Dollar remains strong, BTC nearing 90k and equities?

Frank Walbaum

Important news for the day

Tue, 12th, 08:00 CET UK Claimant count change.

BTC strength

The Chinese economy has printed a surplus of USD 1 trillion. The second biggest economy in the world continues to export their goods to 170 countries, whereas a strong reliance on export seems to continue. This might be interesting in particular when Trump will take over office soon. He might use extreme pressure on China to achieve economic deals for the US. whether tariffs will return in the end might be another question then. Falling export prices from China might also support the current situation. The Chinese A 50 index has printed a strong bearish pattern, after new public support for the economy has not been implemented.

Market talk

The strength of the Dollar looks set to continue. With this also precious metals continue with their downside momentum for now, after having traded at high levels. Overbought technical patterns suggest, that the retracement might continue. Furthermore also oil prices keep losing steam. The important support zone at USD 69.00 in WTI has now been broken. This might call for a further escalation of the current bearish trend. Also indices keep retracing mostly, since markets have not managed to climb higher yesterday. We might also see most markets heading to lower levels after hitting the upper band of the rising trend. Worth noting that the USDCAD currency pair might be ready for a breakout higher. Weekly- and monthly charts suggest that further upside momentum might be seen.

Tendencies in the markets

Equities sideways, USD strong, cryptos strong, oil weak, metals weaker, JPY weak.

Author

Frank Walbaum

GBP/USD clings to daily gains near 1.3550

GBP/USD adds to Friday’s advance, briefly hitting three-month tops near 1.3570 before edging lower on Monday. Fading expectations of a Fed rate hike in September weigh on the Greenback, helping Cable to keep its bullish momentum ahead of the release of the UK jobs report on Tuesday.

EUR/USD: Gains appear capped by 1.1600

EUR/USD consolidates its daily gains well north of the 1.1500 hurdle following the closing bell on Wall Street on Monday. The pair’s multi-day bounce comes on the back of renewed selling pressure on the US Dollar investors continue to trim bets of Fed rate hikes. Moving forward, Germany’s ZEW prints are due on Tuesday alongside a slew of US hard data.

Gold loses some traction, still above $4,400

Gold faces some loss of momentum and slips back toward the vicinity of the $4,400 mark per troy ounce on Monday. The yellow metal adds to Friday’s uptick and its positive performance follows the steady offered stance in the US Dollar amid dwindling bets for further tightening by the Fed in the next few months.

Strategy pauses Bitcoin sales, increases USD Reserve to $4.8 billion

Bitcoin (BTC) treasury firm Strategy (MSTR) increased its USD Reserve to $4.8 billion after raising $333.7 million through common stock sales, while also repurchasing $132.2 million of its STRC preferred shares, according to a Form 8-K filing on Monday. Strategy sold 3.458 million shares of its Class A common stock, MSTR, last week, generating $333.7 million in net proceeds.

Economists agree: Fed to leave interest rates unchanged this year – Reuters poll

A large majority of economists expect the Federal Reserve (Fed) to keep interest rates unchanged in September and for the rest of this year, according to a Reuters poll conducted between August 12 and 17.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.