Dollar disappointment to boost Euro
By Arnaud Masset
There is plenty of room for further euro appreciation, especially against the dollar. The shorts think so, too: their USD positions have increased in recent weeks.
Investors are disappointed with US tax reform and the latest economic indicators. The tax overhaul is facing difficulties in the Senate. Even with a small majority of his party in the upper chamber, President Trump is struggling to get enough votes. This week saw an upward revision of Q3 GDP, but also downward revision in personal consumption. The Federal Reserve’s favourite inflation measure, core personal consumption, remained steady in October at 1.4% annually.
After a rise of as much as 0.75% during the week, the greenback reversed gains and retreated to 92.80 euros per dollar by Friday morning.
Bitcoin blather
By Yann Quelenn
Now that the Bitcoin has appreciated some 1,300% in a year, people can’t stop talking about it. Founder of security-software-company McAfee and Bitcoin investor, John McAfee, says the cryptocurrency will continue its rise from a current USD 10,000 to USD hundreds of thousands in a few years. McAfee already predicted Bitcoin’s huge runup in 2017, well before it happened. On the other hand, Chairman Jamie Dimon of JP Morgan Chase, America’s largest bank, said on 13 October that buying Bitcoin is “stupid”: since then its price has nearly doubled. The 2014 Nobel Laureate Jean Tirole worries about the Bitcoin bubble. Does he also worry about the debt bubble floated by G10 countries?
Bitcoin offers high transaction speed and low transactions fees. And it can’t be manipulated. It’s increasing acceptance rate makes it a strong investment for the future. Anyone can create a blockchain, but few if any will become as mainstream as Bitcoin.