TRENDING:

GBP/USD

XAU/USD

RBA and BoE to guide markets, Dollar strength to continue

Frank Walbaum FX Strategies.Asia

Important News for the day

Tue, 04th, 04:30 CET AU Interest rate decision.
Wed, 05th,14:15 CET US ADP Nonfarm employment change.
Wed, 05th 16:00 CET US ISM services pmi.
Thu, 06th, 13:00 CET UK BoE interest rate decision.

Risk sentiment

Profit taking might still cause stock markets to weaken. While the Nasdaq and S&P 500 remain sideways also XAU and Silver markets only resume slight upside momentum amid a stronger Dollar. The Silver market had printed a positive pinbar candlestick pattern and might move higher in the short term. Yet, the bearish looking candlestick charts potentially continue to cause profit taking in markets. The risk sentiment might also be set by the further movement of the AUDUSD currency pair.

Market talk

Another Central Bank week will likely move markets. The RBA might cause the AUD to move. After some recent strength in the Aussi, some weakness might now start to set in. With the technical pattern downside momentum might occur. Furthermore also the GBP looks set to push lower. A potential surprise rate- cut might also cause the Pound to weaken against the Dollar. No data should be expected this week as the shutdown in the US continues.

Tendencies in the markets

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

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD eases toward 1.1700 as USD finds fresh demand

EUR/USD eases toward the 1.1700 mark in Europe trading on Friday. The pair faces headwinds from a renewed uptick in the US Dollar as investors look past softer US inflation data. However, the EUR/USD downside appears capped by expectations of the Fed-ECB monetary policy divergence.

GBP/USD steadies below 1.3400 as traders digest BoE policy update and US inflation data

The GBP/USD pair stalls the previous day's pullback from the vicinity of mid-1.3400s and a nearly two-month high, though it struggles to attract meaningful buyers during the Asian session on Friday. Spot prices currently trade around the 1.3380-1.3385 region, up only 0.05% for the day, amid mixed cues.

Gold stays weak below $4,350 as USD bulls shrug off softer US CPI

Gold holds the previous day's late pullback from the vicinity of the record high and stays in the red below $4,350 in the European session on Friday. The US CPI report released on Thursday pointed to cooling inflationary pressures, but the US Dollar seems resilient amid a fresh bout of short-covering.

Bitcoin, Ethereum and Ripple correction slide as BoJ rate decision weighs on sentiment

Bitcoin, Ethereum, and Ripple are extending their correction phases after losing nearly 3%, 8%, and 10%, respectively, through Friday. The pullback phase is further strengthened as the upcoming Bank of Japan’s rate decision on Friday weighs on risk sentiment, with BTC breaking key support, ETH deepening weekly losses, and XRP sliding to multi-month lows.

Bank of England cuts rates in heavily divided decision

The Bank of England has cut rates to 3.75%, but the decision was more hawkish than expected, leaving market rates higher and sterling slightly stronger. It's a close call whether the Bank cuts again in February or March.

Ethereum Price Forecast: EF outlines ways to solve growing state issues

Ethereum price today: $2,920. The EF noted that Ethereum's growing state could lead to centralization and weaken censorship resistance. The Stateless Consensus team outlined state expiry, state archive and partial statelessness as potential solutions to the growing state load.