Article / 08 December 2017 at 8:00 GMT

Morning Markets: Bitcoin up, down, and all around

Head of Editorial Content / Saxo Bank
Denmark

Morning Markets


Watchlist

  • France: Industrial production index (0745 GMT)  
  • United Kingdom: Index of production (0930 GMT) 
  • United Kingdom: Trade (0930 GMT) 
  • Greece: CPI (1000 GMT) 
  • Canada: Housing Starts (1315 GMT) 
  • US: Employment Report - Nonfarm payrolls (1330 GMT) 
  • US: University of Michigan Survey of Consumers - preliminary (1500 GMT)
Bitcoin traded sharply higher Thursday, but the move was so sudden and unbalanced that Bitcoin prices on various exchanges varied by as much as $4,000 at times.

The big swings that saw Bitcoin prices surge to over $19,000 before dropping down to the $15,000 area in a matter of seconds expose the unique nature of the cryptocurrency trade, whose enormous oscillations would, says Bloomberg, have triggered circuit breakers on seven of the past 10 trading days.

Beyond the ultra-volatile Bitcoin space, Thursday's session was more muted with US stocks and the dollar rising in tandem and pushing APAC shares higher into today's session.

GBP is also on the rise following the UK's reaching a Brexit deal Thursday; according to Northern Irish DUP leader Arlene Foster, the new agreement is substantially changed from the previous proposal and offers "clear confirmation that the entirety of the UK is leaving the EU, leaving the single market and leaving the customs union”.

Today sees UK trade data out at 0930 GMT, the US nonfarm payrolls release for November at 1330 GMT, and the US University of Michigan consumer sentiment survey out at 1500 GMT.

Market signals

Asian session

  • The Australian dollar could hit 0.90 next year, says HSBC
  • But Morgan Stanley predicts that AUD will fall to just 0.67 by Q1, 2019
  • Bitcoin prices zoomed up to almost $20,000 overnight from $16,000
  • Bank Indonesia, the Asian nation's central bank, has made bitcoin payment illegal

  • The central bank says the volatility of the cryptocurrency poses risks to the economy

  • Gold slid to its lowest in four months on Thursday

  • Japan’s economy expanded in the third quarter more than initially reported

  • The payment site Alipay with hold a "double 12" online retail spree on December 12
  • The online shopping day will be held in Hong Kong, India, Thailand and the Philippines
  • Asian stocks enjoy US rally with Japan, Australia and Hong Kong stocks rising
  • Australia’s S&P/ASX 200 Index added 0.3%, and HK up 1.1% in late trading

Forex ahead

  • JP fell 0.3% to 113.45 per dollar
  • EURUSD trading broadly flat at around $1.1745
  • GBPUSD climbed 0.3% to $1.3513 overnight, its highest in more than a week

From the Floor

Sterling surge? "The rally in GBP still looks somewhat tentative," says Hardy.

Line in the sand. "If we see the gold-silver ratio approach 80, silver should attract some interest," says Hansen.

Get all the latest from Saxo Bank's trading floors in From the Floor, within the hour.

In opinion

In God we trust

The USD seemed to be working its own magic last night - waiting on news of government shutdowns and the NFP release, says Michael O'Neill

ASX good oil

Could the S&P/ASX200 stay for a little while above 6000? Turns out oil prices are what tend to make or break it, says Saxo Capital Markets

Mixed forex bag

The US dollar has rallied, Sterling is well supported on Brexit talks optimism and the New Zealand dollar has been performing poorly, says Saxo APAC Sales Trading.

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Jakarta, Indonesia: Investors around the world have been caught up in the Bitcoin frenzy, but Bank Indonesia has declared payment in the volatile cryptocurrency illegal. Photo: Shutterstock

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