China overtaking the US at fast pace, and the Dollar?

Frank Walbaum FX Strategies.Asia

Important News for the day

Tue, 14th Oct. 18:20 CET US Fed chair Powell speech.
Tue, 14th Oct. 19:00 CET UK BoE chair Bailey speech.

US-China trade war

Ahead of the meeting between the US President and China’s President the rhetoric of Trump gets harsher. Trump previously stated that further tariffs might be added over China while US Treasury Secretary Scott Bessent pointed out that “China wants to pull everyone else down”. In the end the economy power and growth in China due to the ability to produce cheaper is likely the dominant factor. While the US continue to show military power globally, China’s long term plan to secure natural resources will likely be the smarter way moving forward.

Market talk

Markets seem to be influenced under the strength of the Greenback. As the Dollar gears up steam stock markets remain sideways and also oil prices weaken. The weakness in oil might show the fading demand as well as easing of geopolitical tensions. As the Gaza conflict might come to an end the negative sentiment in oil markets might continue. This also causes Gold prices to rather trade sideways and in particular Silver remains receptacle for further losses. The crypto space keeps losing momentum as well. Most tokens continue their slide after initial moves to the upside earlier this week. The fading sentiment in the Nasdaq might indicate further pressure ahead.

Tendencies in the markets

Equities weaker, USD stronger, BTC correcting, ETH correcting, oil weaker, Silver sideways, Gold positive, 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.

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