Oil Plunges as Jobs Report Causes Turmoil and Cryptocurrencies Drop | Hacked: Hacking Finance
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Oil Plunges as Jobs Report Causes Turmoil and Cryptocurrencies Drop

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Oil Plunges as Jobs Report Causes Turmoil and Cryptocurrencies Drop

Introduction

This article was posted on Friday, 16:58, UTC.

Friday Market Recap

Asset Current Value Daily Change
S&P 500 2421 0.54%
DAX 12382 0.01%
WTI Crude Oil 44.28 -2.77%
GOLD 1208.00 -1.27%
Bitcoin 2522 -3.03%
EUR/USD 1.1393 -0.27%

Financial markets are all over the place today, as several major events shook up the balance in currencies commodities and stocks alike. The mixed US Employment Report alone was enough to confuse investors, as volatility increased significantly following the release. Stocks are generally higher after a negative overnight session, but the gains are only marginal and the short-term trend remains negative both in Europe and the US.  The NASDAQ is relatively strong for the first time in awhile and that could be positive for the rest of the day, but technically the tech index still looks fragile.

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Nasdaq, 4-Hour Chart Analysis

Oil is sharply lower today, as the recent US production decline reversed, smashing hopes in the energy segment about a plateau in shale supply. While the Qatar crisis looks to be “controlled” for now, the OPEC-deal remains shaky and although the crucial commodity staged a relief rally after the peaceful passing of the ultimatum’s deadline, crude oil remains under pressure.

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Gold hit a new low after the better than expected NFP report, as the hawkish turn in the European Central Bank’s rhetoric continues to weigh on precious metals.  The much better than expected Canadian Employment Report push the USD/CAD pair to another new low, but the decline in the price of oil might soon cause a trend reversal after the extended bearish period.

USD/CAD 4-Hour Chart Analysis

Cryptocurrencies

The major coins dipped below their short-term trading ranges after a long low-volatility drift, with 29 of the 30 most valuable coins being in the red today. While the momentum of the decline is far from what traders experienced last week, the declining short-term trends remain intact for most currencies and a trend change could be further postponed by the move. The long-term overbought reading have been cleared already, and the current moves are still in line with a normal correction, but a re-test of the lows is possible in the coming days.

Bitcoin, Daily Chart Analysis

Technical Picture

The DAX is sitting right at the lower end of the crucial support zone that we have been monitoring throughout the week, and the slight bounce today wasn’t enough to change the short-term trend. The German index could be ready to fall in the support zone around 12,200 next week, as the rising long-term trendline has been broken last week.

DAX, 4-Hour Chart Analysis

Key Economic Releases on Friday

Time, CET Country Release Actual Expected Previous
9:30 UK Halifax HPI -1.0% 0.2% 0.4%
10:30 UK Manufacturing Production -0.2% 0.4% 0.2%
14:30 CANADA Employment Change 45,300 11,400 54,500
14:30 CANADA Unemployment Rate 6.5% 6.6% 6.6%
14:30 US Non-Farm Payrolls 222,000 175,000 138,000
14:30 US Unemployment Rate 4.4% 4.3% 4.3%
14:30 US Hourly Earnings 0.2% 0.3% 0.2%
16:00 CANADA Ivey PMI 61.6 57.7 53.8
17:00 US FED Monetary Policy Report

Key Economic Releases on Monday

Time, CET Country Release Expected Previous
3:30 CHINA CPI Index 1.6% 1.5%
3:30 CHINA PPI Index 5.5% 5.5%

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Mate Cser

Mate Cser

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.

Comments
  • user

    AUTHOR Chris G

    Posted on 7:25 pm July 7, 2017.

    I’m in the oil business, it has been a rocky road for the last couple of years – but oil is just that kind of business. We’ve done well over the last 20 years. I got in with litecoin on the recent break-out around ~$45, but will wait for the possibility of testing the $58-60 level in terms of shorting that one. On a fundamental level, I like the way LTC seems to resist some of the swings in BTC/ETH values.

  • View Comments (1) ...
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