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.

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