Investors are watching closely: Will the Fed deliver a hawkish signal, or hint at dovish options?

Frank Walbaum FX Strategies.Asia

Important News for the day

Wed., 18th, 08:00 CET UK Consumer Price Index.
Wed, 18th, 14:30 CET US Unemployment Claims.
Wed, 18th, 20:00 CET US Federal Funds Rate.
Wed, 18th 20:30 CET US FOMC Press Conference.

TikTok US

The social media platform TikTok can still be used in the USA. For the third time, the US government has extended the use of the platform by a further 90 days. US President Trump will sign a decree in the next few days that will allow the Chinese company Bytedance to continue offering its services to US customers. It is alleged that the Chinese government has access to users' data and can therefore spy on American citizens. The US government continues to claim that the platform must be sold to a US company to prevent its use from being banned in the future.

Market talk

The strength of the Dollar seems to continue. Today’s FOMC interest rate decision might offer more momentum for the Greenback if rates are not being cut. The Dollar could gear up steam causing the GBP and AUD in particular to weaken. This might in turn also cause equities to push lower. The Nasdaq index might face negative momentum due to the potentially stronger USD. Furthermore, markets and hence valuations have been rising already quite substantially so far this after the recent correction earlier on. Worth noting that oil prices continue to push higher again and so does the
Silver market. The rising demand could hence also be a sign of fresh strength in the economy in general.

Tendencies in the markets

Equities sideways, USD stronger, Bitcoin sideways, ETH sideways, oil positive, Silver positive, Gold weaker, 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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.