Market Brief May 16th: Bitcoin viewed more seriously by policy makers

BitcoinA major news outlet, CNBC, reports that a top U.S. policy maker commented positively on the crypto currency as a potential threat to the almighty U.S. dollar. A major advantage over the greenback has been stressed the ease of transaction and trade facilitation seen by Bitcoin so far. On the other hand, the dollar has always had the solid support of the largest economy in the world, the United States. There are pros and cons to both forms of exchange. The question is which one would receive higher support and trust from the financial sector and people.


JPY, 00:50 a.m. GMT + 1 GDP (QoQ) (Q1) P – GDP measures the change in the total production of goods and services for the first quarter of 2018. Market analyst expectations show a decrease in gross domestic product at 0.0% compared to 0.4% that came in for the last quarter of 2017. If the actual performance is higher than projected, this should be read as a bullish sign. Inversely, a considerable slowdown should be seen as bearish for the Japanese yen.

European Union

EUR, 10:00 a.m. GMT, ECB President Draghi Speaks – the president of the European Central Bank has the power and influence to set short-term interest rates. Interest rates, as you know, are a direct reflection of the state of the economy. A stronger (i.e. higher rate) suggests a stronger currency. And vice versa, lower rates (or even negative ones) should be seen as having a negative impact on the common Euro Zone currency.

The United States

USD, 13:30 p.m. GMT, Building Permits (Apr) – a key indicator of demand in the housing sector, Building Permits measures the change in the number of permits issued by the government for the month of April. Forecast suggests a decrease in the number of permits at 1.350M compared to 1.379M for the month of February. If the event is reported to miss expectations and permits have gone down even lower, this should be read as a bearish sign for the dollar. A much stronger result, on the other hand, is to be read as a positive factor for the dollar.


USD, 15:30 p.m. GMT, Crude Oil Inventories – WTI now trades above $70 for a barrel of crude oil. Prices have been accelerating and they’ve been accelerating fast. Analyst forecast for the change in the level of inventories shows an expected increase at -1.467M compared to the reading report which came out the week before at -2.197M. The higher the level of inventories, the larger the supply and consequently the prices should go lower as the value of oil would drop due to an oversupply. If, however, there is a large cut to oil production, this should send prices surging higher (as supply would be scarce and demand a lot higher).




Wishing you Happy and Successful Trading!


Risk Warning: The information above constitutes Marketing Communication and does not constitute Investment Advice or Investment Research. The content of the analysis represents the view of our experts on a generic basis, and do not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the analysis above has not been prepared in accordance with legal requirements designed to promote the independence of Investment Research. Readers using the above information should consider the possibility of encountering substantial losses. Therefore, UR Trade Fix Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the above analysis.”  Further to the above ,Forex Trading involves a substantial Risk of Loss and may not be suitable for all Investors. Please see our Website for details regarding UR Trade Fix Limited’s Trading Terms, Policies and Offerings.Read more.



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