News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/cXImPrjl8x
  • Crude Oil Forecast: Oil Prices Edge Lower Toward Trend Support -via @DailyFX WTI #CrudeOil closed the week slightly higher on balance, but the commodity is struggling at resistance as bears look to challenge trend support. Link to Full Analysis: https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/05/08/crude-oil-forecast-oil-prices-edge-lower-toward-trend-support.html #OOTT https://t.co/MvtP36QxY8
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/3f5sLijsVB
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/PO93mIKAZP
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/CHE6IOq3K5
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/Agl1q6EQyu
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/UmubxiDXGc
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/e4G1gTGhex
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/pS48NIuwqX
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/gFVVZTGbe1
Bitcoin Manages to Accelerate an Already Neck-breaking Pace

Bitcoin Manages to Accelerate an Already Neck-breaking Pace

John Kicklighter, Chief Strategist

There was a clear and untouchable outperformance across the risk spectrum this past session: Bitcoin. The cryptocurrency may find next week's futures contract launch justification, but this crazy pace of climb is clearly speculatively motivated.

Talking Points:

  • Bitcoin is up 7 consecutive sessions covering an incredible 60 percent-plus rally
  • Where the cryptocurrency hit headlines for nearing $20,000 - the move was exchange specific at Coinbase as others topped near 16,000
  • While there are particular points of value to Bitcoin, its wide divergence to other cryptocurrencies speaks to speculative bubble

See how retail CFD traders are positioning in Bitcoin intraday using theDailyFX speculative positioning data on the sentiment page.

Already running at an incredible pace, Bitcoin managed to find a gear that would be extreme even in more universally volatile conditions. And, what we are experiencing across the financial system is far from even moderate levels of activity. It would be barely turn heads to state that the favored cryptocurrency hit a record high this past session or even that it moved more than 10 percent intraday. But, the stats on Bitcoin's activity this past session are extreme. After clearing $14,000 with a modest pace in progress, the market went on to surpass the next few $1,000 marks within hours. With this eighth consecutive daily advance matching the longest run back to October 2015, we have also seen the biggest rally over that same period in at least three years.

Understanding what is driving this epic climb should be crucial to our conviction in its persistence as a trend. I believe strongly that this run is being clearly driven by speculative appetite. We can establish this via a range of considerations. Beyond the sheer intensity of the run we have seen thus far that tends to break the logical assessment of reasonable investors' search for balanced risk/reward, we have an extreme disparity between exchanges. The headlines were trumpeting the currency's rally to within inches of $20,000 intraday Thursday, but the Bitfinex exchange and aggregate pricing indexes register a topped out just shy of $16,000 through the session's peak intensity. That disparity reflects a haste that targets momentum over value. Naturally, industrious traders would attempt to arbitrage across exchanges, but the reliability of pricing along with fees and access are likely too unreliable to find price stability.

Another factor that points to speculative over value motivation this past session was the fact that Bitcoin's incredible rally was the complete contrast to the other major cryptocurrencies. Ethereum, Ripple, Litecoin and others were holding range or even falling through Thursday seemingly finding little spillover benefit from Bitcoin. That is a sign that the appetite is not for digital currencies that will redefine the financial system and should be priced accordingly. Some of Bitcoin's peers are far better for facilitating day-to-day transactions which is what the entire space is looking to accomplish to gain its foothold in the world of finance. There is considerable evidence to suggest what we are seeing is a bubble. However, just because a bubble - prices that are unsustainable on traditional valuations without the express contribution of outside forces such as blind speculation - is present, doesn't mean that its pop is imminent. From tech shares in the late 1990's to housing prices in 2007, there have been plenty of extended markets that have gone to defy even the most lofty extremes a reasonable mind would project. Nevertheless, we should be mindful of what we intend to get involved with. We take a look at Bitcoin's extreme acceleration in today's Quick Take Video.

Bitcoin Manages to Accelerate an Already Neck-breaking PaceBitcoin Manages to Accelerate an Already Neck-breaking PaceBitcoin Manages to Accelerate an Already Neck-breaking PaceBitcoin Manages to Accelerate an Already Neck-breaking Pace

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES