Trade truce, ECB non-event, Dollar strength

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 31st, 13:30 CET CA Gross domestic product

World trade

Chinese President Xi seems to be able to agree on deals with US on eye level. At their Summit on Thursday the Chinese President stated that the rise of the US should go hand- in- hand with the development of China. During their first meeting in the past six yers a trade truce has been agreed upon. This might also be a milestone for the Eurozone. The deal has not been commented on by European deal makers but might certainly be seen as a chance for a better agreement. Europe should remain in a strong position and fight for their own agenda with their own strategy in particular during the time with Trump being President in the United States.

Market talk

The last trading day of the week and month might offer some fresh volatility in markets. The Dollar is gearing up steam against other currencies and the positive risk sentiment seems to fade. This can be seen with the weakening of the AUDUSD currency pair. Furthermore stock markets had rallied sharply again this month after the recent correction. So traders might now realize their profits causing the market to push lower today. Oil remains in between zones. While based on the weekly chart some upside might be seen also the monthly chart signals a potential positive candlestick pattern might be printed. Weaker stock prices as well as as well as less demand from the economy might cause the market to fall, though. In general also the crypto market might offer some corrective momentum. The stronger Dollar might pull most tokens lower in November.

Tendencies in the markets

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

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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