Silver strong amid fresh Dollar weakness

Frank Walbaum FX Strategies.Asia

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.

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