Bitcoin Keep Surging Upwards
10/07/2019

Bitcoin rose by over 15% over the past week and extended its gain today in the Asian market.

At 04:31 GMT, it gained another 2% to $12,942.7.

This rise in Bitcoin prices came after the co-creator of Facebook’s Libra, David Marcus sent an official letter to the House Financial Services Committee stating that the company is really committed to take time and do the right thing in regards to Libra.

This is a response to the Chairwoman of the House Financial Services Committee Maxine Waters who wrote an official letter to all the Facebook executives asking to pause all development for Libra.

Bitcoin reached near the $13,000 level this week despite the letter.

Meanwhile, some of the other major cryptocurrencies did not perform well today.

Ethereum dropped by 1.5% while XRP and Litecoin lost around 2.9% and 3.3% respectively.

Ahead of Powell’s Speech, Gold Falls

For the fourth consecutive trading session in Asia, gold prices look likely to fall because of the possible interest rate cuts this month.

At 04:51 GMT, Gold futures for August delivery fell by 0.4% to $1,394.65 in the Comex division of the New York Mercantile Exchange.

Following the US Jobs report last week, gold prices started falling as the better than expected data is likely to discourage the Fed to reduce rates by a full half-point in their next meeting.

As for today, all traders are waiting for Jerome Powell’s speech on his semiannual testimony.

As he speaks today, traders will try to understand the Federal Reserve’s chairman thoughts on interest rates.

Gold is likely to benefit from any possible lower interest rates since the cost of holding the precious metal reduces.

Meanwhile, the U.S. dollar index rose by a minimal 0.1% ahead of Powell’s speech.

Apple launches a new program in China

As an expansion of its services business, Apple Inc started a new program in Shanghai to help Chinese developers create apps.

The program will include workshops, lectures and networking sessions for developers on a regular basis.

This program came at a point where the sales of iPhones in China and several countries around the world have decreased.

According to Tim Cook, CEO of Apple, services business has a bright future in China as it will help to get revenue from media apps and other software.

According to a recently published report from the research firm Evercore ISI, Apple’s services revenue rose in the financial quarter ended in June; mostly by growth in China.

Apple launched a similar program in 2017 in India because the smartphone markets in India and China are mostly dominated by companies who make Android devices, such as Samsung Electronics Co Ltd and Xiaomi.

To compete with Samsung and other major Android giant phone makers, Apple introduced several financing schemes to make iPhones more affordable for Chinese consumers.

In addition to the low sales, Apple was caught up in the trade conflict between the US and China.

Financial Events to watch for today

  • 08:30 GMT – Manufacturing Production (MoM) (May) [UK]
  • 14:00 GMT – Fed Chair Powell Testifies [USA]
  • 14:00 GMT – Bank of Canada Interest Rate Decision [CAN]
  • 14:30 GMT – Crude Oil Inventories [USA]