Gold shining, stocks shaky – More volatility to come?
Important news for the day
- Wed, 08th Oct. 03:00 CET NZ Interest rate decision.
- Wed, 08th Oct, 10:00 CEt US FOMC meeting minutes.
RBNZ rate decision
The Royal Bank of New Zealand delivered a stronger than expected rate cut. The Central Bank reduced rates by 50 basis points down to 2.50%. The move caused the Kiwi to lose momentum especially against the stronger US- Dollar. The current negative momentum might also continue if stock markets remain shaky. The negative risk sentiment would cause the NZD to potentially weaken further.
Market talk
Gold prices climbed above the USD 4,000 price level. Despite the risk sentiment in the equity market remaining strong, more upside momentum might be seen. Silver prices continue to follow Gold higher but might remain more. Similarly also the oil market remains in a sideways pattern and might proceed lower. Should stock markets continue lower the fading risk sentiment could cause a further slide in prices and also weigh on the crypto market. With Bitcoin’s push lower yesterday, the upside momentum might now remain rather limited.
Tendencies in the markets
- Equities sideways, USD stronger, BTC correcting, ETH positive, oil weaker, Silver positive, Gold positive, JPY weak.
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.
