strong economic statistics. The situation with the Chinese real estate market is also unfavourable for investors. On Thursday, the international rating agency Fitch downgraded the long-term issuer default rating of the largest real estate developer Evergrande Group and its enterprises to ‘RD’ (limited default) from ‘C’ due to non-payment of coupons on bonds.

The introduction of Plan B in the UK, which obliges people to wear protective masks in transport and shops, as well as carry COVID-19 vaccination certificates and other similar precautions, is also bad news, because international markets take this with a negative attitude.

Recent events in the Forex industry showed the predictable decline in the value of cryptocurrencies

Cryptocurrency is falling in value every day, and Bitcoin is moving further away from the $ 50,000 price. However, at the same time, the mining pool BTC.com said that the bitcoin hashrate would recover to the level of May, when the Chinese authorities imposed a strict ban on cryptocurrency mining.

Nevertheless, although this is a positive event, the bitcoin rate nevertheless fell by 3% over the course of a day – to $ 48,308, with a capitalization of $ 910.9 billion.

  1. Ethereum decreased by 5.8% — to 4121 dollars with a capitalization of 488.7 billion dollars.
  2. XRP decreased in price by 0.5% — to $ 0.8516, its capitalization amounted to $ 40.1 billion.
  3. Litecoin fell 4.9% to $ 152.2 with a capitalization of $ 10.6 billion.

The total capitalization of the crypto market now is $ 2.26 trillion.

Now, it is predicted that the cryptocurrency will continue to decline in value. Bitcoin could drop to $ 47,000, Ethereum to $ 4,000, XRP to $ 0.7, and Litecoin to $ 140.

Has the dollar really gone too far?

Bloomberg experts say that inflation in the United States will soon accelerate from 6.2% to 6.8%, and they also believe that growth to 7% or more will provide an increase in the yield of Treasury bonds and the US dollar, but what will happen if consumer prices slow down? How will the Fed react to this? Jerome Powell and his colleagues have proved to investors that he is ready for aggressive monetary restrictions, but what if they need to slow down? If so, the greenback will look overbought.

According to experts from the Financial Times, the $ 120 billion quantitative easing program will be completed at the end of March. 10% of respondents think that this will provide an opportunity to raise the federal funds rate in the first quarter. In addition, 50% say it will only happen in the second. This is a very big difference from the studies 3 months ago, when only 20% of economists assumed that borrowing costs would increase during the first half of 2022.

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