Risk on returns

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 22nd, 01:30 CET AU Employment change.
Thu, 22nd, 14:30 CET US Gross domestic product.
Thu, 22nd, 16:00 CET US Core PCE price index.

Non tariffs?

US President Trump seemingly stepped backwards by not adding new tariffs. During the his speech in Davos he pointed out that only the US would be able to protect Greenland, which is mainly made of ice. Europe would be hence well supported in securing their borders by the US. Force would not be needed according to him as he tries to purchase the country. Furthermore NATO as a whole would not be threatened, too. is statements caused equity markets to run higher. The positive risk sentiment returned and not only stocks went up but also the crypto market has moved to the upside.

Market talk

The weakness of the Dollar has somewhat stopped with most currency pairs having stopped to rise. The AUD, on the other hand, keeps pushing higher as the risk aversion is seemingly fading. Gold and Silver prices also continue to push higher with in particular Silver potentially ready to break the current technical resistance zone. As the risk sentiment currently changes also oil prices start to push to the upside again as well as the Loonie. Currency pairs like the USDCAD and EURCAD keep moving lower and the trend might continue. Tomorrow, traders should focus on the JPY. The BoJ interest rate decision might move the Yen.

Tendencies in the markets

Equities positive, USD sideways/ stronger, crypto positive, oil sideways, Silver positive, Gold strong.

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 stabilizes near 1.1700 ahead of US data

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GBP/USD strengthens above 1.3400 as UK inflation beats forecasts

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Top Crypto Gainers: Canton, MYX Finance, Pump.fun rise as the market steadies

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Trump walks back NATO tariffs, signals de-escalation

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