Raoul Pal, chief executive officer of Real Vision, believes economic data scheduled for publication this week might provide a boost to the crypto and stock markets.
The former Goldman Sachs executive informs his 975,000 Twitter followers that he is closely monitoring the US dollar index (DXY), which is now experiencing a parabolic rise.
Traders often track the performance of the DXY because a strong index indicates that investors are selling risky assets such as equities and cryptocurrencies in favour of the US dollar. Pal feels that the DXY will most likely continue its climb.
“There is virtually nothing until 120 if this trend line is broken… And divergence from trend indicates it may also reach 120…”
The former Goldman Sachs executive observes that the dollar’s rise may pose issues for crypto and equity investors this week, but he contends that there may be a silver lining for both sectors.
“I don’t believe stocks will reach new lows, but I’m not certain. same for cryptography I believe that this week’s bad economic statistics will rescue us.”
The ISM manufacturing index, a measure of US economic activity, and nonfarm payrolls, which monitor the total number of paid employees in the nation, are scheduled for publication this week.