From Sweden we get the Unemployment rate for January which could weaken the SEK somewhat, as it is forecasted to accelerate to 7.0% compared to previous reading of 6% and from the Eurozone the Trabe Balance surplus figure for December, which could support the EUR as it is forecasted to increase. Later on, we get the US Core PPI for January and the US industrial production for January.
BITCOIN ON THE RISE AGAIN
On Friday Bitcoin broke the 17000 US Dollars barrier and reached a new all time high during today’s Asian morning. Despite arguments that there is no clear fundamental reasoning, most analysts tend to agree that the anticipation of the CME Bitcoin futures market opening on Sunday pushed the crypto currency higher on Friday and was the driver of any value increase during today’s Asian morning. As mentioned in previous analysis, the accommodation of Bitcoin by Cboe and CME could signal a possible entering of large institutional investors. Among the arguments for and against bitcoin, Deutsche Bank’s Chief Economist Peter Hooper stated that “it is here to stay” however the bigger it becomes the more regulatory interest it will attract. Bitcoin rose on Friday to break the 17000 and continued to rise during the Asian morning finding resistance at 19123, just before the 19500 resistance level. Should the crypto currency continue to rise it could break the aforementioned resistance line and aim for the 21000 resistance zone. On the other hand should the bears take the driver’s seat it could break the 17000 support hurdle and aim for the 15580 support level.
US BECOMING CONFIDENT ABOUT TAX OVERHAUL
Media reports suggested that Republicans are quite confident that the planned tax reform will be voted into a law. Confidence rose after key dis-sentient Republican Senators issued positive statements about voting the tax reform. Republican Party officials stated that the vote could take place as soon as tomorrow, Tuesday and be signed by president Trump by Friday. USD/JPY rose during the European day and continued to trade in a sideways manner between the 112.00 support line and the 113.15 resistance level. Should there be favorable reports about the US tax reform the pair could break the 113.15 resistance level and aim for the 113.80 resistance zone. Should the bears take the driver’s seat the pair could break the 112.00 support zone and aim for the 111.70 support level.