The takeaway for investors is that there are more rifts
Fed would be increasing the interest rate.
ECB is determined to tighten the grip on its monetary policy.
The G-7 meeting has been fractious, simply put it was nothing more than a blame game and Mr Trump made the best use of his favourite weapon- Twitter. The takeaway for investors is that there are more rifts and divide between the US, Europe and Canada.
Moving away from the G-7, investor are focused on the upcoming central bank’s meeting this week which would drive most of the trading action for the forex markets (as long as Trump keep things calm on his Twitter account). First, we have the Fed over in the US, who would be increasing the interest rate. This would be the second interest rate hike for this year and the only question which investors would be asking is: how many more interest rate hikes are in the pipeline? Increase in the interest rate would surely spur the rally for the dollar index but what matters most is that how the Fed view the economic health of the country given that there is some serious rift between the US and its important allies.
On Thursday, the ECB would be holding its meeting and one thing which is confirmed is that the ECB is determined to tighten the grip on its monetary policy. The Euro has seen some serious strength against a basket of currencies on the back of this. Inflation has been creeping higher and the economic health of the Eurozone does look stable. Hence, the officials would have to explain about their formal chat about ending the QE.
Bitcoin has touched its two months low and lost half of its value this year. A headline worth paying attention. The crypto king-Bitcoin suffered another blow today and its price tumbled as much as 13%. Exchanges are not utilising the top-notch technology to protect consumers and hackers are taking full advantage of this issue. The South Korean crypto exchange, Coinrail suffered another cyber attack. The question is; is there any limit to these hacks? After every few months, we are seeing the same pattern emerging. This is the result of loose regulatory control and regulators must step in to protect the consumers. Anyone who wants to do with anything with exchanges should be forced to adopt high-grade security and regular security upgrades.
Losses can exceed deposits.