Risk off in the making? – Dollar reactive

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.