Weekly Financial Markets Review

[Libertex]

Stock Market

 

Trump’s proposed voting on health reform became one of the key events at the end of this week. Just to remind you, it was postponed on Thursday. However, market is extremely sensitive to this matter.

 

So, if Congress still votes for Obamacare abolition, US stock indices can get a new impetus for growth for almost the entire coming week. The fact is that the outcome of the vote is currently indicative of the public perception of any further US President initiative. Let me remind you, Trump announced both tax reform and new infrastructure projects.

 

Moreover, the final fourth quarter US economy growth data may also contribute to this perception. If the indicator is slightly below tentative estimate, S&P 500 (ES), having experienced a short-term fall, can easily resume its growth to about 2400. This growth will be supported by the expectations that the next US Federal Reserve rate increase will occur no sooner than Q3, 2017.

 

Commodity Market

 

Oil closes one more week with a decline. Previously, Brent quotes renewed the 4-month minimum, falling down to the level of 49.71. There are no reasons for a more dramatic fall. Likewise there are none for recovery of the recent maximums.

The likelihood of Brent (ICT) forming a new fluctuation range is high. It will be limited to 50.00 - 52.60. This weekend OPEC+ Oil Output Agreement Monitoring Committee will have a meeting. If compliance with the agreements is high, oil will start moving to the upper boundary of the range at the beginning of the next week. Moreover, the range of $50 per barrel for Brent looks quite low as a purchase price.

 

However, growing number of operating drilling rigs in the United States still remains a risk factor. It results in the production increase and, therefore, hinders reduction of oversupply in the global market. In addition, the market will monitor US commercial stock data. If the indicator continues to reach new heights, Brent will test a 50.00 level for strength again.

 

Currency Market

 

Pound experienced a rather dramatic spike in recent weeks. The Brit grew partially against the weakening dollar. However, GBP/USD in many respects was supported by aggressive comments on monetary policy voiced by the Bank of England.

Victorious march of the British currency is likely to interrupt at this point. Next week, the UK government initiates Article 50, officially launching the Brexit process. This fact alone may turn to be a mighty catalyst for the fall.

 

The fact is that Brexit stirs long negotiations about exit conditions. And they are going to last as long as at least a couple of years, which means that British companies will be cautious. They will temporarily stop investing and cut their costs. This uncertainty will naturally impact the pound. Moreover that the European Union is clearly not going to make any concessions.

 

Thus, the GBP/USD pair will target reduction to the level of 1.2380. And, if, on top of that, the Q4 GDP data will be revised downward, the pair will go even lower, to 1.2260.

 

Ivan Marchena, analyst of Libertex

 

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[Libertex]

Weekly Financial Markets Review

U.S. indices recovered after the setback caused by Trump’s health care defeat in the Congress. Apparently, the market focuses on the state of the U.S. economy.
The upcoming week will bring quite a bit of interesting reports. Those include data on ISM Manufacturing and Services indices. And, undoubtedly, the most important release of the week – NFP data. Strong U.S. statistics will contribute to the continued U.S. index growth. Although a short-term drop might be the first reaction amidst expectations of an earlier rate increase.
However, there is a risk factor. A meeting between Trump and Xi Jinping, President of P.R.C., is scheduled for Thursday. A lot depends on how the meeting goes. If there happens to be no constructive dialogue, S&P 500 (ES) may fall back to 2,317.50. And it may be the case because Trump has repeatedly exhibited his protectionist attitude.

Commodity Market

Oil managed to recoup losses. Brent quotes are back to $53 a barrel. Further growth is doubtful. Oil is still affected by contradictory factors.        
Brent (BRN) is highly likely to stay within the limits this upcoming week. It will vary between 50.00 and 54.20. The energy carrier is supported by hopes for renewal of the agreement to cut oil production for another 6 months as advocated by Kuwait, Iraq, Venezuela, Angola and Algeria.
Those efforts are opposed by a continued increase in drilling activities in the U.S. According to Baker Hughes, over the last 12 weeks the number of active drilling units, along with the production in the U.S., has been on the rise, which has been slowing down the rates of oversupply reduction on the global market. Especially since the reserves are enormous. That factor can impede with a considerable oil price growth. That is why sellers can become active at the resistance line of 54.20.

Exchange Market

Recently the Australian Dollar has been looking vulnerable. AUD/USD quotes went down even when most of USD opponents were taking advantage of its weakness.
The Reserve Bank of Australia (RBA) will announce its decision concerning the monetary policy this upcoming week. We do not expect the RBA to reduce the rate. Such conclusions are suggested by the minutes of the March meeting when the RBA announced that it was expecting a consistent growth in the price pressure. That is why a lot will depend on comments from the regulatory body.
Hints at a tighter policy are unlikely. Recovery of GDP growth rates relies on relatively low rates. And, if the regulatory body lets us know once again that an expensive AUD is an obstacle to economy recovery, the Aussie will be under pressure. Therefore, AUD/USD will aim at reduction to 0.7490 after hitting 0.7580.

Ivan Marchena, analyst of Libertex

[Libertex]

Weekly Financial Markets Review
Equity

Geopolitical factors were the key catalyst that powered the market over last week. The investors started to quit risky assets. The US indices, too, faced pressure.

Last Friday, the news appeared of the US being prepared for a preventive attack on North Korea, naturally fuelling the apprehension that the conflict would escalate, as North Korea will obviously retaliate. With the news like that, the indices will remain under pressure.

What’s more is that President Trump apparently revisited his political stance. He now says that he would prefer that the interest rates are kept low, so giving rise to doubt about Mr. Trump’s acting on his campaign promises regarding the tax and infrastructure reforms.  

The statistics are also offering little room for optimism, with the retail sales dropping by 0.2% in March and the February figures also revised downward. All of this is the evidence that the economy growth pace will potentially be weak over the first quarter.  
The statistics will remain downbeat even over the week, with the S&P 500 to continue sliding down toward 2290.00.

Commodities

The oil hit the monthly high again, but the momentum was not strong enough to power the price growth, so the quotes were pulled back by the end of last week. Fundamentally, with the current market backdrop, the prices are to consolidate quite high.     
     
The oil prices are being underpinned by a bunch of factors outweighing the hike in oil production such as verbal interventions by OPEC officers boosting hopes that the oil production cut will be extended.  With the start of the holiday season in the US, the gasoline demand will grow, and the oil inventories will reduce. The even more acute tensions in Syria will also be an upside driver for the oil. So Brent is to remain within the 55.00-56.90 range.    

Forex

Euro is struggling desperately to rebound amid virtually zero growth drivers. The only upside trigger (and the only reason why the prices for the pair are able to grow from time to time) for the USD/EUR pair is the former’s weakness.  

The common European currency will be struggling with pressure during the week.

The macro-statistics in focus will be Eurozone CPI figures and the PMI and ISM index reports. If the inflation is lower than expected, this will add more pressure on the euro.  

Thus, the odds are very strong that the EUR/USD pair will continue spiraling down toward 1.0500.   
 
Ivan Marchena, analyst of Libertex

[Libertex]

Libertex Launched Contract Trading in Bitcoin and Litecoin

Contracts for difference for Bitcoin and Litecoin became available in Libertex trading platform to the European traders starting from July 6^th, 2017. Now one can stake on either buying or selling of the cryptocurrencies.

Libertex Business Development Manager Andew Nikolaev said: “Nowadays the interest in cryptocurrencies is very high, and the number of people intending to invest money into cryptocurrencies grows in geometric progression. Launch of the contracts for these instruments in Libertex will satisfy the demand from European traders”.

On the back of the Bitcoin legalization in Japan, the cost of the mentioned cryptocurrencies increased significantly reaching the record value of USD 2,800. At the same time both the amount of people staking on their surge and the amount of people staking on the crash increased. Contracts for difference for Bitcoin and Litecoin, unlike physical buying of the cryptocurrencies, allow gaining profit not only from the assets appreciation but also from the assets depreciation. It makes the cryptocurrencies very attractive to traders.

The contracts for Bitcoin and Litecoin are available for trading both during business days and at weekends. This is why those people who trade during their spare time are interested in cryptocurrencies.

About Libertex:

Libertex is an international brand with a twenty years history in financial markets and online commerce. Libertex provides investors with access to trading stocks, currencies, indices, commodities, gold, oil, gas and many other financial instruments. The Libertex team has more than 2,200,000 customers in Latin America, Europe and Asia owing to its first-class service. Libertex has more than 150 commercial instruments. In 2016, Libertex was recognized by Forex EXPO Awards as the best trading platform; and Global Banking and Finance Review named it the best trading application in the EAEU.

Media contacts: Ivan Klyuev, Libertex Head of Public Relations

·         +56225940724

·         [email protected]

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[Libertex]

Libertex launches Litecoin and Bitcoin Cash margin trading
November 20th, 2017. Libertex trading platform announces the launch of Bitcoin-nominated margin trading for Litecoin and Bitcoin Cash.
Cryptocurrencies have become a significant part of the modern financial market. The demand for them is booming and their prices continue to set new records. Libertex are pleased to announce the launch of the following cryptocurrency pairs:
•    LTC/BTC that shows Litecoin (LTC) to Bitcoin (BTC) rate;
•    BCH/BTC that is the rate of Bitcoin Cash (BCH) to Bitcoin (BTC).
Libertex Chief Marketing Officer Matt Krivoshein said: “The high volatility of these cryptocurrencies offers great opportunities for margin trading. The launch of these new instruments in Libertex provides an effective and secure trading solution to support the ever increasing demand from traders around the world. Now everyone can trade these instruments using the cutting edge Libertex approach.”
Furthermore, cryptocurrencies are an ideal addition to any trader’s portfolio as they are available both during business days and weekends.
About Libertex:
Libertex is an international brand with a twenty year history in financial markets and online commerce. Libertex provides investors with access to trading stocks, currencies, indices, commodities, gold, oil, gas and many other financial instruments. The Libertex team has more than 2,200,000 customers in Latin America, Europe and Asia owing to its first-class service. Libertex has more than 150 commercial instruments. In 2016, Libertex was recognized by Forex EXPO Awards as the best trading platform; and Global Banking and Finance Review named it the best trading application in the EAEU.
 

[Libertex]

Ethereum aims at $500

Cryptocurrency momentum shows no sign of letting up. Bitcoin, Ethereum and DASH have one again surpassed their all time maximums.

Market sentiment is further bolstered by the news of GME's Group's plan to launch the trading of Bitcoin futures, and a leading Italian banks plans (BancalMI) to consider launching Ethereum derivatives. All of which can only be beneficial for all Crypto assets.

The first release of the Ethereum improvement protocol, Casper, further supports the Ethereum momentum and is aimed at simplifiying the entire blockchain.

Whilst Ethereum recently reached a new all time high, it didn’t quite succeed in breaking through the $500 mark.

With its price currently around $400 Ethereum, can anything derail this positive upward trend?

Libertex Analytical Department

[Libertex]

Cryptocurrencies Analytical Forecast

Ethereum
This cryptocurrency is the main follower of Bitcoin. Besides, it smoothens the enormous disparity between the most popular digital active and the market. In the short term, Ethereum is due to ascend.
At the same time this cryptocurrency is overbought, and it is possible to expect its correction. According to the technical analysis by Libertex, the first support level is situated at 740 dollars. The following barriers are at 575, 500-480 and 400 dollars.
If the first level of support is tested, the trend may change from bullish to bearish. At the beginning of 2018 Ethereum is supposed to grow up to 800-100 and then proceed to the correction. In this context, it can be recommended to sell.
However, in the long run this cryptocurrency has very good prospects. For instance, in 2017 some high-tech corporations formed the Enterprise Ehtereum Alliance to invest in the development of the platform. This had a positive impact on the coin’s capitalization. 
The other growth factor is the possible use of Ethereum in realization of secured transactions by banks and big corporations. Some companies have already started using the platform for payments, others have just started testing the technology. The increasing interest in the practical use of Ethereum may well attract strong investors in the currency.

Ripple
This cryptocurrency is a very attractive active to be bought, because of its relatively low price and good prospects. Despite some volatility registered before, Ripple stays in the framework of long term expansion. The short-term prospects are neutral, while the long-term predictions are positive. This currency’s price may soon reach 1 dollar.
This month the firm put 55 billion XRP in escrow. In the medium perspective, the reduced number of coins in circulation favors Ripple’s revaluation. Moreover, the company has recently signed contracts with the American Express and the Santander bank about the future use of Ripple’s blockchain in international remittances.
Still, the coin’s prospects in 2018 depend exclusively on attracting new clients for subsequent integration of Ripple into their systems. According to the recent data, the representatives of various exchange boards paid attention to the system. Hence, if the information is confirmed, this cryptocurrency is expected to grow rapidly.

Litecoin
In the long term, this cryptocurrency is overbought, and long-term investors should not open positions here right now. However, traders can expect a leap in prices. The cryptocurrency may reach near 260 dollars in the near future. 
At the same time, a small reverse movement may take place. Nevertheless, this cryptocurrency is believed to be the “safe haven” for investors, who can stay here during the periods of instability of other digital currencies. That is to say, Litecoin holds its positions very well in the time of high volatility.  
Following factors are listed among main reasons of positive dynamics of Litecoin in the future: rapid growth in 2017, strong correlation with the exchange rate of Bitcoin (that is still expected to ascend) and its possible practical use in secured transactions’ realization that may attract massive investment.

Dash
The last upwards trend of this currency has been broken and there are signals to close long-term positions. In order to make Dash grow and advance, its developers should continue using two major benefits of the system – the development fund and the decentralization. This guarantees the democratic way of progress and the funding of worthy projects.
Dash may reach the level of 1200 dollars at the end of 2017 or at the beginning of 2018. If this level is surpassed, the rebound may take place and the cryptocurrency may reach 1500 dollars.
In general, Dash is a promising currency that may repeat an upward trend and break new records.

Prepared by Ivan Marchena, Libertex Analyst

[Libertex]

Cryptocurrencies: Recovery Expected

At a time of recent devaluation of the whole market various cryptocurrencies, including Ripple and Ethereum, lost over 20% of their value, that was the record drop in the history. Cryptocurrencies are expected to recover by the end of the month against the background of such a substantial fall, but in the short run at least some coins are likely to continue going down.

Ethereum
This cryptocurrency hit record highs, having grown 100% since the beginning of the year.  In this context, the setback that took place was natural, though nobody had expected it would be of such a magnitude. Back in mid-December the founder of Ethereum Vitalik Buterin noted he was worried about the overheated market, as there were no foundations for such a growth.
In the near term the correction of this cryptocurrency is expected. It is being traded above $1000 at the moment, while the recent record high was $1400. The traders are recommended to observe this cornerstone level, because large orders may group there if the upward setback takes place and it will be easy to enter the market.

Ripple
The sales are preferable to purchases now. 

Litecoin
This cryptocurrency is projected to go on with downward correction. Now it is recommended to sell Litecoin. The drop scenario will end if the $230 level is broken, that will indicate the change from descending to ascending trend. 
In the long term an attempt to form a bullish trend should not be ruled out. In this case, Litecoin will have the potential objective of $275 after breaking the $210 level.

Dash
The return of this currency’s price to $670 reveals the change of trend that may bring Dash to the level of $1200. If broken this ceiling, the digital active may well try to surpass $1500. 

Prepared by Ivan Marchena, Libertex Analyst 

[Libertex]

Libertex was recognized as the best trading application and cryptocurrency broker

We are pleased to announce, that the Libertex trading platform was recognized as the best trading application of 2017 and the best cryptocurrency broker version as per the Forex Awards.
"The Libertex recognition as the best trading application and cryptocurrency broker proves that 2.2 million traders made the right decision in choosing it to trade standard financial assets and for cryptocurrency trading", - said Igor Galkin, Forex Club Head of Sales
Libertex is a trading platform at the forefront of modern financial technology. Libertex users are able to make transactions with more than 180 financial assets. There are standard financial assets - stocks, indexes, energy contracts etc, and modern assets, such as cryptocurrencies and their cross-rates via Libertex. Professionals all over the world recognize Libertex as the leader in traditional and innovative financial asset trading.
One of the top financial magazines, Global Banking and Finance Review, recognized Libertex as the EES best trading application in 2016.
Forex Awards is an international rating company. Since 2010, it has been evaluating financial entities and trading platforms as well as applications.

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[Resolve]

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[Resolve]

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