More Canadian Workers Opt for Bitcoin Compensation

bitcoinsMany Canadian workers choose to receive wages in virtual currency instead of the Canadian currency, according to a payroll company located in Ontario Province.

Other workers are requesting information regarding the Bitcoin option.

A few companies have come up with the idea of crypto currency payment options for local Canadian workers’ salaries. The concept was launched in November of last year without the belief that it will become popular.

However, numerous Canadian workers liked the idea and perceived potential benefits. After 10 months, employees from 10 corporations have enrolled for the Bitcoin option. Most of these entities are technology-oriented.

Many retail outlets and enterprises in Canada do not accept Bitcoin yet as a form of as currency.

Workers have the option to receive all or only a portion of their salaries in Bitcoins after equivalent taxes are deducted.

The Canada Revenue Agency still rules that tariffs should be paid in Canadian dollars.

Default Propels Argentina Stock Gains

The debt crisis in Argentina has generated the largest stock gains in the whole world as investors kept on acquiring equities as protection against a weak currency and massive inflation.

Benchmark index (MERVAL) leaped by 85 percent in 2014 after stocks increased last month following Argentina’s second evasion in 13 years.

The local stock market is benefitting as the peso seems headed for the worst year in more than 10 years while inflation is expected to pick up the pace at a projected 38 percent.

Stocks provide a guarantee for consumers from the weakening currency and a chance for investors to circumvent government restrictions on dollar purchases by purchasing local assets. These are sold in the overseas markets for dollars. The practice is known as blue-chip swap.

Acquisition of shares means you are purchasing real assets from local firms with revenues that grow in accordance with inflation.

MERVAL stock is second only to the Dubai DFM General Index among international indexes, according to Bloomberg. The Argentine currency has plummeted 22 percent in 2014 which is the most globally after Ukraine and Ghana.

A judge from the US court has already blocked interest payment from the government of Argentina worth $539 million after the country’s President snubbed his order to pay holders of bonds from Argentina’s 2001 default completely simultaneously.

EUR/JPY Movements

EUR/JPYEuro/Japanese Yen pair remains neutral for the moment despite intraday bias. With an intact138.02, lower decline is still mildly in favor of a key support level of 135.50. A decisive break carries larger bearish implications. Nevertheless, a 138.02 break indicated a near reversal term and a bullish turn outlook bullish making a stronger rebound returning to 139.27 resistances.

Looking at a wider picture, it is losing the upside momentum seen in bearish divergence condition in the weekly MACD. So far, EUR/JPY is steadily held above 135.50 key supports. However, there is no confirmation of trend reversal yet. A 145.68 break will extend uptrend move from 94.11 to a 76.4% retracement of 169.96 towards 94.11 at 152.59 before going above.

The EUR/JPY finished the week lower. Selling pressure hit the Euro early after bearish comments from ECB President Mario Draghi and it was continued all week. A low reading of Euro Zone inflation contributed to the weakness. Fueled by the escalation of tensions between Ukraine and Russia, JPY received some support from flight to safety buying.

The same trading week will be expected until Thursday when the Bank of Japan and the European Central Bank will release their latest monetary policy statements. However, the ECB exerts the most influence on the market.

The Ukraine and Russia situation this week remains as the wildcard. Japanese yen will be firmer if there is increased military action. This could neutralize any counter-trend buying in the Euro.

Aussie Dollar Weakens

The Australian dollar abated together with the Japanese yen while investors remained focus on the Ukraine and markets in the US and Canada were closed for Labour Day.

The USD/JPY currency pair traded at 104.13. This was an increase of 0.05 percent while the AUD/USD pair changed hands at 0.9334.

The US is working with the EU for to potential sanctions against Russia.

European Council head Herman Van Rompuy commented the bloc will not outline criteria for launching new restrictions. However, he stated that there was resolve to make sure that Russia is penalized for causing more tensions.

In Australia, there is a risk that the manufacturing will tighten barely one month after it expanded to 50.7 within eight months.

Business inventories for the second quarter are due with an expected gain of 0.2 percent followed by the commodity index of Reserve Bank of Australia.

Market stakeholders are also waiting for fiscal policy announcements from the central banks of the United Kingdom, Australia, Japan, and Canada.