Summary:
- More declines in crytpocurrencies with Bitcoin falling below 10000
- Canadian dollar pulls back despite another BOC rate hike
- More tax-related losses for US banks as Goldman and BoFA post results
- US industrial production rises; USD looks to recover
- Oil pulls back from $70; is a reversal imminent?
It’s been another bad day for cryptocurrency markets with further declines seen across all 5 markets. Whilst the selling hasn’t been quite as severe as yesterday the drop has seen Tuesday’s low broken on Bitcoin which has fallen below 10000 to trade at its lowest level since early December.
The Bank of Canada have raised their overnight rate once more today, as was widely expected, to 1.25%. The move marks the 3rd hike in just 6 months but despite this, a somewhat cautious tone in the accompanying statement has weighed on the Loonie which has fallen back across the board. Governor Poloz and deputy Wilkins are currently conducting their press conference and the situation could change quickly should they make any unexpected comments.
Earnings season in the US is getting into full swing now with both Goldman Sachs and Bank of America (BoFA) reporting their latest trading update ahead of the opening bell. In a similar theme to that seen with Citigroup yesterday both firms have reported losses due to the imminent application of the new tax framework.
On a quiet afternoon of economic data from the US the latest industrial production figures have provided a positive reading. The data form December showed a rise of 0.9% M/M, well above the 0.4% expected. However the prior reading of 0.2% was revised lower to -0.1% to leave it as only the 3rd negative print of the year and providing a boost to the most recent data.
The last month was incredibly supportive of oil prices which led to the fresh highs made above a $70 handle when it comes to the Brent grade. Today however the market has fallen a little lower and it could be on course for its second consecutive daily loss. A closer look at the market and what could lie ahead can be found here.