Weekly Outlook 25th-29th of December, 2017


Last week ended with significant fluctuation of the Bitcoin sank by more than 20%, the market lost $125 billion in one day on Friday 22 December, the market capitalization of the cryptocurrencies was of the order of 515 billion dollars, and by closing markets bitcoin was trading at $12,100, losing around $7,700 from a historical high that we saw this week. Though this decline looks significant - should not be overlooked is the fact that even 3 months ago, the cryptocurrency was trading around $ 3,000, and for the current year Bitcoin has grown almost 20 times. However, those investors who entered the market at a high value, observing a continuous growth could incur substantial losses.
Reasons for this decline of Bitcoin can be somewhat of a challenge with the scaling and expansion of the Blockchain. Hedging investors of Bitcoin to other crypto-currencies, when they began to withdraw the profit obtained by the growth of Bitcoin and invest in other cryptocurrencies, including even those about which very little or no information. Some very large captainvalor said get rid of their bitcoins, so for example one of the early investors in bitcoins, as well as investor in bitcoin startups, Roger Ver announced that bitcoin sells and buys Bitcoin for Cash, no idea it was followed by other major investors. Well, you should not forget about the significant pressure from the U.S. government on cryptocurrency exchanges.
In the United States Senate and the House of Representatives voted for a bill to extend funding of the government without the adoption of the budget, than took the pressure off investors in the currency of the country. According to forecasts, Tax Reform In the United States will add further to GDP growth of 0.3 %, the US Treasury is going to increase the capacity of the debt market, and this fact requires the Treasury to show a stronger currency, as investors lost some interest in buying US debt, so that after the end of the Christmas holidays, we expect the dollar strengthening.
Last week, the Euro failed to overcome the mark of 1.19000, referring to figure 1.181500 on the news that the results of the parliamentary elections in Catalonia, the party of the separatists will get 70 seats out of 135, with a record participation level of 82%. As Euro pressure came from news out of Germany, Vice Chancellor said the possibility of the formation of a minority government that will undermine the position of Angela Merkel.
The British Pound rise slightly last week, against a background of good data block in the UK. As initially estimated in the third quarter, the UK economy grew. The statistical office confirmed an increase of 0.4% of GDP, higher than the 0.3% observed in the previous quarters of 2017. In annual terms, GDP in the third quarter rose 1.7% improved the previous record of 1.5%. Traditionally, increased coverage of the provision of services included in the calculation of GDP, improving by 0.4% QoQ, manufacturing grew by 1.3%.
We present to Your attention a number of news, which in the opinion of the team of analysts of our company will have a significant impact on the volatility of the market this week.
26 Dec Tuesday
Japan - unemployment rate, the ratio of the number of vacancies to number of applicants. Consumer price indices, changes in the volume of household expenditure, the publication of the minutes of the last meeting of the Bank of Japan.
USA - the Index of housing prices published by Agency Standard and Poor's and reflects the change in the value of residential property in 20 regions of the United States. The index of business activity in industrial sphere of the Dallas fed and Richmond.
27 Dec Wednesday
Japan - construction data
U.S. data on housing sales and a report of the American petroleum Institute
28 Dec - Thursday
Japan - retail sales data, a report on foreign investment in the Japanese economy and investment in foreign bonds. The industrial production report.
29 December - Friday
UK index of housing prices
Eurozone - data on several macroeconomic indicators, comments on the current economic situation and monetary policy.
USA - data for primary and repeat applications for unemployment benefits, the reserves of oil and gas