Stronger Dollar, crypto lower – Risks ahead

Important news for the week

• Tue, 23rd, 09:30 CET        DE        PMI data.
• Tue, 23rd, 10:30 CET        UK        PMI data.
• Tue, 23rd, 15:45 CET        US        PMI data.
• Wed, 24th, 03:30 CET        AU        Consumer price index.
• Thu, 25th, 09:30 CET        CH        SNB policy rate.
• Fri, 26h, 14:30 CET        US        Core pce index.

Fed aftermath

This week will offer several soft data, which might cause the Dollar to move. After the rate cut of the Federal Reserve in the US the Dollar geared up some fresh momentum as the rate cut had been previously priced in already. Stocks continued moving higher but might now show some signs of potential weakness. The S&P 500 and Nasdaq are moving sideways, while the DAX keeps losing some steam. The focus this week should hence be on the PCE price index on Friday to reveal the trend of US personal consumer prices.

Market talk

The strength of the Dollar continues and most currencies lost steam against the Greenback. The stronger Dollar might cause US stocks to weaken as they simply get pricier for holders of other currencies. On the other hand Silver prices continue moving higher as the positive trend of the Fed helps companies to get access to cheaper liquidity. This boosts the economic development, in which Silver plays a vital role for growth. Should we see a correction in stock markets, however, also the demand for precious metals including Silver might diminish causing prices to fall. Cryptos started showing some signs of weakness earlier this morning, yet remain in the bullish trend. Their move might depend on how the Nasdaq will perform.

Tendencies in the markets

• Equities sideways, USD stronger, BTC weaker, ETH weaker, oil weaker, Silver positive, Gold positive, JPY weaker.