Hi Everybody,

Once again the crypto markets are surging!

Markets go up. Markets go down. The point of the game is to close as many as you can in green. Crypto markets are like any other and they have their ups and downs it’s just that the swings are much sharper than other markets.

If a stock goes up 20% in a year it’s considered fantastic. Lately, we’ve been seeing cryptos that move more than 50% in a single day.

The Crypto Copyfund, that was implemented on eToro in June got off to a shaky start but is now firmly in the green with 30% profits. We’ve run some back testing data on it recently and as you can see from the stats page, the performance had it been around since January would have been 470%.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Building a Wall
  • Macron Supports Euro
  • Jackson Hole Symposium

Please note: All data, figures & graphs are valid as of August 24th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Perhaps the most controversial of Donald Trump’s policies is the wall that he’s trying to build on the border with Mexico.

His fans love him for it and his enemies can’t stand it. Yet, he insists that it will be built and has threatened the government that he will not approve any budget that doesn’t include money for the wall.

Still, this is not a new statement. Trump gave the same exact threat to Congress last time the budget was up for debate. Yet, the market is reacting as if it’s the end of the world.

US Stocks fell yesterday and Asian markets are currently continuing with the downward pressure.

Pressure the Peso

Seems somebody is taking Trump seriously though. The Mexican Peso, which has been a somewhat accurate Trump barometer since before the election has been kicked into gear again.

This graph shows the US Dollar strengthening against the Peso following the Afghanistan Speech then crash against the wall.

Meanwhile in Europe

The new President of France was off to a great start but after celebrating his first 100 days in office, it seems that his support is now falling fast.

Not that he’s doing anything particularly wrong. It’s more like, doing the right thing is not usually very popular. In fact, in this graph from The Economist, we can see that Macron’s approval ratings getting started are worse than his 3 predecessors.

It doesn’t seem to be affecting the Euro too much though. The single currency has been rising steadily ever since he was elected on May 7th.

The Euro is certainly expensive at the moment but the fact that it hasn’t fallen back much gives us a greater possibility that it may still have more room to grow.

Bye bye Janet

This could very well be the last big appearance of Janet Yellen as the chairwomen of the Federal Reserve.

Though the President has mentioned that Yellen is on his short list of candidates to be the next Fed boss, her chances of being re-nominated are quite slim.

However, this will likely not be a tearful event. The President of the European Central Bank along with other big bankers have some decisions to make.

Both traders and long term investors should pay close attention to headlines and speeches coming out of Kansas from today through Saturday.

What we really want to know is will the ECB be winding down their stimulus package? Will the USA start to sell off some of their assets that they’ve been accumulating over the past decade? What about other countries?

Having a unified global monetary policy can be a good thing but not all countries are on the same page as far as their policies. It will be interesting to hear what they have to say.

Let’s have an awesome day!

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