The S&P 500 is back around the all-time highs after a strong rally triggered by the benign US PPI and the Trump’s reciprocal tariffs announcement. In fact, despite a higher than expected US PPI report, the details that feed into the Core PCE index, which is what the Fed focuses on, were all very soft. That helped to bring the early estimates down to more benign levels. The Core PCE Y/Y is now projected to fall to 2.6% vs. 2.8% in the prior month. That’s good news for the Fed. The bullish momentum increased eventually as the Trump’s tariffs saga came to an end. In fact, the US President announced his reciprocal tariffs that could go into effect in April but the overall tone of it wasn’t aggressive and sounded a lot like the start of a negotiating process to bring tariffs to a fair level for everyone. We don’t have much on the agenda this week except the Flash US PMIs on Friday, but the path of least resistance remains to the upside as long as the disinflationary process continues without any growth scare.

The S&P 500 is back around the all-time highs after a strong rally triggered by the benign US PPI and the Trump’s reciprocal tariffs announcement. In fact, despite a higher than expected US PPI report, the details that feed into the Core PCE index, which is what the Fed focuses on, were all very soft. That helped to bring the early estimates down to more benign levels. The Core PCE Y/Y is now projected to fall to 2.6% vs. 2.8% in the prior month. That’s good news for the Fed. The bullish momentum increased eventually as the Trump’s tariffs saga came to an end. In fact, the US President announced his reciprocal tariffs that could go into effect in April but the overall tone of it wasn’t aggressive and sounded a lot like the start of a negotiating process to bring tariffs to a fair level for everyone. We don’t have much on the agenda this week except the Flash US PMIs on Friday, but the path of least resistance remains to the upside as long as the disinflationary process continues without any growth scare.

Germany’s financial regulator, BaFin, has issued warnings against five platforms offering unauthorized financial and cryptocurrency services. These platforms, including PNG Group, SimCorp, and topcoinmarkt.de, are operating without proper licenses, posing significant risks such as identity fraud and financial losses. Avoid trading with unregulated platforms to safeguard your investments.

Germany’s financial regulator, BaFin, has issued warnings against five platforms offering unauthorized financial and cryptocurrency services. These platforms, including PNG Group, SimCorp, and topcoinmarkt.de, are operating without proper licenses, posing significant risks such as identity fraud and financial losses. Avoid trading with unregulated platforms to safeguard your investments.

The UK’s Financial Conduct Authority (FCA) has issued a warning about 9 unlicensed financial websites that may be offering or promoting financial services without proper authorization. The regulator urges investors to avoid dealing with these firms as they do not have the necessary FCA license, leaving consumers unprotected in case of disputes or financial losses. FCA has flagged the following 9 firms as unauthorized and potentially deceptive: 1. Name: Harber Asset Management LLC Address: 68 East 56th Street, New York, NY, UNITED STATES OF AMERICA, 10022 780 3rd Avenue, New York, NY, UNITED STATES OF AMERICA, 10017 Telephone: +19175632559, +19942886253 Email: info@harberassetmgmt.com Website: www.harberassetmgmt.com Other Information: This firm seems to be cloning some details of a legitimate US firm. 2. Name: Global Astock Market Trade Address: D1371, Downtown, Dubai, UNITED ARAB EMIRATES Telephone: +12362601545 Email: support@globalastockmkt.trade Website: www.globalastockmkt.trade 3. Name: Lutex Options Address: Euston Tower, 286 Euston Road, London, UNITED KINGDOM, NW1 3DP 12 Marina Boulevard, Tower 3, #17-01 Marina Bay Financial Centre, SINGAPORE, 018982 Email: support@lutexoptions.com Website: www.lutexoptions.com 4. Name: Lutex Shares Address: 202 Helga Springs Road, UNITED KINGDOM, CB4 3AA Email: support@lutex-shares.com Website: www.lutex-shares.org 5. Name: obitfx.online Address: Knightsbridge Green, London, UNITED KINGDOM, SW1X 7QA Email: admin@obitfx.online Website: https://obitfx.online 6. Name: Zencap / Zencap.net (Clone of FCA Authorised Appointed Representative) Email: info@zencap.net Website: zencap.net 7. Name: ADLER KASS BUSINESS CONSULTANCY Address: 40 Worth Street, New York, NY, UNITED STATES OF AMERICA, 10013 Fax: +19173987390 Email: info@adlerkassbusiness.com Website: www.adlerkassbusiness.com 8. Name: RAPIDMINING247 Address: 8 Galleyway, London, UNITED KINGDOM Email: support@rapidmining247.pro Website: www.rapidmining247.pro 9. Name: VIOinvest Address: 2 Frederick Street, Kings Cross, London, UNITED KINGDOM, WC1X 0ND Email: management@vioinvest.com Website: www.vioinvest.com

The UK’s Financial Conduct Authority (FCA) has issued a warning about 9 unlicensed financial websites that may be offering or promoting financial services without proper authorization. The regulator urges investors to avoid dealing with these firms as they do not have the necessary FCA license, leaving consumers unprotected in case of disputes or financial losses. FCA has flagged the following 9 firms as unauthorized and potentially deceptive: 1. Name: Harber Asset Management LLC Address: 68 East 56th Street, New York, NY, UNITED STATES OF AMERICA, 10022 780 3rd Avenue, New York, NY, UNITED STATES OF AMERICA, 10017 Telephone: +19175632559, +19942886253 Email: info@harberassetmgmt.com Website: www.harberassetmgmt.com Other Information: This firm seems to be cloning some details of a legitimate US firm. 2. Name: Global Astock Market Trade Address: D1371, Downtown, Dubai, UNITED ARAB EMIRATES Telephone: +12362601545 Email: support@globalastockmkt.trade Website: www.globalastockmkt.trade 3. Name: Lutex Options Address: Euston Tower, 286 Euston Road, London, UNITED KINGDOM, NW1 3DP 12 Marina Boulevard, Tower 3, #17-01 Marina Bay Financial Centre, SINGAPORE, 018982 Email: support@lutexoptions.com Website: www.lutexoptions.com 4. Name: Lutex Shares Address: 202 Helga Springs Road, UNITED KINGDOM, CB4 3AA Email: support@lutex-shares.com Website: www.lutex-shares.org 5. Name: obitfx.online Address: Knightsbridge Green, London, UNITED KINGDOM, SW1X 7QA Email: admin@obitfx.online Website: https://obitfx.online 6. Name: Zencap / Zencap.net (Clone of FCA Authorised Appointed Representative) Email: info@zencap.net Website: zencap.net 7. Name: ADLER KASS BUSINESS CONSULTANCY Address: 40 Worth Street, New York, NY, UNITED STATES OF AMERICA, 10013 Fax: +19173987390 Email: info@adlerkassbusiness.com Website: www.adlerkassbusiness.com 8. Name: RAPIDMINING247 Address: 8 Galleyway, London, UNITED KINGDOM Email: support@rapidmining247.pro Website: www.rapidmining247.pro 9. Name: VIOinvest Address: 2 Frederick Street, Kings Cross, London, UNITED KINGDOM, WC1X 0ND Email: management@vioinvest.com Website: www.vioinvest.com

#FedRateCutAffectsDollarTrend#ForexBasicKnowledgeChallenge

#FedRateCutAffectsDollarTrend#ForexBasicKnowledgeChallenge

#ForexTips Managing leverage effectively is crucial for risk management and long-term success in trading or investing. Here are key strategies to do it well: 1. Understand Your Risk Tolerance Determine how much risk you can handle without emotional stress. Avoid using maximum available leverage just because it's offered. 2. Use Stop-Loss Orders Always set stop-losses to protect against excessive losses. Adjust stop-loss levels based on volatility and position size. 3. Position Sizing Risk only a small percentage (e.g., 1-2%) of your capital per trade. The higher the leverage, the smaller your position size should be.

#ForexTips Managing leverage effectively is crucial for risk management and long-term success in trading or investing. Here are key strategies to do it well: 1. Understand Your Risk Tolerance Determine how much risk you can handle without emotional stress. Avoid using maximum available leverage just because it's offered. 2. Use Stop-Loss Orders Always set stop-losses to protect against excessive losses. Adjust stop-loss levels based on volatility and position size. 3. Position Sizing Risk only a small percentage (e.g., 1-2%) of your capital per trade. The higher the leverage, the smaller your position size should be.

Pi Coin's price is expected to fluctuate after its launch in OpenNet, scheduled for February 20th. The coin's IOU price has been ranging between $61 and $70 in speculative markets, but its actual market value will be determined after the mainnet launch. Several factors will influence Pi Coin's price, including: - "Supply and Demand": Millions of users have accumulated Pi through mobile mining, but the initial supply might be high, leading to a price drop if demand doesn't match. - "Exchange Availability": If Pi Coin is listed on multiple trading platforms, it could attract more buyers and increase liquidity. - "Market Sentiment": The overall cryptocurrency market trend, including Bitcoin's performance, might impact Pi Coin's price. - "Utility and Adoption": If Pi Coin gains real-world use cases and adoption, its demand and price could increase. Predicted price movements include: - An initial surge followed by a sharp decline - A slow and steady rise if demand remains strong - A prolonged decline if selling pressure overwhelms buying interest Some analysts predict Pi Coin's price could reach $68.7 or even $121, its 2024 high, after the mainnet launch. However, it's essential to remember that cryptocurrency prices are highly volatile, and actual results may differ. #Write2Earn * BTW Last post about PI coin price was to see the controversy and was a challenge from a friend so don't take it seriously 🥰

Pi Coin's price is expected to fluctuate after its launch in OpenNet, scheduled for February 20th. The coin's IOU price has been ranging between $61 and $70 in speculative markets, but its actual market value will be determined after the mainnet launch. Several factors will influence Pi Coin's price, including: - "Supply and Demand": Millions of users have accumulated Pi through mobile mining, but the initial supply might be high, leading to a price drop if demand doesn't match. - "Exchange Availability": If Pi Coin is listed on multiple trading platforms, it could attract more buyers and increase liquidity. - "Market Sentiment": The overall cryptocurrency market trend, including Bitcoin's performance, might impact Pi Coin's price. - "Utility and Adoption": If Pi Coin gains real-world use cases and adoption, its demand and price could increase. Predicted price movements include: - An initial surge followed by a sharp decline - A slow and steady rise if demand remains strong - A prolonged decline if selling pressure overwhelms buying interest Some analysts predict Pi Coin's price could reach $68.7 or even $121, its 2024 high, after the mainnet launch. However, it's essential to remember that cryptocurrency prices are highly volatile, and actual results may differ. #Write2Earn * BTW Last post about PI coin price was to see the controversy and was a challenge from a friend so don't take it seriously 🥰

Co founder, Costas Cleanthous, of XM donated €10m to set up a Children's Cancer Center in Cyprus.

Co founder, Costas Cleanthous, of XM donated €10m to set up a Children's Cancer Center in Cyprus.

Indian Regultor, SEBI has given Jolt to 19 foreign Venture Capital Inbestors by cancelling their Registrations.

Indian Regultor, SEBI has given Jolt to 19 foreign Venture Capital Inbestors by cancelling their Registrations.

Proprietary Trading Firm, Plutus Trade Base(PTB) will now offer Funded Trading Accounts to U. S Based Traders.

Proprietary Trading Firm, Plutus Trade Base(PTB) will now offer Funded Trading Accounts to U. S Based Traders.

Tiger Brokers has lanched It's AI Powered Assistant called TigerGPT. The broker says, It will provide deeper Insights of the market, Stock Movements and Investment Stratagies

Tiger Brokers has lanched It's AI Powered Assistant called TigerGPT. The broker says, It will provide deeper Insights of the market, Stock Movements and Investment Stratagies

Currency pairs are the foundation of forex trading. A currency pair consists of two currencies, with one being bought and the other sold. The first currency is called the base currency, and the second one is the quote currency. For example, in the EUR/USD pair, EUR is the base currency, and USD is the quote currency. Understanding currency pairs and how they work is essential for traders. Major pairs like EUR/USD, GBP/USD, and USD/JPY are commonly traded and have tight spreads, making them popular among traders.

Currency pairs are the foundation of forex trading. A currency pair consists of two currencies, with one being bought and the other sold. The first currency is called the base currency, and the second one is the quote currency. For example, in the EUR/USD pair, EUR is the base currency, and USD is the quote currency. Understanding currency pairs and how they work is essential for traders. Major pairs like EUR/USD, GBP/USD, and USD/JPY are commonly traded and have tight spreads, making them popular among traders.

Forex trading works through the exchange of one currency for another. Traders aim to profit from the changes in exchange rates, buying low and selling high. The market operates 24 hours a day, five days a week, with various trading sessions around the world. Traders use a combination of strategies, including technical analysis and fundamental analysis, to predict currency movements. It is essential to understand how to manage risk and use leverage wisely, as forex trading can be volatile. Starting with a demo account is a great way for beginners to practice without real money.

Forex trading works through the exchange of one currency for another. Traders aim to profit from the changes in exchange rates, buying low and selling high. The market operates 24 hours a day, five days a week, with various trading sessions around the world. Traders use a combination of strategies, including technical analysis and fundamental analysis, to predict currency movements. It is essential to understand how to manage risk and use leverage wisely, as forex trading can be volatile. Starting with a demo account is a great way for beginners to practice without real money.

The forex market is the largest financial market in the world, with over $6 trillion traded daily. Understanding the basics of the forex market is crucial for beginners. Forex trading involves buying one currency while selling another, typically in currency pairs like EUR/USD. Currency exchange rates fluctuate based on various factors such as economic reports, political events, and market sentiment. Learning how to analyze these factors can help traders make informed decisions. Over time, traders can incorporate technical and fundamental analysis into their strategies to improve their performance. Risk management, including stop-loss orders and position sizing, is also a vital skill for successful trading.

The forex market is the largest financial market in the world, with over $6 trillion traded daily. Understanding the basics of the forex market is crucial for beginners. Forex trading involves buying one currency while selling another, typically in currency pairs like EUR/USD. Currency exchange rates fluctuate based on various factors such as economic reports, political events, and market sentiment. Learning how to analyze these factors can help traders make informed decisions. Over time, traders can incorporate technical and fundamental analysis into their strategies to improve their performance. Risk management, including stop-loss orders and position sizing, is also a vital skill for successful trading.

#Firstdealofthenewyearastylz Regulatory Uncertainty: The lack of clear regulatory frameworks has created uncertainty for investors, businesses, and individuals. Regulatory uncertainty has hindered the development of crypto markets and limited mainstream adoption. Security Concerns: The decentralized nature of cryptocurrencies has created security concerns, including the risk of hacking, theft, and fraud. Security concerns have limited mainstream adoption, particularly among institutional investors. Lack of Understanding: The complexity of cryptocurrencies has created a lack of understanding among potential users. This lack of understanding has limited mainstream adoption, particularly among retail investors. Volatility: The high volatility of cryptocurrencies has created uncertainty for investors and limited mainstream adoption. Scalability: The scalability of cryptocurrencies has been limited, creating concerns about the ability of crypto markets to support mainstream adoption.

#Firstdealofthenewyearastylz Regulatory Uncertainty: The lack of clear regulatory frameworks has created uncertainty for investors, businesses, and individuals. Regulatory uncertainty has hindered the development of crypto markets and limited mainstream adoption. Security Concerns: The decentralized nature of cryptocurrencies has created security concerns, including the risk of hacking, theft, and fraud. Security concerns have limited mainstream adoption, particularly among institutional investors. Lack of Understanding: The complexity of cryptocurrencies has created a lack of understanding among potential users. This lack of understanding has limited mainstream adoption, particularly among retail investors. Volatility: The high volatility of cryptocurrencies has created uncertainty for investors and limited mainstream adoption. Scalability: The scalability of cryptocurrencies has been limited, creating concerns about the ability of crypto markets to support mainstream adoption.

GTS Securities setuju bayar denda $150K dalam penyelesaian dengan FINRA.

GTS Securities setuju bayar denda $150K dalam penyelesaian dengan FINRA.

#firstdealofthenewyearastylz Labor Unions: Impact on Wages and Jobs Labor unions have played a major role in shaping wages, job security, and workplace conditions across various industries. Their influence can be seen in collective bargaining agreements, labor laws, and the overall structure of employment in many countries. 1. How Labor Unions Affect Wages Higher Wages: Unionized workers generally earn 10–30% more than non-unionized workers in the same industry. Wage Standardization: Unions negotiate contracts that prevent wage disparities within a company or industry. Benefits & Perks: Many union contracts include healthcare, retirement plans, and paid leave, improving overall compensation. Wage Compression: While lower-wage workers benefit more from unions, highly skilled workers might see less wage growth due to standardized pay scales. 2. Job Security and Employment Effects Stronger Job Protections: Union contracts make it harder for employers to fire workers without just cause, reducing layoffs. Collective Bargaining Power: Unions negotiate for better working conditions, safety measures, and fair scheduling. Potential Job Losses: If labor costs rise too much, businesses might outsource jobs or replace workers with automation. Union vs. Non-Union Employment Rates: Some studies suggest unionized industries grow slower in employment compared to non-unionized sectors. 3. Economic and Business Impact Productivity Effects: Well-paid and secure workers are often more productive, but rigid labor contracts can reduce flexibility. Cost to Employers: Higher wages and benefits can increase business costs, sometimes leading to higher consumer prices. Union Decline & Gig Economy: With more independent contractors and gig work, traditional unions face declining membership and influence. 4. The Modern Debate: Are Unions Still Necessary? Pro-Union Argument: Reduce wage inequality Improve workplace conditions Protect workers from unfair treatment Anti-Union Argument: Can create inefficiencies and raise business costs May discourage job creation or expansion Sometimes prioritize senior workers over new talent Would you like to discuss how labor unions are evolving in today’s economy or their impact on a specific industry?

#firstdealofthenewyearastylz Labor Unions: Impact on Wages and Jobs Labor unions have played a major role in shaping wages, job security, and workplace conditions across various industries. Their influence can be seen in collective bargaining agreements, labor laws, and the overall structure of employment in many countries. 1. How Labor Unions Affect Wages Higher Wages: Unionized workers generally earn 10–30% more than non-unionized workers in the same industry. Wage Standardization: Unions negotiate contracts that prevent wage disparities within a company or industry. Benefits & Perks: Many union contracts include healthcare, retirement plans, and paid leave, improving overall compensation. Wage Compression: While lower-wage workers benefit more from unions, highly skilled workers might see less wage growth due to standardized pay scales. 2. Job Security and Employment Effects Stronger Job Protections: Union contracts make it harder for employers to fire workers without just cause, reducing layoffs. Collective Bargaining Power: Unions negotiate for better working conditions, safety measures, and fair scheduling. Potential Job Losses: If labor costs rise too much, businesses might outsource jobs or replace workers with automation. Union vs. Non-Union Employment Rates: Some studies suggest unionized industries grow slower in employment compared to non-unionized sectors. 3. Economic and Business Impact Productivity Effects: Well-paid and secure workers are often more productive, but rigid labor contracts can reduce flexibility. Cost to Employers: Higher wages and benefits can increase business costs, sometimes leading to higher consumer prices. Union Decline & Gig Economy: With more independent contractors and gig work, traditional unions face declining membership and influence. 4. The Modern Debate: Are Unions Still Necessary? Pro-Union Argument: Reduce wage inequality Improve workplace conditions Protect workers from unfair treatment Anti-Union Argument: Can create inefficiencies and raise business costs May discourage job creation or expansion Sometimes prioritize senior workers over new talent Would you like to discuss how labor unions are evolving in today’s economy or their impact on a specific industry?

A report by J.D. Power (2023)claimed that 50% of brokerage firms have seen a 30% increase in young trader accounts since 2021, further confirming this growing trend. Gen Z and younger Millennials actively participate in the markets.

A report by J.D. Power (2023)claimed that 50% of brokerage firms have seen a 30% increase in young trader accounts since 2021, further confirming this growing trend. Gen Z and younger Millennials actively participate in the markets.

#Firstdealofthenewyearastylz Economic Impact of Cryptocurrency Effect on Traditional Banking and Monetary Policy Disintermediation: Banks lose transaction fees as users shift to decentralized systems. Inflation Hedge: Bitcoin is considered digital gold, attracting investors during inflationary periods. Central Bank Digital Currencies (CBDCs): Governments explore state-backed digital currencies to compete. Cross-Border Transactions and Remittances Cryptocurrency reduces remittance costs, particularly in regions with high transaction fees. However, regulatory challenges and volatility pose risks to widespread adoption. Regulation and Taxation Governments impose taxes on crypto trading and mining, affecting profitability and adoption. Clear regulations enhance market stability but may limit decentralization.

#Firstdealofthenewyearastylz Economic Impact of Cryptocurrency Effect on Traditional Banking and Monetary Policy Disintermediation: Banks lose transaction fees as users shift to decentralized systems. Inflation Hedge: Bitcoin is considered digital gold, attracting investors during inflationary periods. Central Bank Digital Currencies (CBDCs): Governments explore state-backed digital currencies to compete. Cross-Border Transactions and Remittances Cryptocurrency reduces remittance costs, particularly in regions with high transaction fees. However, regulatory challenges and volatility pose risks to widespread adoption. Regulation and Taxation Governments impose taxes on crypto trading and mining, affecting profitability and adoption. Clear regulations enhance market stability but may limit decentralization.

The Reserve Bank of Australia (RBA) will meet this Tuesday and is widely anticipated to deliver its first rate cut in four years amid easing inflationary pressures. I am ‘reasonably’ convinced that the central bank will reduce the Cash Rate this week, a belief based on inflation and growth data that delivered prints south of the RBA’s recent projections (released on 5 November 2024). Following nine consecutive meetings on hold, markets are pricing in a 90% probability that the RBA will reduce the Cash Rate by 25 basis points (bps) to 4.10% from 4.35% (per the ASX 30-Day Interbank Cash Rate futures). Markets are also pricing for an additional 50 bps of cuts by the year-end, lowering the Cash Rate to 3.6%.

The Reserve Bank of Australia (RBA) will meet this Tuesday and is widely anticipated to deliver its first rate cut in four years amid easing inflationary pressures. I am ‘reasonably’ convinced that the central bank will reduce the Cash Rate this week, a belief based on inflation and growth data that delivered prints south of the RBA’s recent projections (released on 5 November 2024). Following nine consecutive meetings on hold, markets are pricing in a 90% probability that the RBA will reduce the Cash Rate by 25 basis points (bps) to 4.10% from 4.35% (per the ASX 30-Day Interbank Cash Rate futures). Markets are also pricing for an additional 50 bps of cuts by the year-end, lowering the Cash Rate to 3.6%.

Political endorsements have always had an impact on financial markets especially in recent years. For digital assets, the impact sends shock waves throughout the industry since it is not yet fully matured, as such, any potential policy change could have a ripple effect. For forex markets, investors on the outside are constantly looking to see what other global players are doing in their country to gauge how any policies could affect the country’s political powers or financial strength. Imagine for example you invest in a foreign currency and suddenly the country is at war with another country. The political stability of that country is at risk and as such you and all other investors will most likely pull out your investment just to be safe. How Political Endorsements Affect Cryptocurrency Prices Sentiments largely move cryptocurrency valuations, that is, attitudes or general feelings investors have toward an asset. For example, if investors are optimistic, they expect that prices will rise and so will valuation. This is a bullish sentiment. On the other hand, if they are pessimistic, they expect prices to fall, which usually means they dump their assets. This is a bearish sentiment. So when a politician endorses a cryptocurrency either through a public statement or with a policy proposal, it is like having the government’s backing, which often leads to a bullish sentiment. Similarly, if they criticize a digital asset, it triggers a massive sell-off. Meme coins, for example, owe their success largely to social media hype and political endorsements from people like Elon Musk. If Musk tweets about a meme coin, it could make it to the list of top meme coins in a matter of hours. According to Bitcoinist, the best meme coins to invest in right now include Catslap and Mind of Pepe. Perhaps the most popular endorsement in recent history came from the president of El Salvador in 2021 when he led the Bitcoin Law bill to be passed in the country. The bill made Bitcoin a legal tender, meaning it can be used to carry out formal transactions and has the government’s backing. The value of Bitcoin went from around $31,000 in June 2021 when the bill was passed to around $52,000 in September 2021 when it was officially adopted. This is the power of political endorsements on cryptocurrency valuation. How Political Endorsements Affect Forex Markets The forex market is mostly affected by interest rates and monetary policies. Political endorsements tend to only cause short-term price movements in exchange rates. For example, if a senator proposes a bill that strengthens trade deals that will lead to economic growth for the US, it will positively impact the position of the US dollar in forex markets. Conversely, the same applies if a policy is introduced that could weaken the local currency. If you look at a country like Nigeria, 10 years ago the exchange rate was about 1 USD = 204 NGN. However, due to the country’s monetary policies that have led to rising inflation, the Naira has weakened and today the average exchange rate is about 1,528 NGN to a dollar. Another case study to consider is the case of Brexit and the British Pound (GBP). When key government figures started endorsing the movement, it created a lot of uncertainty in the forex markets resulting in a sharp decline in GBP value. Again, it could be something as simple as feelings (sentiments) that could make a value go up or down.

Political endorsements have always had an impact on financial markets especially in recent years. For digital assets, the impact sends shock waves throughout the industry since it is not yet fully matured, as such, any potential policy change could have a ripple effect. For forex markets, investors on the outside are constantly looking to see what other global players are doing in their country to gauge how any policies could affect the country’s political powers or financial strength. Imagine for example you invest in a foreign currency and suddenly the country is at war with another country. The political stability of that country is at risk and as such you and all other investors will most likely pull out your investment just to be safe. How Political Endorsements Affect Cryptocurrency Prices Sentiments largely move cryptocurrency valuations, that is, attitudes or general feelings investors have toward an asset. For example, if investors are optimistic, they expect that prices will rise and so will valuation. This is a bullish sentiment. On the other hand, if they are pessimistic, they expect prices to fall, which usually means they dump their assets. This is a bearish sentiment. So when a politician endorses a cryptocurrency either through a public statement or with a policy proposal, it is like having the government’s backing, which often leads to a bullish sentiment. Similarly, if they criticize a digital asset, it triggers a massive sell-off. Meme coins, for example, owe their success largely to social media hype and political endorsements from people like Elon Musk. If Musk tweets about a meme coin, it could make it to the list of top meme coins in a matter of hours. According to Bitcoinist, the best meme coins to invest in right now include Catslap and Mind of Pepe. Perhaps the most popular endorsement in recent history came from the president of El Salvador in 2021 when he led the Bitcoin Law bill to be passed in the country. The bill made Bitcoin a legal tender, meaning it can be used to carry out formal transactions and has the government’s backing. The value of Bitcoin went from around $31,000 in June 2021 when the bill was passed to around $52,000 in September 2021 when it was officially adopted. This is the power of political endorsements on cryptocurrency valuation. How Political Endorsements Affect Forex Markets The forex market is mostly affected by interest rates and monetary policies. Political endorsements tend to only cause short-term price movements in exchange rates. For example, if a senator proposes a bill that strengthens trade deals that will lead to economic growth for the US, it will positively impact the position of the US dollar in forex markets. Conversely, the same applies if a policy is introduced that could weaken the local currency. If you look at a country like Nigeria, 10 years ago the exchange rate was about 1 USD = 204 NGN. However, due to the country’s monetary policies that have led to rising inflation, the Naira has weakened and today the average exchange rate is about 1,528 NGN to a dollar. Another case study to consider is the case of Brexit and the British Pound (GBP). When key government figures started endorsing the movement, it created a lot of uncertainty in the forex markets resulting in a sharp decline in GBP value. Again, it could be something as simple as feelings (sentiments) that could make a value go up or down.