The positive risk sentiment returns

Frank Walbaum FX Strategies.Asia

Important News for the day

23rd, 09:30 CET EU German Flash Manufacturing PMI.
23rd, 09:30 CET UK Flash Manufacturing PMI.
23rd, 14:45 CET US Flash Manufacturing PMI.

“Now is i good time to buy”

Donald Trump did it again, yet this time in a different more subtle way. In recent trading days equities were running lower and calming
words towards the head of the US Central Bank seemingly helped to break the negative cycle for now. Beforehand, though, Trump
argued that Jerome Powell, the head of the US central Bank might be ousted. For the US government the high interest rates rather
remain a burden and President Trump would prefer to have the Fed cutting rates rather soon, potentially on the expense of rising
inflation. Gold prices answered with falling prices and after having touched the psychological USD 3,500 level have been heading to
the downside for now.

Market talk

The market sentiment returns to positive today after the above mentioned story. Equities not only in the US were moving higher but
also share prices in Asia have been rising sharply again. Worth noting that the DAX has pared most of the losses from earlier this
month. The positive sentiment has also been underpinned by a rising AUDUSD currency pair. If the Aussi can continue to trade above
the 0.6400 zone, more upside potential might be on the cards. Furthermore also the demand of oil looks positive for now, which
continues to suggest a rising demand. Crypto markets are no expectation and continue to push higher.

Tendencies in the markets

Equities positive, USD weaker, cryptos strong, oil positive, Silver positive, Gold positive, JPY stronge.

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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.