Bitcoin held the lower part of the range between $30,000 and $42,000 and traded towards $29,000 for the first three weeks of July setting an intra monthly low of $29,337 on 20th July. Price moved towards $40,000 in the final week of July.
Clients of large institutional wealth management banks continue to express interest in holding digital assets including Bank of America, which started allowing selected clients access to bitcoin futures. JPMorgan began giving its wealth management clients access to five cryptocurrency funds in July while Goldman Sachs’ recently surveyed family offices where more than half expressed interest in investing in crypto assets.
With increased attention being given to crypto assets, traditional hedge funds have acquired bitcoin for their portfolios such as GoldenTree Asset Management with $45 billion assets under management. Existing crypto hedge funds including Off The Chain Capital are opening their funds to new capital, as reported by The Street.
US Dollar -
The U.S. Dollar closed -0.3% in July at 92.11, cancelling the month's gains having reached a three month high of 93.20 on 21st July. The month started positive as speculators continued to back the dollar against currencies such as Euro and the Yen according to CFTC figures, a move strengthened by positive Nonfarm Payrolls, CPI and Retail Sales data.
Data published by the U.S. Bureau of Labor Statistics showed Nonfarm Payrolls rose by 850,000 in June helped the U.S. Dollar to extend its rally to a new three month high of 92.76 before falling.
The U.S. Federal Reserve announced no change in interest rates and remained cautious due to rising Covid cases. Further announcements on asset purchases are likely at the next Federal Open Market Committee (FOMC) in September. On this news the market struggled to break the previous day’s high of 92.84.
Singapore Dollar -
The Singapore Dollar closed the month at $1.3536 and ended slightly weaker against the U.S. Dollar after taking advantage of the U.S. Dollar decline from the highs against major currencies in the last week of July.
The Singapore Dollar took advantage of its safe haven status against other Southeast Asian currencies amid concerns over the prevalence of the Delta variant in the region and the impact this will have on economic growth. The Singapore Dollar closed at a key support and resistance area around 1.3525 - 1.3540.
Chinese Yuan -
The Chinese Yuan Renminbi closed at $6.4614 after the U.S. Dollar had the largest two-day drop in the past six months, ending the month almost where it began.
The People’s Bank of China (PBOC) lowered the Reserve Requirement Ratio (RRR) by 50 basis points creating short-term move up.
Concerns around domestic recovery saw the Interest Rate announcement by PBOC remain unchanged at 3.85%.
PBOC set the midpoint at 6.4602 yuan per U.S. Dollar on 30th July, the highest in a month as confidence was restored in the markets.
Asia Tech -
Technology stocks in Asia followed their Chinese counterparts lower in July after the Chinese government took action unfavorable to Chinese technology and education companies.
Didi Global Inc. the biggest ride-hailing company in China is the latest technology company to be reined in by Chinese regulators citing data security concerns around the massive amount of data generated as well as concerns over illegal drivers and vehicles. Didi’s share price reached $18.00 at its initial public offering debut on the New York Stock Exchange on 30th June and fell to a low of $7.17 on 26th July and closed the month at $10.30.
Oil -
Brent crude oil traded lower for the first three weeks of July after peaking at $76.80 and eventually recovered from the low set at $66.91 to end the month 1.9% higher versus June at $75.22.
Brent crude oil rose at the end of July on continued increase in demand expectations as tight supply remained given OPEC+ had not been able to reach an agreement on production levels in their July meeting and kept production levels in place for August. The latest agreement is for 400,000 barrels per day to increase in August after a compromise reached by Saudi Arabia and the United Arab Emirates.
The potential return of oil supplies from Iran is not expected any time soon as the nuclear deal with the United States remained unresolved with the sixth round of indirect talks between Tehran and Washington having adjourned on 20th June.
Key Figures -
Please feel free to join our ˲tradewithufos community, we provide comprehensive trading courses and trading apps. Apps for market analysis and trading: www.tradewithufos.com/apps
Disclaimer: All Content contained on the Platforms are provided for informational purposes only. You further acknowledge that nothing contained on the Platforms or made available through the Platforms constitutes investment, legal, tax or other advice, nor is it to be relied upon in making any investment or other decisions. You should seek professional advice prior to making any investment decisions.
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
Virtual Currency Disclosure: View CFTC advisories as they contain more information on the risks associated with trading virtual currencies.
Testimonial Disclosure: Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website. Enabling the cookies imply you agree with our privacy policy and terms of use.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.