Equities up, crypto sideways, what's next?

Frank Walbaum FX Strategies.Asia

Important News for the day

Thu, 16th, 02:30 CET AU Employment change.
Thu, 16th, 08:00 CET UK Gross domestic product.
Thu, 16th, 19:30 CET CA BoC Gov Macklem speech.

The crypto president

After taking office in the US President Trump made a fortune with his personal and corporate investments. The rise in the cryptocurrency market helped his fortune to gear up momentum by more than USD 1 billion. Other Presidents in US history have put their business aside or even had them managed by a trust to avoid a conflict of interest. The situation is in particular interesting as he previously labeled the crypto market as negative and also called it a competition to the Dollar. He changed his views during his campaign last year.

Market talk

The Dollar resumes some weakness and causes the positive momentum in the equity sector to be resumed. Furthermore also strong earnings from Europe lie LVMH and the US help the momentum to the upside as well. On the other hand also oil prices continue to weaken. If USOIL does not rise above some technical levels, the momentum might extend towards lower levels anytime soon. The USD 56.00 price level might hence break causing the slide to extend momentum. Crypto markets don’t run to the upside, though. The positive trend in the Nasdaq does seemingly not help the upside to extend the positive sentiment..

Tendencies in the markets

Equities positive, USD weaker, BTC sideways, ETH sideways, oil weaker, Silver sideways, Gold positive, 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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.