Risk off in the making? – Dollar reactive

Frank Walbaum FX Strategies.Asia

Important News for the day:

Thu, 17th, 03:30 CET AU Employment Change.
Thu, 17th, 14:30 CET US Retail Sales.

Consumer prices

This week, consumer prices data has been mixed. While in Canada and the UK prices had been rising slightly, data from the US suggests that the economy in the United States remains rather resilient since the new tariffs under the Trump administration had been implemented. Today, traders will focus on the retail sales and unemployment claims from the US. Furthermore producer prices, which usually offer a preview to consumer prices have also fallen. PPI data from last month show, that production prices came in weaker. Yet the trend rises slightly since April this year. US equities remain positive as well and have not weakened much since the beginning of the week.

Market talk

The US- Dollar remains strong and the DXY (Dollar index) shows, that the price might grow further. Based on the daily chart the index is currently testing the 50- moving average. A break of this zone might indicate fresh upside momentum. Also the weekly chart looks positive indicating that a bullish turnaround pattern is currently in the making. More strength of the Dollar might cause equities to weaken. The price of Silver has stabilized after the market fell yesterday. On the other hand, Gold prices might fall. The market is currently trading at the 50- MA based on the daily chart. A break might cause more downside momentum, supported by the strength of the Dollar. Furthermore also oil prices remain under pressure and look set for more downside as well.

Tendencies in the markets

Equities correcting, USD stronger, Bitcoin positive, ETH strong, oil weaker, Silver sideways, Gold sideways, 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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.