Frank Walbaum
FX Strategies.Asia
Important News for the day
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Thu, 20th, 09:30 CET CH SNB interest rate decision.
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Thu, 20th,13:00 CET UK BoE interest rate decision.
SNB and BoE
The Swiss National Bank had cut interest rates. The move was previously expected yet also caused the Swiss Franc to lose some momentum against other currency. The USDCHF currency pair, on the other hand, might still resume its recent slide as long-term charts suggest. Further weakness in the Greenback might help such view. Today the Bank of England is not expected to cut rates. Any retracements in the GBPUSD currency pair might hence help to enter into fresh long positions. Traders should remain cautious with the Dollar. After having lost substantial momentum in recent weeks some strength of the Greenback should be expected.
Market talk
After the recent push to te upside it might look like equities start to see some cracks. During the market opening the DAX has started to weaken and also US indices currently look set to move slightly to the downside. Whether this will lead to an ongoing move to lower levels might be questionable but the weakness in the AUD could signal a push to lower prices as well. We still remain cautious in our approach and are prepared to focus on falling prices for now. Short term in particular negative impacts from tariffs by the Trump administration might add to the burden. Yesterday, Jerome Powell confirmed that the FOMC will remain steady in their approach and not cut interest rates for now. Weaker economic growth has been addressed by him as well. Oil prices might also see further downside. In particular a slide below the USD 66.50 level might escalate a bearish move.
Tendencies in the markets
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Equities weaker, USD stronger, cryptos weaker, oil weak, Silver weaker, Gold sideways, JPY stronger.
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