A busy week with important news data ahead

Frank Walbaum FX Strategies.Asia

Important news for the week

Wed, 04th, 15:45 CET CA Interest rate decision.
Wed. 04th, 16:00 CET US JOLTS job openings.
Thu, 05th, 14:15 CET US ADP employment change.
Fri, 06th 14:30 CET US NFP employment data.
Fri, 06th 14:30 CET CA Unemployment rate.

Busy week

This week will be of busy nature with several important news events on the horizon. First of all the Bank of Canada might cut interest rates as per the expectation beforehand. However, the CAD is currently quite strong and any signs of weakness might be used to sell the USDCAD or the EURCAD pairs again. The ADP employment change might set some tone for the NFP data on Friday, which itself could also move markets. So several potentially volatile news events might shake up markets this week.

Market talk

The US- Dollar had kept its strength from the past days and might continue to gear up steam during the first days in September. Stock markets continue to look positive and might continue higher. Worth noting that the sentiment in the Eurozone remains bad but also the DAX is able to push higher. Due to the stronger Dollar precious metals continue lower and statements from OPEC might be a reason why oil prices run to the downside. They had stated that they will increase production numbers gradually by 180.000 barrels per day to the figures which had been produced in 2022.

Tendencies in the markets

Equities sideways, USD stronger, cryptos weak, oil weak, metals weaker, JPY sideways.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.