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PayPal sends Bitcoin above $13k!!

USD/CAD – 4hr Candlesticks
Source: GKFX / MT4 (October 22, 2020)

USD/CAD is trending lower underneath a falling trendline but there are early signs of a change in trend with 1.31 offering short-term support above the big 1.30 level.
 

TAKEAWAYS


•    Bitcoin surges another $1000, takes out $13,000
•    Wall Street closes up with Pelosi ‘optimistic’ on stimulus
•    Dollar gains after positive surprise in weekly jobless claims
•    Turkish lira (TRY) slides to new record low 
•    DAY AHEAD: Presidential debate reaction, Flash October PMI data
 

GURU WISDOM


"Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway." - Warren Buffett
 

MARKETS


News that PayPal will offer cryptocurrency as a means to buy and sell using its accounts helped Bitcoin hit $13,000 two days after it breached $12,000. PayPal will also offer Ethereum and Bitcoin Cash, both of which touched 7-week highs on Thursday.

Wall Street finished higher led by Small cap stocks on the Russell 2000 index after House Speaker Nancy Pelosi said she was optimistic about a stimulus deal, adding that agreement on aid was “just about there.” Banks were among the top gainers after US treasury yields rose to a four-month high. The bank outperformance came as Goldman Sachs agreed to pay a $2.9 billion fine over its role in the 1MDB scandal.

The dollar bounced off a 7-week low after weekly jobless claims fell back in a positive surprise versus estimates. At the same time existing home sales saw the biggest monthly jump since 2006 prior to the housing crisis that led to the 2008 financial crisis.

The Turkish lira fell to a record low after the CBRT disappointed investors who were looking for a clear inflation-fighting signal by keeping its one week repo rate steady. The central bank instead opted to raise a more obscure interest rate called the ‘late liquidity window’.

The price of gold dropped $30 per oz in a sharp reversal of the prior day’s gains – unable to break through resistance from the October 12 peak at $1930 per oz. On the flipside the price of oil rebounded, with WTI back over $40 per barrel.
 

PayPal Crypto


The use of cryptocurrencies by PayPal is being hailed by crypto enthusiasts as another important move in the direction of more mainstream use. The announcement comes hot on the heels of something we have discussed as a bullish catalyst several times – the $50 million block buy by payments firm Square. PayPal is adding some limits to its service – primarily aimed at preventing money laundering - by blocking users from depositing or withdrawing cryptocurrency. The limitations will upset the purists but will familiarise PayPal’s 346 million active users – including over 20 million merchants - with cryptocurrencies.

 

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