Daily Analysis: Pound Skyrockets as Theresa May Calls For UK Election

Tuesday Market Recap

Asset Current Value Daily Change
S&P 500 2341 -0.15%
DAX 12043 -0.54%
WTI Crude Oil 52.80 -0.27%
GOLD 1283.50 0.22%
Bitcoin 1210 2.71%
EUR/USD 1.0690 0.44%

 

Global stocks are slightly lower today following the long Easter weekend, as political news have been dominating headlines. The North Korean tensions continue to build, while the controversies regarding the Turkish referendum and today’s announcement by PM added more uncertainty to the mix. Turkish assets are still slightly higher than their pre-election levels, as investors fear that the current situation is far from stable. European stocks continue to underperform their US peers in the short-run, while the Japanese Nikkei is still the weakest major benchmark, as the Yen remains strong.

The Pound rocked the forex market today with a powerful bullish move after the shocking May statement. All European currencies are trading higher following the news, but the shines the most, being almost 1.5% higher than the USD and close to 1% higher than the Euro. The currency already found relative strength before this week, but the snap election gave another boost to the Pound. Gold got close to the $1300 level yesterday amid the political fears, but the Shiny Metal entered a correction following a bounce in stocks, with crude oil also drifting lower after a blowout week.

GBP/USD 1-Hour Chart Analysis

Ethereum is still among the most promising cryptocurrencies today, as it continues to flirt with the $53 resistance, probably preparing for a major move higher. Bitcoin also seems to give another try to the $1215 resistance after getting close to $1150 over the long weekend. A break-out above last week’s highs could quickly lead to an assault on the $1300 level. Dash also built up some relative strength last week after its deep correction, and it’s now back near the $75-$78 resistance zone. Litecoin is still below its prior high as, continuing its sideways consolidation, similarly to Monero.

Ethereum 4-Hour Chart Analysis

Technical Picture

S&P 500, 4-Hour Chart Analysis

The S&P 500 continues to trade in the broad consolidation pattern that started in early March, with the 2350 level still being in focus. The low volume breakdown on Friday was followed by a bounce yesterday, as the lows from March are still holding firmly. Bears are slightly running out of time here, as the declining trendline is approaching a current price. If the bearish momentum fades, we could see a rally towards the prior all-time highs as early as next week.

Key Economic Releases on Tuesday

Time, CET Country Release Actual Expected Previous
14:30 US Building Permits 1.26 million 1.25 million 1.22 million
14:30 US Housing Starts 1.22 million 1.25 million 1.30 million
15:15 US Industrial Production 0.50% 0.50% 0.0%

 

Key Economic Releases on Wednesday

Time, CET Country Release Expected Previous
11:00 EUROZONE Final CPI 1.50% 1.50%
16:30 US Crude Oil Inventories -2.2 million
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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.