Markets Tame as Central Bank Decisions Near, Cryptocurrencies Crash

Yaron Mazor
Updated
The broad markets produced caution on Wednesday as Wall Street lost moderately, but forex remained tranquil. Cryptocurrencies continue to trade in a negative sentiment.

Producer Price Index figures from the States were fractionally higher, but Retail Sales were weaker than expected. Larry Kudlow has been named the new White House Economic Advisor.

Cautious Results as Traders Look Forward to Fed, Yen Remains Strong

Wall Street produced another moderate decline on Wednesday. Retail Sales came in below expectations from the States, but the Producer Price Index figures were fractionally higher. Weekly jobs numbers will come from the States today, and tomorrow the European Union will publish its Consumer Price Index figures. Global markets have been rather cautious, but Asian equity exchanges have produced incremental gains early this morning. Investors appear to be bracing for next week’s U.S Federal Reserve monetary policy outlook. The U.S Dollar has been slightly stronger against most major currencies including the Euro and Pound. However, the Yen has maintained its robust momentum as it continues to test support and is near the 106.00 juncture versus the U.S Dollar.

The Crypto Crash continues

All major cryptocurrencies are trading at a double-digit loss on Thursday morning. Concerns over regulations wiped out over 60 Billion of cryptocurrencies value. Bitcoin is trading at 7854, down 13.35%, Ethereum dropped 13.31%, trading at 593 and Ripple is trading at 0.68, -12.2%.

Larry Kudlow Named to Economic Post, Forex Tranquil as Central Banks Lurk

Larry Kudlow has been named the new Economic Advisor by President Trump. The nomination is interesting because Kudlow is a known U.S Dollar hawk, and he spoke about the need for a strong U.S Dollar yesterday on television. However, forex was tranquil yesterday and remains quiet early today. Which suggests investors are positioning themselves for next week’s Federal Reserve interest rate hike, and the Bank of England’s policy statement too.

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Gold Produces A rather Flat Session, Precious Metal Gets Late Push Higher

Gold has proven rather range bound the past day. However, the precious metal needed a push higher in order to maintain its one-day values. Early trading yesterday saw the commodity taken lower, but a late reversal saw a return to the 1327.00 U.S Dollars an ounce mark, where it essentially stands now.

Philly Fed Data on Calendar Today, Weekly Jobs Results from States

The Philly Fed Manufacturing Index may cause a momentary stir among investors when it is released at 12:30 GMT.

  • 12:30 PM GMT U.S, Philly Fed Manufacturing Index

  • 12:30 PM GMT U.S, Unemployment Claims

Yaron Mazor is a senior analyst at SuperTraderTV.

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This article was originally posted on FX Empire

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