Positive sentiment fading, Dollar stronger and CAD weakness

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 13th, 01:30 CET AU Wage price index
Wed, 13th, 14:30 CET US Consumer price index

German government

The German government will face re-election on February 23rd next year. Current polls suggest opposition leader Friedrich Merz from the Christian Democratic Party is leading by a wide margin. Under Scholz's leadership, the German economy has lost momentum, with rising energy prices forcing many companies to shut down or relocate. Increasing taxes are adding further pressure, making it harder for Germany to compete globally, which could mean continued negative headlines.

Market talk

Equities appear to be losing momentum, with signs of further weakening ahead. As stock markets face potential corrections, precious metals also remain under pressure, although chart patterns suggest they may have found a temporary bottom. Oil prices continue to slide, and a break below the recent daily chart low could trigger more downside. Meanwhile, the recent correction in XRP might present medium-term entry opportunities. Additionally, potential legislative easing under a Trump administration could provide a boost to the crypto market overall.

Tendencies in the markets

Equities weaker, USD strong, cryptos sideways, oil sideways, metals weaker, JPY weak.

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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