Daily Analysis: Pound Falls Again as Stocks Decline Globally
Monday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||56.72||0.12%|
The decline in Asian and European equities continued, but the major US indices are still holding on strong, even as a large number of stocks are not confirming the rosy picture. The Middle East situation continues to weigh on global sentiment, as the tensions between Saudi Arabia and Iran are still in the center of attention.
In the UK, Theresa May’s positions are shakier than ever, and that added to the downward pressure in the region today, with the DAX and the EuroStoxx 50 both underperforming their US peers. British sources reported a declining support for the PM’s on party, with 40 tory members signing a letter of no-confidence.
DAX, 4-Hour Chart Analysis
Apart from the tumbling Pound, currencies have been quiet, although the Dollar has a slight edge compared to the other majors, even as the struggle regarding the GOP tax plan continues. Commodity currencies were notably struggling, despite the bounce in the price of gold and oil’s drift higher. Crude oil’s fundamental outlook improved according to the OPEC, as the cartel’s production declined substantially in October, while demand is forecasted to increase next year.
GBP/USD, 4-Hour Chart Analysis
The crypto segment saw record trading activity in recent days, thanks to the unprecedented rise and fall of Bitcoin Cash that basically exchanged market share with the Bitcoin in gigantic amounts. Today’s session was all about the vicious oversold rally in BTC that decimated its contender compare to BCH’s weekend highs, even though the coin remains well above its previous all-time high, not to mention its recent lows near $300.
BCH/USD, 4-Hour Chart Analysis
Altcoins are also very active today after the crazy weekend, with Dash still being in the spotlight thanks to its spike and the following correction, while the rest of the market has been hectic and divergent. Ethereum Classic got dumped below the $16 level after a spike above $20, while IOTA struggled at the $0.64 level after a strong rally, not unlike Monero concerning the $125-$130 price zone. Ethereum and Litecoin showed signs of relative strength, while NEO also recovered well after a period of weakness, with only Ripple being stuck in no man’s land.
IOTA/USD, 4-Hour Chart Analysis
Key Economic Releases on Monday
|19:45||JAPAN||BOJ Governor Kuroda Speaks||–||–||–|
Key Economic Releases on Tuesday
|02:30||AUSTRALIA||NAB Business Confidence||–||7|
|12:00||EUROZONE||ECB President Draghi Speaks||–||–|
|12:00||GERMANY||ZEW Economic Sentiment||19.8||17.6|
Featured image from Shutterstock