EUR weaker, Bitcoin strong amid positive risk sentiment, ECB in focus

Frank Walbaum FX Strategies.Asia

Important news this week:

Tue, 16th 14:30 CET CA consumer price index.
Tue, 16th 14:30 CET US core retail sales.
Wed, 17th 08:00 CET UK consumer price index.
Thu, 18th 14:15 CET EU interest rate decision.
Thu, 18th 14:45 CET EU press conference.

ECB rate cuts

After the long summer pause the European Central Bank might be on track to cut rates in September. AS US treasuries lose momentum also the US- Dollar geared up steam. The EUR had lost momentum against the Greenback due to the interest rate differential. The news event takes place on Thursday this week. Traders will then focus on the press conference, where Christine Lagarde might offer further insights into the news event.

Market talk

The strength of the Greenback might cause a retracement in most currency pairs for now. The AUD, however, keeps gearing up steam as equity markets return to higher levels. The S&P 500 index could break higher whereas the Dow Jones has already had already advanced further. The positive sentiment also caused cryptos to move higher. Bitcoin is trading well above the USD 60.000 level. Gold currently retraces, whereas Silver might break lower. The positive sentiment helps silver miners to gear up steam. The SIL- ETF might test the next USD 40.00 level.

Tendencies in the markets:

Equities positive, USD mixed, BTC strong, ETH positive, oil correcting, metals weaker, 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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.