Trump rhetoric, volatile markets and Metals all over the place

Frank Walbaum FX Strategies.Asia

Important News for the day

Tue, 26th, 01:30 CET AU Consumer confidence.

Trump tariffs rhetoric

Designated US President Trump is planning to impose high tariffs on goods from Canada and Mexico. The impact on North American trade might, hence, be significant and could also harm the US economy at some point. Consumers would need to face rising prices. Many goods aren’t produced in the United States, which would cause prices for companies to rise for their production. Furthermore, affected countries would likely also add tariffs to their imports, which could increase costs further.

Market talk

The US- Dollar is losing some steam against other currencies at the beginning of the week. Most currencies gear up some steam against the Greenback. Crypto markets, however, seem to be rather reluctant to move to higher levels and start to correct slightly. In particular Bitcoin was not able to break the USD 100.000 level for now. Furthermore stock markets show different momentum. While the NASDAQ and S&P 500 keep heading sideways the Dow Jones was able to gear up further steam. Upside momentum might be limited, though, as technical indicators suggest.

USOIL: we like to sell at 68.70 with SL at 71.20 and open TP.

Tendencies in the markets

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

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.