US election, China stimulus and metals rising

Frank Walbaum FX Strategies.Asia

Important news for the week

Wed, 23rd, 15:45 CET CA Interest rate decision.
Thu, 24th, 09:15 CET FR Manufacturing PMI.
Thu, 24th, 09:30 CET DE German Manufacturing PMI.

US policies

The election in the US is around the corner and markets remain strongly bid to the upside. During his four year at the helm of the biggest economy in the World President Biden has added the American rescue plan, to support the economy and private households. With his election also the Dollar had geared up steam and resumed fresh strength in the recent weeks in October. As rates are being reduced as a result of falling inflation data markets might remain volatile in the coming weeks ahead. Meanwhile, China’s stock market continues to decline as stimulus measures lose favor with investors, leading to weaker performance.

Market talk

After a strong push on Friday in the metals sector the upside potential might continue. Silver has broken out of the USD 32.10 technical resistance zone and could hence push higher. the next resistance might be the USD 35.20 area. Similarly also Gold prices have moved and should be traded with caution now as the RSI indicates a strong overbought territory. Any strength of the USD around the US election could cause a sharp reaction to lower levels. This week might offer volatility in the CAD due to the upcoming interest rate decision on Wednesday.

Tendencies in the markets

Equities positive, USD weaker, cryptos sideways, oil weaker, metals stronger, 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.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD tilts bullish as markets barrel toward mid-week NFP print

GBP/USD is holding a broader bullish structure on the daily chart, with price trading well above the 50 Exponential Moving Average at 1.3507 and the 200 EMA at 1.3310, confirming the intermediate uptrend that has been in place since the November 2025 low near 1.2300.

Gold pushes back above $5,000

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.