Facebook, Cryptocurrencies And British Pound Captivate Wall Street
Here are the cryptocurrencies and British Pound set to captivate Wall Street. There is more information that you need to know.
All About The Major Moves
While it was that the Facebook Inc. has finally broken above down-trending resistance as it was one of the top-performing stocks in the S&P 500 today, but it was not for the reasons you might think as the company didn’t come up with a new advertising revenue initiative or a plan to combat misinformation. Thereby it was announced impressive corporate backing for its new cryptocurrency Libra.
Here Libra is a digital coin that Facebook plans to offer its users making purchases on not only Facebook but across the Internet as Facebook hopes to avoid some of those volatility pitfalls being seen to have plagued many other cryptocurrencies thereby pegging Libra’s value to a basket of government-issued currencies.
Furthermore, the Facebook has announced that Visa Inc. (V), Mastercard Incorporated (MA), PayPal Holdings, Inc. (PYPL), Uber Technologies, Inc. (UBER), as well as others have all signed up to invest approximately $ 10 million each to back Libra and help bring it to market.
Here, therefore, the fact that Facebook has garnered such strong support from other heavyweights in the online payment and transaction industry as traders were excited about the prospect of an increasing number that is of payment transactions that are occurring and being monetized on the Facebook platform. As this could essentially provide an additional source of revenue from Facebook’s billions of users helping to grow the company’s earnings per share, it is expected that Facebook will officially introduce Libra. While this is all happening as the value of Bitcoin as well as by extension Bitcoin-related funds like the Grayscale Bitcoin Trust as well as other cryptocurrencies starting to rise once more.
Herby the Bitcoin is worth $8,431.98 that is more than double what it was worth. Finally, it is going to be interesting to see if any increasing number of traders turn to Bitcoin, Libra, and other cryptocurrencies, as the US stock market eventually rolls over or in case they stick with classical haven assets like gold, US Treasuries, and the Swiss franc.
What About S&P 500
As the S&P 500 has barely moved, the index opened the week at 2,885.83 as well as closed the week barely one point higher at 2,886.98 as the net trading volume is also drying up as an average of 6,905,412,114 shares have traded hands each day on Wall Street as only 4,905,018,474 traded hands later on. Here it is a decrease of 29%.
It is anticipated that this lack of volatility or the trading volume is going to last far too long, which is bound to get a surprise soon involving the Federal Open Market Committee monetary policy meeting later.
What Are The Risk Indicators – British Pound
Thereby here the British Pound has tumbled as initial voting confirmed that Boris Johnson is gaining support among the conservative Tory party to become Britain’s next prime minister whereas now that Theresa May has stepped down. It was found that in the first round of voting, Johnson secured 114 votes from conservative members of Parliament -71 votes more than his closest competitor, Jeremy Hunt, it moves Johnson on to the next round of voting that is scheduled.
As a former foreign secretary, Johnson advocates no-deal Brexit, meaning that the United Kingdom would withdraw from the European Union without negotiating new trade deals. Thereby analysts say the prospect of a no-deal Brexit has worried that the British economy could stumble into recession and currency traders’ are pushing the value of the GBP down in response. It is seen that individual traders can easily track and invest in the GBP though Invesco Currency Shares the British Pound Sterling Trust (FXB). Here FXB was slightly lower than this but the GBP may be set up to drop to new 52 week lows.
In case the British economy does come under increasing economic pressure, the closer we get to the current deadline for British and EU leaders to reach an agreement the look for the bearish ripple effects to make their way across the pond to the United States.
The Bottom Line Is Set – So Enjoy The Weekend
While it seems that a decline in volatility, as well as trading volume, isn’t that bad at all, the fact is that it may be a pretty good week this week on Wall Street as it just takes the win and enjoys the weekend. Therefore it is here where the scrutiny is on with cryptocurrency and the weekend is full of speculations.