Bitcoin consolidates above USD19K, Sunak’s budget

A salvo of US data ahead of the Thanksgiving holiday confirms a mixed picture for the economy: Jobless claims are rising, durable good data improves, while personal consumption is revised lower and trade figures disappoint.   Financial markets are quickly entering holiday mode but on a somber note, what appears to be clear is that forecast for Q4 will continue to deteriorate.

Investors will be keeping a close eye on the release of the FOMC minutes later today (19:00 GMT). The Fed may have received the green light to make a move at the December 16th policy decision meeting, since the current coronavirus wave is weighing on the employment market and trade figures, as factories and production remain strong due to depressed inventory levels.  If next week’s nonfarm payroll release shows a negative number, the Fed will be able to justify increasing their asset purchases and signal that they will adopt yield curve control.

Bitcoin eyes record highs

Bitcoin hovers near record territory as retail interest surges.  The crypto space had a great week as Ethereum paved the wave for a massive network upgrade that should allow it to handle transactions just like Visa and Mastercard.  Bitcoin, with thin conditions, is likely to deliver a 1000-point swing at some point before the end of the week.  The Bitcoin bubble could continue to grow, but the next few days could provide some false breakouts.

British pound steady

The British pound is little changed after UK Chancellor Sunak’s spending review showed urgency in handling the current economic emergency with the announcement of billions of pounds in new spending.  Sunak will reduce overseas aid to 0.5% of national income.  The budget deficit forecast is set at GBP394 billion this fiscal year.  The UK government will issue a record GBP485.5 pounds this fiscal year, more than the consensus estimate of GBP482.8 billion pounds and the prior GBP156.1 billion in March.

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya