New Fed chair?

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 30th, 14:30 CET CA Gross domestic product.
Fri, 30th, 14:30 CET US Core producer price index.

New Fed chair?

US President Trump is expected to nominate Kevin Warsh as the potential new Fed chair to replace Jerome Powell after his term will end in May this year. He is well connected among Wall Street bankers as well as policymakers in Washington. For Trump it can’t go fast enough that rates will be cut further in order to help the government to get access to cheaper liquidity. Warsh has shown a long- term relationship with the US President, despite also being seen as a rather hawkish person while serving the Fed.

Market talk

The Dollar is showing slight strength against other currencies and vice versa also stock markets start to correct a bit. The negative momentum alongside fresh worries in regards to the US economy might continue to weigh on markets. Shares of Microsoft got a beating earlier on as their spending in regards to AI keeps rising, while sales in regards to their cloud business has been shrinking. Also, Gold and Silver prices start to correct and might indicate that the strong momentum could fade for a while as previously rising assets start to move lower. This is also indicated by the weakness of the AUD, which keeps losing its recent strength. On another note it seems that the oil market keeps pushing lower, right at the important resistance level of the long- term falling trendline. Before the weekend, markets might be ripe for a further correction as the month of January is coming to an end.

Tendencies in the markets

Equities correcting, USD stronger, crypto weaker, oil at resistance, Silver weaker, Gold weaker.

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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