ECB decision due, markets support by positive news

Frank Walbaum FX Strategies.Asia

Important news for the day:

Thu, 24th, 09:15 CET FR Manufacturing / Services PMI.
Thu, 24th, 09:30 CET DE Manufacturing / Services PMI.
Thu, 24th, 14:15 CET EU ECB interest rate decision.
Thu, 24th, 14:30 CET US Unemployment claims.

PMI data

Today, traders will focus on the various PMI data as well as the interest rate decision of the ECB. No adjustment in rates is being expected. This might hence support the EUR and could cause the common currency to rise further. The Dollar might hence lose some steam against other currencies as well. The PMI data from two important European countries came in- line with expectation, which continues to support markets. The German DAX has not been responsive so far but shows small signs of potential profit taking.

Market talk

The Dollar continues to lose some steam and markets might still be influenced by the positive risk sentiment. Yesterday, the S&P 500 and Nasdaq continued to push higher. Furthermore also the AUD is moving upwards, which also shows the positive risk momentum. Vice versa crypto markets seem to show some signs of profit taking. Especially altoids like XRP, Solana and Dogecoin are facing profit taking currently. It will be interesting to see how this week will end to determine the future trend.

Tendencies in the markets

Equities positive, USD weak, Bitcoin sideways, ETH correcting, oil weaker, Silver positive, Gold sideways, 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 treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.