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

GBP/USD stays below 1.3600 on modest USD strength

GBP/USD is consolidating near the lower end of its weekly range, below the 1.3600 mark, during European trading hours on Thursday. The pair's downside, however, remains cushioned as traders await Fed Chair Warsh's speech on Friday for more cues about the US central bank's interest rate path before placing fresh directional bets.

EUR/USD drops to fresh weekly lows below 1.1650

EUR/USD stays on the back foot and trades at its lowest level in a week below 1.1650 on Thursday. The European Central Bank's policy meeting accounts fail to help the Euro stay resilient, while the cautious market mood supports the USD and weighs on the pair. Fed Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday will be critical for the pair's next direction.

Gold holds steady around $4,600 as traders eye Fed's Warsh for rate cues

Gold languishes near the $4,600 mark through the first half of the European session on Thursday and remains close to the weekly low it touched the previous day. The downside, however, seems limited as traders opt to wait for US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday for cues on the future policy path. The outlook, in turn, will play a key role in influencing the US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

Ripple eases to $1.40, Solana hits $100, DOGE capped below $0.10

Ripple (XRP) and Dogecoin (DOGE) are facing downside pressure after double-digit gains last week, while Solana (SOL) extends its rally to $100. The technical outlook for XRP, SOL, and DOGE points to potential upside as the broader market sustains a risk-on sentiment.

Jackson Hole kicks off after upside PCE surprise

Fed's annual Jackson Hole conference will take place. This year's topic is "Financial Innovation: Implications for Payments and Policy". The main market mover during the conference is Fed chairman Warsh's speech on Friday. Markets will look for any hints about monetary policy in September. We expect Warsh to continue his pattern of providing little to no forward guidance.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.