A good time for risk- on? – What are today's best trades?

Frank Walbaum FX Strategies.Asia

Important News for the day

Thu, 29th, 14:30 CET US prelim. Gross Domestic Product.
Thu, 29th, 14:30 CET US Unemployment Claims.

US court ruling

In the US the court of international trade in New York has initially blocked tariffs initiated by the government. The ruling was that the President had not
the authority for such decision. Levies would be illegal in general following the April 02 implementation without affecting the sectoral price increases
on steel and car imports. Stock markets used the positive news to rise again overnight. The S&P 500 is trading more than 1.5% higher. The German
DAX on the other hand remains in a sideways pattern but had already gained beforehand.

Market talk

The weakness of the Dollar might resume today and with it also the positive sentiment in stock markets. Initial court decisions from the US will also
help the bullish view. Most currency pairs like the EURUSD, GBPUSD and AUDUSD keep pushing higher showing a bullish trend reversal. The
weakness of the Greenback might also be a reason why oil prices start to push higher again. Slight easing in geopolitical tensions should rather curb
prices of commodities, which seems not to be the case. Also precious metals look like they resume their upside momentum.

Tendencies in the markets

Equities positive, USD weak, Bitcoin positive, ETH stronger, oil sideways, Silver positive, Gold positive, JPY weak.

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 treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.