Positive risk sentiment, Gold rising

Frank Walbaum FX Strategies.Asia

Important news this week

Tue, 10th, 14:30 CET US Core retail sales.
Wed, 11th, 14:30 CET US Nonfarm payrolls report.
Thu, 12th, 08:00 CET UK Gross domestic product.
Thu, 12th, 14:30 CET US Unemployment claims.
Fri, 13th, 14:30 CET US Core consumer price index.

USD data

This week will feature an array of important data. The gross domestic product from the UK is expected to weaken. The figure is expected lower from 0.3% to 0.1%, which might cause the Pound to lose momentum. Furthermore the NFP report might shed more light into the US economy. It is expected that 70,000 new jobs had been added to the economy since the last report, which might be a positive sign for the Dollar. The Fed is hence not expected to further stimulate the economy. Consumer prices are expected to fall as per the news release on Friday, which is another news event to focus on.

Market talk

The week started with some weakness of the Greenback, which helps to ignite positive risk sentiment. Most stocks closed Friday on a positive note and hence helped indices paring most losses for last week. The positive sentiment might now continue and if the S&P 500 index might be able to break higher could also cause the sentiment to remain positive for now. The gold price also pushed higher off the technical support zone supported also by the weaker Greenback. Oil prices remain in a sideways triangle formation based on the daily charts. Any increase in geopolitical tensions could help oil prices moving up again, while the weakening demand from the economy might also push the market lower again.

Tendencies in the markets

Equities positive, USD mixed, crypto sideways, oil sideways, Silver positive, 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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