Equities correct, risk off in play

Frank Walbaum FX Strategies.Asia

Important news for the week

Mon, 19th, 14:30 CET CA Consumer price index.
Tue, 20th, 08:00 CET UK Claimant count change.
Wed, 21st, 08:00 CET UK Consumer price index.
Thu, 22dn, 14:30 CET US Core PCE price index.
Fri, 23rd, JP BoJ interest rate decision.
Fri, 23rd, diverse EU/UK/US Purchasing manager index.

Equities

Market participants remain vigilant. Due to Trump’s announcements that new tariffs could be added equity markets remain in limbo. After the positive momentum in recent trading days, most indices lose some steam. The profit taking might continue throughout today’s trading session, depending on the development of the story. The situation was similar in April last year, when stock markets went into a corrective pattern for about two weeks until the positive momentum started gearing up steam again. The impact might be limited this time, unless the conflict will escalate further.

Market talk

The Dollar started slightly weaker into the trading week but remains in its positive pattern. Since the upside of most currencies remains limited the Greenback might gear up steam again in the coming trading days. The risk sentiment has been fading as well in the crypto market. Most tokens went lower this morning, after they remained sideways throughout the weekend. Worth noting that traders should focus on the JPY pairs. The USDJPY among other pairs with the involvement of the Yen started to show some profit taking. Markets might remain vulnerable for a correction for now. The BoJ might add to some volatility later in the week as well. The amount of important news events plus US earnings might cause some fresh volatility this week. Traders should be prepared.

Tendencies in the markets

Equities correct, USD stronger, crypto correcting, oil lower, Silver positive, Gold strong.

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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