This week is likely to end with a huge reversal candlestick seen in many indices which would be arguably a result of a clash between the US and North Korea. A first blow to markets took place two days ago but Wall Street survived that day little afflicted. Nevertheless, things changes yesterday along with fresh remarks delivered by President Donald Trump. He said that his statement maybe “wasn’t tough enough.” – it’s ascribed to be a trigger of the yesterday’s sell-off seen on Wall Street which dragged down indices across the world.
In the face of mounting fractions and tensions the VIX, known as ’fear gauge’, spiked yesterday more than 40%. The European major equity markets have opened lower as well and haven’t erased their losses so far. For instance, the DAX (DE30 on xStation5) shattered a relevant support line at 12080 points and closed just above a downward limit of a channel. Even as short-term corrective moves cannot be ruled out, a weekly interval could foretell tough time for bulls.
Amid surging Bitcoin price, there are getting more warnings from miscellaneous authorities. For instance, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) published their joint advisory statement on Thursday where they had urged consumers to exercise due diligence before investing in digital tokens using virtual currencies like Bitcoin. It’s also worth mentioning that the whole cryptocurrency market reached its new all-time high with regard to the capitalization. It means that everything digital currencies were worth almost $125 billion on August 10. A surge was led predominantly by Bitcoin which smashed $3000 at the beginning of this week.
There is no doubt that a passing week has been depressed by geopolitics which sparked a massive rout across equity markets around the world. The US dollar has been mixed so far and there is still a possibility to get a decent candlestick on a weekly time frame – for that reason the US inflation report and FED’s speakers could be a turning point.
At the end let us present two recommendation from financial institutions for the EURNZD and the USDJPY as well.