1. Bitcoin Rally To Continue After Tax Day
Bitcoin (BTC) has rebounded over $1,000 in less than a day last week, climbing from $6,900 to over $8,000 on Thursday. The sudden climb was attributed to the upcoming tax report deadline. It is considered that bitcoin has created a large tax liability, and that some of the selling pressure over the past two weeks is due to investors selling it to pay taxes. What is more, mining Bitcoin and other cryptocurrencies generated additional income and self-employment taxes per the IRS. Specifically Tom Lee, Fundstrat Global Advisors’ Head of Research, estimates that total tax liabilities resulting from cryptocurrency mining and trading increased to $590 billion during 2017. Note that the last day to file 2017 tax returns is Tuesday, April 17, therefore we should have a clear post-tax impact by Wednesday, April 18th.*
2. EUR/GBP In For Major Volatility
It will be an important week for the EURGBP as major economic releases over the next seven days are expected to affect the pair. Firstly, the ZEW economic sentiment index out of Germany is likely to grab much attention. The ZEW economic sentiment index is forecast to have declined further in April to -0.8 from 5.1 which is expected to have a negative impact on the EUR. Major data out of the UK will also be scrutinized. The labour market and consumer spending will be the last releases before the Bank of England’s next policy meeting on May 10. The unemployment rate is expected to hold steady while on Thursday, retail sales figures are forecast to decrease by 0.5% in March, having jumped by 0.8% in the previous month. The Canadian dollar will also be in focus this week as inflation and retail sales data from Canada, along with an upcoming Bank of Canada policy meeting could pave the way for a rate hike in May and push CAD pairs higher.**
Watch BDSwiss’ experts analyse and trade the BoC Interest Rate Decision in a free live Webinar this Wednesday.
3. Dollar Dips On Syria Attacks
The dollar dipped in early Monday trading as markets weighed the impact of strikes on Syria by the United States and its allies. Specifically, the United States, France and Britain launched missiles targeting chemical weapons facilities in Syria on Saturday. It is important to note that the dollar’s losses were limited as the military action did not result in broad risk aversion. Gold prices edged higher early this morning amid concern over the weekend missile strikes and as a weaker greenback made the dollar denominated safe-haven a more attractive investment.***
You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.
*Source: Reuters
**Source: CNBC
***Source: investing
Upcoming Earnings Reports This Week:
- 16/4/2018 – Bank of America Corporation (#BAC) to report pre-market
- 16/4/2018 – Netflix, Inc. (#NFLX) to report post-market
- 17/4/2018 – Goldman Sachs Group Inc. (#GS) to report pre-market
- 17/4/2018 – Johnson & Johnson (#JNJ) to report pre-market
- 17/4/2018 – UnitedHealth Group Inc.(#UNH) to report pre-market
- 17/4/2018 – International Business Machines Corporation.(#IBM) to report post-market
- 18/4/2018 – American Express Company (#AXP) to report post-market
- 18/4/2018 – BHP Billiton Limited (#BK) to report post-market
- 19/4/2018 – Unilever Plc (#UL) to report pre-market
- 20/4/2018 – General Electric Company (#GEL) to report pre-market
- 20/4/2018 – The Procter & Gamble Company (#PG) to report pre-market
