Markets Calm Before Central Bank Madness

Wednesday Market Recap

Asset Current Value Daily Change
S&P 500 2460 0.13%
DAX 12434 0.04%
WTI Crude Oil 46.55 0.32%
GOLD 1242.00 0.00%
Bitcoin 2350 -0.03%
EUR/USD 1.1530 -0.21%

Financial markets are very calm once again, with yesterday’s most active European equities also virtually unchanged. The Dollar also settled down after its strong decline, regaining some of the lost ground with the bounce of its 12-month lows. US stocks are hovering just below their all-time highs, with the previously weak NASDAQ being the strongest of the major indices. The US housing market rebounded from its recent negative spell, as Housing Starts and Building Permits both beat the consensus estimates in June.

NASDAQ 100 Futures, 4-Hour Chart Analysis

Currencies are close to yesterday’s closing prices with only the Yen rallying before tomorrow’s Bank of Japan rare decision and monetary statement. The BOJ is facing a stronger than before headwind regarding its extremely easy monetary policies as the Fed already started raising rates while the European Central also signaled a coming tightening cycle. As the ECB is also holding its monetary meeting tomorrow, volatile conditions are expected throughout the day for FX traders, while today’s afternoon session could be a choppy one, as lots of traders will take a step back before the decisions.

USD/JPY, 4-Hour Chart Analysis

Cryptocurrencies

The crypto market is having a volatile but very bullish day so far, with most of the majors gaining significant ground after the one-month long correction and the weekend’s panic move in Ethereum. ETH almost doubled from its Sunday lows, while BTC is also up by 20%, while even bigger gains are found among the small cap coins, with the whole segment being up in value by more than 50% in three days. The total market capitalization of the coins is up to $85 billion which is still shy of the all-time highs above $110 billion, but the bleeding has stopped with a bang, thanks to the strong bullish momentum of the past two days.

Ethereum, 4-Hour Analysis

Key Economic Releases on Wednesday

Time, CET Country Release Actual Expected Previous
14:30 CANADA Manufacturing Sales 1.1% 0.9% 1.1%
14:30 US Building Permits 1.25 mill 1.20 mill 1.17 mill
14:30 US Housing Starts 1.22 mill 1.16 mill 1.09 mill
16:30 US Crude Oil Inventories -3.6 mill -7.6 mill

Key Economic Releases on Thursday

Time, CET Country Release Expected Previous
3:30 AUSTRALIA Employment Change 14,400 42,000
3:30 AUSTRALIA Unemployment Rate 5.6% 5.5%
Tent. JAPAN BOJ Interest Rate Decision -0.1% -0.1%
Tent. JAPAN BOJ Monetary Statement
13:45 EUROZONE ECB Rate Decision 0.0% 0.0%
14:30 EUROZONE Monetary Statemement
14:30 US Initial Jobless Claims 245,000 247,000
14:30 US Philly Fed Index 23.4 27.6

 Featured image from Shutterstock

Author:
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.