Profit taking across markets

Frank Walbaum FX Strategies.Asia

Important news this week

Mon, 02nd, 16:00 CET US ISM manufacturing PMI.
Tue, 03rd, 04:30 CET AU Cash rate.
Tue, 03rd, 16:00 CET US JOLTS job openings.
Wed, 04th 14:15 CET US ADP employment change.
Wed, 04th, 16:00 CET US ISM services PMI.
Thu, 05th, 13:00 CET UK BoE interest rate decision.
Thu, 05th, 14:15 CET EU ECB interest rate decision.
Fri, 07th, 14:40 CET CA / US Unemployment rate / Nonfarm Payrolls Report & Average hourly earnings.

Important data

This week will offer an array of important data releases. The three interest rate decisions from Australia, the United Kingdom and the Eurozone ight offer fresh volatility to markets. Due to the recent rise in consumer prices, the RBA is expected to even raise rates again this month. The AUD has been losing some steam and looks weaker against other currencies. No change is expected from both Central Banks from the European hemisphere but they might still move markets as well, as the positive risk sentiment has been fading. The strength of the Dollar might continue and hence causes more profit-taking in markets.

Market talk

Alongside the renewed strength of the Dollar also precious metals started to correct. The end of the month of January caused profit-taking in most markets and especially Silver has been beaten to the downside sharply. Potential further losses might be seen the current risk-averse moves continue. Furthermore, also oil prices look like they will weaken more. Right at the technical resistance level of USD 65.00 more downside momentum might now follow. A potential preview of the currently negative demand story based of the demand from the economy in general. The NFP report on Friday might also cause more volatility and offer some guidance to the Fed. Last week, Jerome Powell pointed out that potential further rate cuts remain data- dependant.

Tendencies in the markets

Equities lower, USD stronger, crypto weaker, oil weaker, 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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