A Review into Which currency pairs benefited from financial crisis 2007-2008

The stock market has been rising in spite of the covid pandemic. Even before that, some well-known names were predicting a huge cruse with Peter Schiff republishing his same old book every year for some time now. Anyway, many of us agree, that there is something wrong with the markets and even more reputable managers predict a crash. It is, therefore, a good idea to look where the money tends to go should that happen.

Forex is a central point of the financial markets. Bonds, stocks, and commodities each is denominated in a currency. Buying the right asset from the right asset class is great. Buying it with the right currency is even greater ☺

One of the winners is clearly an American Dollar. I will leave it in all the following charts. After a long downtrend, the crisis put a halt to that and in 130 days, 860 days worth of losing the value was recovered . Of course, such rapid growth in currency value must have made exports difficult, so I assume there must have been some major intervention and the downtrend resumed after a beautiful double top .

(the chart below dollar is SP500 as another anchor for our analysis)

Then, there are two losers in this chart. It is important to mention two things. First, the charts present futures as the other indexes don't go as far. Second, a weak currency doesn't mean the country handled the crisis poorly. But as far as currencies go, AUD and EUR did perform rather poorly. // I think this is likely to be a repeated behaviour. AUD is still a commodity currency and EUR pegs diverse economies to each other. This raises a question about stability as successful currencies require political and economical union too. 

Oil currencies such as NOK or CAD seem to also have dropped. I added Oil chart at the bottom. // I do think that this is likely to repeat with NOK , but not necessarily with CAD. Although the CAD is another commodity currency, it is perceived as safer to some degree. At least as far as I know.
(could not find reliable NOK index) 

When it comes to currencies generally perceived as safe, Yen performed nicely and has risen more than 25% measuring from the lowest low between 2008 to the nearest significant top. The pair USDJPY was sideways-ish before the years 2007-2008 but is clearly downward-slope as Yen somewhat outperforms US Dollar . The same can't be said about the Swiss Franc which has only woken up after the dollar started to reverse. You can point out several weekly candles when the investors were rushing from the dollar and buying CHF in exchange in these times. // I think a Yen will express similar behavior. I am not sure what to make of CHF which is backed by gold more than other currencies and the gold has already risen quite high.


I will leave it here without further interpretation, but I am looking forward to discussion if there is one, and I will make a few more similar posts in the future if this one becomes any popular.

Facebook Might Reveal their BitCoins Holdings Tomorrow

🇬🇧Guys we have that rumour in the market so we will hold our long positions, if this news is true we will have a great opportunity, so that's a great news!! Let's see what happens!! 

Long term/ middle 1 day or 2 days 

Good luck!!🤑🤞🏼

Facebook May Reveal Holding Bitcoin Tomorrow: Unconfirmed

https://u.today/facebook-may-reveal-holding-bitcoin-tomorrow-unconfirmed

Is Facebook holding Bitcoin secretly?

Among these influencers are Jason A. Williams, partner at Morgan Creek Digital, British entrepreneur and investor Alistair Milne, and Mira Christanto, senior research analyst at Messari.

The latter has assumed that the current rise of Bitcoin back above the $53,000 level may be due to Facebook buying Bitcoin, whereas the recent plunge below $48,000 was due to Tesla selling 10 percent of its BTC holdings.

Alistair Milne took to Twitter to say that, according to a rumor circulating around Crypto Twitter, Facebook has Bitcoin on its balance sheet. The rumor states that the company will reveal this fact after releasing its quarterly results when trading closes tomorrow: April 28.

If it happens, it would be taken as a major bullish signal by the community and is likely to trigger another Bitcoin rally.

It may have a similar effect on the market as when Elon Musk announced Tesla had bought $1.5 billion worth of Bitcoin earlier this year.

However, today it turned out that the e-car producer had sold 10 percent of its BTC stash to prove Bitcoin's liquidity. However, Musk confirmed that he has not sold any of his Bitcoin (surprise, surprise: he had never announced he held any, except for the 0.25 BTC he received as a gift in the past).

Image via Twitter

Related

Facebook to Release USD-Backed Stablecoin Diem for Trials This Year – Rebranded Libra

Facebook busy preparing to launch its Diem stablecoin

Facebook's holding Bitcoin would sound logical since the company is taking its second global attempt to enter the cryptocurrency space. The first was Libra stablecoin tied to a basket of leading fiat currencies and now with Diem, a USD-pegged currency.

As reported by U.Today previously, the Diem Association is now in the process of securing a payments license from regulators in Switzerland and plans to roll out Diem trials later this year.

Libra was unsuccessful since it faced strong resistance from lawmakers and central banks all over the world, who feared that the stablecoin from Facebook would disrupt financial and payments systems around the world.

China also became worried about that and tripled its efforts to test the digital yuan, DCEP.