Markets in rotation mode

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 19th, 04:19 CET JP BoY policy rate.
Fri, 19th, 08:00 CET UK retail sales.

Year end rotations

Equities continue to rise again during today’s trading. Weaker than expected consumer prices from the US also helped the market sentiment, which means that the Fed is expected to remain on track cutting interest rates even further next year. With falling inflation data the Central Bank might hence continue to focus on the labour market, which keeps weakening. Yesterday’s rate decisions from the BoE as well as the ECB did not add much volatility to markets. The BoE did reduce rates by the expected 25 basis points in a rather hawkish cut. The ECB remains steady pointing out that the neutral rate has been achieved already.

Market talk

Most currency pairs keep losing steam against the Dollar today. The EUR, GBP and the AUD remain well below their recent technical resistance zones based on the daily chart. Vice versa the Dollar index keeps pushing higher, potentially indicating a rise in the Greenback for now. Also stock markets remain slightly bullish today. If yesterday’s highs can break, markets might push to the upside again. The Silver market remains hot and also keeps pushing higher. Rising off the technical support zone more upside might emerge above the USD 66.40 area. Cryptos remain stable for now but might be vulnerable for further losses as the recent trends show.

Tendencies in the markets

Equities positive, USD stronger, crypto weak, oil weaker, Silver positive, Gold positive.

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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