Daily Analysis: Fed Disappoints Markets as Litecoin Hits 3-year High

Thursday Market Recap

Asset Current Value Daily Change
S&P 500 2353 -0.74%
DAX 12215 -0.48%
WTI Crude Oil 51.61 -0.14%
GOLD 1255.55 0.43%
Bitcoin 1158 2.77%
EUR/USD 1.0657 -0.07%


All eyes were on the Federal Reserve and the European Central Bank yesterday evening and so far today, as the minutes of both central banks’ previous monetary meetings were released.  Global stocks took a nosedive after the Fed’s announcement, despite having a bullish session up until then. Members of the FOMC think that the bank should reduce its balance sheet this year, with some of the governor stating that stocks look “fairly expensive”. The major indices slid even lower overnight before the ECB’s release. Increased volatility is expected later on today, as Donald Trump meets Chinese Prime Minister Xi for the first time in his tenure.

The Yen was the winner among the post-Fed environment among the major currencies, as the Dollar was pushed slightly lower. Gold jumped back to the key $1260 level again, but the rally stalled at the same resistance as stocks rebounded. Currencies are little changed today, as the Euro seems to be glued to the 1.0650 zone compared to the Greenback. Oil also turned volatile following the meeting minutes yesterday, and it fell back towards the $50 level before recovering in a strongly bullish fashion today.

Bitcoin found strength amid the gloomy global sentiment overnight, and the main Cryptocurrency surged past the $1150 level to hit a new three-week high. Litecoin is dominating the altcoin market again after jumping over the $10 level overnight for a 25% gain. LTC is consolidating below its recent maximum, which is the highest level of the coin since the summer of 2014. Dash and Ethereum are still moving in tandem, this time falling back near the $70 and $45 levels respectively.  Monero drifted below $20 yesterday after a failed break-out attempt, while Ripple hit $0.03 as it started another leg in its correction.

Litecoin, 4-Hour Chart Analysis


Technical Picture

S&P 500, 4-Hour Chart Analysis

The S&P 500 shot up in the early parts of the Wall Street session, to test the declining trend-line before plunging right back below the line-in-the-sand support/resistance zone between 2350-2355. The DAX remained slightly weaker with the Nikkei hitting an 11-week low this morning as the strength of the Yen continues to weigh on Japanese equities.

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
8:00 GERMANY Factory Orders (monthly) 3.40% 3.50% -0.80%
13:30 EUROZONE ECB Meeting Accounts
14:30 CANADA Building Permits (monthly) -2.50% 1.40% 5.40%
14:30 US Initial Jobless Claims (weekly) 234,000 251,000 258,000


Key Economic Releases on Friday

Time, CET Country Release Expected Previous
14:30 CANADA Employment Change 5,700 15,300
14:30 CANADA Unemployment Rate 6.70% 6.60%
14:30 US Hourly Earnings 0.20% 0.20%
14:30 US Employment Change 175,000 235,000
14:30 US Unemployment Rate 4.70% 4.70%
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.