Trump speech in Davos to shed light

Frank Walbaum FX Strategies.Asia

Important news for the week

Wed, 21st, 08:00 CET UK Consumer price index.
Wed, 21st, 14:30 CET US President Trump speech.

Risk sentiment

The general risk sentiment in markets remains negative. While equities correct also crypto markets remain under pressure and saw anotherbearish trading session throughout yesterday’s trading. Furthermore also the Dollar is losing momentum. Since Trump took office the trust in the Greenback has been negative and the direction seems to continue to weaken further. On the flipside Gold and Silver continue to shine bright. No signs of investors taking off cash from the strong trends and the bullish sentiment is unbroken.

Market talk

As the world eyes the current developments in the developing stories the focus goes to the World Economic Forum in Davos. Today’ Donald Trump is expected to host a speech there. It is expected that differences might be removed soon as Trump pointed out. He stated that he is expecting an end of the conflict and remains optimistics. The usual bluff like in the trade war we have been used to from before? In general traders should apply caution for now and use tight stop losses during current times.

Tendencies in the markets

Equities correct, USD weaken, crypto weak, oil lower, Silver positive, Gold strong.

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 bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.