Bitcoin higher, metals positive and stocks sideways

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 29th, 15:00 CET US JOLTS job openings.

German politics

The coalition in Germany between the three ruling parties seems to lose further steam. Recently the heads of the Green party have stepped down and the finance Minister from the free democratic party is facing further headwinds with his political approach. Furthermore recent elections in some states of Germany’s East caused the right wing AFD to gear up steam, while the opposition with the Christian Democratic party is moving up slightly. The current situation might get tense should Donald Trump be elected in the US, causing the focus to change.

Market talk

The weakness of the Dollar seems to continue also on Tuesday this week. The positive risk sentiment can be seen especially in the crypto market, where Bitcoin has climbed beyond the USD 70.000 level. Further upside should now be expected. Stock markets on the other hands seem to lag behind as most indices have not been able to rise. Especially the Dow Jones might weaken further as the bearish candlestick from last week has not been regained for now. Should the NFP data be negative this could cause the risk sentiment to rise further, as the FED might be expected to reduce their interest rate again.

Tendencies in the markets

Equities sideways, USD weaker, cryptos strong, oil weak, metals positive, JPY weaker.

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 hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.