Risk sentiment rising

lmportant news this week:

• Mon, 03rd Aug, 16:00 CET US ISM Manufacturing PMI.
• Wed, 05th Aug 00:45 CET NZ Unemployment Rate.
• Fri, 07th AUg 14:30 CET US NFP Report.
• Fri, 07th Aug 14:30 CET CA Unemployment Rate.

ISM data in focus as Weaker Dollar supports equities

The new trading week has started on a positive note, with the US Dollar extending its recent weakness while equity markets continue to recover. Today's US ISM Manufacturing PMI will be closely watched, as it could provide fresh direction for the Greenback. Current market positioning suggests that weaker-than-expected data could accelerate Dollar selling, while a stronger reading may offer only limited support as bearish sentiment towards the Dollar remains intact for now.

Equity markets continue to outperform, with the S&P 500 approaching another potential breakout. A move above recent highs could encourage further gains across global indices, including the DAX. Despite the stronger performance in equities, cryptocurrencies remain under pressure. Bitcoin and several major altcoins are struggling to gain momentum, suggesting overall risk appetite is not yet fully aligned with the optimism seen in stock markets. The divergence between equities and crypto will remain an important theme this week.

Market talk

Attention now turns to a busy week of US and Canadian economic data. Today's ISM report may set the tone for FX markets, while Friday's US Non-Farm Payrolls and Canadian employment data are expected to be the week's key events. USDCAD remains particularly interesting, as stronger Canadian employment data combined with continued Dollar weakness could extend the pair's recent downtrend. If US data disappoints again, the Dollar may remain under pressure, while stronger equity markets could continue to benefit from expectations of a more accommodative Federal Reserve.

Tendencies in the markets

• Equities positive, USD weak, crypto weak, oil weak, Silver weak, Gold weak.