Bitcoin and Ethereum indexes are launched in the S&P DJI index

Bitcoin and Ethereum indexes are launched in the S&P DJI index

The S&P Dow Jones index has launched three new currency indexes. These three indicators are S&P Bitcoin, S&P Ethereum and S&P Crypto Mega Cap Index, which is a combination of Bitcoin and Ethereum .

A move we have been waiting for a long time

People have been waiting for a long time for a traditional financial product that can track the price of cryptocurrencies for a long time. In this regard, S&P announced last year that it intends to release its currency code index in 2021.

New indicators can be used as tracking and positioning tools in traditional financial space. On the other hand, more reliable pricing from a reputable source will protect investors from connecting to cryptocurrency APIs that may not provide the correct pricing data. S&P hopes the move will make it easier for investors to access the cryptocurrency asset class and even reduce some of the risks of a volatile cryptocurrency market.

While there is still no commodity (ETF) product that small investors can buy directly to access the real price of cryptocurrencies, the S&P move is more of a step towards legitimizing and consolidating the cryptocurrency market. The world of stocks and funds can be traded.

How this indicator works

These indicators use data from Lukka, a provider of data related to cryptocurrencies. Lukka's process examines various exchanges based on criteria such as transparency, data integrity, and other factors to determine their participation in the final pricing.

These indices track about 550 digital assets with the best market value index. Luca CEO Robert Materazzi added that working with S&P DJI is an important turning point in linking the cryptocurrency ecosystem to traditional financial services.

These three indicators will be available in the main index catalogs with the SPBTC, SPETH and SPCMC tickers, respectively. The SPCMC, meanwhile, is more interesting than the others because it is rebalanced every three months to change the ratio of the underlying cryptocurrencies (in this case BTC and ETH), given that it weighs in proportion to the market value. This ensures that investors will not be overexposed or underexposed to any of these currencies if there is a serious price move that could dramatically change the ratio of the index basket.

Euro analysis ,May 3

Euro analysis ,May 3

Is the downward correction of the euro temporary?

There are positive signs of a rapid recovery in the global economy. The global economy is compensating for the recession caused by the Corona crisis. This means that demand for the US dollar (safe haven) will decrease and risky assets such as the euro and commodity currencies will strengthen.
Last week, US economic data showed rapid growth of 6.4 percent in the first quarter of 2021. April US data also showed good US economic growth. Eurozone economic indicators are also promising, and German inflation has strengthened. All this news is in favor of the EURUSD currency pair. However, the market may need a break to continue the bullish EURUSD rally. Following the bearish correction, the euro is expected to climb again to the $ 1.22 trend level and the February 25 high around $ 1.2250.
Next week, the market will focus on UK and US economic data. This means that the euro will be more affected by fluctuations in the EURGBP and EURUSD. The Bank of England and US NFP data will be released this week. It is also necessary to pay attention to the final report of the PMI and retail zones of the euro area and the industrial production index.

US Dollar Analysis May 3

US Dollar Analysis May 3

Will raising the rate of return on Treasury bonds support the dollar?

Late last week, we saw an upward return of the US dollar index. Most likely, this upward return was due to the settlement of accounts at the end of the month. This means that sellers have stabilized part of their profits by closing the sale deal, and some economic actors have been forced to buy dollars to settle their accounts. The US dollar index performed poorly in April. However, US economic data have been good, with Treasury yields and inflation expectations rising.

Currently, the growth of Treasury yields does not have a positive effect on the value of the US dollar. The US Federal Reserve set a meeting last week. The dollar did not react seriously to the meeting. In fact, the impact of the US Federal Reserve's interest rate meeting was overshadowed by prices. The Federal Reserve has explicitly stated that as long as the US economy is at risk of coronation, interest rates will remain low and expansionary and monetary protection policies will continue. From the market point of view, the probability of raising interest rates by January 2022 is less than 10%.

The recent rise in US Treasury yields has been largely due to the tone of the US Federal Reserve. The head of the US Federal Reserve previously believed that inflation was temporary, but in a recent speech said that much of the growth was temporary. So far, bond yields have not been supported by the dollar. Meanwhile, prices continue to rise in the commodity market and somehow support market inflation expectations. If inflationary expectations continue to rise and exceed the rate of return on Treasury bonds, the real rate of return on the United States can be seen to decline again. This will not be good news for the dollar.

Important US economic data will be released this week in the Forex economic calendar. The ISM Manufacturing and Services Indicators, the Federal Reserve Speaker's Speech, the Factory Order Index, the ADP Employment Change Index, the US Unemployment Claims Index, the NFP Index, and the Wage Growth Rate will have a strong impact on dollar fluctuations.

Fundamental analysis of the euro Sunday, April 18

Fundamental analysis of the euro Sunday, April 18

The coming week is very important for euro traders. This week we have the European Central Bank (ECB) interest rate determination meeting and PMI indicators. The European Central Bank is not expected to change its monetary policy (interest rate and purchase plan). However, the views of the head of the European Central Bank are expected to influence the market.

The head of the European Central Bank recently said that expansionary monetary and fiscal policies will continue until the eurozone economy recovers fully. Several European Central Bank officials agree with the central bank governor. However, two European Central Bank officials (Hozmann and Knot) have called for a halt to the asset purchase program in 2021. This means that there is a serious disagreement in the European Central Bank. According to the fundamental analysis, the euro will strengthen sharply if the head of the European Central Bank changes his mind and agrees to a gradual exit from expansionary monetary policy.

At the same time, the speed of vaccination against Corona has slightly increased and the European Union will receive 50 million Pfizer vaccines in the second quarter of 2021. Investment banks Goldman Sachs and ING are also optimistic about the growth of the EURUSD. However, some analysts worry that the recent growth of the euro may have been rapid. According to them, the trend of economic recovery in the euro area is still not in line with the rapid growth of EURUSD. The $ 1.20 resistance is a key and important level for the market and can trigger a bearish correction.

New euro area PMI data will be released at the end of the week, following the European Central Bank's interest rate meeting. The manufacturing, service and hybrid PMI are expected to be lower than the March data. Euro quarantine and coronary restrictions are the cause of this pessimism. But if the eurozone's economic data outperforms market expectations, the euro will strengthen against the dollar.

Fundamental analysis of the US dollar Sunday, April 18

Fundamental analysis of the US dollar Sunday, April 18

US 10-year Treasury bond yields have fallen to 1.53 percent

The US dollar index is still below the 200-day moving average at 92.21. US 10-year Treasury yields failed to rise, falling to 1.53 percent (new monthly floor). Optimism about the future of the global economy, or risky currents, has also reduced demand for safe-haven assets such as the US dollar.

The US dollar index has been declining since the beginning of April. The dollar has fallen, despite a 9.8 percent rise in the US retail index. This means that economic data may no longer be relevant to the US dollar. Because the US Federal Reserve has decided not to change its monetary policy for the next few years. Recently, the Vice President of the US Federal Reserve stressed that even a sharp fall in the unemployment rate is not an excuse to raise interest rates. This means that we should expect a further reduction in the rate of return on Treasury bonds and a weakening of the US dollar.

US Dollar Index (DXY) Analysis Thursday, April 15

US Dollar Index (DXY) Analysis Thursday, April 15

The downward trend of the US dollar index has intensified with the breaking of the 200-day moving average indicator.
If the price penetrates below the level of the 50-day moving average indicator at 91.60 points, we will see the continuation of the downtrend. Next, the price target in mid-March, which is 91.30 points, will be the next target for sellers.
In general, as long as the index is below the indicator of the 200-day moving average at 92.23, the overall trend is downtrend.

Technical levels
Last level of the day: 91.56
Daily fluctuations: 17 pips
Daytime fluctuations (٪): -0.10
Start: 91.65

Trends
20-day moving average: 92.43
50-day moving average: 91.57
100-day moving average: 91.03
200-day moving average: 92.26

Levels
Yesterday's highest level: 91.85
Yesterday's lowest level: 91.58

Last week's highest level: 93.11
Last week's lowest level: 92

Last month's highest level: 93.44
Last month's lowest level: 90.63

Fibonacci 38.2. Daily: 91.68
Fibonacci 61.8. Daily: 91.74

Pivot S1 Daily: 91.53
Pivot S2 Daily: 91.42
Pivot S3 Daily: 91.26
Pivot R1 Daily: 91.81
Pivot R2 Daily: 91.97
Pivot R3 Daily: 92.08

The three main drivers of the financial markets in the coming week

The three main drivers of the financial markets in the coming week

Forex market analysis

Global financial market traders and investors are facing a busy week. Macroeconomic data along with corporate financial statements will be the main driver of the market. In the meantime, three main and key questions have occupied the minds of market participants.

Will the rapid growth of inflation become a big problem?

Inflationary pressures have long worried investors. Rising demand, coronary disruptions in supply and rising production costs could significantly increase inflation in 2021. Last week, the US Producer Price Index (PPI) rose faster than market forecasts. Many analysts believe that the rapid growth of inflation is not the only problem of the US economy and the whole world will be affected by the rapid growth of inflation.
But it is not yet clear whether inflationary pressures will be temporary, according to the Federal Reserve. Now everyone is worried that inflationary pressures in the manufacturing sector will soon spread to the consumer sector. US Consumer Price Index (CPI) data will be released this week. The rapid rise in inflation can lead to an increase in the yield on treasury bonds and the fall of risky assets such as stocks.

How confident are American consumers of the economic situation?

As the US economy returns to its full potential and coronary restrictions are lifted, it remains to be seen to what extent American consumers are satisfied with the status quo and confident in their financial future. In the Corona crisis, the US government spent a variety of financial packages to support the consumer sector, and recent US employment growth has been remarkable. Because of this, American consumers may be more inclined to spend. The US retail index is expected to jump sharply. Growing consumer spending could be good news for stock markets. But if the retail index does not grow despite rising inflation, the worst-case scenario for the US stock market will be realized. In this scenario, the US economy will face a stagflation.

Will the profitability of banks increase?

The financial statements of the stock companies will be published this week and the main focus of the market will be on the banking industry. Major US banking and investment corporate reports are released on Wednesday, and if these reports are promising, we can expect strong risk aversion in the stock market.

Apple Stock Performance Review (AAPL) Saturday, April 10

Apple Stock Performance Review (AAPL) Saturday, April 10

Shares of Apple Corps (NASDAQ: AAPL) closed up 2.02% at $ 133 on the last trading day. The overall stock market experienced an uptrend on the last day, with the Nasdaq Composite Index rising 0.51% to 13,900.19 and the Dow Jones Industrial Average (DJIA) up 0.89% to 33%. ٫ 800.60 units increased. Yesterday marked the seventh consecutive day of profits for Apple shares. On the other hand, Apple shares closed $ 12.10 lower than their last 52-week high of $ 145.09, which was recorded on January 25.

Let's compare the performance of some of Apple's competitors. Microsoft Shares (MSFT), for example, rose 1.03% to $ 255.85. Shares of Alphabet (GOOGL) rose 0.9 percent to $ 2,270.67 and IBM rose 0.02 percent to $ 135.73.
Apple shares traded up $ 105.2 million, well above their 50-day moving average of $ 104.4 million.

Important Comments Vice President of the US Federal Reserve

Important Comments Vice President of the US Federal Reserve

The US Federal Reserve (Clarida) has stressed that the Fed will focus more on the performance of economic indicators than on forecasts. "The American economy has to show real progress. A 2 percent inflation ceiling is not in the US economy's interest. Inflation growth is likely to be more than 2% in 2021. "However, such inflation will be transient." The market has not responded to Clarida's remarks.

📈 US Dollar Index (DXY) Analysis Tuesday, April 6

US Dollar Index (DXY) Analysis Tuesday, April 6

The downward trend of the US dollar index has stopped yesterday after the index hit the level of the 200-day moving average indicator at 92.40 points.
As long as the index above the level of the 200 moving average indicator fluctuates, the general trend is upward and the index is likely to grow.
On the other hand, if the index penetrates below the level of the 200-day moving average indicator, the probability of the index falling to 91.30 increases.

Technical levels

Last level of the day: 92.74
Daily fluctuations: 25 pips
Fluctuations of the day (۰): 0.16
Start: 92.59

Trends

20-day moving average: 92.29
50-day moving average: 91.38
100-day moving average: 91.05
200-day moving average: 92.44

Levels

Yesterday's highest level: 93.11
Yesterday's lowest level: 92.54
Last week's highest level: 93.44
Last week's lowest level: 92.72
Last month's highest level: 93.44
Last month's lowest level: 90.63
Fibonacci 38.2. Daily: 92.76
Fibonacci 61.8. Daily: 92.89
Pivot S1 Daily: 92.39
Pivot S2 Daily: 92.18
Pivot S3 Daily: 91.82
Pivot R1 Daily: 92.95
Pivot R2 Daily: 93.32
Pivot R3 Daily: 93.52