● Dollar Index holds Steady in Anticipation for U.S. Election
● Pound Drops as Brexit Talks Continue
● Cryptocurrency Markets open to Tokenized Stocks
Kicking off this week of Overbit News we’re going to cover some of the hottest topics this week. First, is the US presidential election and its impact on the global equities and forex markets.
On Monday, 2 November, we watched USD steady, holding onto its gains from last week where it had its most considerable weekly percentage rise since late September in the previous trading session.
These held-on gains for USD stands in contrast to the GBP/USD pair, where we saw it continue to inch lower. This downtrend is related to British Prime Minister, Boris Johnson announcing over the weekend the one-month lockdown across the UK. With such volatility expected, global investors are holding onto the US dollar as a safe-haven heading into the election.
What makes this US election cycle particularly interesting is the backdrop of Covid-19. Most notably for the elections, Covid-19 is forcing a record number of mail-in ballots for US states, which could lead to over a 1-month delay in election results. This delay could cause intense volatility across all markets worldwide. Regardless, DXY sits at 94.17, near its one-month high of 94.195. Against the USD, the GBP was last down 0.4% to $1.2904, leading traders to eye updates on Brexit trade talks with the EU.
As for the cryptocurrency markets, things are rather steady as well, especially given how volatile the market space is. Some major altcoins have indeed seen sell-offs in recent days, and decentralized exchange volume has also decreased a good bit, but the market leader, Bitcoin, continues to hold steady above the $13,000 level, even after being rejected from the $14,000 level last week. This close is especially important with the October monthly close now in the rearview, as most big institutions make their decisions on higher time frames like these. Going forward, with so much uncertainty in the air with the election - especially with the potential of an extended election process - some believe a boom for safe-haven assets like gold and Bitcoin is on the way. As famed trader Peter Brandt said, “The weekly and daily charts [are] poised to flash a big buy signal.”
Closing out lastly with the debut of Tokenized Stocks, and their cryptocurrency pairs. This effort by FTX exchange aims to allow users to be able to trade fractional shares of stock against popular crypto pairs such as USDT, BTC. This is interesting as we will probably see many outlets offering these pairs soon. The platform will host significant stocks such as Tesla, Apple, and Amazon, but due to the regulatory nature of stocks, it will be constrained by jurisdiction. Once again, despite any market or electoral conditions, we continue to see technological innovation by the cryptocurrency space.