Dollar weakness and positive risk sentiment

Frank Walbaum FX Strategies.Asia

Important News for the day

Wed, 28th, 03:30 CET AU Consumer Price Index.
Wed, 28th, 04:00 CET NZ RBNZ Interest Rate Decision.
Wed, 28th, 20:00 CET US FOMC Meeting Minutes.

Stock markets

Today markets might remain relatively quiet. After the public holiday on Monday, US equities have resumed trading in a positive pattern yesterday and the trend might continue as well for now. Further positive momentum might be seen in particular with the German DAX, which has broken out from the recent all- time- high. Further upside especially in the Eurozone might hence be expected. The positive sentiment continue to help the crypto market as well. Bitcoin might start a technical restracement due to some profit taking soon but seems well supported with the current rise of the NAS100 index.

Market talk

The weakness of the Dollar had faded initially but seems to return during European trading today. The weakness of the Dollar continues to help Gold and Silver, which both keep pushing higher. Especially XAGUSD might be ready to bounce to higher levels rather soon as technical patterns on the weekly and monthly chart suggest. Oil is currently trading sideways and might start to push lower. Geopolitical tensions don’t give a clear direction and hence the bearish trend based on the long- term chart might take over the market.

Tendencies in the markets

Equities positive, USD weak, Bitcoin positive, Altcoins positive, oil sideways, Silver positive, Gold positive, JPY weak.

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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.