Day: September 23, 2020

AUD/USD stalls at key support juncture, eyes on 38.2 % correction
Forex

AUD/USD stalls at key support juncture, eyes on 38.2 % correction

AUD/USD is held up on the downside at a critical support structure. The focus is now on whether the US dollar gives back some ground before completing a 5-wave technical move to the upside. AUD/USD has been in the hands of the bears all the way to a critical support area and the focus now is on the correction pertaining to the USD. At the time of writing, AUD/USD is trading at 0.7018 at the start of the new Asian day. Yesterday's latest economic data from Australia showed the damage done from the renewed lockdowns in Melbourne and regional Victoria. The ABS’s preliminary estimate of retail sales for August shows a drop of 4.2% m/m. This doesn’t come as a surprise, and the initial reaction was muted. However, over the course pf the rest of the day, the Aussie buckled on ...
Election 2020: What happens if we don’t know the results for a while?
Investing

Election 2020: What happens if we don’t know the results for a while?

Investors continue to ask me if they should get out of the market to “sit out this election.” I’ve attempted to push back against this impulse by using long-term historical perspectives to remind investors that, as always, it’s time in the market that matters rather than timing the market. In my last blog I represented that investors’ long-term returns would have been meaningfully diminished had they sat out the first 100 days following each of the inaugurations over the past 60-plus years. The response to that blog had many inquiring, not about the first 100 days of a term, but rather about the performance of markets in the weeks leading up to the election. Here are the results. The average and the median returns are positive, modestly better if you exclude the 2008 global financial cris...
Crypto mining activities are now regulated by the Venezuelan gov
Crypto News

Crypto mining activities are now regulated by the Venezuelan gov

Venezuela's National Superintendency of Crypto Assets and Related Activities, or SUNACRIP, has issued the first decree to officially regulate all crypto mining activities. In order to qualify, miners will need to meet specific requirements. An official announcement was first published in the Gaceta Oficial and signed by the head of the SUNACRIP, Joselit Ramirez. It stated that residents in Venezuela who are interested in mining Bitcoin (BTC) and other cryptocurrencies must request a license and join the so-called "national pool.” The legal framework asks people to disclose what kind of activities they would like to do in crypto mining, such as trading, importing, or using mining equipment. The government will also issue a special license for those who want to manufacture ASIC mining ha...
Fauci tells Congress the U.S. could have enough coronavirus vaccine doses for every American by April
Business news

Fauci tells Congress the U.S. could have enough coronavirus vaccine doses for every American by April

White House coronavirus advisor Dr. Anthony Fauci told Congress on Wednesday "it might take some time" for FDA-approved inoculations for Covid-19 to become available because of the "rigorous clinical testing required" to develop a safe and effective vaccine. Still, he added, there is "growing optimism" that scientists will find one or more safe and effective vaccines by the end of the year or early 2021 and the U.S. could have enough vaccine doses by April.  President Donald Trump has insisted that the U.S. could have a safe and effective vaccine by the end of October and have enough vaccine doses to inoculate every American by April. The president's comments have been at odds with his own health officials and have fueled concerns that politics, not science, ...
Long-term vs Short-term Capital Gains Tax: What’s the Difference?
Investing, Online Trading

Long-term vs Short-term Capital Gains Tax: What’s the Difference?

When you buy and sell financial securities, you will inevitably generate profits and losses. The purchase of a stock that runs up 20% provides an excellent source of income, but with income comes taxes. There are two major tax implications that stock traders need to be aware of, which include long-term and short-term capital gains tax. Long-term capital gains require that you pay taxes on assets that are held for longer than one year, while short-term capital gains are taxes that are paid on assets held for less than one year. Within these categories of tax implications, there are several nuances as well as tax levels. What is important to understand is that depending on the length of your trade, as well as your income tax bracket, you will pay a specific level of tax to the governm...
Eurozone: Risks tilted to the downside for the 8% 3Q GDP growth forecast – Wells Fargo
Forex

Eurozone: Risks tilted to the downside for the 8% 3Q GDP growth forecast – Wells Fargo

Following a slump in the Eurozone economy during the first half of the year, activity data and confidence surveys during the late spring and over the summer showed a relatively quick initial rebound, point out analysts at Wells Fargo. They point out that while policy fundamentals still appear supportive for growth, a renewed increase in COVID-19 cases and a softening in recent data have raised some concerns.  Key Quotes:  “We believe that underlying policy fundamentals remain growth supportive, with Italy, France and Germany among the countries announcing further fiscal stimulus in recent months. We also believe European governments will be hesitant to re-impose the widespread, large-scale lockdown measures seen earlier this year. That said, with less confident businesses and...
Huobi crypto exchange launches trading app in Russia
Crypto News

Huobi crypto exchange launches trading app in Russia

Major cryptocurrency exchange Huobi Global is expanding in Russia by rolling out its native mobile app in the country. Users in Russia can now access Huobi’s spot market and trade major cryptocurrencies like Bitcoin (BTC) through its mobile app, the firm announced on Sept. 23. By introducing the app in Russia, Huobi wants to further expand in one of its most important markets. Russian users account for as much as 10% of Huobi’s total spot trading volume, an exchange representative told Cointelegraph. Ciara Sun, vice president of global markets at Huobi Group, said that Huobi’s move to strengthen its position in the Russian market comes despite existing issues with crypto regulation in the country such as the new crypto law “On Digital Assets” as well as the bill “On Digital ...
House passes spending bill to avoid government shutdown, sends it to Senate
Business news

House passes spending bill to avoid government shutdown, sends it to Senate

Speaker of the House Nancy Pelosi (D-CA) speaks during her weekly news conference at the U.S. Capitol on August 6, 2020 in Washington, DC. Stefani Reynolds | Getty Images The House passed a bill Tuesday that would fund the government into December and avoid a shutdown before a Sept. 30 deadline.  After clearing the House in an overwhelming vote, the legislation heads to the Republican-held Senate. Earlier Tuesday, House Speaker Nancy Pelosi said she reached a spending agreement with Treasury Secretary Steven Mnuchin and Republicans.  Pelosi said the proposal would include $8 billion for nutrition assistance for schoolchildren and families. It renews Pandemic EBT, a program that provides food benefits while schools are closed set to expire at the end of September, fo...
German Cabinet approves draft budget for 2021, EUR96.2 billion in new debt
Forex

German Cabinet approves draft budget for 2021, EUR96.2 billion in new debt

A German government official said on Wednesday, the Cabinet approved a draft budget for next year, as proposed by the Finance Minister Olaf Scholz. The budget sets aside a net new debt of EUR96.2 billion euros or $112.43 billion to offer further financial support to cushion the impact of the coronavirus crisis. Market reaction The euro showed some signs of life on hopes of additional fiscal support from Germany, sending EUR/USD back on to the 1.1700 level. The risk-on flows diminished the haven demand for the greenback, which also underpinned the spot’s recovery from two-month lows of 1.1672. Credit: FX Street
Star Girl’s one million active users go with the Flow blockchain
Crypto News

Star Girl’s one million active users go with the Flow blockchain

Dapper Labs is continuing to expand partnerships with third-parties for its Flow blockchain, with Animoca Labs set to launch two crypto-powered games on Flow. On September 22, blockchain gaming firm Animoca Brands announced that its MotoGP and Star Girl games will launch on the Flow blockchain early next year. Animoca is an investor in Dapper Labs. The Star Girl series consists of multiple free-to-play mobile games owned by Animoca and claims a monthly user base of one million players. Dapper Labs’ chief business officer, Mik Naayem, welcomed Animoca’s titles onto Flow, stating: "We share a mutual vision and approach to creating mainstream adoption of decentralized games in an inclusive manner. With this partnership we are one step closer to making this a reality.” The Flow blockchai...