Equities lower, crypto weaker amid Dollar strength

Frank Walbaum FX Strategies.Asia

Important News for the day

Wed, 20th, 04:00 CET NZ RBNZ interest rate decision.
Wed, 20th, 08:00 CET UK Consumer price index.
Wed, 20th, 20:00 CET US FOMC meeting minutes.

Peace talks

In regards to potential peace talks between the Ukraine, Russia and the US a potential location has been found. Hungarian Orban offered Budapest as a place after talks with US President Trump. The government in Budapest pointed out several times in the past that they would veto against implementing further sanctions over Russia as well as offering military support for the Ukraine. The location is also meant to push Hungary to give up their policy of blockade against the Ukraine. Adding the Ukraine to the European Union would also enable them to received further support against potential future attacks from Russia.

Market talk

After the interest rate decision in New Zealand the US- Dollar started to resume some strength against other currencies. The Kiwi lost some momentum, while also the AUD was trading lower. Equities seem to correct as well with some potential strength of the Dollar as the risk sentiment is losing some momentum. Crypto markets are also heading to lower levels but have started the day rather positive so far. It might depend on the Nasdaq technology index on how they will perform. The prices of silver and gold keep moving to the downside as well as the demand is weakening currently.

Tendencies in the markets

Equities lower, USD stronger, Bitcoin weaker, ETH sideways, oil sideways, Silver weaker, Gold weaker, JPY sideways.

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.