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

Frank Walbaum

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

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The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.