Ethereum and Stellar’s Lumen Daily Tech Analysis – 16/10/19

Ethereum

Ethereum fell by 3.36% on Tuesday. Reversing a 3.16% gain from Monday, Ethereum ended the day at $180.58.

A bullish start to the day saw Ethereum strike an early morning intraday high $188.58 before hitting reverse.

Falling short of the first major resistance level at $189.67, Ethereum fell to a late intraday low $176.48.

The reversal saw Ethereum fall through the first major support level at $182.28 and second major support level at $177.70.

Finding support late in the day, Ethereum broke back through the second major support level to limit the downside on the day.

The extended bearish trend, formed at late April 2018’s swing hi $828.97, remained firmly intact. A reversal from June’s current year high $364.49 back through the 23.6% FIB of $257 reaffirmed the extended bearish trend.

At the time of writing, Ethereum was down by 0.3% to $180.03. A bearish start to the day saw Ethereum fall from an early morning high $181.2 to a low $179.78.

Ethereum left the major support and resistance levels untested early on.

ETH/USD 16/10/19 Daily Chart

For the day ahead

Ethereum would need a move back through the morning high to $182 levels to support the recovery of Tuesday’s loss.

Support from the broader market would be needed, however, for Ethereum to target Tuesday’s high $188.58.

Barring a broad-based crypto rally, the first major resistance level at $187.28 would likely limit any upside on the day.

Failure to move through to $182 levels could see Ethereum spend another day in the red.

A fall back through to sub-$180 levels would bring $176 levels back into play before any recovery.

Barring an extended sell-off through the day, however, Ethereum should steer clear of the first major support level at $175.18.

Looking at the Technical Indicators

Major Support Level: $175.18

Major Resistance Level: $187.28

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

Stellar’s Lumen

Stellar’s Lumen slid by 3.88% on Tuesday. Partially reversing an 8.4% rally from Monday, Stellar’s Lumen ended the day at $0.06395.

A mixed start to the day saw Stellar’s Lumen rise to an early morning intraday high $0.06688 before hitting reverse.

Coming up against the first major resistance level at $0.0685, Stellar’s Lumen slid to a late intraday low 0.062696.

Finding support at the first major support level at $0.0630, Stellar’s Lumen recovered to $0.0639 levels to limit the loss on the day.

The extended bearish trend remained firmly intact, reaffirmed by 24th September’s new swing lo $0.051614. Stellar’s Lumen continued to fall short of the 23.6% FIB of $0.1310 following a pullback from $0.13 levels in late June.

At the time of writing, Stellar’s Lumen was up by 0.97% to $0.06457. A bullish start to the day saw Stellar’s Lumen rise from an early morning low $0.06395 to a high $0.06457.

Stellar’s Lumen left the major support and resistance levels untested early on.

XLM/USD 16/10/19 Daily Chart

For the day ahead

Stellar’s Lumen would need to hold onto $0.0645 levels to support a run at the first major resistance level at $0.06630.

Support from the broader market would be needed, however, for Stellar’s Lumen to break through to $0.0650 levels.

Barring a broad-based crypto rally through the day, the first major resistance level at $0.0663 would likely limit any upside.

Failure to hold onto $0.06450 levels could see Stellar’s Lumen hit reverse. A fall back through the morning low $0.063950 would bring sub-$0.0630 levels into play before any recovery.

Barring another crypto sell-off, however, Stellar’s Lumen should steer clear of the first major support level at $0.06210.

Looking at the Technical Indicators

Major Support Level: $0.06210

Major Resistance Level: $0.0663

23.6% FIB Retracement Level: $0.1114

38% FIB Retracement Level: $0.1484

62% FIB Retracement Level: $0.2082

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 16/10/19

Bitcoin Cash – ABC – Finds Support

Bitcoin Cash ABC fell by 3.21% on Tuesday. Reversing a 1.90% rise from Monday, Bitcoin Cash ABC ended the day at $220.88.

A relatively bullish start to the day saw Bitcoin Cash ABC strike an early morning intraday high $228.93.

Falling short of the first major resistance level at $230.63, Bitcoin Cash ABC slid to a late morning low $222.68.

Bitcoin Cash ABC fell through the first major support level at $223.84 before recovering to $226 levels.

A late afternoon sell-off did the damage, however, with Bitcoin Cash ABC sliding to an intraday low $217.71.

Bitcoin Cash ABC fell back through the first major support level and through the second major support level at $220.16.

Finding support from the broader market late on, Bitcoin Cash ABC recovered to $220 levels to limit the day’s losses.

At the time of writing, Bitcoin Cash ABC was up by 1.41% to $224.00. A bullish start to the day saw Bitcoin Cash ABC rise from an early morning low $222.13 to a high $225.33.

Bitcoin Cash ABC left the major support and resistance levels untested early on.

For the day ahead, Bitcoin Cash ABC would need to steer clear of sub-$223 levels to support a move back through to $225 levels.

Support from the broader market would be needed, however, for Bitcoin Cash ABC to take a run at the first major resistance level at $227.3.

Barring a broad-based crypto rally, the first major resistance level would likely cap any upside on the day.

Failure to steer clear of sub-$223 levels could see Bitcoin Cash ABC test the first major support level at $216.08.

Barring a broad-based crypto sell-off, however, Bitcoin Cash ABC should steer clear of sub-$216 levels.

BCHABC/USD 16/10/19 Daily Chart

Litecoin Back at $54 Levels

Litecoin slid by 4.08% on Tuesday. Reversing a 0.71% gain from Monday with interest, Litecoin ended the day at $54.56.

Tracking the broader market, Litecoin struck an early morning intraday high $57.42 before hitting reverse.

Coming up against the first major resistance level at $57.46, Litecoin slid to a late morning intraday low $53.45.

Litecoin fell through the major support levels before recovering to $55 levels. Litecoin broke back through the third major support level at $54.15 and second major support level at $55.45.

A broad-based crypto sell-off in the late afternoon, however, saw Litecoin slide back to $53 levels before finding support.

Litecoin fell back through the second and third major support levels before recovery to $54 levels late in the day.

At the time of writing, Litecoin was up by 0.71% to $54.95. A relatively bullish start to the day saw Litecoin rise from an early morning low $54.55 to a high $55.13.

Litecoin left the major support and resistance levels untested early on.

For the day ahead, a move through to $55.20 levels would support a run at the first major resistance level at $56.84.

Litecoin would need the support of the broader market, however, to break through to $57 levels.

Barring a broad-based crypto rebound, Litecoin would likely come up short of Tuesday’s high $57.42.

Failure to move through to $55.20 levels could see Litecoin spend another day in the red.

A fall through to Tuesday’s low $53.45 would bring the first major support level at $52.87 into play before any recovery.

LTC/USD 16/10/19 Daily Chart

Ripple’s XRP Recovers to $0.29 Levels

Ripple’s XRP fell by 3.14% on Tuesday. Partially reversing a 7.3% rally from Monday, Ripple’s XRP ended the day at $0.28882.

A relatively bullish start to the day saw Ripple’s XRP strike an early morning intraday high $0.30 before hitting reverse.

Falling short of the first major resistance level at $0.3058, Ripple’s XRP slid to a late afternoon intraday low $0.28316.

Ripple’s XRP fell through the first major support level at $0.2837 before finding support from the broader market.

Off the back of the late support, Ripple’s XRP broke back through the first major support level limit the loss on the day.

At the time of writing, Ripple’s XRP was up by 1.1% to $0.2920. Tracking the broader market, Ripple’s XRP rose from an early morning low $0.28872 to a high $0.29261.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead, Ripple’s XRP would need to hold onto $0.29 levels to support a day in the green.

Support from the broader market would be needed, however, for Ripple’s XRP to break through the first major resistance level at $0.2982.

Barring a broad-based crypto rally, the first major resistance level and Tuesday’s high $0.30 would likely limit any upside.

Failure to hold onto $0.29 levels could see Ripple’s XRP hit reverse. A fall through the morning low $0.28872 would bring the first major support level at $0.2813 into play.

Barring a crypto meltdown, however, Ripple’s XRP should steer clear of sub-$0.28 levels on the day.

XRP/USD 16/10/19 Daily Chart

Please let us know what you think in the comments below

Thanks, Bob

Brexit and Economic Data Put the GBP and USD in Focus

Earlier in the Day:

It was a relatively busy day on the economic calendar through the Asian session this morning.

New Zealand 3rd quarter inflation figures provided the Kiwi Dollar with direction early in the session.

Outside of the stats, positive updates on Brexit and U.S corporate earnings failed to support risk sentiment early on.

For the Kiwi Dollar

The annual rate of inflation eased from 1.7% to 1.5% in the 3rd quarter, while coming in ahead of a forecast of 1.4%. Quarter-on-quarter, consumer prices rose by 0.7%, following a 0.6% rise in the 2nd quarter. Economists had forecast a 0.6% increase.

According to NZ Stats,

  • Higher prices for rents and cigarettes and tobacco supported the 1.5% increase in the CPI, year-on-year.
  • The increase was partially offset by falling prices for vegetables, petrol, and telecommunications equipment.
  • Quarter-on-quarter, the 0.7% rise in consumer prices came off the back of price rises for local authority rates and payments, vegetables, and meat and poultry.
  • Falling prices for fruit, petrol, and new cars were negatives for the quarter.

The Kiwi Dollar moved from $0.62858 to $0.063125 upon release of the figures. At the time of writing, the Kiwi Dollar was down by 0.21% to $0.6281.

Elsewhere

At the time of writing, The Japanese Yen was up by 0.14% to ¥108.71 against the U.S Dollar, while the Aussie Dollar was down by 0.21% to $0.6739.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Finalized Italian and Eurozone inflation figures for September are due out later this morning, along with the Eurozone’s August trade figures.

Barring material deviation from prelims, the Eurozone’s trade data will likely have the greatest influence on the EUR.

Outside of the numbers, Brexit will continue to have an impact throughout the day.

At the time of writing, the EUR was down by 0.02% to $1.1031.

For the Pound

It’s a relatively busy day ahead on the data front. September inflation figures are due out later this morning.

We can expect the Pound to show greatest sensitivity to the annual rate of inflation and the Input Producer Price Index figures.

Direction for the Pound will ultimately come from Brexit updates, however. With the EU Summit now just 4-days away, time is rapidly running out.

Positive updates from the EU and the Brexiteers delivered more upside for the Pound at the start of the week. Expect plenty of volatility and a reversal should negative updates begin to filter through, however.

At the time of writing, the Pound was down by 0.28% to $1.2751.

Across the Pond

It’s a relatively busy day ahead on the economic calendar. September retail sales figures are due out later today, along with August business inventory numbers.

Retail sales will have the greatest influence on the day. Consumer spending remains a key contributor and barometer to the U.S economy. Any unexpected slide in spending and expect the markets to balk as recession chatter continues to do the rounds.

On the geopolitical front, demand for the Dollar could rise should progress on Brexit negotiations hit a wall. Chatter from the Oval Office also needs monitoring throughout the day.

The Dollar Spot Index was up by 0.02% to 98.312 at the time of writing.

For the Loonie

It’s a busier day on the economic calendar, with September inflation figures due out later today. Expect the Loonie to react to today’s figures, with support likely to kick in should inflationary pressures build. The monthly movement in consumer prices will likely have the greatest impact.

With the BoC holding steady on the monetary policy front, inflation will need to hold steady at best.

The Loonie was down by 0.04% at C$1.3204, against the U.S Dollar, at the time of writing.

European Equities: Brexit, Earnings and Economic Data in Focus

Economic Calendar:

Wednesday, 16th October

  • Italian CPI (MoM) (Sep) Final
  • Eurozone Core CPI (YoY) (Sep) Final
  • Eurozone CPI (MoM) (Sep)
  • Eurozone CPI (YoY) (Sep) Final
  • Eurozone Trade Balance (Aug)

The Majors

It was a bullish day for the European majors on Tuesday. The DAX30 led the way, rallying by 1.15%, with the EuroStoxx600 and CAC30 up by 1.11% and 1.04% respectively.

Following a bearish start to the week, the majors were able to brush aside continued uncertainty over the ongoing U.S – China trade war.

Positive updates on Brexit from the EU on the possibility of a Brexit deal this week provided strong support for the majors.

Michael Barnier, the EU’s chief negotiator, spoke on Tuesday of a deal still being possible this week.

From the U.S, corporate earnings were a boost for the global equity markets, with JPMorgan earnings impressing.

The Stats

It a relatively busy day on the Eurozone economic calendar on Tuesday. Economic data included Germany and the Eurozone’s ZEW economic sentiment figures for October.

Of less influence on the day were Germany’s ZEW current conditions and French finalized September inflation figures.

According to the latest ZEW report,

  • The German ZEW Current Conditions Index fell from -19.9 to -25.3 in October. Economists had forecast a decline to -26.0.
  • Germany’s ZEW Economic Sentiment Index fell from -22.5 to -22.8 in October, which was better than a forecast of -27.0
  • The Eurozone’s ZEW Economic Sentiment Index fell from -22.4 to -23.5 in October. Economists had forecast a decline to -33.0.

Concerns over a possible recession weighed on consumer sentiment at the start of the 4th quarter, with progress in the U.S – China trade talks having provided little comfort.

From the U.S, a modest pickup in manufacturing sector activity in New York State was enough to avoid stressing the majors. The NY Empire State Manufacturing Index rose from 2 to 4 in October.

The Market Movers

For the DAX: Autos found strong support, with BMW leading the way, rallying by 2.45%. Daimler was also amongst the best performers on the DAX, rallying by 2.26%. Continental and Volkswagen weren’t far behind, with gains of 1.8% and 2.20% respectively.

Bank stocks also found further support. Deutsche Bank rallied by 2.88% to lead the way on the DAX30, while Commerzbank rose by 0.97%

From the CAC, it was also a bullish day for the banks. BNP Paribas and Soc Gen led the way with gains of 3.64% and 2.12% respectively. Credit Agricole saw a more modest rise of 1.51%. For the autos, it was also positive with Renault rising by 1.36%, while Peugeot rallied by 2.85%.

On the VIX Index

The VIX Index saw red for a 5th consecutive day on Tuesday, declining by 7.07%. Following on from a 6.48% fall on Monday, the VIX ended the day at 13.5.

Progress on Brexit and U.S corporate earnings, with JPMorgan Chase earnings, in particular, supported risk appetite on the day.

VIX 16/10/19 Daily Chart

The Day Ahead

It’s a relatively busy day ahead on the Eurozone economic calendar. Economic data includes finalized September inflation figures for Italy and the Eurozone. Alongside the inflation figures, the Eurozone’s August trade data is also due out.

We would expect the inflation figures to have a relatively muted impact on the majors, however, with Brexit and corporate earnings in focus.

A material narrowing in the Eurozone’s trade surplus could test the majors in the early part of the session.

From the U.S, September retail sales figures will provide direction later in the day. With recession talk continuing to do the rounds, any unexpected slide in sales will impact.

On the earnings front, corporate earnings from the U.S will also have influence. Bank of America and Morgan Stanley’s 3rd quarter results are in focus.

While U.S stats and corporate earnings will be key, expect Brexit chatter to have the ultimate say on the day. With just days remaining until the EU Summit, it’s crunch time for Boris and the Brexiteers.

In the futures market, at the time of writing, the DAX30 was down by 11 points, with the Dow down by 50 points.

The Crypto Daily – Movers and Shakers -16/10/19

Bitcoin slid by 2.14% on Tuesday. Reversing a 0.78% gain from Monday, Bitcoin ended the day at $8,191.1.

A bullish start to the day saw Bitcoin rally to an early morning intraday high $8,439.7 before hitting reverse.

Falling short of the first major resistance level at $8,456.37, Bitcoin fell to a late afternoon intraday low $8,100.

The sell-off saw Bitcoin fall through the first major support level at $8,255.47 and second major support level at $8,140.93.

Finding support late in the day, Bitcoin broke back through the second major support level to $8,200 levels.

Negative sentiment across the broader market ultimately weighed, however, with Bitcoin easing back to sub-$8,200 levels.

It was Bitcoin’s lowest closeout since 6th October’s $7,883.

For the bulls, the extended bullish trend remained intact in spite of hovering at sub-$9,000 levels. While falling back through the 38.2% FIB, Bitcoin continued to hold above the 62% FIB of 7,245.

The Rest of the Pack

Across the rest of the top 10 cryptos, it was a mixed bag across the crypto board on Tuesday.

Binance Coin and Bitcoin Cash SV bucked the trend on the day, rising by 0.49% and by 2.30% respectively.

It was deep red for the rest of the majors, however.

EOS led the way down, with a 6.34% loss

Litecoin, Bitcoin Cash ABC, and Ethereum also saw heavy losses on the day. Litecoin slid by 4.08%, with Ethereum and Bitcoin Cash ABC falling by 3.36% and 3.21% respectively.

Ripple’s XRP (-3.14%) and Stellar’s Lumen (-2.04%) saw more modest losses on the day.

Through the early part of the week, the total crypto market cap rose from a Monday low $223.92bn to a high $228.17bn before hitting reverse. The Tuesday sell-off saw the total market cap fall to a current week low $221.83bn before support kicked in. At the time of writing, the total market cap stood at $222.65bn.

Bitcoin’s dominance continued to sit at sub-67% levels in spite of Tuesday’s sell-off.

This Morning

At the time of writing, Bitcoin was down by 0.11% to $8,181.7. A bearish start to the day saw Bitcoin fall from an early morning high $8,191.1 to a low $8,156.8.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, Bitcoin Cash SV and Bitcoin Cash ABC found early support, rallying by 2.87% and 1.72% respectively.

EOS (+0.33%), Litecoin (+0.62%), and Ripple’s XRP (+0.65%) were also in the green at the time of writing.

Ethereum and Binance Coin struggled at the start of the day, however, with losses of 0.43% and 0.42% respectively.

BTC/USD 16/10/19 Daily Chart

For the Bitcoin Day Ahead

For the day ahead, Bitcoin would need to move through to $8,240 levels to support a run at the first major resistance level at $8,387.2.

Support from the broader market would be needed, however, for Bitcoin to break out from $8,200 levels.

Barring a broad-based crypto rebound, the first major resistance level would likely pin Bitcoin back from $8,400 levels.

Failure to move through to $8,240 levels could see Bitcoin spend another day in the red.

A fall back through Tuesday’s low $8,100 would bring the first major support level at $8,047.5 into play.

Barring a crypto meltdown, Bitcoin should steer clear of sub-$8,000 support levels on the day.

Brexit and Economic Data Keep the GBP and the EUR in Focus

Earlier in the Day:

It was a relatively busy day on the economic calendar through the Asian session this morning.

China’s September inflation figures provided direction ahead of finalized August industrial production figures out of Japan due out later this morning

In the early part of the day, the RBA also released its meeting minutes from last Tuesday’s meeting.

On the geopolitical front, sentiment towards the latest on the U.S – China trade talks and Brexit also influenced early on.

For the Aussie Dollar

Following last week’s rate cut, the RBA meeting minutes had limited influence on the Aussie Dollar. Salient points from the October Minutes included:

  • Risks to the global growth outlook remained tilted to the downside.
  • Businesses scaled back investment plans as a result of the technology and trade disputes between the U.S and China.
  • Further monetary policy easing was delivered to support employment and income growth and greater confidence that inflation would be consistent with the medium-term target.
  • Members noted that the unemployment and inflation outcomes were likely to fall short of forecasts in the near-term.
  • Subdued wage growth also suggested that spare capacity remained in the economy.
  • In spite of strong employment growth, however, the spare capacity remained, with employment growth expected to slow.
  • While lower interest rates could affect confidence, it would also support household cash flows and spending.
  • It was also noted that members were prepared to ease monetary policy further if needed.

The Aussie Dollar moved from $0.67694 to $0.067703 upon release of the minutes that preceded China’s inflation figures.

From China

The annual rate of inflation picked up from 2.8% to 3.0%, coming in ahead of a forecast of 2.9%. Month-on-month, consumer prices rose by 0.9%, coming in ahead of a forecasted and August 0.7%.

Wholesale fell further in September, however, with wholesale prices falling by -1.2% compared with September 2018. While in line with forecasts, the pace of deflation picked up from August’s 0.8%.

The Aussie Dollar moved from $0.67865 to $0.67849 upon release of the figures. At the time of writing, the Aussie Dollar was flat at $0.6775.

Elsewhere

At the time of writing, The Japanese Yen was up by 0.09% to ¥108.30 against the U.S Dollar, while the Kiwi Dollar was up by 0.11% to $0.6306.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Germany and the Eurozone’s ZEW economic condition figures are due out later this morning.

French finalized September inflation figures and Germany’s ZEW current conditions figures will likely have a muted impact on the EUR.

Outside of the numbers, we can expect direction to also come from Brexit as the Brexit clock ticks away.

At the time of writing, the EUR was up by 0.04% to $1.1031.

For the Pound

It’s a busy day ahead on the data front. August earnings and unemployment figures are due out along with September’s claimant count numbers.

We can expect the Pound to show greatest sensitivity to the wage growth and claimant count figures. Any unexpected rise in the unemployment rate, coupled with larger than anticipated increase in claimant counts would weigh heavily, however.

While we expect the stats to influence, Brexit will continue to be the key driver. A further pullback from Friday’s recent high should be expected should little progress be made on a deal.

At the time of writing, the Pound was up by 0.06% to $1.2616.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. October’s NY Empire State Manufacturing Index figures are due out later today.

With tariffs still in place, any further deterioration in manufacturing sector conditions would be negative.

Chatter from the Oval Office would require monitoring, however. There’s also Brexit to factor in, with any negative news considered Dollar positive.

The Dollar Spot Index was down by 0.04% to 98.417 at the time of writing.

For the Loonie

It’s a quiet day on the economic calendar. There are no material stats out of Canada to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of crude oil prices later in the day.

The Loonie was up by 0.02% at C$1.3232, against the U.S Dollar, at the time of writing.

Ethereum and Stellar’s Lumen Daily Tech Analysis – 15/10/19

Ethereum

Ethereum rose by 3.16% on Monday. Following on from a 6.46% gain from last week, Ethereum ended the day at $186.85.

A bullish start to the day saw Ethereum rise from an early morning intraday low $180.52 to a mid-morning high $184.24.

Steering clear of the major support levels, Ethereum came within range of the first major resistance level at $184.41 before easing back.

The pullback saw Ethereum fall back to an afternoon low $180.9 before rallying to a late afternoon intraday high $187.91.

Ethereum broke through the first major resistance level at $184.41 and second major resistance level at $187.64.

Easing back late in the day, Ethereum slipped to $185 levels before finding support late on to wrap up the day at $186 levels.

The extended bearish trend, formed at late April 2018’s swing hi $828.97, remained firmly intact. A reversal from June’s current year high $364.49 back through the 23.6% FIB of $257 reaffirmed the extended bearish trend.

At the time of writing, Ethereum was down by 0.45% to $186.01. A mixed start to the day saw Ethereum strike an early morning high $188.58 before sliding to a low $185.92.

Ethereum left the major support and resistance levels untested early on.

ETH/USD 15/10/19 Daily Chart

For the day ahead

Ethereum would need to move back through to $187 levels to support another run at the first major resistance level at $189.67.

Support from the broader market would be needed, however, for Ethereum to break out from this morning’s high $188.58.

Barring a broad-based crypto rebound, Ethereum would likely continue to fall short of $190 levels on the day.

Failure to move back through to $187 levels could see Ethereum fall deeper into the red. A fall through the morning low $185.92 to sub-$185 levels would bring the first major support level at $182.28 into play.

Barring a crypto meltdown, however, Ethereum should steer clear of sub-$180 support levels on the day.

Looking at the Technical Indicators

Major Support Level: $182.28

Major Resistance Level: $189.67

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

Stellar’s Lumen

Stellar’s Lumen rallied by 8.4% on Monday. Following on from a 5.74% gain from last week, Stellar’s Lumen ended the day at $0.06665.

Bullish throughout the day, Stellar’s Lumen rallied from an early morning intraday low $0.06117 to a late intraday high $0.06665.

Steering clear of the major support levels, Stellar’s Lumen broke through the day’s major resistance levels.

A particularly bullish end to the day saw Stellar’s Lumen break through the third major resistance level at $0.0650.

The extended bearish trend remained firmly intact, reaffirmed by 24th September’s new swing lo $0.051614. Stellar’s Lumen continued to fall short of the 23.6% FIB of $0.1310 following a pullback from $0.13 levels in late June.

At the time of writing, Stellar’s Lumen was down by 0.77% to $0.066134. A mixed start to the day saw Stellar’s Lumen fall to an early morning low $0.06543 before striking a high $0.066878.

Stellar’s Lumen left the major support and resistance levels untested early on.

XLM/USD 15/10/19 Daily Chart

For the day ahead

Stellar’s Lumen would need to break through to $0.067 levels to support a run at the first major resistance level at $0.06850.

Support from the broader market would be needed, however, for Stellar’s Lumen to move back through the morning high $0.066878.

Barring a broad-based crypto rebound, resistance at $0.067 would likely continue to limit any upside on the day.

Failure to move through to $0.0670 levels could see Stellar’s Lumen fall deeper into the red. A fall through to sub-$0.0650 levels would bring the first major support level at $0.0630 into play.

Barring an extended sell-off through the day, however, we would expect Stellar’s Lumen to continue to steer clear of sub-$0.060 levels.

Looking at the Technical Indicators

Major Support Level: $0.06300

Major Resistance Level: $0.06850

23.6% FIB Retracement Level: $0.1114

38% FIB Retracement Level: $0.1484

62% FIB Retracement Level: $0.2082

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 15/10/19

Bitcoin Cash – ABC – Finds Support

Bitcoin Cash ABC gained 1.90% on Monday. Following on from last week’s 2.51% rise, Bitcoin Cash ABC ended the day at $227.52.

A bullish start to the day saw Bitcoin Cash ABC rise from an early intraday low $223.27 to an early morning high $226.64 before hitting reverse.

Falling short of the first major resistance level at $227.85, Bitcoin Cash ABC fell back to $225 levels.

Finding support through the afternoon, Bitcoin Cash ABC rallied to a late afternoon intraday high $230.06.

Having steered clear of the major support levels, Bitcoin Cash ABC broke through the first major resistance level at $227.85.

Coming up short of the second major resistance level at $231.32, Bitcoin Cash ABC fell back to $225 levels before finding late support.

At the time of writing, Bitcoin Cash ABC was up by 0.24% to $228.06. A mixed start to the day saw Bitcoin Cash ABC rise to an early morning high $288.93 before easing back to a low $228.06.

Bitcoin Cash ABC left the major support and resistance levels untested early on.

For the day ahead, Bitcoin Cash ABC would need to move back through the morning high to support a return to $230 levels.

Bitcoin Cash ABC would need the support of the broader market, however, to break through the first major resistance level at $230.63.

Barring a broad-based crypto rally, Monday’s high $230.06 would likely limit any upside on the day.

Failure to move back through the morning high $228.93 could see Bitcoin Cash ABC hit reverse. A fall through to sub-$227 levels would bring the first major support level at $223.84 into play.

Barring a crypto meltdown, Bitcoin Cash ABC should steer clear of the second major support level at $220.16.

BCHABC/USD 15/10/19 Daily Chart

Litecoin Holds onto Modest Gains

Litecoin rose by 0.71% on Monday. Following on from a 3.65% gain from last week, Litecoin ended the day at $56.87.

Bullish through the morning, Litecoin rose from an early morning low $56.23 to a late morning intraday high $57.34.

In spite of the early moves, Litecoin came up short of the first major resistance level at $57.68 before hitting reverse.

The reversal saw Litecoin slide to a late afternoon intraday low $56.04. Holding above the first major support level at $55.41, Litecoin recovered to $56 levels, to end the day in the green.

At the time of writing, Litecoin was up by 0.21% to $56.99. A bullish start to the day saw Litecoin rise from an early morning low $56.87 to a high $57.42 before easing back.

Steering clear of the major support levels, Litecoin came up against the first major resistance level at $57.46.

For the day ahead, a move back through to $57 levels would support another run at the first major resistance level.

Litecoin would need the support of the broader market, however, to break out from the morning high $57.42.

Barring a broad-based crypto rally, the first major resistance level, and this morning’s high will likely cap any upside.

Failure to move back through to $57 levels could see Litecoin fall back into the red. A fall through to $56.6 levels would bring the first major support level at $56.16 into play.

Barring an extended crypto sell-off, Litecoin should steer clear of the second major support level at $55.45.

LTC/USD 15/10/19 Daily Chart

Ripple’s XRP Holds onto $0.29 Levels

Ripple’s XRP rallied by 7.3% on Monday. Following on from last week’s 8.45% gain, Ripple’s XRP ended the day at $0.29811.

A bullish start to the day saw Ripple’s XRP rally from an early morning intraday low $0.27701 to a morning high $0.29394.

Steering clear of the major support levels, Ripple’s XRP broke through the first major resistance level at $0.2819 and second major resistance level at $0.2859.

Coming within range of the third major resistance level at $0.2949, Ripple’s XRP slid back to $0.286 levels.

Finding late support from the broader market, Ripple’s XRP struck a late intraday high $0.29584.

Having held above the second major resistance level, Ripple’s XRP broke through the third major resistance level at $0.2949.

At the time of writing, Ripple’s XRP was down by 0.54% to $0.29651. A mixed start to the day saw Ripple’s XRP strike an early morning high $0.3000 before falling to a low $0.29542.

Ripple’s XRP left the major support and resistance levels untested early on.

For the day ahead, Ripple’s XRP would need to move back through the morning high to bring the first major resistance level at $0.3058 into play.

Ripple’s XRP would need the support of the broader market, however, to move back through to $0.3000 levels.

Barring a broad-based crypto rebound, Monday’s high $0.29915 and resistance at $0.3000 would likely limit any upside.

Failure to move back through to $0.3000 levels could see Ripple’s XRP fall deeper into the red.

A fall through to sub-$0.2910 levels would bring the first major support level at $0.2837 into play.

Barring an extended sell-off through the day, Ripple’s XRP should steer clear of sub-$0.28 levels.

XRP/USD 15/10/19 Daily Chart

Please let us know what you think in the comments below

Thanks, Bob

European Equities: Brexit, Corporate Earnings and Stats in Focus

Economic Calendar:

Tuesday, 15th October

  • French CPI (MoM) (Sep) Final
  • French HICP (MoM) (Sep) Final
  • German ZEW Current Conditions (Oct)
  • German ZEW Economic Sentiment (Oct)
  • Eurozone ZEW Economic Sentiment (Oct)

Wednesday, 16th October

  • Italian CPI (MoM) (Sep) Final
  • Eurozone Core CPI (YoY) (Sep) Final
  • Eurozone CPI (MoM) (Sep)
  • Eurozone CPI (YoY) (Sep) Final
  • Eurozone Trade Balance (Aug)

The Majors

It was a bearish start to the week for the European majors. The CAC40 led the way down, falling by 0.4% on Monday. The DAX30 and EuroStoxx600 weren’t far behind with losses of 0.20% and 0.49% respectively.

Uncertainty over the U.S – China trade war and Brexit weighed on the broader markets on the day.

While the U.S agreed to defer the rollout of further tariffs on Chinese goods tomorrow, a lack of commitment to removal existing tariffs weighed on risk sentiment.

On the Brexit front, a lack of progress from last week’s hopes of a deal added to the downside on the day.

The Stats

It was a relatively quiet day on the Eurozone economic calendar on Monday. Economic data was limited to the Eurozone’s industrial production figures for September.

According to Eurostat, industrial production rose by 0.4%, month-on-month in August, reversing a 0.4% decline in July. Economists had forecast a 0.3% rise.

  • The production of capital goods rose by 1.2% and intermediate goods by 0.3%.
  • Weighing in August, however, was a 0.3% fall in the production of consumer goods and a 0.6% fall in energy and non-durable consumer goods production.
  • Malta (+5.6%), Estonia (+3.9%) and Latvia (+3.0%) reported the highest increases in production.
  • Slovakia (-2.6%) and Lithuania (-2.4%) reported the largest declines in August.
  • Year-on-year, production fell by 2.8%.

With a lack of U.S stats on the day, geopolitical risk offset upbeat industrial production figures on the day.

The Market Movers

For the DAX: Autos found more upside on Monday, supported by the delay of additional tariffs on Chinese goods. Continental led the way, rising by 0.52%. BMW (+0.50%) and Daimler (+0.40%) saw more modest gains, whilst Volkswagen bucked the trend on the day, however, falling by 0.12%.

Bank stocks found further support, with Deutsche Bank rising by 0.75% and Commerzbank by 0.69%

From the CAC, it was a mixed day for the banks. BNP Paribas and Soc Gen fell by 0.79% and by 0.16% respectively. Credit Agricole managed to buck the trend with a 0.22% gain. For the autos, it was also mixed with Renault rising by 0.69%, while Peugeot slipped by 0.87%.

On the VIX Index

The VIX Index saw red for a 4th consecutive day on Monday, falling by 6.48%. Following on from an 11.33% slide on Friday, the VIX ended the day at 14.6.

Losses on the day came in spite of the U.S majors closing out the day in the red. While existing tariffs on Chinese goods remain, last week’s progress on trade talks was enough to pin back the VIX.

VIX 15/10/19 Daily Chart

The Day Ahead

It’s a relatively busy day ahead on the Eurozone economic calendar. Economic data includes October economic current conditions and economic sentiment figures out of Germany and the Eurozone.

Germany and the Eurozone’s economic sentiment figures will be the key drivers, which is forecasted EUR negative.

Of less influence on the day will be finalized September inflation figures due out of France.

From the U.S, New York Empire State Manufacturing Index figures for October will also provide direction late on.

Another pullback in the Index would add further pressure on the European majors.

On the earnings front, corporate earnings from the U.S will also have an impact. Citigroup, Goldman, JPMorgan, and Wells Fargo release 3rd quarter results later today.

Geopolitics will also influence on the day, as Johnson looks to wrap up a Brexit deal ahead of the EU Summit this weekend.

In the futures market, at the time of writing, the DAX30 was up by 17 points, with the Dow up by 16 points.

Ethereum and Stellar’s Lumen Daily Tech Analysis – 14/10/19

Ethereum

Ethereum rose by 0.79% on Sunday. Reversing a 0.6% decline from Saturday, Ethereum ended the week up by 6.46% to $181.18.

A bullish start to the day saw Ethereum rally from an early morning low $178.71 to a late afternoon intraday high $184.75.

Steering clear of the major support levels, Ethereum came up against the first major resistance level at $184.06.

Hitting reverse late in the day, Ethereum fell back to a late intraday low $178.63 before finding support.

Steering clear of the first major support level at $176.46, Ethereum bounced back to $181 levels to end the day in the green.

The extended bearish trend, formed at late April 2018’s swing hi $828.97, remained firmly intact. A reversal from June’s current year high $364.49 back through the 23.6% FIB of $257 reaffirmed the extended bearish trend.

At the time of writing, Ethereum was up by 1.19% to $183.33. Bullish through the early morning, Ethereum rallied from an early low $180.52 to a morning high $184.24.

Steering clear of the major support levels, Ethereum came within range of the first major resistance level at $184.41.

ETH/USD 14/10/19 Daily Chart

For the day ahead

Ethereum would need to hold onto $183 levels to support another run at the first major resistance level at $184.41.

Support from the broader market would be needed, however, for Ethereum to take a run at Sunday’s high $184.75.

Barring an extended crypto rally through the day, Ethereum would likely come up short of $190 levels. The second major resistance level at $187.64 would limit any upside on the day.

Failure to hold onto $183 levels could see Ethereum hit reverse. A fall through to $181.50 levels would bring the first major support level at $178.29 into play before any recovery.

Barring a broad-based crypto sell-off, Ethereum should steer clear of sub-$178 levels for a 2nd consecutive day.

Looking at the Technical Indicators

Major Support Level: $178.29

Major Resistance Level: $184.41

23.6% FIB Retracement Level: $257

38.2% FIB Retracement Level: $367

62% FIB Retracement Level: $543

Stellar’s Lumen

Stellar’s Lumen rose by 0.15% on Sunday. Following on from a 0.18% gain from Saturday, Stellar’s Lumen ended the week up 5.74% to $0.06139.

Tracking the broader market, Stellar’s Lumen rallied from an early morning low $0.061286 to an early evening intraday high $0.06261.

Steering clear of the major support levels, Stellar’s Lumen broke through the first major resistance level at $0.0616 and second major resistance level at $0.0621.

Stellar’s Lumen came within range of the third major resistance level at $0.0629 before hitting reverse.

The reversal saw Stellar’s Lumen fall through the major resistance levels to a late intraday low $0.06094 before finding support.

Stellar’s Lumen moved back through to $0.0610 levels to wrap up the day in the green.

The extended bearish trend remained firmly intact, reaffirmed by 24th September’s new swing lo $0.051614. Stellar’s Lumen continued to fall short of the 23.6% FIB of $0.1310 following a pullback from $0.13 levels in late June.

At the time of writing, Stellar’s Lumen was up by 3.75% to $0.063694. A particularly bullish morning saw Stellar’s Lumen rally from an early morning low $0.061158 to a high $0.063741.

Steering clear of the major support levels, Stellar’s Lumen broke through the first major resistance level at $0.06240 and the second major resistance level at $0.06330.

XLM/USD 14/10/19 Daily Chart

For the day ahead

Stellar’s Lumen would need to hold above the second major resistance level to support further upside on the day.

Support from the broader market would be needed, however, for Stellar’s Lumen to break through to $0.0640 levels.

In the event of an extended rally through the day, the third major resistance level at $0.0650 would come into play.

Failure to hold above the second major resistance level could see Stellar’s Lumen hit reverse.

A fall through the first major resistance level at $0.0624 to sub-$0.06150 levels would bring the first major support level at $0.06070 into play.

Barring a crypto meltdown, however, Stellar’s Lumen should steer well clear of the second major support level at $0.0600.

Looking at the Technical Indicators

Major Support Level: $0.06070

Major Resistance Level: $0.06240

23.6% FIB Retracement Level: $0.1114

38% FIB Retracement Level: $0.1484

62% FIB Retracement Level: $0.2082

Please let us know what you think in the comments below.

Thanks, Bob

Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 14/10/19

Bitcoin Cash – ABC – Sees Green

Bitcoin Cash ABC gained 0.31% on Sunday. Following on from a 1.56% rise on Saturday, Bitcoin Cash ABC ended the week up 2.51% at $224.38.

A bullish start to the day saw Bitcoin Cash ABC rally to a mid-day intraday high $228.46 before hitting reverse.

Bitcoin Cash ABC broke through the first major resistance level at $227.92 before sliding to a late intraday low $222.13.

Steering clear of the first major support level at $221.44, Bitcoin Cash ABC recovered to $224 levels to close out the day in the green.

At the time of writing, Bitcoin Cash ABC was up by 1.01% to $226.64. A bullish start to the day saw Bitcoin Cash ABC rise from an early morning low $223.27 to a high $226.64.

Bitcoin Cash ABC left the major support and resistance levels untested early on.

For the day ahead, a move through to $227 levels would support a run at the first major resistance level at $227.85.

Bitcoin Cash ABC would need the support of the broader market, however, to return to $228 levels.

Barring a broad-based crypto rally, Bitcoin Cash ABC would likely come up short of $230 levels for a 3rd consecutive day.

Failure to move through to $227 levels could see Bitcoin Cash ABC hit reverse.

A fall through to sub-$225 levels would bring the first major support level at $221.52 into play.

Barring a broad-based crypto sell-off, however, Bitcoin Cash ABC should steer clear of sub-$220 support levels.

BCHABC/USD 14/10/19 Daily Chart

Litecoin Finds Early Support

Litecoin rose by 1.24% on Sunday. Reversing a 0.36% fall from Saturday, Litecoin ended the week up 3.65% at $56.48.

It was a choppy day for Litecoin which rallied from an early morning intraday low $55.55 to an early high $56.56.

Steering clear of the first major support level at $55.34, Litecoin broke through the first major resistance level at $56.38.

Litecoin reversed the early gain with a fall back through to $55.56 by mid-morning. Finding support through the rest of the morning, however, Litecoin bounced back to a mid-day intraday high $57.82.

Litecoin broke through the first major resistance level at $56.38 and the second major resistance level at $57.0.

Litecoin returned to sub-$56 levels before finding late support to close out the day in the green

At the time of writing, Litecoin was up by 0.39% to $56.70. A mixed start to the day saw Litecoin fall to an early morning low $56.23 before striking a morning high $57.0.

Litecoin left the major support and resistance levels untested early on.

For the day ahead, Litecoin would need to move back through the morning high $57.0 to test the first major resistance level at $57.68.

Litecoin would need the support of the broader market, however, to break out from $57.0.

Barring a broad-based crypto rally, the first major resistance level and Sunday’s high $57.82 would likely limit any upside.

Failure to move back through the morning high could see Litecoin fall back into the red. A fall through to sub-$56.60 levels would bring the first major support level at $55.41 into play.

Barring a crypto meltdown, however, Litecoin should steer clear of sub-$55 support levels.

LTC/USD 14/10/19 Daily Chart

Ripple’s XRP Leads the Pack

Ripple’s XRP rose by 1.75% on Sunday. Following on from a 1.84% gain on Saturday, Ripple’s XRP ended the week up 8.45% at $0.27786.

Bullish through the day, Ripple’s XRP rallied from an early morning intraday low $0.27201 to a late intraday high $0.28099.

Steering clear of the major support levels, Ripple’s XRP broke through the first major resistance level at $0.2780.

Coming within range of the second major resistance level at $0.2831, Ripple’s XRP fell back to $0.2730 levels.

Finding late support from the broader market, Ripple’s XRP broke back through the first major resistance level before easing back.

At the time of writing, Ripple’s XRP was up by 2.31% to $0.28427. A bullish start to the day saw Ripple’s XRP rally from an early morning low $0.27701 to a high $0.28624.

Steering clear of the major support levels, Ripple’s XRP broke through the first major resistance level at $0.02819.

Ripple’s XRP came up against the second major resistance level at $0.2859 before easing back.

For the day ahead, a hold above the first major resistance level would support a move back through the second major resistance level at $0.2859.

Ripple’s XRP would need the support of the broader market, however, to hold onto $0.28 levels.

Barring an extended crypto rally, we would expect Ripple’s XRP to continue to come up short of 0.29% levels.

Failure to hold above the first major resistance level could see Ripple’s XRP hit reverse.

A fall through to sub-$0.2770 levels would bring the first major support level at $0.2729 into play.

Barring a crypto meltdown, however, Ripple’s XRP should steer clear of sub-$0.27 support levels.

XRP/USD 14/10/19 Daily Chart

Please let us know what you think in the comments below

Thanks, Bob

A Light Economic Calendar Puts the GBP and Brexit in the Limelight

Earlier in the Day:

It was a relatively quiet day on the economic calendar through the Asian session this morning.

China’s September trade figures provided direction at the start of the week.

On the geopolitical front, the Asian equity markets responded to the positive updates on Brexit and trade negotiations.

In the FX markets, however, the mood was less bullish. Existing punitive tariffs remain that suggest more doom and gloom before any pickup in economic activity.

From China

The U.S Dollar trade surplus widened from $34.84bn to $39.65bn in September. Economists had forecast a narrowing to $33.30bn.

  • Year-on-year, exports fell by 3.2%, which was worse than a forecasted 3.0% fall. In August, exports had fallen by 1.0%.
  • Imports fell by 8.5%, year-on-year, in September, which was worse than a forecasted fall of 5.2%. Imports had fallen by 5.6% in August.

The Aussie Dollar moved from $0.67760 to $0.67861 upon release of the figures. At the time of writing, the Aussie Dollar was down by 0.15% to $0.6784.

While the trade surplus widened, a slide in imports suggests waning demand that could spell trouble in the months ahead.

Elsewhere

At the time of writing, The Japanese Yen was down by 0.03% to ¥108.32 against the U.S Dollar, while the Kiwi Dollar was down by 0.49% to $0.6306.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. The Eurozone’s August industrial production figures are due out of the Eurozone.

Following an unexpected pickup Germany, forecasts are EUR positive.

Outside of the numbers, we can expect direction to also come from Brexit and any chatter on trade.

At the time of writing, the EUR was down by 0.13% to $1.1028.

For the Pound

It’s a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction.

The lack of stats will leave the Pound in the hands of Brexit chatter throughout the day. The EU Summit is now within sight and Boris Johnson has just days to finalize a deal with the EU.

Expect Pound sensitivity to Brexit chatter to remain heightened at the start of the week.

At the time of writing, the Pound was down by 0.59% to $1.2593. A lack of progress from the weekend weighed on the Pound early on.

Across the Pond

It’s also a quiet day ahead on the economic calendar. There are no material stats to provide the Greenback with direction on the day.

The lack of stats will leave geopolitics in focus. Any further easing in geopolitical risk would be considered Dollar negative.

The Dollar Spot Index was up by 0.14% to 98.436 at the time of writing. Support kicked in early as trade talks failed to lead to a removal of existing tariffs.

For the Loonie

It’s a quiet day on the economic calendar. There are no material stats out of Canada to provide the Loonie with direction.

We can expect market risk sentiment through the day to influence. Trade data out of China and no suggestion of the removal of existing tariffs were negatives early on.

The Loonie was down by 0.05% at C$1.3209, against the U.S Dollar, at the time of writing.

The Crypto Daily – Movers and Shakers – 14/10/19

Bitcoin fell by 0.19% on Sunday. Partially reversing a 0.5% fall from Saturday, Bitcoin ended the week up 5.36% at $8,304.9.

A bullish start to the day saw Bitcoin rally from a morning low $8,310.0 to a late afternoon intraday high $8,478.0.

Steering clear of the major support levels, Bitcoin broke through the first major resistance level at $8,405.37.

Bitcoin came within range of the second major resistance level at $8,491.13 before hitting reverse.

The reversal saw Bitcoin slide to a late intraday low $8,160.4. Bitcoin fell through the first major support level at $8,252.17 and the second major support level at $8,184.73.

Finding support late in the day, Bitcoin bounced back to $8,300 levels to limit the loss on the day.

For the bulls, the extended bullish trend remained intact in spite of the hold at sub-$9,000 levels. While falling back through the 38.2% FIB, Bitcoin continued to hold above the 62% FIB of 7,245.

The Rest of the Pack

Across the rest of the top 10 cryptos, it was a mixed bag for the majors on Sunday.

Binance Coin continued its recovery, with a 6.34% rally to lead the way.

Ripple’s XRP (+1.75%), Litecoin (+1.24%) and EOS (+1.05%) also made good ground.

Bitcoin Cash SV joined Bitcoin in the red to buck the trend, however, falling by 0.99%.

For the week, it was a bullish week for the majors, Monday through Sunday.

Binance Coin led the majors, surging by 21.3%.

Ripple’s XRP (+8.45%), Bitcoin Cash SV (+7.20%), EOS (+6.65%), and Ethereum (+6.46%) made solid gains.

Litecoin and Bitcoin Cash ABC trailed the pack with more modest gains of 3.65% and 2.51% respectively.

For the week, the total crypto market cap rose from a Monday low $213.1bn to a Friday high $233.53bn. A choppy end to the week left the total market cap back at $223bn levels, however. At the time of writing, the total market cap stood at $224.74bn.

Bitcoin’s dominance remained at sub-67% levels with a number of the top 10 outperforming Bitcoin in the week.

This Morning

At the time of writing, Bitcoin was up by 0.1% to $8,313.6. A mixed start to the day saw Bitcoin fall to an early morning low $8,254.0 before striking a high $8,323.6.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, Ripple’s XRP (+2.67%), Stellar’s Lumen (+1.37%), EOS (+1.06%) and Bitcoin Cash ABC (+1.00%) were on the move.

Binance Coin and Bitcoin Cash SV trailed the pack with gains of 0.35% and 0.54% respectively.

BTC/USD 14/10/19 Daily Chart

For the Bitcoin Day Ahead

For the day ahead, Bitcoin would need to move through to $8,320 levels to support a run at $8,400 levels.

Support from the broader market would be needed, however for Bitcoin to break through the first major resistance level at $8,468.47.

Barring a broad-based crypto rally, the first major resistance level and Sunday’s high $8,478 would likely limit any upside.

Failure to move through to $8,320 levels could see Bitcoin fall back into the red.

A fall through the early morning low $8,254.0 would bring the first major support level at $8,150.87 into play.

Barring a crypto meltdown, Bitcoin should steer clear of sub-$8,100 levels on the day.

European Equities: China Trade Data and Geopolitics to Influence

Economic Calendar:

Monday, 14th October

  • Eurozone Industrial Production (MoM) (Aug)

Tuesday, 15th October

  • French CPI (MoM) (Sep) Final
  • French HICP (MoM) (Sep) Final
  • German ZEW Current Conditions (Oct)
  • German ZEW Economic Sentiment (Oct)
  • Eurozone ZEW Economic Sentiment (Oct)

Wednesday, 16th October

  • Italian CPI (MoM) (Sep) Final
  • Eurozone CPI (MoM) (Sep)
  • Eurozone Trade Balance (Aug)

The Majors

It was a bullish end to the week for the majors, with the DAX rallying by 2.86% to lead the way. The EuroStoxx600 and CAC40 weren’t far behind with gains of 2.31% and  1.73% respectively.

Support for the majors came off the back of news that the U.S administration delayed the rollout of fresh tariffs on Chinese goods. Tariffs were due to hit Chinese goods on 15th October.

Progress on trade talks in Washington led to the delay.

Brexit also provided support as the EU affirmed that progress was indeed being made on an alternative to the Irish backstop.

The Stats

It a relatively busy day on the Eurozone economic calendar on Friday. Economic data included German and Spanish finalized inflation figures for September.

Out of Germany, consumer prices held steady in September, which was in line with prelim figures. In August, consumer prices had fallen by 0.2%.

Inflationary pressures eased in Spain, however, with consumer prices rising by just 0.1%, month-on-month, which was in line with forecast. Consumer prices had risen by 0.3% in August.

From the U.S, a pickup in consumer expectations and sentiment for October also provided support on the data front.

Further upside in consumer sentiment can be expected as the U.S and China make progress on ironing out a trade agreement.

The Market Movers

For the DAX: Autos found further support on Friday, driven by updates from the U.S – China trade talks in Washington. Volkswagen led the way, rallying by 4.71%. Daimler (+3.13%), Continental (+2.50%), and BMW (+3.13%) weren’t far behind.

Bank stocks also found support, with Deutsche Bank rallying by 4.96% and Commerzbank by 4.09%

From the CAC, it was also a positive day for the banks. Soc Gen led the way, rallying by 5.27% off the back of a  3.32% gain on Thursday. BNP Paribas and Credit Agricole weren’t far behind, with gains of 4.72% and 4.52% respectively. For the autos, Renault jumped by 5.12%, while Peugeot up by 4.63% following a 3.48% gain on Thursday.

On the VIX Index

The VIX Index saw red for a 3rd consecutive day on Friday, sliding by 11.33%. Following on from a 5.74% fall on Wednesday, the VIX ended the day at 15.6.

Further progress on the U.S – China trade talks and Brexit supported risk appetite to pull the VIX back into the red.

VIX 14/10/19 Daily Chart

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone economic calendar. Economic data out of the Eurozone is limited to August’s industrial production figures.

Better than forecasted production figures would provide support in the early part of the session.

A lack of stats due out of the U.S, however, will leave geopolitics to continue to influence in the day.

Ahead of the European open, trade data due out of China through the Asian session will set the tone. Any weak numbers and expect market jitters over the global economy to return.

In the futures market, at the time of writing, the DAX30 was down by 35 points, while the Dow was up by 38 points.

The Week Ahead – Brexit, Earnings, Stats and the IMF and EU Summit in Focus

On the Macro

For the Dollar:

It’s a busier week ahead on the economic calendar.

NY Empire State Manufacturing figures for October get the week going on Tuesday. The focus will then shift to September retail sales figures due out on Wednesday.

With a heavy reliance on consumer spending, the numbers will need to be in line with forecasts to provide Dollar support.

On a busy Thursday, September building permit and housing start figures are due out along with October’s Philly FED Manufacturing numbers.

September industrial production and the weekly jobless claims figures are also due out.

With no material stats due out on Friday, Wednesday’s retail sales and Thursday’s Philly FED numbers will have the greatest impact.

Outside of the stats, trade war chatter will continue to be a factor, as will any further talk of impeachment.

The Dollar Spot Index ended the week down by 0.55% to $98.301.

For the EUR:

It’s also a relatively quiet week ahead on the economic data front.

Industrial production figures on Monday and German and Eurozone economic sentiment figures on Tuesday will influence early in the week.

The Eurozone’s September inflation and industrial production figures due out on Wednesday will also provide direction.

We would expect finalized inflation figures out of France and Italy to have a muted impact on the EUR, however.

With no material stats due out in the latter part of the week, geopolitical risk will remain in focus.

Any talk of U.S tariffs on EU goods and chatter on Brexit ahead of the 19th October EU Summit will also need considering.

The EUR/USD ended the week up by 0.58% to $1.1042.

For the Pound:

It’s another busy week ahead on the economic calendar.

Key stats include employment figures due out on Tuesday, inflation figures on Wednesday and retail sales numbers on Thursday.

On the data front, claimant counts, inflation and retail sales figures will be the key drivers in the week.

On the Brexit front, there would be more upside for the Pound should Johnson finalize a deal ahead of next weekend’s EU Summit.

The GBP/USD ended the week up by 2.73% to $1.2668.

For the Loonie:

It’s a relatively busy week ahead on the data front.

Key stats include September inflation figures due out on Wednesday and August manufacturing sales numbers due out on Thursday.

On the data front, we would expect the inflation figures to be the key driver in the week.

From elsewhere, trade data, industrial production and 3rd quarter GDP numbers out of China will also influence.

The Loonie ended the week up by 0.83% to C$1.3203 against the U.S Dollar.

Out of Asia

For the Aussie Dollar:

It’s another relatively quiet week ahead.

Key stats are limited to September’s employment numbers due out on Thursday.

On the monetary policy front, the RBA minutes are due out on Tuesday and could pressure the Aussie Dollar should there be suggestions of more rate cuts to come.

From elsewhere, economic data out of China on Monday and Friday will also influence.

The Aussie Dollar ended the week up by 0.34% to $0.6794.

For the Japanese Yen:

It’s a relatively quiet week ahead on the economic calendar.

Key stats are finalized industrial production figures due out on Tuesday and inflation and trade data on Friday.

We would expect the stats to have a relatively muted impact on the Yen, however.

Geopolitics and economic data out of the U.S and China will likely have the greatest impact in the week.

The Japanese Yen ended the week down by 1.26% to ¥108.29 against the U.S Dollar.

For the Kiwi Dollar:

Stats are on the quieter side in the week ahead.

Economic data is limited to 3rd quarter inflation figures that are due out on Wednesday. We can expect the Kiwi to be particularly sensitive to the numbers.

From elsewhere, stats from China will also influence in the week.

The Kiwi Dollar ended the week up by 0.27% to $0.6337.

Out of China:

It’s a busy week on the economic data front. Economic data includes trade data due out on Monday and inflation figures on Tuesday.

The focus will then shift to a busy Friday. Stats on Friday include fixed asset investment, industrial production and 3rd quarter GDP numbers.

We expect trade data, industrial production, and the GDP numbers to have the greatest impact on market risk sentiment.

The impact of any weak numbers could be buffered, however, by any further positive chatter on trade.

The Yuan ended the week up by 0.83% to CNY7.0892 against the Greenback.

Geo-Politics

Impeachment: With the U.S and China making progress on trade, impeachment chatter could return in the week ahead.

Trade Wars: 15th October U.S tariffs on Chinese goods have been postponed as progress was made last week. For real progress to be made, however, the U.S would need to remove existing tariffs that continue to hurt the Chinese economy. Expect more chatter in the week, which will influence risk sentiment.

UK Politics: Brexit talks continue, with a deal now needed to support further the Pound ahead of the EU Summit. Any suggestions that the latest proposal is inadequate and expect the Pound to slide.

The Rest

Earnings:  It’s a big week ahead, with U.S banks Citi, Goldman, JPMorgan, and Wells Fargo announcing.

EU Summit: It is make or break for Boris Johnson and the Brexiteers. Will there finally be an agreement for the British PM to take back to parliament?

IMF Annual Meeting: Chatter on the global economy and what can be done to drive growth will influence. Will there be any agreements to ramp up fiscal spending to offset the effects of the ongoing U.S – China trade war?

Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 13/10/19

Bitcoin Cash – ABC – Tracks the Pack

Bitcoin Cash ABC rose by 1.56% on Saturday. Partially reversing a 4.10% slide from Friday, Bitcoin Cash ABC ended the day at $224.75.

A mixed start to the day saw Bitcoin Cash ABC rise from an early morning intraday low $221.3 to a morning high $224.38.

Leaving the major support and resistance levels untested, Bitcoin Cash ABC fell back to $222 levels.

Finding support in the early afternoon, Bitcoin Cash ABC rallied to a late afternoon intraday high $227.78.

Falling short of the first major resistance level at $230.51, Bitcoin Cash ABC fell back to $223 levels before finding support.

At the time of writing, Bitcoin Cash ABC was up by 0.19% to $225.17. Through the first hour, Bitcoin Cash ABC rose from a morning low $223.64 to a high $225.17.

Bitcoin Cash ABC left the major support and resistance levels untested early on.

For the day ahead, Bitcoin Cash ABC would need to hold onto $225 levels to support a run at the first major resistance level at $227.92.

Bitcoin Cash ABC would need the support of the broader market, however, to break through to $227 levels.

Barring a broad-based crypto rally, the first major resistance level and Saturday’s high $227.78 should limit any upside.

Failure to hold onto $225 levels could see Bitcoin Cash ABC hit reverse. A fall through to $223 levels would bring the first major support level at $221.44 into play before any recovery.

Barring a broad-based crypto sell-off, Bitcoin Cash ABC should steer clear of sub-$220 support levels on the day.

BCHABC/USD 13/10/19 Daily Chart

Litecoin Struggles Early

Litecoin fell by 0.36% on Saturday. Following on from a 3.15% slide on Friday, Litecoin ended the day at $55.77.

A bullish start to the day saw Litecoin strike a mid-morning intraday high $56.57.

Falling well short of the first major resistance level at $57.91, Litecoin fell back to $55 levels before recovering to an afternoon high $56.44.

A failure to break through to $57 levels weighed, however, with Litecoin sliding to an early evening intraday low $55.53.

In spite of the pullback, Litecoin steered well clear of the first major support level at $54.71 on the day.

At the time of writing, Litecoin was up by 1.11% to $56.39. A bullish start to the day saw Litecoin rise from an early morning low $55.55 to a high $56.56.

Steering clear of the first major support level at $55.34, Litecoin broke through the first major resistance level at $56.38.

For the day ahead, a move back through the morning high would bring the second major resistance level at $57.0 into play.

Litecoin would need the support of the broader market, however, to avoid a pullback through the first major resistance level.

In the event of a broad-based crypto rally, the third major resistance level at $58.04 would likely come into play.

Failure to hold above the first major resistance level could see Litecoin hit reverse. A fall through to sub-$56 levels would bring the first major support level at $55.34 into play.

Barring a broad-based crypto sell-off, Litecoin should steer clear of the second major support level at $54.92.

LTC/USD 13/10/19 Daily Chart

Ripple’s XRP Finds Support

Ripple’s XRP rose by 1.84% on Saturday. Reversing a 1.3% fall from Friday, Ripple’s XRP ended the day at $0.27304.

A bullish start to the day saw Ripple’s XRP rally from an early intraday low $0.2679 to a mid-morning intraday high $0.27798.

Steering clear of the major support levels, Ripple’s XRP broke through the first major resistance level at $0.2745.

Coming within the range of the second major resistance level at $0.2809, Ripple’s XRP fell back to $0.2710 levels.

Finding support in the early afternoon, Ripple’s XRP broke back through the first major resistance level before a second pullback.

Ripple’s XRP fell back through the first major resistance level before finding support late in the day.

At the time of writing, Ripple’s XRP was up by 0.72% to $0.27500. A bullish start to the day saw Ripple’s XRP rise from an early morning low $0.27201 to a high $0.27686.

In spite of the early moves, Ripple’s XRP left the major support and resistance levels untested.

For the day ahead, Ripple’s XRP would need to hold above $0.2730 levels to support a run at the first major resistance level at $0.2780.

Ripple’s XRP would need the support of the broader market, however, to break out from the morning high $0.27686.

In the event of an extended crypto rally, the second major resistance level at $0.2831 would likely come into play.

Failure to hold above $0.2730 levels could see Ripple’s XRP test the first major support level at $0.2680 before any recovery.

Barring a broad-based crypto sell-off, however, Ripple’s XRP should steer clear of the second major support level at $0.2629.

XRP/USD 13/10/19 Daily Chart

Please let us know what you think in the comments below

Thanks, Bob

The Crypto Daily – Movers and Shakers – 13/10/19

Bitcoin rose by 0.5% on Saturday. Partially reversing a 3.7% slide from Friday, Bitcoin ended the day at $8,319.6.

A relatively bullish start to the day saw Bitcoin rise from an early morning intraday low $8,325.9 to a morning high $8,394.

Leaving the major support and resistance levels untested, Bitcoin eased back to $8,320 levels before making a move.

Bitcoin rallied to an early afternoon intraday high $8,423.7 before pulling back.

Falling well short of the first major resistance level at $8,644.67, Bitcoin fell back to $8,310 levels before finding support.

Steering clear of sub-$8,300 levels late in the day was key.

For the current week, Saturday’s 0.5% gain contributed to a 5.54% increase, Monday through Saturday.

For the bulls, the extended bullish trend remained intact in spite of the slide to sub-$9,000 levels. While falling back through the 38.2% FIB, Bitcoin continued to hold above the 62% FIB of 7,245.

The Rest of the Pack

Across the rest of the top 10 cryptos, it was a mixed bag for the majors on Saturday.

Binance Coin and Bitcoin Cash SV led the way, with gains of 3.74% and 3.41% respectively.

Stellar’s Lumen (0.18%), EOS (0.29%), Bitcoin Cash ABC (1.56%), and Ripple’s XRP (1.84%) also saw green.

Litecoin and Ethereum bucked the trend on the day, with the pair falling by 0.36% and by 0.60% respectively.

For the current week, Monday through Saturday, it’s been a bullish week, however.

Binance Coin led the way, rallying by 14.07%.

Bitcoin Cash SV (8.13%), Ripple’s XRP (6.57%), Ethereum (5.69%), EOS (5.62%) and Stellar’s Lumen (5.44%) also saw solid gains.

Bitcoin Cash ABC and Litecoin trailed the pack in the week, with gains of 2.68% and 2.35% respectively.

Through the current week, the total crypto market cap rose from a Monday low $213.1bn to a Friday high $233.53bn. A bearish day on Friday, however,  led to a pullback to sub-$230bn levels. At the time of writing, the total market cap stood at $224.61bn.

Bitcoin’s dominance held back to sub-67% levels with a number of the top 10 making solid gains in the week.

This Morning

At the time of writing, Bitcoin was up by 0.4% to $8,353.0. A bullish start to the day saw Bitcoin rise from an early morning low $8,310 to a high $8,353.2.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, Stellar’s Lumen and Binance Coin led the way with gains of 2.03% and 1.98% respectively.

Bitcoin Cash ABC bucked the trend early on, falling by 0.49%.

BTC/USD 13/10/19 Daily Chart

For the Bitcoin Day Ahead

For the day ahead, Bitcoin would need to steer clear of sub-$8,330 levels to support a bullish day ahead.

A move back through the morning high $8,353.2 would bring the first major resistance level at $8,405.37 into play.

Bitcoin would need the support of the broader market, however, to break through to $8,400 levels.

In the event of a broad-based crypto rally, the second major resistance level at $8,491.13 would come into play.

Failure to steer clear of sub-$8,330 levels could see Bitcoin test the first major support level at $8,252.17 before any recovery.

Barring a crypto meltdown, Bitcoin should steer clear of the second major support level at $8,184.73.

U.S Mortgage Rates Ease Back to Support Refinancing

Mortgage rates hit reverse in the week ending 10th October. 30-year fixed rates fell by 8 basis point to 3.57%, following a 1 basis point rise in the week prior.

The pullback left 30-year rates close to levels last seen in early November of 2016, according to figures released by Freddie Mac.

Compared to this time last year, 30-year fixed rates were down 133 basis points.

More significantly, 30-year fixed rates are down by 137 basis points since last November’s most recent peak of 4.94%.

Economic Data from the Week

Economic data was on the quieter side throughout the week. Key stats included September inflation figures released on Tuesday and Thursday.

On the monetary policy front, the FOMC minutes on Wednesday also influenced. The minutes revealed that some members are willing to deliver further rate cuts down the road.

With stats on the lighter side, however, geopolitics remained the key driver.

Progress on Brexit and on the U.S – China trade talks supported yields mid-week.

Freddie Mac Rates

The weekly average rates for new mortgages as of 10th October were quoted by Freddie Mac to be:

  • 30-year fixed rates decreased by 8 basis points to 3.57% in the week. Rates were down from 4.90% from a year ago. The average fee remained steady at 0.6 points.
  • 15-year fixed rates fell by 9 basis points to 3.05% in the week. Rates were down from 4.29% from a year ago. The average fee held steady at 0.5 points.
  • 5-year fixed rates slipped by 3 basis points to 3.35% in the week. Rates were down by 72 basis points from last year’s 4.07%. The average fee decreased from 0.4 points to 0.3 points.

According to Freddie Mac, a 50-year low unemployment rate together with low mortgage rates led to an increase in homebuyer demand in the year.

Freddie Mac also noted that much of the strength comes from entry-level buyers. First-time homebuyer share of the loans Freddie Mac purchased in 2019 stood at 46%, a 2-decade high.

Mortgage Bankers’ Association Rates

For the week ending 4th October, rates were quoted to be:

  • Average interest rates for 30-year fixed, backed by the FHA, decreased from 3.79% to 3.75%. Points increased from 0.23 to 0.29 (incl. origination fee) for 80% LTV loans.
  • Average interest rates for 30-year fixed with conforming loan balances fell from 3.99% to 3.90%. Points fell from 0.38 to 0.37 (incl. origination fee) for 80% LTV loans.
  • Average 30-year rates for jumbo loan balances decreased from 3.98% to 3.90%. Points remained unchanged at 0.28 (incl. origination fee) for 80% LTV loans.

Weekly figures released by the Mortgage Bankers Association showed that the Market Composite Index, which is a measure of mortgage loan application volume, increased by 5.2% in the week ending 4th October. In the week ending 27th September, the Market Composite Index had risen by 8.1%.

The Refinance Index increased by 10% in the week ending 4th October, leaving the index up by 163% from the previous year. The Index had jumped by 14% in the week ending 27th September.

The share of refinance mortgage activity increased from 58.0% to 60.4%, following on from a rise from 54.9% to 58.0% in the week prior.

According to the MBA, yields fell sharply in the week as a result of weaker service sector data that raised yet more red flags. In September, weakness in private sector growth was no longer confined to the manufacturing sector. The surveys revealed that service sector growth was also beginning to wane.

A resulting flight to safety led to a drop in mortgage rates across the board, leaving 30-year fixed rates at their lowest level in a month.

For the week ahead

It’s a busier week on the economic data front.

Economic data includes NY and Philly manufacturing figures on Tuesday and Thursday and retail sales figures on Wednesday.

From the housing sector, building approvals and housing starts are also due out.

While we can expect the stats to influence, geopolitics will continue to be in focus. Progress on trade talks between the U.S and China and Brexit would support yields, which could lead to a pickup in rates.

The stats would need to support, however, with retails sales and the Philly FED Manufacturing Index the key drivers.

From elsewhere, trade data out of China will also impact yields at the start of the week.

European Equities: A Week in Review – 11/10/19

The Majors

It was a bullish week for the European majors, with the DAX30 rallying by 4.15% to lead the way. The CAC30 and EuroStoxx600 weren’t far behind, with gains of 3.23% and 3.00% respectively.

After a bearish start to the week, 3 consecutive days in the green delivered, with the lion’s share of the gains coming on Friday.

Economic data through the week failed to weigh on the majors, with geopolitics delivering the upside in the week.

Progress on Brexit negotiations and positive updates from the U.S – China trade talks drove demand for the European majors.

U.S President Trump said on Friday that discussions were very good and that there were warmer feelings at the latest talks,

On Brexit, positive updates from Johnson, Irish Prime Minister Varadkar and from the EU in the 2nd half of the week also supported.

Monetary Policy

The ECB’s monetary policy meeting minutes on Thursday had little influence on the majors. While having little influence, the minutes did reveal division amongst members on what lies ahead. Recent ECB member commentary had already alerted the markets of a rift amongst members, with a number of key members against the reintroduction of bond purchases.

The Stats

It was a relatively quiet week on the Eurozone economic calendar. Through the week, Germany’s August factory orders and trade data were negative for the DAX, while an unexpected pickup in industrial production was positive.

On Monday, factory orders fell by 0.6% in August, following on from a 2.7% slide in July. A 0.3% rise in industrial production, reversing a 0.4% fall in July, had little impact on Tuesday, as market jitters ahead of trade talks pinned back the majors.

A narrowing in Germany’s trade surplus from €20.5bn to €18.1 did little to dampen demand for riskier assets on Thursday.

The positive updates from both Brexit and trade talks in Washington drove demand for the European majors on Thursday and Friday.

At the end of the week, finalized inflation figures out of Germany and Spain also had a muted impact, with further updates on Brexit and trade talks driving the majors on the day.

The Market Movers

From the DAX, it was a bullish week for the auto sector. Volkswagen led the way, rallying by 8.55%. Daimler and BMW also saw solid gains, rising by 6.25% and 3.08% respectively. Continental trailed the pack, however, rising by just 0.02%.

It was also bullish for the banking sector. Deutsche Bank gained 3.98%, with Commerzbank rallying by 4.92%, to partially reverse last week’s 8.42% tumble.

While the stats were on the weaker side, a trade agreement would ease concerns over the economic outlook.

From the CAC, the banks also found strong support. BNP Paribas and Soc Gen led the way, rallying by 8.19% and by 7.95% respectively. Credit Agricole trailed with a 6.10% gain. French autos saw green following 3 consecutive weeks in the red. Peugeot rallied by 6.52%, with Renault up by 6.10%.

On the VIX Index

The VIX Index fell by 8.57% in the week ending 11th October. Following on from a 0.7% fall from the previous week, the VIX ended the week at 15.6.

After a Tuesday 13.6% jump in the VIX, it was red through the rest of the week. Sentiment towards Brexit and U.S – China trade talks offset a negative bias on the economic data front.

VIX Weekly Chart 12/10/19

The Week Ahead

It’s a relatively busy week on the Eurozone economic calendar. Key drivers include German and, Eurozone economic sentiment figures on Tuesday. The Eurozone’s industrial production and trade data due out on Monday and Wednesday will also influence.

From elsewhere, China’s trade data and industrial production and 3rd quarter GDP numbers on Friday will also influence risk appetite.

While economic data is on the heavier side, continued progress on Brexit and the U.S – China trade talks will buffer the effect of any disappointing figures.

A delay to tariffs that were due to be introduced on 15th October, was key in the week.

Looking at the forecasts, Eurozone and China economic stats are skewed to the negative.

The Weekly Wrap – Progress on Brexit and Trade Delivered in the Week

The Stats

It was a quieter week on the economic calendar in the week ending 11th October.

A total of 44 stats were monitored throughout the week, following 74 stats from the week prior.

Of the 44 stats, 17 came in ahead forecasts, with 22 economic indicators coming up short of forecast. 5 stats were in line with forecasts in the week.

Looking at the numbers, 19 of the stats reflected an upward trend from previous figures. Of the remaining 25, 20 stats reflected a deterioration from previous.

While the economic data was skewed to the negative, the Dollar struggled in the week, as demand for the dollar eased off the back of positive updates from trade talks and Brexit.

The U.S Dollar Index (“DXY”) fell by 0.55% to end the week at $98.301.

Out of the U.S

It was a relatively quiet week on the economic data front. Wholesale inflation figures on Tuesday and September inflation figures on Thursday provided direction early in the week.

wholesale and consumer prices were on the softer side in September, pinning back the greenback.

On Friday, positive Michigan’s consumer expectations and sentiment figures failed to support the Greenback.

Off less influence in the week, were JOLTs job openings, initial jobless claims and import and export price index figures.

Outside of the stats, the FOMC meeting minutes revealed some debate on when to end the current rate path. Rising concerns over the economic outlook suggested that more cuts could be on the way.

The reality was, however, that just 7 of 17 FOMC members foresaw a further rate cut before the year-end.

Downside for the Dollar ultimately came from an easing in geopolitical risk, with most of the damage coming at the end of the week.

In the equity markets, a Friday rebound pulled the majors into the green for the week. The Dow and S&P500 ended the week up by 0.91% and 0.62% respectively, with the NASDAQ up 0.93%.

Out of the UK

It was a busy week on the economic calendar.

Key stats included GDP, industrial and manufacturing production and trade data on Thursday.

While production was on the slide, quarter-on-quarter GDP numbers continued to show the UK economy dodging a recession. The numbers were ultimately Pound positive.

Of less influence in the week were housing sector figures, labor productivity, and retail sales numbers.

While the stats were supportive of the Pound, the upside ultimately came from Brexit news.

Progress towards a possible trade deal, ahead of next week’s EU Summit, drove demand for the Pound.

The Pound ended the week up by 2.73% to $1.2668.

For the FTSE100, a stronger Pound failed to pressure the 100, with the index rising by 1.28%.

Out of the Eurozone

It was particularly quiet week on the economic data front.

Germany’s factory orders and trade data provided little support in the week, with factory orders falling again and the trade deficit narrowing.

On the positive, however, was an unexpected rise in industrial production.

At the end of the week, finalized September inflation figures out of Germany and Spain had a muted impact on the EUR.

On the monetary policy front, the ECB monetary policy meeting minutes also left the EUR unscathed.

The upside in the week ultimately came from positive updates on Brexit and progress on the U.S – China trade talks.

For the week, the EUR rose by 0.58% to $1.1042.

For the European major indexes, the DAX30 rallied by 4.15%, with the EuroStoxx600 and CAC40 up by 3.23% and 3.00% respectively.

Elsewhere

It was another positive week for the Aussie and Kiwi Dollars.

The Aussie Dollar rose by 0.34% to $0.6794, while the Kiwi Dollar gained 0.27% to $0.6337.

For the Aussie Dollar

It was a quiet week for the Aussie Dollar.

Economic data was limited to September’s business confidence and October consumer sentiment figures.

Both business and consumer confidence figures disappointed in the week, pinning back the Aussie Dollar.

Of less influence were home loan figures that continued to reflect improved housing sector conditions.

In spite of the negative bias on the stats, a Friday rally in the Aussie Dollar delivered the gains for the week. Positive updates on trade talks delivered the upside on the day.

For the Kiwi Dollar

The stats were, once more, skewed to the negative in the week.

September’s Business PMI held steady at 48.4, coming up short of a forecast of 49.0. Electronic card retail sales also came up short of forecasts, whilst up by 0.4% in September.

While the stats were skewed to the negative on Friday, a 0.27% gain on the day gave the Kiwi Dollar the upside for the week.

For the Loonie

Through the 1st half of the week, housing sector figures impressed, proving some support.

Employment figures on Friday were the key driver, however, with the unemployment rate falling from 5.7% to 5.5%. A 53k rise in employment, following an 81.1k increase in August, delivered on the day.

Positive updates from trade talks also delivered provided support late in the week, with WTI and Brent gaining 3.58% and 3.54% respectively.

The Loonie ended the week up by 0.83% to C$1.3203 against the Greenback.

For the Japanese Yen

It was a relatively quiet week on the data front. Stats were limited to August household spending figures that came in worse than forecasts.

While the stats were Yen negative, the downside from the Yen came from an easing in geopolitical risk.

Safe-haven demand waned as progress on Brexit negotiations and trade talks spurred demand for riskier assets.

For the week, the Japanese Yen fell by 1.26% to ¥108.29.

Out of China

It was a quiet week on the economic data front.

September’s service sector PMI, which reported slower sector growth, tested risk sentiment on Monday.

A lack of stats through the remainder of the week left updates from the U.S – China trade talks to influence risk sentiment.

The Yuan rose by 0.83% to CNY7.0892 against the Greenback.