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19 Sep 2019
2 min read

Crypto and Forex News Roundup 19/09/2019

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Written by OspreyFX News Team

Crypto markets retrace 

Today’s forex and crypto news see the cryptocurrency markets experience a considerable retracement on Wednesday evening. Almost all the major coins were down by 6% or more with Bitcoin dipping below the $10,000 mark. The largest cryptocurrency by market cap was effectively down around 2% to the $9850 level after having spent most of Wednesday at the $10,100 mark. Other coins that experienced a retracement included Ethereum, BCHABC and LTC which were down between 2 and 4% respectively. The only exception was Stellar Lumens which was up by another 6% to keep the $0.08 level. 

 

Big sell off predicted in 2020 – HSBC markets 

It seems that we are in for a bear market in stocks in 2020. From booming bond sales and benign default rates to benevolent central banks, all seems well in the credit market right now. However, if you ask the robot prognosticator at HSBC Holdings Plc you’ll get a rather different story. 

The machine-learning model reckons there’s now an 84% chance of a bear market sweeping U.S. corporate debt within the next year. That’s the highest level since before the financial crisis and “a validation” of HSBC’s mildly bearish view, according to strategists led by Song Jin Lee. 

Snowden sued – good for Bitcoin? 

The famous whistleblower Edward Snowden who currently lives in asylum in Russia has dropped a hint about Bitcoin prospects. It’s probable that he will be using the cryptocurrency to store his wealth to avoid the US government getting hold of his funds.  

Snowden tweeted that the fact that the US is suing him for the publication of his new book, ‘Permanent Record’ is actually good for Bitcoin. The episode continues a debacle about the publication, with the U.S. Justice Department (DOJ) complaining Snowden did not submit a draft of it for approval before publication.  

Fed cuts rates – Asian stocks boosted 

The Federal Reserve cut US interest rates by 25 basis points, to a range of 1.75 to 2 percent. However, it signaled that it could stop there despite uncertainty over trade and fierce pressure from the White House for more accommodation.  

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The cut, the second this year, was in line with the expectations of investors and economists. Still, the central bank’s projections indicated a more hawkish line than markets had anticipated. The median forecast among its rate-setting committee was that rates would be at the same level at the end of 2020.  

The move boosted markets across Asia where Japan’s benchmark Topix rose 1.2 percent. The yen slipped against the US dollar to as low as ¥108.47, its weakest since early August. South Korea’s Kospi gained 0.8 percent, while Australia’s S&P/ASX 200 index was up 0.7 percent. Hong Kong’s Hang Seng index and mainland China’s CSI 300 were little changed.