OI Flashes Bullish Signs

Of course, the stock market rose while Jerome Powell delivered his speech yesterday. A big part of his job is making sure investors are happy. What wasn't expected though was the impact his words may have had on bitcoin.

In this graph, the purple rectangle is the precise time of the speech. The Nasdaq (blue line) was the best performing stock index at that time. Within a few hours of the speech, we can see that bitcoin had an even bigger rise.

Did bitcoin rise because Chairman Powell was laying the groundwork to introduce fresh liquidity into the system?

Somehow I don't think so. But it is fun to track.

Traditional Markets

Chairman Powell did a fairly good job of keeping things boring at last night's meeting. In many ways, he's keeping his options open here.

The US economy is doing pretty well overall, but as we've seen there are some serious warning signs ahead. Powell is doing his best to explain that he's happy to react to any sudden downturn in the economy with additional stimulus but that that doesn't necessarily have to happen.

Still, markets are taking this as a very dovish tone. Volatility is now at the lowest point it's been since early May and we're seeing huge gains across all assets.

Gold, Oil, Stocks, and Bonds are all up since the speech.

It's not just investors who heard the dovish tone either. Both the Bank of Japan and the Reserve Bank of Australia have made dovish comments between then and now. The RBA expressed clearly how they're prepared to cut their interest rates again and the BoJ warned of mounting global risks.

Not sure if they were talking about this...

The Bank of England is also due to speak any minute now. Probably will be over by the time you get this. What may be more interesting though is Governor Carney's upcoming speech at the Mansion House dinner, which will be delivered at 9:00 PM in London.

Bitcoin Interested

Came across an interesting graph this morning that I thought worth sharing. It was posted by the CME Group on their Twitter page.

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Please note: All data, figures & graphs are valid as of June 20th. All trading carries risk. Only risk capital you can afford to lose.

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