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Bitcoin hits 40k, Dow 31k

EUR/USD – Weekly Candlesticks
Source: GKFX / MT4 (December 1, 2020)

EUR/USD pulled back slightly on Thursday. The pullback comes from a long term supply zone formed between February and April 2018. Any deeper sell-off could target the 1.20 level, while a breach of the supply zone could target 1.25. 
 

TAKEAWAYS


•    Bitcoin reaches 40k before sharp correction as crypto market cap its $1 trillion
•    Dow hits 31,000 as all major US averages make a new record
•    Dollar rebounds after Fed minutes discuss tapering
•    Oil reaches 11-month high
•    Facebook indefinitely suspends President Trump’s account
•    Elon Musk becomes the richest person in the world
•    Tesla surpasses Facebook in market cap
•    Alibaba and Tencent shares drop over risk of US blacklisting
•    DAY AHEAD: Germany trade balance, US non-farm payrolls, Canada unemployment
 

GURU WISDOM


“Play by the rules, but be ferocious.” – Phil Knight (founder of Nike)
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2270        (-0.45%)
↘ GBP/USD    1.3564        (-0.31%)
↗ USD/JPY    103.81        (+0.75%)
↗ S&P 500    3803.79    (+1.48%)
↗ Hang Seng    27,548.52    (-0.52%)
↘ Gold        1913.89    (-0.26%)
↗ Oil (Brent)    54.48        (+0.46%)
↗ Bitcoin    39,465        (+7.37%)
 

NEWS

 

Bitcoin 40k


The total market cap of all cryptocurrencies rose above $ trillion for the first time on Thursday, according to data from CoinMarketCap. The gains were driven by Bitcoin which reached $40,000 for the first time, putting it up over 900% from the $3,850 low  in March. The gains have accelerated since the riots in Washington DC. Arguably the protests are another form of the same mistrust in US institutions that has fuelled demand for cryptocurrencies.
 

Dollar lift


There was finally a little strength returning to the greenback after a slow burn decline over the past few weeks. The trend in the USD is still very much down (uptrend in EUR/USD) but there is scope for a sharp rebound given how oversold it is. All the talk of inflation thanks to government stimulus does eventually raise the question whether the Fed can really continue its asset purchases at the current pace. 
 

Elon’s big day


The founder of Tesla Elon Musk became the world’s richest person on Thursday thanks to gains in his company’s stock. The TSLA gains put the market cap of the electric carmaker above Facebook for the first time. Tesla is now valued at 29x sales when it was valued at 3x sales in March – marking a massive shift in valuation.
 

DAY AHEAD 


07:00 – Germany Industrial Production (MoM) (Nov) [0.7 % Expected vs. 3.2 % Previous]
13:30 - Nonfarm Payrolls (Dec) [71K Expected vs. 245K Previous]
13:30 – Canada Net Change in Employment (Dec) [-27.5K Expected vs. 62.1K]
 

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