Thursday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||49.70||0.81%|
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.
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.
DOW, 4-Hour Chart Analysis
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
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
|9:30||SWITZERLAND||SNB Rate Decision||-0.75%||-0.75%||-0.75%|
|13:00||UK||BOE Rate Decision||0.25%||0.25%||0.25%|
|14:30||US||Core CPI Index||0.2%||0.2%||0.1%|
Key Economic Releases on Friday
|14:30||US||Core Retail Sales||0.5%||0.5%|
|16:00||US||UOM Consumer Sentiment||95.1||96.8|
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