Markets start to turn – Is the risk-on rally losing momentum?

Frank Walbaum

Important News this week

Tue, 18th, 08:00 CET UK Claimant Count Change.

Wed, 19th, 08:00 CET UK Consumer Price Index.

Wed, 19th, 20:00 CEt US FOMC Meeting Minutes.

Markets start to turn – Is the risk-on rally losing momentum?

Markets are showing early signs of a turn as equities begin to correct after their recent advance. The S&P 500 and Nasdaq are losing momentum, while the US Dollar could be preparing for a rebound from the 99.40 support zone on the DXY. A stronger Dollar would add further pressure to risk assets and could accelerate the current correction.
Oil prices are moving higher again, adding another variable for markets and inflation expectations. Gold and Silver are slightly lower, potentially reflecting the early Dollar recovery rather than a fundamental shift in metals demand. In FX, AUDUSD is testing the important 0.7100 resistance zone. A failure to break higher could lead to a deeper retracement, particularly if equity markets continue to weaken.

Market talk

Crypto remains particularly vulnerable. Bitcoin and the broader altcoin market are showing little upside momentum, and further weakness in the Nasdaq could quickly translate into additional selling pressure across digital assets. The key question now is whether the current equity weakness remains a normal retracement or develops into a broader risk-off move. The DXY reaction around 99.40 could provide an important early signal.

Author

Frank Walbaum

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