Dollar dips, trade tensions ease, risk assets rally
Important News for the day
-
Tue, 01st, 16:00 CET US ISM Manufacturing PMI/JOLTS Job Openings.
Trade deals
Despite previously stated the US government is stepping back on their stand in regards to reciprocal tariffs. Instead, narrow agreements seem to be made by now in order to avoid addid new tariffs again. The previously communicated deadline for such agreements is the 9th of July, before harsh tariffs would come into place again. In most cases a levy of 10% still remain in place. In general an agreement has only been made with the UK and a tentative truce has been signed with China. A reason for potential further weakness of the Dollar. Long- term US bonds seem to gear up some demand currently.
Market talk
The Dollar is starting weaker into the fresh month without any signs of profit taking for now. The negative momentum also helps equities to run higher while Gold and Silver also rise, backed by the weaker Greenback. On the other hand oil prices continue to fall as geopolitical tensions move out of focus. With the major news event due this week traders should still be cautious with current markets. The direction could change at any given time and we still expected some strength of the Dollar at some point soon.
Tendencies in the markets
-
Equities positive, USD weak, Bitcoin positive, ETH positive, oil weak, Silver sideways, Gold 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.
