Oil strong, Dollar sentiment mixed

Frank Walbaum FX Strategies.Asia

Important news this week

Thu, 12th, 08:00 CET UK Gross domestic product.
Thu, 12th, 14:30 CET US Unemployment claims.

NFP release

Yesterday’s NFP data showed a strong rebounce of employment data. The US economy showed, that 130,000 jobs had been added during the last period, which was way more compared to the expectation of 66,000. Yet, the Dollar only geared up some momentum. It seems that the market sentiment remains negative towards the Greenback. Tomorrow’s consumer price index might also be interesting to observe. If prices remain higher as compared to the negative expectation this might again help the Dollar and underline arguments for a potentially stronger USD.

Market talk

The oil market remains strong for now. The market has been driven by a rising demand and also technicals point to a potential rise in prices. Should USOIL break beyond the USD 67.00 level, more upside momentum might be observed. Thatzone is directly above the recent highs from last month and would indicate a breakout to the upside. Dollar weakness might help such views. On the flipside the generally positive sentiment in the equity market can’t be seen in cryptos. Bitcoin is trading well below the USD 70,000 level and altcoins also show no signs of a potential positive trend. Meanwhile the JPY is back with positive momentum. Not only has the Yen geared up steam against the Dollar but also against most other currencies.

Tendencies in the markets

Equities positiv, USD weaker, crypto weaker, oil positive, Silver sideways, Gold 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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