April 3, 2021 | by sandeep
5 Issues to Look Out for This Week – 5/4/21
By Mateo Jarrin Cuvi
Volatility is happening these days with the seesawing of oil prices and Bitcoin doing its thing.
Tune in here to what’s important this week and line up those trades!
Bitcoin News is Great News for Traders
Bitcoin’s price continues to fluctuate with every mention of its name in headlines.
In late March, both PayPal and Tesla announced you could use Bitcoin to purchase its offerings.
With one single tweet, for instance, Elon Musk let the world know that you could now buy a Tesla electric vehicle using Bitcoin.
A week later, as reported by CNBC, PayPal informed its US-based customers that they could “use their cryptocurrency holdings to pay at millions of its online merchants globally, a move that could significantly boost use of digital assets in everyday commerce.”
Around the same time, however, Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund worth $150 billion, warned investors that BTC might eventually be outlawed by the US government due to it competing with “money and credit as a storehold of wealth.”
With news like this, no wonder Bitcoin is among the most volatile assets on earth.
So keep your eyes peeled for any reference to Bitcoin crossing your feeds as this might present a great opportunity to trade & gain!
Book your spot ahead of time for this exciting session!
Plenty of Oil Volatility These Days!
These are great days for traders who are passionate about crude oil and its derivatives.
Ever Given’s Suez Canal mishap and OPEC’s policies aimed at price stabilization during the pandemic have caused the price of oil to seesaw quite a bit in recent weeks.
During the past two weeks, for instance, crude oil volatility, known as OVX, swung between about 40 and 65, hitting its highest point since the end of October of 2020. March alone has seen the price of WTI move between 57 and 68 dollars per barrel.
Besides the Suez Canal’s blockage, OPEC’s oil policies throughout the pandemic haven’t totally eased this fluctuation.
According to the Wall Street Journal, in times of COVID, OPEC “has appeared to shift sharply from optimism to pessimism over the prospects of a post-pandemic economic recovery—and a strong rebound in oil demand,” with Saudi Arabia settling for caution and Russia looking to boost supply.
As a result of its latest meeting, which took place on April 1st, the consortium of oil producing nations decided to boost production by 2 million barrels per day during the upcoming months, a move that came as a surprise to many but happened as a compromise between Saudi Arabia and Russia.
With this sort of volatility ever-present, it’d be wise to stay on top of what’s happening in oil this week and make the most of this moving market!
COVID-19 Vaccine Rollout = Time to Party!
The US’s services sector has grown for nine straight months now, and it seems it will make it ten thanks to a decline in COVID cases and the country’s ultra-effective vaccination policies.
Here’s what ISM had to say about February’s results: “The Services PMI® registered 55.3 percent, 3.4 percentage points lower than the January reading of 58.7 percent. This reading indicates the ninth straight month of growth for the services sector, which has expanded for all but two of the last 133 months.”
If we pay attention to the similar IHS Markit PMI for March, ISM’s figure, which will be released on Monday, April 5th at around 3:00 pm GMT, should move in the right direction.
As suggested by Trading Economics, preliminary estimates for IHS Markit’s PMI show it jumping to “60 in March of 2021 from 58.8 in February and in line with market expectations.”
Additionally, this datapoint marks “the strongest expansion in the service sector since July 2014.”
So tag your calendar, set an alarm or write a note on the palm of your hand. Just don’t forget to place your USD trades based on this announcement!
There’s a Housing Boom Down Under
Australia’s interest rates are at a historic low of 0.10% despite a boom in the real estate market and the country’s ongoing recovery from the COVID-19 pandemic.
Surprisingly enough, housing prices in February experienced the highest spike in more than 17 years, moving up by 2.1%.
As reported by 9News’ Stuart Marsh, Australian “sellers are being swamped with offers, banks are welcoming new customers through the doors and interest rates are at historic lows.”
Will these rates stick when the Reserve Bank of Australia (RBA) convenes on Tuesday, April 6th at 5:30 am GMT and releases its latest interest rate statement?
Or will the rapidly rising property prices force the government to readjust upwards?
Pay close attention to this announcement and prepare those AUD trades!
Is Canada’s Job Market in Recovery Mode?
Employment in Canada for February moved up by 1.4% following two months of contraction with unemployment reaching its lowest point since March 2020.
In February, the Canadian economy added 259 thousand jobs, a number that far exceeded expectations but still leaves the employment sector 3.1 percent short of its levels prior to the COVID-19 pandemic.
Interestingly enough, the group most affected by this job shortage are women between the ages of 15 and 24, which has led Canadian analysts to refer to this particular crisis as a “shecession.”
Will this albeit slight upward movement repeat itself in March?
Keep an eye out for Statistics Canada’s release on Friday, April 9th at 1:30 pm GMT.
If you haven’t yet traded CAD, this might be a good day to get started!
To check out a list of all of our ongoing promotions and offers, have a look at our website here.
*Any opinions, news, research, analyses, prices or other information contained here are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of proﬁt, which may arise directly or indirectly from the use of or reliance on such information.