Crypto boom still ongoing with XRP roaring, metals well supported

Frank Walbaum FX Strategies.Asia

Important News the week

Tue, 03rd, 16:00 CET US JOLTS job openings.
Wed, 04th, 14:15 CET US ADP employment change.
Fri, 06th, 14:30 CET US Nonfarm payrolls.
Fri, 06th, 14:30 CET CA Unemployment claims.

Crypto markets

Crypto markets remain positive. The strong upside might be due to continue, whereas the start of the week is still positive. After potential retracements in some tokens a breakout to high levels might be seen. Should the Dollar remain week, upside momentum might still follow. Also the strength of XRP is still remarkable. The altcoin was rising again as important resistance zones have been broken. Ripple is now the 3rd largest token and had replaced the Dollar- pegged USDT. Bitcoin also looks positive but might face strong headwinds, should the USD 100k psychological resistance zone be tested.

Market talk

After a positive start for the week the Greenback seems to lose some steam. General markets seem to favour positive risk sentiment for now, also causing equities to remain positive. Also, the German DAX is rising, similarly to the Dow Jones Industrial average in the US. Precious metals start slightly positive, yet the trend might still change direction in the coming weeks towards year- end. Oil remains under pressure. A push below the current support zone might cause prices to slide further as the monthly chart suggests. The JPY might gear up steam against most other currencies.

Tendencies in the markets

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

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 makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.