Equities are correcting amid Dollar strength, and precious metals could offer clues as to why

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 16th, 08:00 CET UK Consumer price index.

US Elections

In several states, early voting is underway, with Georgia seeing record-breaking participation—about double compared to 2020. In total over five million people have already voted, either by mail or in person at polling locations. The race is currently too close to call between the main candidates, making the outcome uncertain. After a previous court ruling, Trump successfully pushed for hand counting of votes. However, this decision was overturned just before voting began, meaning the votes will now be counted using traditional methods instead of by hand.

Market talk

The initial positive risk sentiment for the stock market had faded yesterday. Previously positive prices had been mostly eliminated and markets like the Dow Jones and Nasdaq index printed a bearish turnaround pattern. The S&P 500 ended in slightly better shape. The Chinese market also turned lower with potential higher volatility ahead. The Dollar on the other hand might continue to rise slightly but is nearing the 50- moving average on the weekly chart, which could act as resistance zone. Metals continue to push higher and Gold is trading close to the major breakout zone

Tendencies in the markets

Equities correcting, USD stronger, cryptos positive, oil weak, metals positive, 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.

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