Risk on sentiment to gear up steam

Frank Walbaum FX Strategies.Asia

Important News for the day

Thu, 29th, 14:30 CET US prelim. Gross Domestic Product.
Thu, 29th, 14:30 CET US Unemployment Claims.

US court ruling

In the US the court of international trade in New York has initially blocked tariffs initiated by the government. The ruling was that the President had not
the authority for such decision. Levies would be illegal in general following the April 02 implementation without affecting the sectoral price increases
on steel and car imports. Stock markets used the positive news to rise again overnight. The S&P 500 is trading more than 1.5% higher. The German
DAX on the other hand remains in a sideways pattern but had already gained beforehand.

Market talk

The weakness of the Dollar might resume today and with it also the positive sentiment in stock markets. Initial court decisions from the US will also
help the bullish view. Most currency pairs like the EURUSD, GBPUSD and AUDUSD keep pushing higher showing a bullish trend reversal. The
weakness of the Greenback might also be a reason why oil prices start to push higher again. Slight easing in geopolitical tensions should rather curb
prices of commodities, which seems not to be the case. Also precious metals look like they resume their upside momentum.

Tendencies in the markets

Equities positive, USD weak, Bitcoin positive, ETH stronger, oil sideways, Silver positive, Gold positive, 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 makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.