Daily Analysis: Pound and Stocks Tank as Bank of England Warns of Brexit Risks

Thursday Market Recap

Asset Current Value Daily Change
S&P 500 2381 -0.47%
DAX 12675 -0.71%
WTI Crude Oil 47.88 1.16%
GOLD 1224.00 0.12%
Bitcoin 1835 4.45%
EUR/USD 1.0863 -0.02%

The Bank of England was in the center of attention today, as the central bank held its scheduled monetary meeting with the ongoing Brexit process in focus. BOE governor Carney revealed that the bank has no plans for a “disorderly” Brexit, while warning of the negative economic impacts, and that together with some bearish economic releases put pressure on the Pound. Stock markets are broadly lower so far, following some worse than expected earnings reports from Europe. US indices are the weakest link globally today, as the S&P 500 is still suspiciously lagging its international peers despite the NASDAQ’s recent rally.

Commodities continued to stabilize with oil leading the way after yesterday’s favorable US inventory data. WTI Crude is back above $48 per barrel, although the OPEC warned of further supply pressures on the market. Industrial metals are also higher thanks to the rebound in China. Gold remains under pressure, despite the slightly negative sentiment and the bounce in the Yen, with the $1220 level still being in focus.

Oil Futures, 4-Hour Chart Analysis


The cryptocurrency market settled down today, although Litecoin remains active after yesterday’s wild moves. LTC is trading 10% lower but still above the $30 level. Bitcoin is rallying again posting a marginal new high during the session. Ripple, NEM, Ethereum Classic, Monero, and Dash are little changed while Ethereum is edging higher. The total capitalization of the coin market is above $53 billion thank to the strength of BTC, with the Asian session giving yet another boost to the currency.

Bitcoin, 4-Hour Chart Analysis

Technical Picture

The S&P 500 started today’s session with a quick break lower, as the internal weakness translated into bearish price action after a period of “levitation”.  The rising short-term trendline is already in play as the benchmark exited the previous holding pattern.  The 2377.50 support is the next level of interest while the 2350-2355 zone serves as the line-in-the-sand support for the long-term bullish trend. The NASDAQ and the main European indices are following the S&P lower, so far, as volatility spiked higher in early trading.

S&P 500, 4-Hour Chart Analysis

Key Economic Releases on Thursday

Day Country Release Actual Expected Previous
9:15 SWITZERLAND CPI Index 0.20% 0.20% 0.20%
10:30 UK Manufacturing Production -0.60% -0.20% -0.1%
13:00 UK Official Bank Rate 0.25% 0.25% 0.25%
13:00 UK Monetary Statement
14:30 US Initial Jobless Claims 236,000 245,000 238,000
14:30 US PPI Index 0.5% 0.2% -0.1%
14:30 CANADA NHPI Index 0.20% 0.3% 0.4%


Key Economic Releases on Friday

8:00 GERMANY Prelim GDP 0.6% 0.4%
14:30 US CPI Index 0.20% -0.30%
14:30 US Core CPI 0.2% -0.1%
14:30 US Retail Sales (monthly) 0.60% -0.20%
14:30 US Core Retail Sales 0.50% 0.00%
16:00 US UOM Consumer Sentiment 97.0 97.0


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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