First, a review of last week’s events:
EUR/USD
As expected, the US-China talks did not bring clarity: the only information came from the PRC Ministry of Commerce, which reported that the talks were frank and useful. Such a wording can be considered as the absence of specific results. The speech by Fed Chairman Jerome Powell was not revolutionary either and dropped the dollar by just 30 points.
In general, over the week, the euro rose by almost 200 points, which, in the first place, was caused by serious problems around the US president and his surrounding troubles, which could turn into prison terms for his assistants and the criminal prosecution of Trump himself. The US decision to postpone the question of raising duties on cars from the EU played in favor of the euro as well. As a result, the pair completed the week session where 45% of experts had expected – at 1.1622, close to resistance 1.1630;
GBP/USD
Following the euro, the British pound grew against the dollar, reaching the middle of the medium-term downtrend, which began back in spring. The pair reached the marks of the beginning of August and met the end of the five-day period at 1.2845;
USD/JPY
Recall that 75% of analysts expected the pair to fall into the 109.00 zone, and 25% voted for its return to the levels of 111.00-112.00. The pair, according to the expectations of the majority, really went down and on Tuesday, August 21, it dropped to the level of 109.75. However, the drop ceased, and then the forecast of the remaining 25% of the experts was implemented: the pair rose to the area of 111.00-112.00, reaching the height of 111.50.The final chord sounded a little lower – at around 111.25;
Cryptocurrencies
The main bad news of the week is that the US Securities and Exchange Commission (SEC) has rejected five more (nine in total) applications to launch Bitcoin -oriented investment funds (Bitcoin-ETF). The main reason for the rejection is the same – the problems of crypto-exchanges with fraud and price manipulation. The good news is that the SEC can still reconsider its decision. The bulls were also pleased with the news that the world’s first blockchain-based bonds issued by Bank of Australia, are actively bought by investors.