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Christmas Markets; Your Russian Address

Published 23/12/2016, 11:57
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Today's Highlights

Christmas Markets (Stocks 0; Currencies 10)

Bitcoin > 900!!

Your Russian Address

Please note: All data, figures & graphs below are valid as of December 23rd. All trading carries risk. Only risk capital you're prepared to lose.

Market Overview

Well folks, it looks like the stock markets are in full Christmas mode, with most of the major indices over the past 24 hours moving less than a quarter percent. The exception of course is China, whose holidays don't start until early February.

Looks like the financial media has given up on Dow 20k for now to concentrate on a more substantial party.

Stocks aside, the other markets are moving. Oil jumped about a dollar a barrel on yesterday's positive GDP figures. Gold and silver continued their slow descent. Gravity is really doing a number on those two lately.

Volatility remains HIGH in the currency markets. The VIX tracks FX volatility. As we can see, we're currently at 10.83, which is higher than anything we've seen from the period of Aug. through Nov.

VIX Daily Chart

Bitcoin 900!!

However, nothing is moving at the moment like the digital currency which is blowing right through the roof. At the moment we're seeing some minor resistance at $910 a coin, but if it breaks that there's no real resistance until the all time high at $1,240.

Many reasons have been given for the sudden surge. Some say that Chinese investors are expecting another devaluation in the Renminbi and are trying to get their assets offshore. Some cite increasing political uncertainty around the globe. No doubt, the growing momentum and the pop of the $775 level has caused a snowball effect.

Indeed, when you see something moving this fast it's difficult not to be a part of it. Please remember though, that this is an incredibly high risk asset. We could easily see further jumps of $300 or more in either direction before the excitement fades.

Your Russian Address
Big day in the motherland. President Vladimir Putin is due to deliver his annual news conference. This marathon event is always fun and full of surprises. Here's an article with a full list of topics to watch out for. With this guy though nothing is off the table, except political opposition.

While Vladimir is talking we'll be watching the Russian ruble. The ruble has been gaining a lot of strength lately going from almost 86 rubles to the dollar in January to where it is now at just 60. Here we can see the USD/RUB since the Crimea Sanctions of 2014. (Remember: A rise on the chart means a downward move for the ruble)

USD/RUB Since 2014 Chart

We've seen particular strength since Trump's election in the US as there is wide speculation that Donald will favor Vladimir and ease some of the sanctions. At the moment however, it seems that Obama is doing everything he can to make them more strict before leaving office. In fact, just two days ago the US announced fresh new sanctions against Russian companies and businessmen.

Disclaimer: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.

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