The Euro plunged further after release of US positive data that showed the choice of lesser traders than the Jobless Claims predicted filed as bad tidings were being published from the Euro region. The latest news echoed that Germany’s Producer Price Inflation as forecasted is even lower than the requirement of the European Central Bank requires. Meanwhile, the chance of deflation is still quite possible.
According to ECB governing member there may not be any need of introducing new stimulus measures, inasmuch as Euro has managed the devaluation after presenting new measures.
The recent news coming out from Scotland showed that most individuals have given their negative votes breaking ties with the U.K. It showed that more than 55% of the voters opted not to secede from their union of 307years. Market traders of Forex market expected that this would be a very near voting in light as presented in the past weeks’ polls. However, in the final analysis, majority who were against independence are victorious.
Most economists were worrying of the outcome should a favorable vote for independence and they were wondering the choice of Scotland for a new currency. Although the British Pound soon strengthened after the results were out, but it is still under pressure from mixed data showing that although Retail Sales rise, the prediction of the CBI Industrial Order Expectations was printed even worse.
The single currency dropped to another 14-month slump versus the generally stronger dollar last week on the premise that the US Fed will be increasing interest charges.
EUR to USD was behind 0.71% to 1.2830 which was the lowest level since July of last year.
The president of the European Central Bank (Mario Draghi) is scheduled to turn up during the meeting of the Economic and Monetary Committee European Parliament in Brussels, Belgium. The United States federal government will be releasing private sector data due to current home sales.
The euro zone is set to circulate initial data on private sector activity. On the other hand, the governments of France and Germany will also make known data on private sector development.
The IFO Institute for Economic Research based in Munich will also make available its report on the German business environment.
The US will publish data regarding fresh home sales.
At the same time, the ECB will give out data on money supply (M3) as well as private loans.
News reports said that the United States will recap the week with modified data on GDP. This is the largest indicator of economic activity and foremost measure of the economy’s health.
More investors are looking at crypto currencies as the bitcoin becomes more popular.
The virtual currency has already seen a phenomenal growth in 2013. This digital currency is done by computers which create a series of unique numbers using intricate mathematics problems. This is sold on free exchanges. It is acceptable to individuals and enterprises due to the speed and low transaction cost.
As of September 18, the bitcoin is now valued at approximately $437. Some crypto coins have lesser value. However, the interest is increasing for crypto currencies especially as prospective investments.
According to an online publication (Coin Desk) which monitors digital currencies, there will be roughly eight million trading accounts in bitcoin known as “wallets.” Right now, some 100,000 private firms accept bitcoin.
Market experts say that the digital currency has potential high returns but there are also probabilities for high instability and low prospects for being liquid.
Compared to conventional currencies, bitcoins are not printed or supported by any government. These are created by people and businesses making use of sophisticated computers. Makers of bitcoin can keep a portion as compensation for their services. The rest are sold on uncontrolled exchanges.
Movements of digital currencies are published in a financial record book for monitoring of overall monetary supply. Said ledger can be found on Internet cloud as collaborative document instead of a centrally-managed account. Bitcoin users employ this mechanism for purchases, transferring money and speculations.
Other currencies came out of bitcoin technology and put in enhancements on that platform.
USDJPY showed yesterday that its trajectory price stayed in a reasonably neutral leap attaining 108.32:108.95 while any lower expectations did not materialize. Yesterday, they predicted that today higher movement will continue finding meanwhile, support from session highs of 108.87. The buying pressure as indicated by Directional Movement pictured the remains to stay high while ADX trend continues to stay vigorous as well; however, there is no security that overbought conditions continue and it really went deeper since yesterday. RSI levels for both the hourly and the daily are important events to watch. For today, amend the targeting levels of 107.50 before resuming a wider uptrend.
The levels of RSI eased lower on the hourly chart following a consolidation just off 109 levels, despite the persisting conditions appearing on the daily charts. In the near term, lower correction still remains on the cards in the near term. Failing to break over109.45 today will again result to lowering of price drift lower with initial support from intraday that is seen at 108.66/108.35/108.02.