Daily Analysis: Stocks Bounce Back as Trump Plays War Card & Bitcoin With a New High
Friday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||50.20||1.72%|
Stock markets jumped higher after an initial break yesterday, and they are trading near yesterday’s closing prices today. The renewed US attacks in Syria triggered the surge on Thursday, as fears regarding Trump’s latest scandal remain prominent. The major indices are still well below their prior highs, and volatility is still much higher than the recent norm. The US Dollar has been the biggest loser of the political turmoil, as rate hike odds took a nosedive, and the President’s future policies are also in doubt now. Correlation between the main exchanges is strong since Wednesday’s slump, and that is expected to continue until volatility remains elevated.
Oil got a huge boost yesterday, as the Syrian escalation and previous favorable fundamental news, together with the OPEC’s production cut extension propels the commodity higher. The Japanese Yen and gold are off their weekly highs thanks to the improved sentiment, while the Euro continues to hit new 7-month highs against the struggling Dollar. The other European majors are also rallying, with the Pound being back above the crucial 1.30 level, while the Swiss Franc also trading on a new multi-month high. The Australian Dollar and the Canadian Dollar have also bounced back after their extended decline, although industrial commodities remain under pressure, as the Chinese situation is still negative.
The cryptocurrency boom is back in full force after a brief correction, as Bitcoin, Ethereum, NEM, Dash, Monero, and Ethereum Classic are all sharply higher today. Ethereum is up by more than 20%, clearing the $100 level with ease this time, while NEM added another 35% following yesterday’s surge. Bitcoin is hitting new all-time highs today as well, as it’s closing in on the $2000 mark, just a few weeks after rising above $1500 for the first time. Ripple is the weakest major after it’s remarkable rise in the past week, as it seems to be finding support around the $0.35 level. Litecoin is slightly higher, and it’s holding up well above the $25 level, although the relative weakness might be suspicious amid the broad rally.
Ethereum, 4-Hour Chart Analysis
The DAX has been following the US indices lower this week as the Trump scandal hurt global risk assets. The German benchmark is clearing its overbought condition that emerged following the French election rally, while the strength of the Euro is also slightly hurting European stocks. The crucial support level near 12,575 stopped Wednesday’s declined, and the DAX recovered above the 12,600 level today, but it’s still shy of the previous highs near 12,800. The index is back in the dominant long-term trend channel as well, while the MACD is showing neutral readings once again, after an extended overbought period.
DAX, 4-Hour Chart Analysis
Key Economic Releases on Friday
|14:30||CANADA||Core Retail Sales||-0.20%||0.20%||-0.10%|