Crypto consolidates, ETH bids emerge

This Daily Digest will cover:

• Markets quiet, earnings season accelerates later

• USD bounced back. Temporary or a turn?

• Crypto consolidates, ETH bids emerge

Not a lot to say today, so I won’t witter on for too long. Yesterday saw the USD bounce back as shorts felt some pain for the first time in a while. There was no real driving force as stocks were muted and the data releases 3rd tier at best. I see no reason for a change of plan or a trend change yet so we have bought the dip in Euro and GBP and added some tactical CAD longs.

Crypto was quiet yesterday, and whilst it participated in the USD move higher it was muted even by its own standards. ETH especially has bounced back quickly and opens above 2100. It is only a matter of time before buyers waiting for a chance to get back in sub 2000 lose patience. A break of 2150 could prove a short term catalyst.

Earnings season will be interesting today as Goldmans report (never underestimate them) followed by Netflix after the closing bell. The latter is more interesting to me as they could prove to be a bellwether for consumers feeling the pinch and I suspect they will set a reporting trend for the sector. German ZEW data at 10am is the only calendar highlight.

As always, good luck.

Richard Usher
Head of OTC Trading