Geopolitics to remain key driver – Markets on the verge of a sharp correction

Frank Walbaum FX Strategies.Asia

Important News for the week

Tue, 19th, 14:30 CET CA Consumer price index.
Wed, 20th, 04:00 CET NZ RBNZ interest rate decision.
Wed, 20th, 20:00 CET US FOMC meeting minutes.
Thu, 21st, 09:30 CET DE Flash Manufacturing PMI.
Fri, onwards US Jackson Hole symposium.

Ukraine war

The Summit between Trump and Putin seemingly ended without a major breakthrough yet it seems that the pressure on Ukrainian President Selenskyj is rising to agree upon a potential peace deal. The next meeting will be held between European politicians and the Ukrainian President today in the White House. Trump kept a strong distance between the government in Kiev stating that he does not see chances that Crimea will be returned to the Ukraine as well as the acceptance of the country by NATO. Any breakthrough is likely causing gold and oil prices to weaken.

Market talk

Equities seem on the verge of correcting further. Some downside momentum might be seen as most indices look saturated potentially moving lower for now. Also crypto markets push to the downside. Bitcoin shows a strong negative sentiment based on the weekly chart and other tokens might follow. ETH is also looking set to push down towards the USD 3,930 zone at least. Oil prices might also push lower in particular should the Ukraine war face a potential end anytime soon while Gold and Silver prices remain unchanged but likely positive.

Tendencies in the markets

Equities correcting, USD weak, Bitcoin weaker, ETH correcting, 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.

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