The British pound lost about 2% on Thursday, as Brexit talks provoked a number of ministerial resignations. Meanwhile, stocks of British banks were under threat, as the declared parameters of the deal would negatively affect their influence in Continental Europe.

The GBPUSD pair has returned to the bottom, trading near this year’s lows. The focus of investors has shifted to the events regarding to Brexit, and thus the current position of the British currency is majorly affected by the market sentiment.

U.K. macroeconomic statistics has been temporarily in the shadow, although this week’s data indicate possible problems in the country’s economy.

It is worth to pay attention to the dynamics of the GBPUSD near support area at 1.2700.

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#WeeklyTrends:

The past week has been stigmatized by three major falls on oil, bitcoin and the pound. However, this trio seems to have managed to return back to stability.

🛢 Oil collapsed on Tuesday. WTI fell by more than 7% on that day, which was the 12th consecutive steady decline, making it the longest series in modern history. OPEC ministers failed to promise a reduction in production, while the Joint Technical Committee forecasted a production growth. The whole situation has caused major panic in the markets. Since Wednesday, oil has been steadily recovering, but it has not yet managed to fight back to even half of Tuesday’s decline, not to mention the whole 28% collapse.

⚰️ Bitcoin experienced a crash on Wednesday. Many months of sluggish dynamics turned into a sharp sell-off, when the key cryptocurrency fell under the $6000 mark. At the end of the week, BTCUSD was traded near $5500, which roughly corresponds to the cost of electricity required for its production.

💷 On Thursday, nerves could not withstand the pound. The Brexit deal has caused several resignations, which in turn affected the British currency by more than 2% within the day.

💡Meanwhile, the dollar has been decreasing during the entire week, rolling back from its 16-month highs on DXY. Technical analysis (divergention with RSI) suggests that the dollar has lost its momentum and is in a vulnerable position. This may already be the topic for next week.

Wave Analysis: #Silver is expected to rise further and re-test the next resistance level 14.6. Read more

Wave Analysis: #EURNZD is expected to rise further and re-test the next resistance level 1.6800. Read more

#FxProMedia: TOP-6 most interesting publications of this week:

1️⃣ Trading View: "Bitcoin is dangerously close to collapse"

2️⃣ Yahoo Finance: "Fed Rate Hikes. Any Surprises?"

3️⃣ The Guardian: "Why 'the markets' need keeping in their place"

4️⃣ Daily Magazine: "Crypto Investors Are Trying to Save Their Funds Amid Bitcoin Crash"

5️⃣ Retail Crowd: "Fears of rising interest rates continue to push down growth stocks"

6️⃣ Investing: "Brexit News, Weak Economy And Downward Risks For Pound"

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🗓 Important upcoming events and publications for November 19th (GMT):

🇪🇺 10:00 The EU Currenrt Account Balance rarely causes a strong reaction of #EUR, but since there is just a bit news for today, markets can experience some movement, if there is a strong deviation of the data from the trend. The weakening of the euro with some delay contributes to the proficit expansion, so, the markets are waiting for the indicator’s growth above 24 billion.

🇺🇸15:00 The NAHB US Housing market index had been losing ground at the beginning of the year, but had stabilized in the 2nd half. The US real estate market is returning to the investor’s focus, because the weakening of this sector previously has become a strong indicator of the less consumer activity and now can affect the dynamics of #USD by the end of the day.

Visit https://fxpro.news/economic-calendar/ for more delails.

Last week, the US dollar had started off with a confident 0.6% growth, updating the 16-month highs on the dollar index and throwing EURUSD down to 1.1200. However, the American currency has thereafter shifted into a defensive mode, decreasing by 1.2%, as a result of Fed’s dovish comments and lower budget tensions in Italy.

Although markets were significantly affected by the commentaries, it is fair to say that there was not substantial information out there to justify such an impact. First, Powell made it clear during his speeches that Fed was all set for the December rate increase. Predictions of the FOMC pointed out a 2-3 increase by 0.25 percentage point in 2019, against 4 hikes in 2018. This slowdown was just a repetition of an already known predicament.

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Wave Analysis: #Corn is expected to fall further and re-test the next support level 360.00. Read more

Wave Analysis: #EURUSD is expected to rise further and re-test the next key resistance level 1.1500. Read more

🗓 Important upcoming events and publications for November 20th (GMT):

🇩🇪 07:00 Producer Price Index in Germany had steadily gained momentum since February. For October, the annual growth rate is expected to accelerate from 3.2% to 3.3% y/y. PPI is regarded as an early indicator of the consumer inflation's trends. Growth above the forecasts can additionally support #EUR on expectations of the rigid ECB rhetoric.

🇬🇧 10:00 The Bank of England Governor will present an inflation report to the Parliament. Traders and investors will put their attention to the economical forecasts and the interest rates trends. These data may increase volatility on #GBP.

🇺🇸 13:30 The U.S. number of building permits had almost invariably decreased since March, causing more and more apprehensions among investors. On Monday, the NAHB index showed a sharp decline: the development of this trend is able to further weaken the #USD.

Visit https://fxpro.news/economic-calendar/ for more information.

#Facebook lost 40% from its peak values in the middle of the year and sank to low levels, which we have not seen since February 2017.

#Nasdaq Index had lost 3% on Monday, and at the start of trading on Tuesday plummeted to lows seen back in May, subsequent to the decline of stocks of market giant such as #Google, #Amazon and #Apple.

It is logical to fear that the correction of high-tech companies might spread to the entire stock market. It happens most of the time, but one should not rush to conclusions.

Based on what we have seen, it can be said that the end of the easy-money era, initiated in early October, resulted in the realisation of a more realistic view of the markets.

Markets are on the way from irrational exuberance to anxiety.

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Last week’s sell-off seemed to be a turning point for the crypto market. During this week only, the price of Bitcoin (BTC) has fallen by 20%, trading below $4,400 at one point. It is worth noting that this was not a single sharp collapse as last week, but rather a systematic sell-off throughout the day. Markets participants are trying to sense whether this is the bottom, however no sure answer can be given.

The only question now is how low the new correction will turn out. Experts predicted a decrease in Bitcoin (BTC) to the area near $3,500, at which point the cryptocurrency will stabilize and receive some support from market participants. At the moment, we have the same "hype factor" which pushed BTC to $20,000 last year, but however in the opposite direction: from rapid growth to extreme fear and sell-off.

Over the past week, the world's leading cryptocurrency fell by $1,650 and at the moment there are no signs of recuperation. Read more

🗓 Important upcoming events and publications for November 21 (GMT):

🇬🇧 09:30 U.K. Public Sector Net Borrowing is another evidence of the economy trends. Such dynamics has a pronounced seasonality, so, it makes sense to compare the data with the same month a year earlier, as well as with the market expectations. Deficit growth above the forecast (5.6 billion) is able to put pressure on #GBP.

🇺🇸 13:30 U.S. Durable goods orders is considered as a good indicator of the current mood of the national business. The growth of this indicator reflects confidence in the economic prospects and is able to support #USD.

🇺🇸15:00 The US Existing Home Sales is the good indicator for assessing prospects from households. Since March, sales are in decline, causing the nervousness of market participants, as the deceleration of real estate often precedes the economy slowdown. Market analysts are expecting an increase of 1% in October, after 3.4% failure a month earlier.

Visit https://fxpro.news/economic-calendar/ for more information.

#DJI had lost more than 2%, subsequent to the decline of the shares of the energy sector, throwing the index back to October’s lows. It seems that for the last month, positive drivers are struggling to push the market to a sustainable trend for growth.

Crude Oil experienced a sharp and unexpected reversal to a decline on Tuesday. #WTI lost 7% on Tuesday, exactly the same percentage as one week ago.

Markets are fearing that the slowdown in the world economy will slow the growth of oil consumption, nevertheless production is significantly increasing.

But there are a few things that allow us to remain optimistic about the stock markets, at least for a while.

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Wave Analysis: #WTI is expected to fall further and re-test the next round support level 50.00. Read more