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Trump Off Sentiment; Brexit Tomorrow

Published 03/28/2017, 06:36 AM
Updated 07/09/2023, 06:31 AM
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They're calling it the most technologically advanced coin ever made.

Say hello to the sleek new one pounder. Embedded within the 12 sided coin is a chip to verify each coin's authenticity.

The funny thing here is the timing. It's been 30 years since the Bank of England has revamped the coin and they do seem to be involved in digitizing all of England's money. In fact, the BoE was one of the first in line to join the Hyperledger project, which is planning to create a global cryptocurrency network for financial institutions.

So why now? Well, because it's long overdue. Counterfeiters have been having a field day with this one for far too long and it's got to stop now. Or at the latest, by October 15th.

Today's Highlights

Trump Off Sentiment

The Volatile ones

Brexit Tomorrow

Please note: All data, figures, and graphs below are valid as of March 28th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

If there's one thing President Donald J. Trump has changed about the markets, it's the way investors think about sentiment. In the old days, pre-2016, we look at the market on most days and say that there is either a 'risk on' or 'risk off' sentiment. 'Risk on' usually meant that stocks were going up and safety asset like gold and the Japanese yen were going down.

Since November 8th of 2016, or slightly before, everything now revolves around PDJT. So now we can say that the markets are currently displaying a clear 'Trump off' sentiment with the stocks declining along with the USD, and gold is gaining due to flaccid action on healthcare and rising concern about Russia's ties to the new White House.

Where the Action is

For those of you who like volatile markets, keep an eye on the rand over the next few days. PM Zuma has just recalled his finance minister in a move that could signal further uncertainty in the leadership of the countries money.

The rand has made a fair recovery against the USD since the start of 2016. Here we can see the USD/ZAR pair:

USD/ZAR Chart

You can see the last candle is actually the reaction to the above news as the USD strengthens against the ZAR. If indeed political upheaval is again the order of the day, we could see this pair back up to its highs before not too long.

The USD/RUB may also be in for a ride today as the European court's decide on the legality of the Crimea sanctions of 2014. Odds are that the EU will not suddenly declare those sanctions illegal, but Russia is hoping that they might. The ruling will be today. Probably won't be much, but a surprise outcome could potentially set back sanctions that saw the ruble lose more than half its value in 2014.

USD/RUB Chart

Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.

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