Daily Analysis: Pound Jumps to 12-Month High amid Crypto Crash as BOE Signals Tightening | Hacked: Hacking Finance
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Daily Analysis: Pound Jumps to 12-Month High amid Crypto Crash as BOE Signals Tightening

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Daily Analysis: Pound Jumps to 12-Month High amid Crypto Crash as BOE Signals Tightening

Introduction

This article was posted on Thursday, 22:00, UTC.

Thursday Market Recap

Asset Current Value Daily Change
S&P 500 2494 -0.04%
DAX 12540 -0.10%
WTI Crude Oil 49.70 0.81%
GOLD 1332.00 0.31%
Bitcoin 3331 -14.48%
EUR/USD 1.1904 0.17%

The Bank of England made headlines today, as the central bank took a huge hawkish step in its monetary meeting. Governor Carney told the press that he and the majority of the bank’s committee are leaning towards tightening in the coming months. The Great British Pound exploded higher against all of the majors after the announcement, and although the currency has already been gaining ground lately, the surprising shift could provide a huge boost. The other, Swiss, central bank meeting didn’t provide any surprises, and forex markets remained calm outside the GBP pairs.

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GBP/USD, 4-Hour Chart Analysis

Stocks were mixed and quiet today, despite the much-awaited CPI report and that came in better than expected and the bearish Chinese Industrial Production number. The US markets were spooked by another report of a possible missile launch in North Korea, while the NASDAQ was still suffering from a mild iPhone X hangover, with the shares of Apple still drifting lower. Safe haven assets pushed slightly higher after the Korean reports, but neither gold nor the Yen gathered strong momentum, as sentiment remained bullish. The DOW hit a new all-time high under the radar, with the S&P 500 and the tech benchmark still hovering below their record levels.

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DOW, 4-Hour Chart Analysis

Cryptocurrencies

All of the major coins are down by double digits today on the Chinese exchange ban, as the ongoing correction in the segment reached a panicky stage. BTC plunged as low as $3300, Ethereum crashed to $225, and the rest of the most traded coins also fell below major support levels in the highly correlated environment. Volatility will likely remain very high in the coming days in the sector, and a panic bottom is likely to form after the broad 30-40% correction.

LTC/USD, 4-Hour Chart Analysis

Technical Picture

Gold has been in an overbought correction amid the improving global sentiment, as the metal got stretched following the break-out above $1300. The key/support resistance level is a likely candidate as the target for the dip, although a decline to $1272 and the next major support zone is also possible. The commodity is trading right at the rising short-term trendline, but we expect a break below the line before the end of the correction.

Gold, 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CET Country Release Actual Expected Previous
3:30 AUSTRALIA Employment Change 54,200 17,500 27,900
3:30 AUSTRALIA Unemployment Rate 5.6% 5.6% 5.6%
4:00 CHINA Industrial Production 6.0% 6.6% 6.4%
9:30 SWITZERLAND SNB Rate Decision -0.75% -0.75% -0.75%
13:00 UK BOE Rate Decision 0.25% 0.25% 0.25%
13:00 UK Monetary Statememnt
14:30 US CPI Index 0.4% 0.3% 0.1%
14:30 US Core CPI Index 0.2% 0.2% 0.1%
14:30 US Unemployment Claims 284,000 303,000 298,000

Key Economic Releases on Friday

Time, CET Country Release Expected Previous
14:30 US Core Retail Sales 0.5% 0.5%
14:30 US Retail Sales 0.1% 0.6%
15:15 US Industrial Production 0.1% 0.2%
16:00 US UOM Consumer Sentiment 95.1 96.8

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Mate Cser

Mate Cser

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.

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