Silver strong amid fresh Dollar weakness
Important news for the week
- Tue, 13th, 14:30 CET US Core consumer price index.
- Wed, 14th, 14:30 CET US Producer price index/Retail sales.
- Thursday, 15th, 08:00 CET UK Gross domestic product.
- Thursday, 15th, 14:30 CET US Unemployment claims.
CPI and PPI in focus
Last week ended with a stronger Dollar, despite a weaker than expected nonfarm payrolls report. However, the positive sentiment did not continue this week and hence the Greenback lost some steam. Yet, the Dollar might start gearing up some steam again as most currency pairs where the Dllar is involved still looks positive. If the EURUSD, GBPUSD and AUDUSD pairs don’t break above their recent highs based on the weekly charts more downside momentum might occur later this week. Potentially stronger consumer- as well as producer prices might support such view.
Market momentum
The change in market sentiment continues to impact markets. While the S&P 500 index keeps moving to the upside similarly to the German DAX, which had created a new all- time- high on Friday last week, the Nasdaq keeps lagging behind slightly. With the rotation in markets well under way, more upside might rather be seen in broad based indices like the Russell 2000, which is being supported by consumer goods. Tech companies on the other hand remain on the sidelines for now. The oil market looks well supported and might continue to push higher in the short- run as well. The demand from th economy remains positive.
Tendencies in the markets
Equities positive, USD stronger, crypto sideways, oil positive, 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.
