Monday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||46.77||1.56%|
The suspicious Friday session turned out to be a short-term bottom at least, for the US Dollar, with the Greenback rallying against the Euro, back to the pre ECB pump levels. While the advance started after the worse than expected European Manufacturing PMI’s, we will have to probably wait until Wednesday, the end of the long US “weekend’, to get a clear picture of extent of rally. Stock markets are quiet, with very low volumes, and that will likely be the case tomorrow as well, but these low volume days are often great tells about the underlying trends, as the big “algorithmic” firms cause less noise, revealing more of the basic price pressures.
Dollar Index 4-Hour Chart Analysis
Oil’s rally continues to dominate the commodity segment, while gold got hit hard once again, falling below its recent low as the central banks’ supposed tightening cycle remains the main topic. That is also reflected in bonds, as US Treasuries are falling for the second week in a row, with short-term yields still outpacing the longer end of the curve, flattening the already unhealthy yield curve. “Flat “ yield curves are usually signaling a weak economic environment, and this trend might continue, especially if the coming economic numbers will keep on disappointing in the US.
The crypto market is still consolidating after the strong moves of last week, although bullish signs are popping up across the board, and sentiment is also getting pessimistic enough for a major low to develop. The next two days might be crucial for the market, as s new swing higher could kick-start a rally, but another downswing would mean more frustrating sideways action in the major coins. Litcoin is moving up towards its prior highs today, while Bitshares, Antshares, Dash, and Stratis are also moving higher, as correlations are back to normal following the concerted moves of late last week.
Litecoin, 4-Hour Chart Analysis
The DAX bounced back to the crucial support resistance zone that it violated on Friday, as the Euro’s weakness helps European equities today, and the bounce in US equities also provides a good background. That said, the short-term trend remains clearly negative and more corrective action is likely, but the bounce could last for a couple more days, until normal trading resumes on Wednesday.
DAX 4-Hour Chart Analysis
Key Economic Releases on Monday
|1:50||JAPAN||Tankan Manufactring Index||17||15||12|
|1:50||JAPAN||Tankan Services Index||23||24||20|
|3:45||CHINA||Caixin Manufacturing PMI||50.4||49.9||49.6|
|16:00||US||ISM Manufacturing PMI||57.8||55||54.9|
|16:00||US||Vehicle Sales||–||–||16.7 mill|
Key Economic Releases on Tuesday
|6:30||AUSTRALIA||RBA Rate Decision||1.50%||1.50%|
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