Markets Calm Before Central Bank Madness
Wednesday Market Recap
|Asset||Current Value||Daily Change|
|WTI Crude Oil||46.55||0.32%|
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
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
|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
|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||US||Initial Jobless Claims||245,000||247,000|
|14:30||US||Philly Fed Index||23.4||27.6|
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