US data to offer clarity

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 20th, 09:30 CET DE Flash Manufacturing PMI.
Fri, 20th, 10:30 CET UK Flash Manufacturing PMI.
Fri, 20th, 14:30 CET US Core pce price index / Advance GDP.
Fri, 20th, 15:45 CET US Flash Manufacturing PMI.

PCE data

Today’s PCE data might influence markets. Yesterday’s unemployment claims came in better than expected. this in turn caused stocks to weaken slightly as the FED is hence not expected to cut interest rates further due to the economic positive result. Today’s PCE dtaa is expected to rise slightly. A stronger reading could indeed support the same view and dampen the positive sentiment in stocks.

Market talk

After days of rather sideways price action the Dollar finally started to gear up some momentum again. The EUR and GBP are weakening. The bearish momentum especially in the Pound might increase below the support zone of 1.3400. The AUD remains rather positive against the Dollar. This also reflects the positive sentiment in equities. The S&P 500 looks positive before the weekend and also the Nasdaq is rising slightly. The DAX needs to break the technical resistance zone of 25,270 in order to push higher.

Tendencies in the markets

Equities positive, USD positive, crypto sideways, oil positive, Silver positive, 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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.