US election brewing and three major rate decisions looming, here is what to focus on

Frank Walbaum FX Strategies.Asia

Important news for the week

Tue, 05th, 04:30 CET AU RBA interest rate decision.
Tue, 05th US Presidential election.
Thu, 07th, 13:00 CET UK BoE interest rate decision.
Thu, 07th, 20:00 CET US FED interest rate decision.

US election in focus

This week will focus on the two major interest rate decisions from the UK and the US. Yet both events might also move out of focus since the US election will potentially shape markets. With both candidates focussing on different policies markets might also proceed in different directions, depending who will be the winner in the end. In general the Dollar seems to weaken slightly at the beginning of the week and might lose further steam against most other currencies. Stock markets remain in a sideways pattern seemingly not able to capitalize on this for now. The market open in the US might hence offer more insights here.

Market talk

The oil price starting positive into the new week, potentially fuelled by weakness of the Greenback. Also the Aussi is heading to higher levels and potential strength might also come from the interest rate decision, which is due early morning tomorrow. Crypto markets offer setbacks as Bitcoin in particular printed a strong bearish candlestick pattern off the weekly chart. A win of Donald Trump for the US election might be a catalyst for higher prices in markets. As the sentiment turns slightly positive Gold and Silver prices push lower. Further negativity might be seen, here.

Tendencies in the markets:

Equities sideways, USD weaker, cryptos weak, oil positive, metals weak, 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 remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.