The S&P at a new all- time- high, bond markets are super cautious, and the Dollar remains strong

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 10th, 14:30 US Core consumer prices index/unemployment claims.

Economic data

The Ifo- data for the chemical industry from Germany had followed negative this month with the figure coming in at -13.6, compared to the reading of -6.1 last month. The business expectation Ifo data had fallen to -17.8, showing the worst data since the first quarter this year. In the US the expectation that the Fed will cut rates further has fallen as bond data shows. Yields for 10- year bonds rose by nearly 0,5% in recent weeks and currently trade at 4,07%. Vice versa bond prices continue to fall again, which recently caused equities to fade.

Market talk

Positive sentiment in the equity sector returns and markets broke out to higher levels. The S&P 500 looks like it might continue with the fresh upside momentum. Also indices in China have geared up steam, followed by the Hang Seng index from Hong Kong. In Japan, though, the market retraced to lower levels again. The EUR, GBP and AUD have all ended yesterday’s trading in the red and lost steam towards the Greenback. The Dollar looks like it will remain stronger as the Dollar index continues to rise.

Tendencies in the markets

Equities positive, USD stronger, cryptos weaker, oil sideways, metals sideways, JPY weaker.

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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