Non-Farm Payrolls (NFP), Ethereum Fork (ETH) & Robinhood (HOOD) – FinTwit Trends to Watch


POSITIVE U.S. JOB GROWTH AS NFP’s PRINT ABOVE EXPECTATIONS

Employment data improved on estimates (see calendar below) with both NFP and unemployment rates marginally improved. While inflation concerns have been largely dismissed by market participants, recent disappointing employment data has been under the spotlight. Now that employment data is showing signs of recovery, pressure on the Federal Reserve will be more fierce than ever to bring forward QE tapering.

Source: DailyFX economic calendar

The U.S. dollar has responded positively to the news with DXY price action testing the 23.6% Fibonacci level at 92.63 (Fibonacci taken from March 2020 high – January 2021 low). Emphasis will now turn to the Jackson Hole meeting in late August for further guidance.

DOLLAR INDEX (DXY) DAILY CHART

US dollar index daily chart

Chart prepared by Warren Venketas, IG

ETHEREUM FORK WELL RECEIVED BY MARKETS

This week the cryptocurrency fraternity has been promoting the most recent Ethereum fork which is basically an upgrade to the current blockchain system. This happens regularly however, this specific fork dubbed the “London hard fork” has claimed headline news due to significant changes that is aimed at resolving prior issues that have negatively impacted the Ethereum system. Two major changes include:

  • Reduction in transaction costs (EIP – 1559)
  • Less appeal for miners which could eradicate mining all together which supports environmental concerns

This is great news for the digital coin but sceptics will remain cautious as they await further directives from regulators. Ethereum may surpass Bitcoin according to some analysts as the coin is now more scalable for real world applications.

ETHER (ETH) DAILY CHART

Ether daily chart

Chart prepared by Warren Venketas, IG

Ether has been extremely bullish since late July pushing off June lows and is quickly approaching the $3000 psychological level. Bullish crossovers highlighted by the EMA indicator confirms this uptick. The Relative Strength Index (RSI)is currently in overbought territory and could point to a consolidation around the $2900 and $3000 levels. Fundamentals will continue to drive price movement so any updates on the Ether fork need to be closely monitored.

ROBINHOOD DROPS AFTER MASSIVE RALLY DRIVEN BY OPTIONS TRADING

Robinhood (HOOD) recouped after a dismal IPO last week but seems to be losing momentum once more. Wednesdays options fueled rally has since dissipated (see chart below) which is cause for concern by more risk averse investors. The volatility surrounding Robinhood this week suggests uncertainty with many analysts favoring further downside. Several insiders are now allowed to sell their holdings which may be causing the wild swings (downside) in price action – albeit only a percentage of holdings at this point in time.

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ROBINHOOD DAILY CHART

Robinhood daily chart

Chart prepared by Warren Venketas, Refinitiv

— Written by Warren Venketas for DailyFX.com

Contact and follow Warren on Twitter: @WVenketas





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