Equities sliding further? Gold and Silver starting to regain – Will this trend last?

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 05th, 14:15 CET US ADP employment change.
Thu, 05th, 16:00 CET US ISM services PMI.

Equities correcting?

Equity markets keep correcting further. After the recent negative momentum now further downside potential might occur. However, most markets have not weakened much yesterday, as the technical support zones in charts has caused them not to fall further for the day. Currently markets focus more on employment data and today’s news might offer further guidance. Purchasing manager indices like the one from the US might also help to guide market participants.

Market talk

After corrective prices in metals, Gold and Silver start to resume upside momentum again. Silver has been able to defend the USD 28.00 support zone currently, while Gold keeps rising beyond the USD 2.500 area for now. A potentially stronger Dollar might however cause prices to move lower again.Meanwhile the JPY seems gearing up steam to rise further. Cryptos have stabilized for now but might continue to fall again soon. The CAD could gear up steam and the EURCAD currency pair looks set to break the 1.4900 support area potentially.

Tendencies in the markets

Equities weak, USD stronger, cryptos weak, oil weak, metals sideways, JPY stronger.

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.