Crypto correction in the making? – Silver strong

Frank Walbaum

Important News for the day

Tue, 10th, 04:30 CET AU AUD rate statement.

Political uncertainty

Reports circulate that Syrian leader Assad has received asylum in Russia and already fled the country. Financial markets seemingly remain calm with the current situation. The price of Gold does not move much and also oil markets rather remain weak for now. The rebels, who took over the capital of Damascus are said to be linked with al- Qaeda.

Market talk

The Dollar shows some slight potential against most other currencies. In particular the AUDUSD keeps losing steam, after the slide started to gain momentum in late trading, yesterday. Crypto markets remain shaky. Bitcoin’s run higher might have found a resistance with the USD 100k level and also XRP is looking set to weaken at current levels. Worth noting that Silver prices had a big run up into the USD 32.20 area. Should yesterday’s high break, the market might continue to higher levels.

Tendencies in the markets

Equities sideways, USD stronger, cryptos weaker, oil weaker, Silver strong, Gold sideways, JPY weaker.

Author

Frank Walbaum

AUD/USD holds steady near 0.7200 amid escalating US-Iran tensions

AUD/USD consolidates just below its highest level since mid-May, touched on Friday, and hovers around 0.7200 at the start of a new week amid mixed cues. Hawkish RBA expectations continue to act as a tailwind for the Aussie. Meanwhile, the upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpins the safe-haven US Dollar and caps the currency pair.

USD/JPY hovers around 156.00 as more hawkish BoJ bets cap gains

USD/JPY holds steady above 156.00 on Monday as the US Dollar draws support from escalating US-Iran tensions and rising Fed rate-hike bets, bolstered by Friday's upbeat NFP report. Moreover, concerns over Japan’s fiscal outlook keep the Japanese Yen on the back foot and support the currency pair, though more hawkish BoJ expectations and a suspected intervention cap the upside.

Gold flat lines above $4,400 as Fed hike bets and Iran tensions support USD

Gold kicks off the new week on a subdued note, though it holds above $4,400. Friday's upbeat US NFP report lifted Fed rate hike bets, which, along with escalating US-Iran tensions, underpin the safe-haven US Dollar and cap the bullion. The lack of follow-through selling, however, warrants caution before confirming that the recent bounce from a nearly four-week low has run out of steam.

The week ahead: Dollar at a crossroads as CPI and ECB take centre stage

With the summer finally over, investors returned with a strong appetite for action. Following last week’s strong performance, the US dollar has taken a back seat so far this week, as oil, the yen and sovereign bond yields monopolized market interest.

CFTC report: Oil rebound offsets broader positioning retreat

The week in one sentence: Speculative positioning became more defensive in the week ending September 1. Yen short positioning recorded the largest deterioration, while Gold length also retreated. Oil buying returned alongside stronger prices, and Canadian Dollar and Euro positioning improved, although Euro flows diverged from weaker spot prices.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.