The bitcoin returns to test $4,000?

In the financial markets, the rule applies - "the talk is cheap". This was fully demonstrated by bitcoin's reaction to the latest comments that the cryptocurrency is a bubble, made by another central banker - ECB vice president Vitor Constantza.
The digital currency rose at the beginning of the week, adding more than 7% to its value, to a level of $3,928. Now all the investors' glances are focused on whether the bitcoin will have the strength to return to the psychological limit of $4,000.
In the event that the latter happens, it is completely possible to witness its further appreciation and peak test at a level of $5,000.
The mid-September reports that Chinese regulators will close the country's crypto-exchanges have initiated massive sell-outs of cryptocurrencies that have reduced over $1,000 in the cost of a bitcoin.
The bitcoin fell to a level of less than $3,000 momentarily at the end of last week, or dropped below the psychological limit for the first time in more than a month.
As many market watchers expected, however, news related to China had no lasting effect. As Josh Olswitz, a bitcoin trader, believes that China's decision will be overcomed because it is not related to the future of blockchain technology.
Since the beginning of the year, the bitcoin has risen by 429%, with many investors believing that the best times for cryptocurrency are yet to come.

The euro with a one-month minimum against the dollar

The euro fell below 1.1800 against the dollar, following Yellen's comments on Tuesday and political uncertainty in Germany after the weekend elections.
The single currency is traded at levels around 1.1750, or the lowest in more than a month.
The start of the depreciation for the euro was set by the election results in Germany and Merkel's indecisive victory. According to market observers, it will probably take several months to form a government, a situation that brings uncertainty to the markets.
In addition, in a statement Tuesday, Janet Yellen confirmed the Fed's position for further gradual raise in interest rates. Yellen, however, also said she was not sure about inflation development.
The breakthrough of the key level of support at 1.1810 could also pave the way for further sales of the single currency against the dollar, according to some technical analysts.
Further clarification on the future direction of the single currency is expected to be given by the ECB meeting, which will be held on 26 October. Until then, EUR/USD is likely to be traded in a range.

Gold went back below the psychological limit of $1,300

Gold ended on Tuesday with a drop after Janet Yelan's comments led investors to think of further rising interest rates, albeit smoothly.
The noble metal lost nearly 10 dollars of its value, or 0.8 percent, returning below the psychological limit of $1,300 per ounce.
According to technical analysts, there are several key points that will predict further movement in the price of precious metal.
First, which direction will the US dollar take? If the dollar returns above the key trading level of 1.1835 against the euro and starts losing positions against the rest of the major currencies, then gold may get pushed upwards.
It will also be important for the yellow metal to see if its price will be able to go back above the psychological limit of $1,300. It had long stopped its appreciation and has been a strong level of resistance.
Therefore, returning above $1,300 may be a good sign for the metal trend.
And thirdly, it is critical for gold whether it will fall below $1,290 where the 50-day moving average of the metal is located. The level is observed by many investors, and the potential breakthrough can trigger a serious closing of long positions.

Oil at its highest levels for several months

Oil ended the last day of last week with an increase of nearly 1%, or to its highest value in a few months. This happened after OPEC countries decided after their meeting in Vienna that they would wait until January before deciding on their production cuts.
Brent ended last week with an increase of 43 cents, or by 0.8% to a level of 56.86 dollars a barrel. This is very close to the highest raw material values since September, commented market observers.
Brent received further impetus from Nigeria's presence at the meeting and comments from the country's minister that despite the fact that Nigeria was excluded from OPEC's production cuts, it actually produced less oil.
US crude oil finished with raise by 11 cents on Friday, or by 0.2 percent to a level of $50.66 a barrel. Continuous trading of the raw material over $50 a barrel causes many market participants to be positive about its future growth.
For the week, Brent added 2.2% while US crude rose by 1.5%.
For the past three months, oil has risen by more than 15 percent, which is evidence that the cut-off of OPEC production, by 1.8 million barrels a day, has its expected impact.

Investors forget quickly

Investors tend to forget quickly. Or at least most of them... It seems as if everyone has forgotten what the Fed's several asset redemption programs have brought after the financial crisis.
Generally speaking, up to around 300% for the broad US S&P 500 index.
The question arises why investors are not afraid of the announcement in the start of a reduction in the Fed's balance sheet. Or the opposite of incentive programs.
At its meeting last week, the Monetary Policy Committee, fully expected by investors, kept the level of interest unchanged. From there, however, they said they are planning to start off with a cut of the record $45 trillion balance.
US indices are at levels close to their record in history.
In addition, there are still many ambiguities on the horizon. And they are related to the dangers of a military conflict between the United States and North Korea, the imminent rise in the US debt ceiling, the political uncertainty of the elections in Germany and Washington, etc.
We can not avoid the warning of the Nobel Prize winner, Robert Schiller, who said the US indexes were very similar to the situation before the last 13 collapses, historically.
What will happen, though, if Trump fails to "deliver" the promised reduction in tax rates? Will it not turn into the "black swan" that will trigger a new, more serious adjustment for the indexes in over 20%?
This is yet to be seen very soon, probably this autumn...

The Fed secretly targets bearish market?

Although it is independent, the Fed may secretly want to cause a "bearish market", or a drop in stock markets, which is a hit in the back for the President Trump. Trump does not stop tweeting about the new index records that make Americans richer.
According to Peter Schiff, CEO of Euro Pacific Capital, Yellen's support for the markets may disappear during Trump's term.
"I do not know if the Fed has a lot of love for President Trump," Schiff said, adding that the Fed supported the stock markets during Obama's two mandates.
"Perhaps the Fed will be glad to see a bearish market, which is likely to fall on Trump," said Schiff, according to which the market can easily make a correction by 20%.
As one of the "black swans" that could initiate such a correction, Schiff points to a dent in the euphoria associated with the new president, who helped launch the indexes to new records.
With respect to the two consecutive quarters of growth in US companies with double digits, Schiff pointed to the difficulties in the profits of US retail chains.
Of course, all investor glances will be focused on consequences of Fed's decision, made this week and commentary on the Federal Reserve regarding its future policy. The latter will most likely have a strong impact on the financial markets and will give more clarity to investors, what to expect in the months to the end of the year.

Properties in the UK with the weakest growth in five years

Property prices in the UK have seen their slightest rally in more than five years this month, after the decline in property prices in London perailed over the whole asset.
Selling property prices rose by 1.1% yoy, according to statistics by Rightmove Plc. By comparison, in August the increase was 3.1% on an annual basis.
Market observers comment that the data is surprising, given the fact that traditionally in autumn there is an increase in buyers of real estate after the holiday season.
The data is worrying and may indicate a slowdown in both the growth of the British economy and inflation.
BREXIT hit the London property market hardest, as a result of strong outflows of potential foreign buyers. Selling property prices declined by 3.2% yoy, or at most during this decade.
A drop of more than 10% has recorded in the prices of the most expensive properties in the prestigious neighborhoods of London.

Crypto-currencies consolidate

The bitcoin, the ethereum and the other crypto-currencies are stabilizing after their mass sales earlier this month. Now the question is - what will this consolidation be followed - with a recovery of the fall, or with a test of the recent peaks?
The strikes for crypto-lows this month were from several directions. China first declared ICOs illegal and made investors return the newly bought new coins. The country then banned local crypto-exchanges.
There were a couple of strikes from experts like Jamie Dimon, who announced the bitcoin a fraud and financial balloon and from Mohamed El-Erian, with the view that the bitcoin could lose a third of its value.
The latter were joined by Ray Dalio, the head of the largest hedge fund in the world, commenting that the bitcoin was a bubble, according to the internal rules of the institution he was managing.
Still, the bitcoin and the ethereum stopped with their fall. The bitcoin lost 30% of its value, or in accordance to El-Erian's forecasts.
Last Friday, the bitcoin dropped momentarily to $2,951, but eventually returned much of the lost. Still, the digital currency is traded below the psychological limit of $3,000.
Many investors believe that what is happening at the moment is very similar to what happened in August, when the bitcoin lost 34% of its value as a result of the "difficult fork" that led to the appearance of a bitcoin cash.
Subsequently, however, the currency recovered everything lost and rose to a new historic peak. Will it happen again soon? This is about to see...

The Japanese bank kept interest rates, the yen with a two-month bottom

The yen fell sharply against the dollar after the Japanese central bank kept the interest rate and the volume of its asset redemption program unchanged.
This happened contrary to the comments that came after the Fed meeting yesterday and pointing to another raise in interest rates by the end of this year.
The decision of the Japanese central bank did not surprise the market, with all experts, which gave their forecasts for Bloomberg, were expecting such a solution.
The Asian indices traded mixed, with the Japanese ones rising, backed by the yen's depreciation. Earlier this morning the dollar was traded for 112.42 yen, the highest level since nearly two months.

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