Forex Market: Low Volume on Independence Day

The low volume of the dollar and its transactions in the Forex market is a constant before the holidays.

With 24 hours to go until Independence Day in the United States, major investment firms have time to assimilate the results of a hectic week.

The Forex market also has its days where certain sectors pause, and in this case, the dollar market will close. Since the Independence Day holiday, or 4th of July, will be celebrated on Friday of this year for the US markets

This will allow investors to study their next moves in view of Monday.

With everything that has happened in the United States during this week, it will be good for these entrepreneurs to analyze what will be the smartest move to make.

Low volume of the dollar in the face of the 4th of July

With Wall Street closed for the U.S. holiday, activity is reduced to a low dollar volume this Friday.

Therefore, investors will need to be on the lookout for possible portfolio adjustments that could mean gains or losses for investors.

However, attention is still focused on the U.S. employment figures reported yesterday. These figures once again raise doubts among some experts, as they did in the May report.

The figures updated yesterday by the U.S. Department of Labor were as follows: Non-farm payrolls increased by 4.8 million jobs in June. Payrolls recovered by 2.699 million in May.

The U.S. generated job offers in less than a month, bringing the unemployment rate down to 11.1% from 13.3% last month.

However, the true effect of these figures is expected to be seen on Monday.

This is when investors will reflect on their thinking about trading in the Forex market. For now, the low volume of the dollar is having an effect.

Also, these employment figures are not the only factor that investors are counting on to stop. There are many factors that affect the dollar’s future prospects in the Forex market.

Therefore, there is a lot of uncertainty in the days ahead. The main question is whether the U.S. government will be able to support the reopening of the economy, which only adds to the uncertainty of Monday’s trading.

And with the dollar’s low volume, there is still no accurate analysis of future results.

Will the dollar be able to withstand the economic reopening?

Coronavirus, protests and uncertainty: Is this a good scenario for the dollar?
The stock market has been trying to overcome the many problems that have arisen in an unusually turbulent period in history.

The United States has faced unimaginable scenarios in the first half of 2020. This greatly affected the price of the currency in the Forex market.

And while investors perceived the U.S. currency as a safe haven for their Immediate Edge investments, allowing the dollar to maintain positive gains and statistics in the early months, it remains to be seen what the future holds.

A good example of the positive effects are the figures emanating from two of the most relevant indices in the United States. The Dow Jones and SP 500 have gained almost 40% since the lows at the end of March, when the Coronavirus pandemic broke out.

In addition, this year’s holidays may be of unique importance to markets and to an economy made fragile by the pandemic that has claimed so many lives globally.

However, the George Floyd case promises to affect the foreign exchange market as well. For the promise of increased protests this July 4th, because of this case, only adds to the uncertainty of Monday’s market outlook.

Nasdaq: Winkelvoss Bitcoin Fund could have enormous impact on the news spy

During the conversation with ETF.com, LaValle discussed the impact of the Bitcoin ETF on the broad market.

Overall, he sees a positive future in the news spy of the Winkelvoss twins:

The ETF was first introduced in July 2013 by Bitcoin investors Cameron and Tylor Winkelvoss, and has since gone through the news spy review of approval processes. According to the news spy filing with the Securities and Exchange Commission (SEC), the fund will be traded under the name „COIN“.

During the conversation with ETF.com, LaValle discussed the impact of the Bitcoin ETF on the wider market. Overall, he sees a positive future in the efforts of the Winkelvoss twins:

„I think it is very important to know that we are about to welcome a new asset to the market. The way to initially give investors access to this investable asset through an ETF is a good choice. In a way, it gives credibility to the ETF and emphasises the benefits of an ETF as an investment shell. In this respect, it is also important for the ETF industry.“

It should also not be forgotten that the Winkelvoss twins recently introduced their own Bitcoin price index called WinkDex. The WinkDex will provide market information about the ETF in the future.

Increase in Bitcoin availability

For LaValle, the advantages of a Bitcoin ETF are obvious: „It is much easier for investors to gain market access through an ETF than to buy Bitcoin directly. This makes the digital currency much more attractive and trustworthy for investors, says La Valle.

LaValle to ETF.com:

„There are several ways to get to Bitcoin and each investor can decide which way to go. But I think the way through an ETF gives Bitcoin much more credibility“.

Furthermore, LaValle sees Bitcoin as very dynamic and therefore interesting for investors with the right appetite for risk.

He added that the ETF can be both an interesting trading and investment tool for the interested parties involved, provided that the ETF receives future regulatory approval.

A new way of investing
Asked whether the Bitcoin ETF is an innovation on the market, LaValle replied cautiously optimistically.

The Nasdaq manager said that if the ETF is listed, it offers investors a potentially groundbreaking option. He added that the Bitcoin ETF is certainly a step in an interesting direction from a product generation perspective and that Bitcoin can pave the way for investors.

At the end of the interview DaValle only had one sentence to say:

„Time will tell us how great this innovation will be.“