Ransquawk

As the price reaches newer highs by the moment, the Bitcoin market is now deep in the thralls of FOMO. No telling how long this can last. Could be a day, could be two weeks. More and more people are waking up to the potential of blockchain technology and a rapidly growing population believe that the original blockchain, bitcoin, will eventually replace money as we know it.


Analysts continue to revise their price targets higher and higher both on the short term and the long term as people frantically rush in before the opportunity is gone.

The upcoming Segwit2X hard fork (scheduled for the middle of the month) serves as an incentive rather than a deterrent as those who are holding long term will receive both coins. This is a win-win situation for Hodlers. Everyone agrees that the network needs to be improved and though some may disagree about the way to improve it anybody holding bitcoin at the time of the fork is happy to wait and see which one wins.

Many of our clients have told me flat out, that they’re happy to buy right into the fork.

 

Market Overview

Finally, Republicans in the US House of Representatives have put forward the first draft of a bill they call the “Tax Cuts and Jobs Act.”

Already critics are lining up to point out that this bill benefits the rich disproportionately to the poor and that it will increase the US deficit by trillions of Dollars over the next decade.

As we speak think tank analysts are pouring over the bill and crunching the numbers and we can expect a heated debate over the next two weeks.

US Markets were mixed, the Dow Jones is currently at it’s all-time highest level, but the SPX500 is just shy of its.

New Fed Boss

As was largely expected, Donald Trump has officially nominated Jerome Powell to take over from Janet Yellen as Fed Chair once her term expires in February.

Powell seemed to be the level headed choice and the best for the stock markets. He is largely expected to be a continuation of Yellen and will resume her work of gradually normalizing monetary policy. So in the meantime, Yellen’s updates remain significant and she is in no way a lame duck.

Bank of England Disappointment

Mark Carney did indeed pull the trigger yesterday but he has signaled that going forward he will be reserving his ammo.

They did raise the interest rate to 0.5% in order to offset the emergency cut that was done in the wake of the Brexit referendum.

However, the UK economy is not showing sufficient productivity to warrant monetary policy “normalization.”

Barring any significant or sudden pickup in growth, the interest rate will remain below 1% for the foreseeable future.

The British Pound reacted strongly to this news. With the GBPUSD dropping to it’s nearest major level of support, just above 1.30. Even though the move was strong, there hasn’t been any significant breakout. Watch closely today for any aftershock!

Today’s Big Announcement

As on the first Friday of every month, investors will zoom in on the Jobs data coming from the United States known as the Non-Farm Payrolls.

Last month was dismal and it showed that the US actually lost 33,000 jobs during the month of September. However, this figure was quickly dismissed as a natural effect of the hurricanes and fires in the country.

Check out new eToro platform

Economists are forecasting an outstanding number this month and estimate that more than 300,000 jobs were added in the month of October.

A good number here could certainly breath further confidence into the US Dollar. The declining Dollar trend does seem to have been bucked already and the graph is now showing a bullish pattern.

Notice the consolidation over the past few days (candles), which is focused on the upper half of the upward channel (yellow lines).

Leave us a comment!

Ransquawk