27.07 - what is the best currency for trading?
Markets displayed strength after Facebook took down NASDAQ.
Boy, is it going to take a lot of time for the Facebook stock to set recover from yesterday's rally after which the stocks of the company lost as much as 24 percent of the value. The shake came right after the financial report of the company saw the world. Before issuing of the report stocks were at all-time high for Facebook as they grew 23 percent since the beginning of the year. So, virtually all of the gains made by the shares were wiped out in just one day.
In just a few minutes as much as $150 billion dollars was lost by the social network. The main reason for the crash was the fact that the number of Facebook users has fallen down in Europe by 3 million people while remaining unchanged in USA and Canada. So, as it was pretty easy to predict, users decided not to stand and watch their personal data being sold to the third parties in order to be used in political games without even their knowledge. A lot of people are leaving the social network even though the number of users is still higher than 1 billion.
Moreover, Zuckerberg claims that in the nearest futures sales are going to fall even more. But his main thought was that he rules the company all the time and not in this quarter only. The strategy assumed by the company is very clear and very positive. They are focusing their attention on the far future and not on the now when there are failures as big as this one involved.
Shifting the focus on the possible future gains is not the new tactics but it is the best one in this situation. The position assumed by Zuckerberg is saying that Facebook stock is perfect for longing right now as there is going to be growth in the future. And it is possible that he will be able to improve the situation and escape the money being drawn away from his business by making new investors and traders long their shares. Perfect solution for now.
The fall made a record on the US markets with being the only instance when US traded company lost as much as Facebook did in just one day. Zuckerberg himself lost nearly $20 billion.
What is the best currency in the world? Traders will probably say that it is dollar or euro because of how wide spread they are. It certainly wouldn’t be Chinese yuan and Japanese yen as they have been at their worst performances this year. So, what is it then? You would have never guessed, but it is Mexican peso. Since the beginning of July, it is up by 7 percent. And it is the growth under the circumstance that Mexico asked for the loan from other countries in order to boost the growth. Well, it seems that the plan worked after all.
But what is the reason for such rapid growth? There has been absolutely no imputation for the growth especially given that USA subjected Mexico to the USA and Trump is trying to discredit Mexico by putting a wall on the US-Mexican border and Trump absolutely refusing to negotiate with its southern neighbor. But we think that there is a good reason for the growth – NAFTA negotiations.
It seems that Mexico finally found some understanding with its NAFTA partners and the negotiations can finally move forward. And as a result, already growing peso gains more and more hope poured into it. Ans we can see more growth in the upcoming month, as we think. Although there has been no straight contact between Trump and Mexican president Lopez Obrador we all remember the friendly nod Trump gave to Obrador when he was just elected on the position. Back then [elections took place July 1] we believed that the relations of the two countries can really improve.
NAFTRE talks are going to resume today and we think that peso will display something new after it. New height? More growth? Boy, do we hope so. Watching peso gaining like that in the current situation is just a blast. It is refreshing to see the currency that can stand on its own even though dollar is falling and getting up again around it. With so much pressure from the world markets peso might just be the next best thing for traders right now.
We hope to see more performance like that in the world markets but right now we will settle for more growth from peso.
- by Anna K.