Turnaround Tuesday in full swing? Positive risk sentiment returns
Important news for the day
- Tue, 06th, 06:30 CET AU RBA interest rate decision.
Bond markets rise
With the recent selloff in equities also bond markets show signs of momentum. As yields continue to fall, prices currently rise. As the trust in the economy currently fades investors remove funds and put them into the bond market. It is believed that the Fed will start reducing rates in September as growth concerns come into focus. Banks like JPMorgan and Citigroup expect the Central bank to cut rates by 50 basis points until November. In Australia the RBA did not adjust rates. Meanwhile the Aussi starts to rise as the market trades on top of important support levels.
Market talk
The weakness of the Dollar continues after the Greenback had offered a mixed picture against other currencies. The EUR might start to weaken today as the market seems limited at the current resistance zone. The positive sentiment after the sharp selloff in equities might however start to come back today. Indices like the Nasdaq have resumed upside momentum again. Also cryptos like BTC and ETH run higher. Meanwhile also the CAD could gear up steam against most other currencies.
Tendencies in the markets
- Equities positive, USD mixed, cryptos positive, oil at support, Gold positive, Silver 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.
