Coinbase goes public 📈 The return of Gold? 🏅

Posted on 14th April 2021

Another wild week in the markets. Don’t worry, we hardly expect you to always know what’s going on, everywhere. Welcome to our little weekly helper. We pick the week’s main market highlights so you can stay up to date without the confusing babble of modern finance. Anyway, you don’t want to listen to me ramble - get stuck in...

Another wild week in the markets. Don’t worry, we hardly expect you to always know what’s going on, everywhere. Welcome to our little weekly helper. We pick the week’s main market highlights so you can stay up to date without the confusing babble of modern finance. Anyway, you don’t want to listen to me ramble - get stuck in...

Coinbase Go Public!

A landmark in the world of digital currency, America’s largest crypto exchange goes public today on the 14th April (today!). Crypto-eager investors won’t waste any time in diving into this one, Coinbase will be the first ever exchange to sell it’s prized shares to the thirsty public.

It seems everyone wants a piece of the digital pie, and it’s not surprising. With the cryptocurrency market now sitting at a cool $2.2 trillion ($10 billion above Apple’s market cap!), perhaps the Coinbase public shares offer another impressive investment opportunity, with the company valued somewhere between $70 billion and $100 billion...

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Worries brew over China’s new currency...

It isn’t just investors that are blundering towards crypto chaos. China’s new digital currency ‘renminbi’ is set to challenge the prestigious dollar as the world’s dominant reserve currency.

Winning the race towards a central bank digital currency (CBDC) - China’s centralised currency heralds all the distinguishments of normal crypto, but it is managed and overseen by a government authority, reducing the risks of fraud and cybercrime.

Although the Biden administration looks on with nervousness, the short-term market effects of the CBDC are relatively limited - it’s the long game that matters here.

Aiming for total rollout by 2022, what effect will the renminbi have on the market? Only time will tell...stay in the crypto-loop!

 

3 week lows for USD

New inflation reports spark market anxiety. With prices in the US rising at their fastest in 8 years at an increase of 2.6% from the previous year, investors are clinging to the promises that the central bank will maintain economic support for the foreseeable future.

We know that the majority of the population needs to be vaccinated before economic support is withdrawn - so keep an eye on the vaccine progress for further movements.

 

The return of gold?

Unless you’ve been hiding under a pandemic-proof rock, you’re probably aware of the tumultuous journey of Gold over the last year or so.

Well, it just so happens that India and China are stirring the golden cauldron once again. Consumer and central bank gold-buying has provoked a formidable 2% growth.

Gold remains a bullish favourite...

Bearing in mind the current US situation, Gold might be worth having a quick look at. Precious metals have always been seen as a popular hedge against inflation, and we don’t see this changing any time soon.

 

Unknown territory for the pound

The pound continues to feel the pressure. Vaccine supply issues and quarterly profit taking meant a difficult time for the pound, falling amidst a steadily rising FTSE 100 who mainly rely on international revenue.

GBP took a further beating after Andy Haldane, the bank of England’s chief economist, made his decision to leave. Sending shockwaves through the sterling market, the pound found itself under pressure from the Euro, Australian and New Zealand Dollar and Japanese Yen.

Haldane was known to be aggressive in his monetary policy - his departure could mean less pressure to raise interest rates in the face of an ever expanding British economy. So how will the re-structuring work- will it bruise or bolster the British pound?

The UK’s FTSE 100 Index advanced 2.65%, partly owing to a weaker UK pound, which fell on concerns about vaccine supply issues and profit taking after a strong quarter. UK stocks tend to gain when the pound falls because many companies in the FTSE 100 Index generate a meaningful proportion of their revenues internationally.

 

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