Posted on

EUR Technical Analysis Overview: EURUSD, EURJPY, EURGBP

EUR Analysis and Talking Points

  • EURUSD | Bearish Trend Opens Up Test of YTD Lows
  • EURJPY | Little Signs of Break Out
  • EURGBP | Support Holding for Now

See our Q4 FX forecast to learn what will drive the currency throughout the rest of the year.

EURUSD | Bearish Trend Opens Up Test of YTD Lows

EURUSD continues to oscillate around the 1.13 handle. However, momentum indicators are increasingly titled to the downside, suggesting a potential move towards November lows (1.1215) ahead of support at 1.12. Eyes will be on for a firm break and close to below 1.1270, which may leave the pair vulnerable to further losses. Alongside this, the series of lower highs implies that the downtrend remains intact.


EURUSD PRICE CHART: Daily Time Frame (Jul – Nov 2018)

EUR Technical Analysis Overview: EURUSD, EURJPY, EURGBP

Chart by IG

EURJPY | Little Signs of Break Out

EURJPY has shown little in the way of meaningful price action in recent sessions with the cross consolidating above the 128.00 handle. However, failure to make a firm break above 128.85 (38.2% Fibonacci Retracement) confirms that there is a lack of buying interest above 129.00, while a cluster of moving averages from 129.00 to 129.60 has also contained price action. Momentum indicators suggest that the EURJPY outlook is weak, which in turn increases scope for a test of support at 127.50. Key support comes in at 127.00-20, whereby the rising trendline from the Brexit referendum low is situated.

EURJPY PRICE CHART: Daily Time Frame (Dec 2016Nov 2018)

EUR Technical Analysis Overview: EURUSD, EURJPY, EURGBP

Chart by IG

EURGBP | Support Holding for Now

Resistance at 0.8870-90 has capped price action, which in turn has seen EURGBP break below the first area of support at 0.8834-40. However, support at 0.8810 has curbed further losses for now. A breach below 0.8810 poses risks of a move towards 0.8690, which marks the 61.8% Fibonacci retracement level. Momentum indicators suggest that the risks remain tilted to the upside, although this trend has moderated recently.

EURGBP PRICE CHART: Daily Time Frame (Feb 2017– Nov 2018)

EUR Technical Analysis Overview: EURUSD, EURJPY, EURGBP

Chart by IG

G10 FX Technical Reports

Analyst Pick

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

Posted on

CAD at 5-Month Lows, Crude Oil Back on the Decline – US Market Open

MARKET DEVELOPMENT – GBP Outperforms, Crude Oil Back on the Decline

GBP: The Pound is notably outperforming this morning, gaining some 0.3% against the greenback. However, resistance at 1.28 has capped further upside in the pair. In regard to the latest reports surrounding Brexit, there was some supportive voices from key Conservative members with the Environment Minister Michael Gove stating that PM May’s Brexit plan was the best deal on the table. This is particularly pertinent given that there had been previously a risk that Gove may have resigned. Elsewhere, PM May ditched a move to stop lawmakers trying to re-write her Brexit plans, which will allow for lawmakers to have a free vote on a series of potential changes to PM May’s deal, potentially involving calls for another referendum or a different deal with the EU.

CAD: The Canadian Dollar continues to soften with USDCAD now trading at the highest level since June. Softer oil prices, alongside wider bond spreads with the US has kept the USDCAD uptrend intact. Little in the way of resistance of resistance until the 1.34 handle.


USD: As we approach the month-end, eyes will be on the typical rebalancing that takes place. As it stands, investment bank rebalancing models from Citi and Barclays suggest that signals are for USD buying against its major counterparts with the strongest USD buy signal against JPY. Consequently, month-end demand may underpin the US Dollar over the next few sessions. Today’s trade data will continue to remind President Trump why the trade war with China is necessary, after the figures showed another widening in the trade deficit.

Crude Oil: The morning bounce in oil prices has once again been pared with Brent crude back below $60/bbl. Overnight saw a wider than expected build in US oil inventories in the latest API, which if confirmed by today’s EIA data will lead to a 10th consecutive weekly increase in stockpiles. Elsewhere, markets continue to keep a close eye on the latest OPEC headlines on how much could the cartel cut production.

CAD at 5-Month Lows, Crude Oil Back on the Decline - US Market Open

Data as of 1310GMT

DailyFX Economic Calendar: Wednesday, November 27, 2018 – North American Releases

CAD at 5-Month Lows, Crude Oil Back on the Decline - US Market Open

DailyFX Webinar Calendar: Wednesday, November 28, 2018

CAD at 5-Month Lows, Crude Oil Back on the Decline - US Market Open

IG CLIENT SENTIMENT USDCAD Chart of the Day

CAD at 5-Month Lows, Crude Oil Back on the Decline - US Market Open

USDCAD: Retail trader data shows 32.9% of traders are net-long with the ratio of traders short to long at 2.04 to 1. In fact, traders have remained net-short since Oct 09 when USDCAD traded near 1.28217; price has moved 4.0% higher since then. The number of traders net-long is 18.8% lower than yesterday and 38.6% higher from last week, while the number of traders net-short is 26.5% higher than yesterday and 1.8% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDCAD prices may continue to rise. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDCAD trading bias.

Five Things Traders are Reading

  1. Technical Outlook for Crude Oil, Gold Price, S&P 500, DAX 30, FTSE & More” by Paul Robinson, Market Analyst
  2. DAX 30 Technical Analysis – Bounce Set to End Soon”by Paul Robinson, Market Analyst
  3. EUR Technical Analysis Overview: EURUSD, EURJPY, EURGBP” by Justin McQueen, Market Analyst
  4. Crude Oil Price Stabilizes, Downtrend Remains Intact” by Martin Essex, MSTA , Analyst and Editor
  5. Bitcoin, Ethereum, Ripple Prices Turn Higher | Webinar” by Nick Cawley, Market Analyst

— Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

Posted on

EURUSD Turns Higher But The US Dollar Remains Bullish

Euro and US Dollar News and Charts:

  • Fed Powell dampens expectations, but multiple rate hikes remain on the table.
  • EURUSD remains in a downtrend while the US dollar basket remains bullish.

We have just released our Brand New Q4 Trading Forecasts including USD and EUR.


EURUSD Nudges Back Towards 1.1400 – Hurdles Remain

Fed Chair Powell gave markets a nudge yesterday evening suggesting that the current level of rates is just below the broad range of estimates of the level that would be neutral for the economy. Investors took this as a dovish shift, but o second reading the wording of Powell’s speech refuted that. While in September Powell said that rates ‘were a long way from neutral’, yesterday he widened this by saying that rates were just below the ‘broad range of estimates’ of the level of rates that would be neutral for the economy. With the broad range of 2.5% to 3.5% and a current Fed Funds rate of 2% to 2.25%, this gives a median of 3 to 4 rate hikes of 0.25% before we hit Powell’s target.

The US Dollar basket (DXY) dipped lower but remains in a strong uptrend, underpinned by interest rate expectations. The basket has rallied from a low of just under 88 in February this year and currently trades at 96.20, just off its recent 1near 18-month high at 97.16. While a further small dip cannot be discounted, the firm trend higher will provide support for the US dollar around the 95.50 – 96.00 area.

US Dollar Basket (DXY) Daily Price Chart (February – November 29, 2018)

EURUSD Turns Higher But The US Dollar Remains Bullish

EURUSD remains pointed to the downside with a series of unbroken lower highs dominating the charts from late-September. The pair need to break and close above the 1.1470 – 1.1475 area to break this trend before 1.1625 and 1.1660 come into view. On the downside support appears at 1.1300 ahead of 1.1215 and 1.1187.

IG Client Sentiment Datashows investors are currently 61.3.0% net-long EURUSD,a contrarian bearish signal, and recent daily and weekly positional shifts (longs grew by 34.2% from last week) give us a stronger bearish trading bias.

EURUSD Daily Price Chart (March – November 29, 2018)

EURUSD Turns Higher But The US Dollar Remains Bullish

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

Posted on

Jay Powells Dovish Holiday Surprise

By Stephen Innes

A dovish pivot

The market sensitivity to Fedspeak was on full display overnight when Jay Powell’s comments at the Economic Club of New York were latched as overtly dovish…

*POWELL: NO PRESET POLICY PATH, RATES “JUST BELOW” NEUTRAL RANGE

… suggesting that a pause in the rate hike cycle is a lot closer than what’s currently priced into the curve. In other words, the markets are reducing the probability of 2019 hawkish quarterly US interest rate rises.

Traders are interpreting this as a departure from the FOMC statement, where the market thought Powell suggested the Fed was prepared to move into restrictive territory if data supported. And the price action has been very predictable, US Treasuries and US equities are acutely higher, while the USD is being sold across the board.

There has been a significant reversal of fortune on the EUR, which was one of the more popular shorts in the market, while the high beta G-10 risk-correlated currencies like the Aussie and Kiwi are soaring.

The prospect of a Fed pause was just what the equity market doctor ordered and is boosting investor sentiment. Powell’s dovish pivot reduces nagging concerns about vigorous interest rate hikes, while providing the market with one of the best holiday gifts: a significant bounce in global equity markets.

Oil markets, headline roulette

Despite improving risk sentiment on a softer Fed rate path, along with Powell de-emphasising financial stability risk sentiment, the oil market continues to struggle, after what could best be described as a half-hearted attempt to rally overnight. Indeed, the market does have that WTI sub-$50s feel about it on the back of the 10th straight weekly rise in U.S. crude inventories despite what OPEC and their allies ultimately decide on the production cut front. But it is “United we stand, divided we fall” when it comes to OPEC and OPEC+.

All eyes are on the upcoming G-20, where it’s likely a rebalancing agreement gets put in place, relegating the OPEC/OPEC + producer meeting in Vienna to little more than a rubber stamp formality.

Beware of the headline roulette wheel, as we should expect a flurry of headlines in typical OPEC fashion. And not to mention the breadth of opinion and the lack of consensus on the direction of oil prices should ensure volatility remains high for some time. So buckle in – this could be an intense roller-coaster ride over the next few weeks.

On the recent Bloomberg survey, 31 of 36 analysts and traders in a global poll predicted that the coalition of producers known as OPEC+, led by Saudi Arabia and Russia, will announce output curbs when it gathers on December 6-7. The average estimate for the size of the cut was 1.1 million bpd.

I won’t mention who one of those five lone wolves was, but then again, I always price in the most significant tail (oops, I just did).

Gold markets

A surprisingly softer Fed and the predictably weaker dollar triggered a substantial rally in the precious metals space as both gold and silver pushed higher, but holding back further top-side ambition is the fact that equities are enjoying this move.

Currency markets

A fairly sustained dollar dump, as the EURUSD is trading near the highs of the day (at time of writing). But the big movers – and I mean the eye-catching movers – are the NZD and AUD on beta risk correlation. But keep in mind, short Aussie was a well-subscribed proxy trade to express how negative the trade war is. So, I think a double whammy effect with a de-escalation of trade war risk, coupled with a dovish Fed pivot, may have contributed to the outsized move.

Malaysia

Oil prices continue to weigh negatively, however, given the softer Fed tone; we should see the MYR bond markets play catch-up to regional peers, as Asian bonds (such as THB, IDR, INR) have rallied for the past month. MYR bonds, though, have lagged with the ringgit continuing to struggle. However, we should see a decent investor demand into the 5-year MGS auction, which could trigger an unexpected rally on the ringgit.

 

Posted on

2018: Things To Come for Stocks, Cryptocurrencies, Gold & Silver – Mike Maloney

Ανοίξτε πραγματικό λογ/σμό συναλλαγών forex

Happy New Year hi this is Mike Maloney and in this video we’re going to be taking a look at things to come not the 1936 film which was a great film by the way but we’re going to take a look at what might happen in the coming year and beyond in the financial markets and in the economy and when you’re trying to look into the future to predict what’s going to happen it’s best to do that by looking through the lens of history if you can find a similar set up to what is happening today and when that set up result if you can find something in the past and find how it resolved itself what the outcome was then the outcome is probably going to be pretty similar in the future as Mark Twain famously said history doesn’t repeat itself but it often rhymes and there will be a twist it will be a little bit different than last time around but it’s going to be quite similar and so this is the S&P 500 we’re going to be taking a look at this and there’s this great article that I was reading and I want to show you just how important this is it’s titled why a toxic mix of low volatility passive strategies and high levels of leverage is reason for caution in the US equity markets now I’m going to try and make this more understandable for everybody because one of the things they don’t do here is define things so they’re speaking to other people in the financial sector you know we want to know what volatility is we want to know what passive strategies are and we want to know what the leverage is that they’re taking and you know some people don’t know what equity markets are our equity markets that’s the stock market equities are stocks so could low volatility be the quiet before the storm if we go down here to the text low volatility could be the quiet before the storm so says dr.

Robert Shiller the Nobel prize-winning economist at Yale University adding I lie awake worrying over the past 20 years the volatility index has closed below 10 on only 21 days 13 of which have been in the past 2 months so that means only in in the whole 20 year period there there were only 8 other days that closed outside this window of 13 days being in the last two months and now I’m going to share something with you I’m updating an old article this is 5 months old and there was already something extraordinary happening five months ago and now we’ve got another it’s been a hundred and fifty days five months since he said all of this so where are we at today well let’s take a look at the volatility index now the volatility index is basically a measurement of greed and fear it’s a measurement measurement of investors being too worried when it spikes up at these really high figures when everybody thinks that there’s a crisis that’s gonna go on forever and to complacent where they think that tomorrow is going to be the same as today everything is going to be rosy and the stock market is going to rise forever now if you look at this minimum here but what how they derive this is this spread between options puts and calls on the S&P 500 and so they it closed eight of those days that he’s talking about we’re back in this 2006-2007 period and if you look at where the stock market was in late 2006 early 2007 it was just before this thing that’s called a distribution dome this is where you know Wall Street was invested going up here and then they start placing risky assets in the hands of the public and so the strong smart money moves all of the risky assets off of their books and sells them to the weak dumb money the average retail investor and then it’s that retail investor that gets slaughtered going for the ride down here and then that retail investor will panic and sell and the professionals buy it back and take the you know they start the next ride and so if you take a look at what happened with the volatility index here it went way up and it peaked in late 2008 here and so that corresponds with this dip right here so investors were really worried and they were over pricing the risk into the market thinking that the markets were going to continue falling to zero and this is exactly when that when that volatility index was peaking is when they should have been going long investing back in stocks and not selling and so the volatility index is a negatively correlated indicator this is when you should when everybody is is complacent and sure that things are going to go on perfectly forever that’s when you should be worried and when everybody is really worried that’s when you need to be bold and take some steps now I made the the as far as making a lot in a very very short period of time I positioned myself so that I would do well during this period of time and every single day I was doing very very well so it was as far as a short time period goes this was the densest accumulation of wealth that I’ve had so far was during that crash now you take a look at what’s happening today and this is just going up and up and up and there is no part of volatility is the markets going up and down there isn’t any volatility here and that shows in this dropping now when he wrote the article which was August 3rd that only encompasses a few days here so let’s take a look at a close-up of the volatility index so this just goes back to May when it first dipped below 10 so it’s the first time since 2007 that the volatility index had been below 10 and I’m gonna look at an area chart here because it’s a little easier to see he’s talking about the days that fall in the white area inside this rectangle that I’ve drawn so there were 13 days but what about all of this over here that’s what I want to count now how many days have been added to that 13 days and to do that I’m going to turn this into a dot chart which is incredibly difficult to read it’s a awful looking chart but I’m gonna zoom up on this area since September and what this allows me to do I’m gonna ignore this one dot that’s almost on the 10 line and just count the dots in here and what we end up with is there’s 33 more of them so now there are 54 days that the volatility index has been below 10 in the last 20 years and 46 of those days or 85 percent of them have been since May they’ve been this year and that is something that that can’t last it’s completely unsustainable and this trajectory of the markets is also completely unsustainable so let’s go back to this letter here the current streak of 270 plus days without a 5% drawdown in any of the major US indices is the longest since 1996 well there have been another 150 days so now it’s 420 days when this article was written the Dow Jones was just at 2500 so there’s all of this that has been added and you can see that there’s no pull backs there none it just goes up and up and up and it’s like total insanity and so back to the article meanwhile US equity values continued to diverge from earnings so Schiller’s cyclically adjusted p\/e ratio or cyclically adjusted P Cape has only been higher two times in the in market history 1929 and 2000 well he they don’t define for people what p\/e ratios are and that’s basically the price of a stock a share of the stock in the company divided by the earnings per share of that company and so how what kind of profits is that company having compared to the cost of each share of stock and it’s a very very good indicator and typically there is a fair value range and that is somewhere around twelve to fifteen times whatever the earnings are is what the price of the stock should be to be fairly valued so let’s go over here and take a look at it and this is dr. Robert Schiller’s data and what you see here is you know fair value being in this area right here and things have been out of whack for a long time but that’s even higher than twelve to fifteen but so this is an area where you can expect to do well on your stocks and if you buy them when they’re the p\/e ratios are very low stocks are very undervalued at these points and they do incredibly well if you purchase stocks in from nineteen eighty to eighty two and then took that ride to the year 2000 you did incredibly well that’s the type of bull market that you know with gold and silver I’m trying to invest in one of these long term bull markets and the bull market in precious metals is not over with and so in that article they said that it only been hired two times in history 1929 and 2000 well now we’re up at 29 levels or higher and so let me see here yeah we’re just past the 1929 levels or maybe just a little bit you know same or a little bit higher and there was only one other time the dot-com tech bubble the Nasdaq bubble of the year 2000 when stocks were more insanely valued than they are right now and just to point this out this is 2007 and this is the global financial crisis of 2008 the crash that just brought it back into fair value range but not into undervalued and so you know that this cycle is not done yet we haven’t visited undervalued whenever you go into a bubble you have to visit undervalue before a brand new bull market starts bubble undervalued bubble undervalued and it’s like that every single time except this past two decades and the Fed just keeps blowing us back up into these bubbles that’s going to end soon and I don’t think we’re going to have to wait very long evidence is beginning to mount that US equity markets may be near a volatility driven tipping point buoyed by the lowest interest rates in 5000 years now I got a stop here and let everybody know that 5000 years is all of financial history we don’t have measurements of interest rates before that the measurements we do have are very accurate going back a few hundred years but then they sort of get spotty here in their what they’re talking about the lowest interest rates in forever is what they’re saying that they’ve never been this low right now we have countries that represent one quarter of the world’s GDP the gross domestic output so all of the goods and services created in in the world countries that represent 25 percent of the world’s output have negative interest rates which was not even a concept until the year 2008 and the reason that it’s a concept and a tool that they’re using now is because we have these insane Keynesian economists running the global financial system they run all the world’s central banks and they think that this is a logical tool that they can use these negative interest rates to get an outcome that they want and it isn’t it’s it’s an insane thing to actually charge people for the privilege of loaning them currency for a period of time and had taken on the risk that that currency is going to be paid back and depreciated inflated currency or not paid back at all or they take a haircut or something like that where you get paid back less so you’re you’re taking on risk and when you buy bonds you know in the United States we don’t have negative interest rates but in a lot of countries they do right now and investors in those countries have to pay for the privilege of loaning somebody currency for a period of time that is insanity and that means that there’s still an extreme emergency going on and you know the outcome of this isn’t going to be pretty investors have taken on more and riskier leverage in search of yield now these low interest rates push everybody into riskier and riskier investments because you can’t buy a safe investment that’s going to pay you some sort of yield but here they’re talking about leveraged riskier leverage and low volatility would not be a problem if not for strategies that increase leverage when volatility declines so as that volatility goes down more and more certain funds and types of investments people have taken on more and more leverage to a greater you know when Bear Stearns failed their mortgage-backed securities were leveraged to where they had 3% equity so they were leveraged it was just enormous leverage if passive strategies have a bias to buy then they can also have a bias to sell now what are passive strategies passive strategies for investing is investing in indexed funds for instance an index fund like the diamonds or the spiders or the Q’s the diamonds are a fund that mimics the Dow Jones Industrial Average the spiders mimic the S&P 500 so if you buy a spider the spiders indexed funds you’re going to get performance that looks almost identical to this but there are lots of ones that are double long and triple long and even quadruple long so when this goes up ten percent say your fund that you’re invested in is going to go up twenty thirty forty percent depending on which one but when this drops ten percent your fund is also going to go down forty percent and these are run by black box trading that’s you know it’s it’s all computer driven and so with hundreds of billions of dollars of investments now linked to volatility a spike in the volatility index could trigger a devastating algorithmic sell cascade algorithmic they’re talking about black box trading that manages these funds that hundreds of billions of dollars are invested in and so as when the market turns and it starts to go down what they’re worried about here is black box trading triggering sell cascade so this is devastating algorithmic sell cascade means it’s a waterfall event the market goes down a little it triggers more selling which then is going to cause margin call when you have leverage you know investors that go out on margin when they leverage stocks you put 20% down and you get to buy five times more stock than you’re paying for and what happens is if that stock goes up 10 percent you make 50 percent profit if it goes down 10 percent you lose 50 percent but what’s going to happen long before you can lose 50 percent is that your brokerage house will come in and you will get what’s called margin call and you have to cough up the they’ll typically at around 12% or something like that they won’t allow the equity to go below that because now they’re beginning to take on risk and so you have to cough up extra cash for them to not sell your position you get it like 24 hours and if you don’t cough up that cash your position gets sold and so what happens is when people get margin call they will sell this stock or that stock on their trading platform and try and cover their position and bring their equity up to where it needs to be and when they sell that causes the markets to go down further which cause which causes more of these black boxes to sell yet even more so this devastating algorithmic sell cascade is what an investor in stocks should be worried about it’s better to turn cautious too soon then too late after the downslide has begun the lower the volatility the more risk investors are willing to or in some cases required to incur now when they where they say required that’s because the world’s central banks have created these this ultra low interest rate environment and there is if you want to be invested there’s no place that is actually safe the only things that I can see that are safe that are definitely undervalued are gold and silver and during a crisis like this investors are also going to run to other safe haven alternative investments you’re going to see bonds get a last pop that’s a standard safe haven but the alternative safe havens would be crypto currencies and precious metals so they’re going to do very well assets whose performance is linked to volatility include a huge amount of money any spike in volatility even to historic average levels has the potential to drive a significant amount of equity selling much of it automated that’s that black box selling that I was talking about such selling would in turn further increase volatility which would call for more deleveraging and yet more selling so that’s that waterfall cascade refusal to acknowledge the existence of risk has become a pandemic that is the VIX staying the low ten for so long it is just it’s there’s something really wrong with the markets and this is the amount of margin that investors have gone out on so this is an non commercial investors their net positioning and they’re way way out on margin right now at historic levels and when the stocks go down they have to cover meaning they’ve got to sell some of the stocks to come up with the currency to repay the brokerage house and so we’re gonna skip down to the end here seemingly every day for the past two weeks the VIX has set new records well those records go for another five months now as Goldman Sachs pointed out recently there have been 14 low volatility regimes since 1928 and all have required a large shock namely a war or recession to end them however quantitative easing and the rise of passive strategies means history may tell us nothing about what’s to come now are they saying here that that this time it’s going to be different that this time everything will be fine what they are saying here is that history that this has made things so much worse that this is going to be bigger than anything that history can teach us and the because the next sentence and the longer volatility remains suppressed the bigger the leverage bubble grows and the more costly the correction will be once the passive herd is spooked you know I’ve been expecting four years now and I’m usually early I mean I was early I’ll show you something here this is the Robert Schiller’s home price index and I started warning back in 2005 when it was up here the real estate was in a bubble and that investors needed to get out and it went all the way to 2007 so I was a couple years early before that bubble popped but here we are again real estate is also one of it back into a bubble and so you’ve got the everything bubble with stocks bonds and real estate and so this time you know in the year 2000 stocks crashed in 2007 it was stocks and real estate this time it’s going to be stocks real estate and bonds so it’s it’s this is the currency crisis that I have said is going to be coming before the end of this decade and we’re just about there I don’t know how long how much longer this can go because if you take a look at what’s happening now with the tax cuts and everything the markets are just in love with this so it could go a few more months but I have a feeling that before the end of this year that’s going to be a happy new year for precious metals investors because things like this always end in tears this look at the trajectory of this thing it cannot go on forever and the correction that’s going to happen this time with all the leverage that’s built into the system with all of these passive funds just tracking this is going to be pretty horrific for the average stock investor as Hyman Minsky once said the more stable things become and the longer things are stable the more unstable they will be when the crisis hits and that crisis is somewhere on the road in front of us it’s part of the things to come in 2018 could go out to 2019 but I doubt it very much it’s going to be a happy new year for precious metals investors and potentially cryptocurrency investors so if you’ve got anything from this video please like it share it with everybody that you can subscribe to our channel if you already are subscribed click that little bell next to the subscription button because that tells YouTube that you definitely want to hear whenever we’ve got another video that comes out you want to be updated on that and if you aren’t getting notification of new videos then go to our website goldsilver com scroll to the bottom and there’s a place to sign up for our newsletter just put your email address in there and and every week you’ll be notified when the next video comes out so thank you very much for listening good luck and we’ll

As found on Youtube

Posted on

Is Bitcoin Safe To Invest In?

Bitcoin. Bitcoin is text the majority of avid internet users has come to know, but few of us have come to truly understand. Bitcoin is a decentralized digital currency that works without a bank. You may have noticed from the many headlines over the latter part of 2014; Bitcoin is steadily increasing in price and some people have acquired A LOT of fund from it. But….how safe is it. Hello and welcome back to Life’s Biggest Questions…I am Rebecca Felgate and today I am asking: Is Bitcoin Safe to Expend In? Before I get right into the brass tacks details of this video, I want to remind you to leave thumbs up on videos you like and to leave remarks so we can continue our discussion. Also, to all of you who are new here, delight do feel free to move ahead and subscribe to our canal. Bitcoin was established in 2009 and allows people around the world to commerce via a cryptocurrency.

The creator of Bitcoin goes by the name of Satoshi Nakamoto, but of course, that is a pseudonym and nobody knows who that person actually as. Initially, people were sketchy about Bitcoin, perhaps due to the current lack of an accountable builder, and largely due to the link between cryptocurrencies and dose acquires on the dark web. Nonetheless, the world has changed since 2009, with more and more people examining the added benefit of a paperless , nonphysical money system as opposed to fractional reserve banking.

Now, over 100,000 shopkeepers accept Bitcoin as a shape of payment. These dates, the value of one bitcoin is skirting around the 17,000 dollar mark- at the end of 2013, a bitcoin was worth 1000 dollars, and at the beginning of 2011, it was worth only a dollar. With these kinds of highs…a lot of people are interested in vesting … but just how safe is it? – At this time I merely want to make it clear that I am in no way a crypto expert or fiscal psychoanalyst, I am exactly giving you some factual spotlights from hours of research on specific topics. So …. In numerous behaviors, Bitcoin is safer than residence your money in a bank or building society. For one thing, banks are notoriously corrupt, we have encountered countless banking crisis and meltdowns thing.

Bitcoins are in some ways most secure than currency very; you cannot forge a bitcoin like you can bank note. Similarly, unless you yield person your private key password to your bitcoin pocketbook, it is pretty difficult for someone to embezzle your money. Also, with the process of mining, public ledgers of all bitcoin transations are created…which means there is a digital account of every pay. Nonetheless, there are a few issues with the Cryptocurrency that are worth noting at this stage in the game.

One of the problems with Bitcoin is the hype. A lot of people are buying into the money for some kind of hipster street cred validation, which is a terrible reason to invest in something. The currency hasn’t yet stabalized, which is why we are seeing such massive rises and autumns in the importance over the past few months. With such wild shakes, it is difficult to append a goods to money appreciate, manufacturing trading with bitcoin, at the moment, anyway…a slight hazard. People are also feasibly concerned that the inflation froth will burst, leaving investors who joined at, suppose , 15 thousand dollars to the bitcoin, out of pocket If the importance gate-crashes back down to its earlier US dollar exchange rate.

The other issue with Bitcoin is that it is stored in online wallets. These billfolds have pin numbers and if you forget that pin number, you cannot access your money. Also, you cannot reverse a transaction. If you send your money to the wrong person, you can’t get it back. Banks have safeguards for wrong remittances, but Bitcoin doesn’t. There is no buyer protection.

The other potential probability when it is necessary to Bitcoin is that governments are suspicious of it, partly due to its chequered history with the stimulants marketplace and partly because they’re suspicious of tax evasion. Bitcoin is currently illegal in Iceland, Russia, China and is a big grey area in the United Arab Emirates. There are economists who have better understandings of crypto than I do, but thus far as I see it, Bitcoin has its pros and cons…its areas of safety and its the matter of peril. Right now, occasions certainly seem hot for bitcoin, and as we move into the future, I would imagine a cashless world to be a beneficial one…however the notion of Cyrpto needs to become a bit more tangible for it to truly take off.

Do any of you guys have a bitcoin? What do you think? Can you facilitate continue the debate in the comments section below? What do the rest of you think? Are you interested in expending? Tell me know…as honest, I would love to get a sense of what people speculate on this topic. For now, that’s all I have…I am your emcee Rebecca Felgate, delight do leave a thumbs up on this video and click on the notification buzzer to be the first to hear a big answer. I’ll catch you in the next video, but for now stand curious, stay alert, and never ever stop wondering. If you want to continue on your interrogating orgy, why not check out our biggest What Ifs Playlist and our Biggest Science Questions playlist ..