US election shocker, indices, Gold and the Dollar

Frank Walbaum FX Strategies.Asia

Important news for the week::

Wed, 24th, 10:30 CET UK Flash manufacturing PMI.
Wed, 24th, 15:45 CET CA BOC rate statement.
Wed, 24th, 16:30 CET CA press conference.
Fri, 26th, 14:30 CET US PCE deflator.

US election

Finally US President Biden has given in to a potential re-election. In a statement shared on X on Sunday he decided to quit the race. Due to the growing scepticism that he would be fit enough for another term in office he stepped back. He then nominated vice President Kamala Harris to be the nominee. the Dollar resumed trading slightly weaker this week. The general trend in favour of a stronger Greenback is still present. Also the USD- index shows further potential here.

Market talk

After a weaker start this week the Dollar might resume strength later. Most currencies still point to further losses as long- term charts suggest. Stock markets have mostly printed bearish turnaround patterns. In particular the strong retracement of the Dow Jones shows index shows the further negative market sentiment. Also tech stocks might weaken further, in particular after last week’s global IT problem. Crowdstrike, the supplier of cybersecurity took a beating and might cause the current negative trend to continue.

AUDUSD: we sold at 0.6740 with SL NOW at 0.6740 and TP at 0.6595.
DJ30: we like to sell at 40070 (sell stop) with SL at 41325 and open TP.

Tendencies in the markets:

Equities weak, USD sideways, cryptos sideways, oil correcting, Gold bearish, Silver down, 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 treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold flirts with daily lows near $5,000

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.