Dollar strength pulling indices lower
Important news for the day
- Tue, 02nd, 16:00 CET US ISM Manufacturing PMI.
Important data
According to a report from the Financial Times developing countries turn away from the Dollar. Many countries had used the Dollar to borrow money for their growth. Currently they seem to turn away by using the Chinese Yuan or the Swiss Franc, where interest rates remain low. As rates are expected to remain higher in the United States the trend might continue as the trend unfolds. For the coming days, though, the strength of the Dollar seems to regain momentum. Medium term, the trust in the Dollar might erode further, especially with the Trump- led government in the US.
Market talk
The ISM manufacturing PMI data might move markets, depending on their outcome. Slight strength can be seen in the Dollar as most currencies lose momentum against the Greenback. Equities look like they want to move lower. In particular the Nasdaq 100 is showing signs of bearish momentum. Yet cryptos look like they might move higher. Currently they remain well supported but another negative push in particular for US tech stocks might cause cryptos to move to lower levels as well. Especially ETH and SOL look like they might move higher again, should another attempt of rising prices occur.
Tendencies in the markets
- Equities sideways, USD stronger, BTC sideways, ETH positive, oil positive, Silver sideways, Gold sideways, JPY weaker.
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.
