More downside in equities in crypto? Here is why

Frank Walbaum FX Strategies.Asia

Important News for the week

Tue, 11th, 15:00 CET US JOLTS job openings.
Wed, 12th, 13:30 CET US Core consumer price index.
Wed, 12th, 14:45 CET CA BoC rate decision.
Thu, 13th, 13:30 CET US Producer price index.
Fri, 14th, 08:00 CET UK Gross domestic product.

Weekly data

This week markets will digest important data. The BoC interest rate decision might reveal another cut in rates. This might cause the Loonie to continue moving lower. Especially the EURCAD could then break to higher levels. While the JPY has remained rather sideways the trend of all JPY pairs heading lower might also resume momentum. the USDJPY pair still has room towards the 146.50 support zone.

Market talk

Markets resume trading with last weeks’ sentiment in most cases. As the negative risk sentiment seems to continue, we also observe that crypto markets proceed lower. Most tokens look set to resume much more downside as charting patterns suggest. Most evident are the patterns off the monthly charts from Bitcoin, Ethereum and Ripple. Solana is about to break the 50- moving average and might then also increase the slide. The process in general is natural, though: about six months after a central bank like the FED started cutting rates stock markets have responded with negative momentum. In several cases even beyond the 50% mark to the downside. Trump's’ announcements of adding tariffs might cause the negative momentum to increase as well.

Tendencies in the markets

Equities weaker, USD weak, cryptos weaker, oil sideways, Silver positive, Gold positive, JPY stronger.

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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