Crypto rising, Gold stronger – Market strength to follow?

Frank Walbaum

Important news for the day

Thu, 21st, 09:30 CET DE Manufacturing PMI.
Thu, 21st, 10:30 CET FR Manufacturing PMI.
Thu, 21st, 15:45 CET US Manufacturing PMI.

Peace talks

While talks in the Eurozone in regards to peace in the Ukraine has been ongoing Putin seemingly continues to attack the country as well. More than 570 drones have been used as well as 40 rockets to fly attacks in several regions according to the ukrainian air force. Potential security guarantees include also the sending of armed forces as discussed among European leaders. The US will also support such mission yet won’t send personnel directly to the conflict zone should an agreement be made. Markets remain fragile and the gold price keeps rising slightly as uncertainty remains key.

Market talk

Markets remain mostly in a sideways pattern before the Jackson Hole symposium. Better than expected purchasing manager data from Germany caused the EUR to gear up steam against the Greenback. With a rise to 49.9 compared to the expectation of 48.8 the survey helped the market to rise. Yet, the potential strength of the dollar might cause the sentiment to fade rather soon. The AUDUSD and NZDUSD currency pairs keep pushing lower, which might signal a further slide in equities. Currently the crypto space on the other hand shows some signs of a positive move. Especially ETH and SOL might start to appreciate again after the recent slide in prices. Furthermore commodities like oil and Silver look positive as well for now. A potential rebound could be in the making, here.

Tendencies in the markets

Equities lower, USD stronger, Bitcoin sideways, ETH positive, oil positive, Silver positive, Gold positive, JPY sideways.

Author

Frank Walbaum

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.