Coming Week: Stocks Mostly Bullish, Cryptocurrencies Going for New Records?
|Asset||Current Value||Weekly Change|
|WTI Crude Oil||52.23||2.78%|
5 Things to Watch Next Week
- Will the Syrian situation escalate further?
Although wars are far from being 100% negative for stocks, the Syrian conflict has the potential of becoming a threat to global sentiment. Any involvement of Russia against US forces could turn into a very serious power struggle. Despite the fact that it would be beneficial for all sides to reach a stable state in the already destroyed country, it’s hard to see a quick resolution without international cooperation.
- Will Yellen stop the Dollar rally?
The US Dollar has been among the strongest major currencies this week despite the recent move towards monetary tightening by the ECB and the BOJ. The first major event of the week will be the speech of Fed chair Janet Yellen, and any hint of caution by the most powerful central banker could lead to a quick decline in the value of the Greenback.
The Dollar Index (DXY) is creeping towards its prior highs, Daily Chart
- What’s next for Bitcoin?
The most important cryptocurrency had a blowout week as it rallied relentlessly through several technical levels, despite the sometimes weakening momentum. The negative change in global sentiment in the second half of the week also helped the newest safe-haven asset. Although the technical setup is mixed, there is a clear chance of a powerful thrust towards the all-time high near $1300. The first days of the week could prove crucial for BTC traders.
- Will US stocks prove literally bulletproof?
Although stock markets saw some weakness after the Syrian attacks, they ended the week only with slight losses, even as the global leader, the DAX, experienced a correction. US stocks continue to hover just below their all-time highs, and it is possible that we will see a thrust to new highs once again, barring a serious political escalation between Russia and the US.
- A busy Friday despite the Easter- break.
With several European markets being closed on Friday (and on the next Monday) financial markets might be in a limbo towards the end of the week, but the most awaited US economic numbers will still come out on the last session before Easter. The retail sales and CPI reports are both closely watched by the Fed, and in the current market, the Fed is arguably the most influential player.
In Focus: Cryptocurrencies
1-month performance of the main cryptocurrencies, (% gains)
Litecoin is consolidating near the $10 level this weekend, and it jumped to the second place in the monthly performance chart of the major altcoins after its strong breakout, teaming up with Ethereum with a gain of 180%. Ethereum has been relatively quiet this week as it remains in a holding pattern below the $50 level. Bitcoin’s climb towards the $1200 level was impressive last week, but the dominant player of the market might face strong resistance before a charge towards its all-time high.
Dash and Monero have been glued together recently and they are both drifting higher since Friday, and a renewed rally is a distinct possibility for both currencies next week. Ripple is, not surprisingly, the leader of the monthly performance chart, even after the epic “pump-and-dump” breakout that ended in a swift and painful more than 50% correction. The overall picture is still positive for the cryptocurrency market as the majors are experiencing strong inflows, even if the volatile environment makes it that much harder to look at the big picture.
|Currency||Monthly Volume||Market Cap|
Key Economic Releases of the Week
|Monday||US||Janet Yellen Speech||–||–|
|Tuesday||GERMANY||ZEW Economic Sentiment||13.2||12.8|
|Wednesday||CANADA||Base Interest Rate||0.50%||0.50%|
|Wednesday||US||Crude Oil Inventories||–||1.6 million|
|Thursday||CHINA||Trade Balance||76 billion||-60 billion|
|Thursday||US||Initial Jobless Claims (weekly)||242,000||234,000|
|Thursday||US||UOM Consumer Sentiment||97.1||96.9|
|Friday||US||Core Retail Sales||0.20%||0.20%|