Hi Everybody,

With each passing day, it’s getting more and more clear that in a very short time we will be able to completely replace government-issued paper money with something a lot better.

At this point, it’s not a matter of if but when.

Mati Greenspan
eToro, Senior Market Analyst

Today’s Highlights

  • More and More Money
  • A Brutal Blow
  • China Led Ether Rip

Please note: All data, figures & graphs are valid as of May 30th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

The President of the European Central Bank, Mario Draghi, re-affirmed in a speech yesterday that the ECB is not ready to stop their QE program.

The program currently creates €60 Billion every month in order to “prop-up” the European economy. They use the money to buy things like government bonds and company bonds but heaven forfend not to solve the Greek Debt Crisis.

The current program is set to expire in December but it seems that Mr. Draghi is trying to lay the groundwork to keep the printing presses far past this date.

Next Thursday the ECB will hold a press conference where these suspicions should be confirmed or denied.

The Euro has come down against the Dollar since the speech (blue X) but not by much. Overall, the EURUSD is still holding its gains from the French Election (Yellow Circle).

Of course, something far more important will be happening next Thursday in the United Kingdom.

UK Elections

The “debate” last night was fun. Though both sides claimed a win it was clear that Prime Minister May was delivered another huge blow.

In the second segment of the show, Jeremy Paxman gave both candidates a good grilling. For some good fun, you can catch the recording at: https://www.youtube.com/watch?v=KllymYee9AI

The British Pound had virtually no reaction to this event and generally speaking is showing more resilience to political risk. Brexit has shown us that British Polls simply cannot be trusted, and the Trump-Clinton debates have shown us that these type of debates are not indicative of election wins.

I guess we’ll just need to wait until the results come on Thursday night.

Another Crypto Rip

More and more money is flowing today into cryptocurrencies. This rally is being led strongly by Ethereum.

Out of the $8 Billion market cap that was added to the crypto-world in the last 24…

…hours half went into Ethereum.

The news that Huobi, one of China’s largest crypto-exchange sites, will be adding Ethereum trading as well as Ether deposits and withdrawals may be one of the leading causes for this move.

The price per coin is now back at all time highs and the sky is again blue.

In the meantime, Bitcoin seems to be stabilizing around $2,300 a coin. Mass adoption in Japan seems to be on-track. However, in India, there’s been a political push against it. Let’s hope that the Prime Minister listens to the people rather than the politicians in this case.

Please note: Due to a local holiday, there will be no daily market update tomorrow. We will be back on Thursday.

Wishing you an amazing day ahead!

Best regards,
Mati Greenspan
Senior Market Analyst

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