August surprise in the making? Fed stable

Frank Walbaum FX Strategies.Asia

Important News for the week:

Tue, 05th, 16:00 CET US ISM Service PMI.
Thu, 07th, 13:00 CET UK BoE Interest Rate Decision.
Fri, 08th, 14:30 CET CA Unemployment Rate.

US employment data

A very disappointing NFP report from the US caused the Dollar to lose momentum. After having geared up momentum through last week, Friday caused profit taking in markets. The Last trading day of the month was seemingly the reason, why positions had been offloaded, underlined by the weaker jobs report. The strength of the Dollar might continue in particular since the interest rate decision in the US revealed no real news. Higher rates would help the Greenback to remain strong.

Market talk

After positive weeks in trading equities started to correct on Thursday last week. More downside might now be on the cards as most markets printed a bearish turnaround pattern. This might cause the Nasdaq and S&P 500 to all further, where the German DAX is also showing similar negative momentum. The strength of the Dollar will clearly cause markets to reassess current moves where liquidity runs drier as a seasonal reason as well. Meanwhile the AUDUSD currency pair has fallen out of the recent bullish trend, oil prices fall and Silver is also showing less demand. In particular industrial metal like Silver and Copper show a tendency to potentially weaken further. After some initial positive moves this week markets might hence start to correct, which also includes the crypto space.

Tendencies in the markets

Equities sideways, USD stronger, Bitcoin positive, ETH positive, oil weaker, Silver sideways, 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.

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