|Asset||Current Value||Weekly Change|
|WTI Crude Oil||44.68||-2.24%|
Central banks and cryptocurrencies stole the show this week, as the Bank of England, The Bank of Japan, the SNB, and most importantly, the Federal Reserve all held their monetary meetings, while the coins went through a major correction that shook the dominance of Bitcoin. The banks sent unusually mixed signals, with the Fed alone causing confusing reactions in the different assets classes. The BOE also shocked the market with a very hawkish vote, while the BOJ reacted to the recent strength of the Yen in the only way that it possibly could, reiterating its uber-easy policies
Donald Trump continues to be under fire regarding his campaign’s Russian ties, but the market more or less ignores the scandal, even given the heavy media concentration. The flash-crash of the big tech names last Friday is something that is still making waves, as the NASDAQ remains technically wounded, and that could drag down global stocks in the coming week, despite the proximity of the all-time highs. The other major markets were generally flat, with the Japanese Nikkei outperforming in the second half of the week, as the Yen got weaker.
The Dollar’s rebound was all the rage in the fiat-currency world, although the Greenback ended the week on a negative note following the notoriously coming misses in the US economic indicators. Oil led the way lower for commodities lately, and the WTI contract is currently below $45 per barrel, while gold fell to $1250 and industrial commodities also remained under pressure.
WTI Crude Oil, 4-Hour Chart Analysis
-30%. Almost all major coins registered losses near or above that level this week, and although most of them are back way higher, the shadow of the correction is still on the market and on traders. Bitcoin triggered the broad sell-off, although Ethereum was also ripe for a deeper decline according to the long-term picture. Our pick Litecoin emerged strongly from the move lower, as it catapulted to new all-time highs today, hitting our trading target in the process. Ethereum rebounded by $100 or 40% in two days, and it sits 10% below its all-time highs, with BTC being down by 15%. Ripple, NEM, and Monero are the current laggards, while Dash and Ethereum Classic are holding on above their break-out levels from last weekend. The total value of the coin market is also back above the $110 billion level after falling below the $100 billion mark.
Litecoin, 4-Hour Chart Analysis
Economic releases were negative concerning most of the major countries once again, with the US indicators disappointing across the board. The CPI index and retail sales both missed by a mile, and although the Fed remained hawkish in the face of the deterioration, the bond market tells a different story, with US yield hitting a seven-month low during the week. Australia and Canada delivered some good numbers, with the Employment Report and Manufacturing Sales surprising on the upside respectively. European indicators were mixed, with the UK showing weakness (retail sales, employment) and the Eurozone inflation finally matching expectations.
NASDAQ 100 Futures, 4-hour Chart Analysis
The NASDAQ remained in the centre of attention this week, after the tech giants flash-crashed on last Friday, which caused nervous trading throughout the period, even as central banks took centre stage. The benchmark also finished the week on a negative note, following the announcement of the acquisition of Whole Foods by Amazon. The index finished near the recent lows, and it might be ready to hit new short-term lows next week, and test the long-term trendline near 5600.
Key Economic Releases of the Week
|Monday||US||Federal Budget Balance||-88.4 bill||182.4 bill||182.4 bill|
|Tuesday||AUSTRALIA||NAB Business Confidence||7||–||13|
|Tuesday||GERMANY||Zew Economic Sentiment||18.6||21.8||20.6|
|Wednesday||US||Core Retail Sales||-0.3%||0.2%||0.3%|
|Wednesday||US||Crude Oil Inventories||-1.7 mill||-2.3 mill||3.3 mill|
|Wednesday||US||Fed Interest Rate Decision||1.25%||1.25%||1%|
|Wednesday||US||Fed Monetary Statement||–||–||–|
|Wednesday||EUROZONE||ECB Monetary Statement||–||–||–|
|Thursday||SWITZERLAND||SNB Monetary Statement||–||–||–|
|Thursday||UK||BOE Monetary Statement||–||–||–|
|Thursday||US||Philly Fed Index||27.6||25.5||38.8|
|Thursday||US||Initial Jobless Claims||237,000||241,000||245,000|
|Friday||US||Building Permits||1.17 mill||1.25 mill||1.23 mill|
|Friday||US||Housing Starts||1.09 mill||1.23 mill||1.17 mill|
|Friday||US||Prelim Consumer Sentiment||94.5||97.2||97.1|
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Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.