Markets Shrug Off Facebook’s Slump as Dollar Rallies Again

After yesterday’s eventful session, today financial markets so another loaded day, as corporate earnings, the European Central Bank, and the trade war saga all had significant impacts. All-in-all the major US indices continued to show strength, even as one of the leaders of the bull market, Facebook got smacked lower after its earnings report in after-hours trading on Wednesday.

Nasdaq 100 Futures, 4-Hour Chart Analysis

While the Nasdaq felt the almost 20% loss in the social media gain, the Dow and the S&P 500 held on to their trade-deal gains and finished today’s session near their 4-month highs. The Trump-Juncker agreement lifted European equities as expected, but Asia was much less impressed, as the deal could give way for further targeted attacks against China by the US, without risking another, unwanted wave of escalation.

Amazon (AMZN), 4-Hour Chart Analysis

As Facebook weighed on the tech segment since yesterday, Amazon restored confidence today in after-hours trading. Although the dominant online retailer posted mixed numbers, the blowout profit, the growth in margins, and the continued boom in cloud services propelled the stock to a marginal new all-time high after the release.

Euro Drifts Lower After ECB as Commodities Reverse Gains

The US durable goods report was the most awaited economic release today, even as the ECB meeting stole the headlines, and the numbers were mixed, with the headline figure missing the consensus estimate, and the more reliable core measure coming in as expected.

EUR/USD, 4-Hour Chart Analysis

The ECB didn’t announce any changes or further details regarding its monetary tightening schedule, but given the recent rumors concerning a reinvesting plan similar to the Fed’s Operation Twist, it’s no surprise that the Euro turned volatile during the central bank’s announcements.

The common currency gave back its recent gains by the end of the day, as the Dollar rallied across the board again. The EUR/USD pair is now back at 1.1650, right at the middle of the short-term range, and still very close to the recent low.

USD/Yuan, 4-Hour Chart Analysis

The Dollar’s rally was fueled by the weakness in the Chinese Yuan and the other emerging market currencies under-pressure that fell in concert again after the US-EU deal. The Yuan is trading close to its recent low against the Greenback, and commodity-related currencies also felt the Chinese pain, especially the Australian Dollar.

WTI Crude Oil, 4-Hour Chart Analysis

Commodities mirrored the path of the Dollar, although crude oil is still living its life of its own. Copper experienced a strong reversal thanks to China-related fears, while gold slipped back below the $1225 level amid the rally in the reserve currency. WTI crude oil has been trading just below the $70 per barrel level for the second day in a row, as rumors regarding a possible US attack on Iranian targets sparked buying in the commodity balancing out the broad weakness in the segment.

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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.