Important data looming, stocks corrective

Frank Walbaum FX Strategies.Asia

Important news this week

Tue, 17th, 08:00 CET UK Claimant count change.
Tue, 17th, 14:30 CET CA Consumer prices index.
Wed, 18th, 02:00 CET NZ RBNZ interest rate decision.
Wed, 18th, 20:00 CET US FOMC meeting minutes.
Fri, 20th, various EU/UK/US Purchasing manager indices.
Fri, 20th, 14:30 CET US Core pce price index.

Important data

This week will feature several important data points. The RBNZ is unlikely to cut interest rates, but its choice of words could move the kiwi. The consumer price index from Canada is also interesting. An increase in prices might support the Loonie and hence push pairs like the EUR and USD lower against the Canadian Dollar. The FOMC meeting minutes from the past Central Bank gathering might shed more light into the future of the Dollar, as the recent press conference did not offer much insights.

Market Talk

Markets mostly started to retrace at the beginning of this week. The JPY is losing some momentum after having gained strength throughout last week. Also equities resume some upside momentum but still might continue their corrective path. Ahead of the NZD rate decision on Wednesday the NZD is losing some momentum and might continue to push lower. The EURNZD and the GBPNZD both look like they will fall further. The slight positive trend of cryptos seemingly came to a hold and markets might now follow the negative trend of US indices during this week’s trading.

Tendencies in the markets

Equities mixed, USD positive, crypto rebound, oil weaker, Silver weaker, Gold 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.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.