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Daily Analysis 13.10.2017: Pound Turns Volatile as Brexit-Worries Return



Thursday Market Recap

AssetCurrent ValueDaily Change
S&P 5002550-0.12%
DAX129820.09%
WTI Crude Oil50.62-1.25%
GOLD1296.000.61%
Bitcoin53089.55%
EUR/USD1.1835-0.20%
While generally speaking, financial markets remained at a standstill, there were “pockets” of volatility especially in currencies (both fiat and crypto) and some commodities. Equities were virtually unchanged globally, although Asian stocks edged higher, and the Nikkei continued to hit two-decade highs.
The Great British Pound had a rollercoaster ride, as the lead negotiator of the EU-UK Brexit talks told the press that the progress made during the talks has been insufficient. The Pound took a nosedive after the strength of the recent sessions, but despite the significant intraday drop, the currency recovered strongly and finished in the green for the day and above the previous rally high. All in all, the day confirms the trend in the GBP, and we could in for more gains in the Cable and downside in the EUR/GBP pair.
GBP/USD, 4-Hour Chart Analysis
 With no news coming out from Catalonia, the Euro wobbled and finished unchanged against the Dollar, while losing ground to the Pound and the Yen. The widespread Asian rally dragged the Aussie and the Kiwi higher for the third day in a row, while gold continued to rally as well despite the quiet environment and the hawkish FOMC meeting minutes. The weak and volatile rally in oil ended with a decline to the $50 per barrel price level in the WTI contract, but choppy trading is likely to continue, with the looming OPEC meeting.
Gold, 4-Hour Chart Analysis

Cryptocurrencies

The segment had a very busy session, especially Bitcoin and Litecoin, as the historic rally above $5000 in the most valuable coin made headlines. BTC produced a massive and convincing break-out, reaching up to almost $5400 while Litecoin 10% to its price. LTC is currently testing the key resistance zone near $56, and bulls are anxiously waiting for a break-out. With only for days left until Ethereum’s Byzantium fork, the second largest coin confidently sits above $300, but it failed to show upside momentum amid the BTC rally. The other majors were mixed, with NEO and IOTA remaining under pressure, while Ripple continuing its short-term correction.
BTC/USD, 4-Hour Chart Analysis

Technical Picture

The Nasdaq hit a marginal new high today, despite the overbought readings and the low-momentum trading environment. The benchmark still looks vulnerable here, and at least a dip to 6000 is expected in the coming days, while a test of the long-term trendline at 5900 is also possible. Bulls should wait with opening new positions until a correction, while bears could enter shorts with favorable risk-reward ratios.
NASDAQ, 4-Hour Chart Analysis

Key Economic Releases on Thursday

Time, CETCountryReleaseActualExpectedPrevious
14:30CANADANHPI0.1%0.3%0.4%
14:30USPPI Index0.4%0.4%0.2%
14:30USUnemployment Claims243,000255,000260,000
16:30EUROZONEMario Draghi Speaks–––
14:30USCrude Oil Inventories-2.7 mill-1.9 mill-6.0 mill

Key Economic Releases on Friday

Time, CETCountryReleaseExpectedPrevious
2:30AUSTRALIARBA Stability Report––
Tent.CHINATrade Balance266 bill287 bill
14:30USRetail Sales1.5%-0.2%
14:30USCPI0.6%0.4%
16:00USUOM Consumer Confidence95.495.1

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