Weekly Market Watch: U.S. Dollar Rises, Crypto Faces Volatility

The financial markets are caught between hope and caution after Trump’s recent election win. The U.S. dollar is gaining strength as investors seek safe havens in an unpredictable world. Meanwhile, stock markets are struggling to climb higher, weighed down by lingering economic worries. The Federal Reserve’s decision to cut interest rates by 25 basis points last week brought some relief, but many traders remain skeptical, questioning the long-term impact on the economy.

Last week was challenging for many markets, with several assets finishing lower. Gold and oil prices declined by nearly 5%, suggesting a preference among traders for safer and more liquid options. This cautious sentiment highlights a “wait-and-see” approach as the year progresses, with traders fine-tuning their strategies in anticipation of possible market shifts.

Crypto Spotlight: Big Moves Shake the Market

Meanwhile, cryptocurrencies took center stage last week with notable price swings. Here’s how the top players performed:

• Bitcoin (BTC): Bitcoin hit an all-time high of over $90,000, fueled by optimism and favorable regulations. The big question now: Will it reach $100,000, or are we due for a pullback?
• Ethereum (ETH): Ethereum surged past $3,000, with interest in altcoins growing thanks to positive regulatory news and the launch of spot Ether ETFs.
• Ripple (XRP): Ripple broke the $1 barrier for the first time in years, bouncing back thanks to legal wins and increased adoption of its payment systems.
• Solana (SOL): Solana is approaching its 2021 highs, driven by strong fundamentals and rising interest in its scalable blockchain solutions.

Political Drama Drives Markets

As Trump’s inauguration approaches, political uncertainty is becoming a key driver for traders. Speculation is swirling around his policy plans and cabinet picks. Some choices hint at pro-growth policies, sparking optimism. But others are raising eyebrows—even within his own party. This mix of hope and concern will likely keep markets on edge, especially for Forex and Crypto traders.

Key Economic Events to Watch This Week

Several important events are on this week’s economic calendar. Here are the key ones traders should monitor to stay ahead:

• Tuesday:
  • Eurozone Inflation Data (CPI): Could reignite rate hike debates if inflation comes in higher than expected.
• Wednesday:
  • UK Inflation Figures: A glimpse into consumer price trends.
  • Nvidia Earnings Report: Insights into the tech sector’s strength that could influence stock market sentiment.
• Thursday:
  • S. Jobless Claims & Housing Data: Critical indicators of the labor market and real estate trends.
• Friday:
  • Germany’s GDP and PMI Figures: A snapshot of Europe’s largest economy, with weak numbers likely to weigh on the euro and equities.

These events could influence market movements, presenting potential opportunities for traders who remain informed and prepared.

Countdown to 2024’s Finish Line

With only six weeks left in the year, it’s time to stay sharp. Whether you’re focused on the dollar’s resilience or navigating crypto’s volatility, the key is to remain adaptable and disciplined. Markets thrive on change, and this time of transition is no different. Keep your strategies on point, manage your risk carefully, and make the most of the opportunities ahead.

Chart of the Week: XRP

The Ripple CFD on TRADE.com reached 1.16 this morning (18/11/24). Will it climb further, or are we due for a correction? Please note that past performance is not indicative of future results.