Volatility rising, crypto correcting and Dollar gearing up steam

Frank Walbaum FX Strategies.Asia

Important news for the week

Wed, 05th, 14:15 CET US ADP employment change.
Thu, 06th, 13:00 CET UK BoE interest rate decision.
Fri, 07th, 14:30 CET US NFP employment data.
Fri, 07th, 14:30 CET CA Unemployment rate.

US trade wars

It seems that Donald Trump will continue with adding fresh tariffs to most trading partners. He might use these tactics in order to generate better trading results with other countries in the long run. The situation reminds traders on Trump’s first Presidency, where some tweet messages caused markets to move erratically. It might be interesting to observe how other countries will react as the European Union won’t be in bad shape in this matter for example.

Market talk

The week starts with fresh volatility in markets. After the implementation of new tariffs, most markets seem to face profit-taking for now. In particular the crypto space has lost some steam with XRP initially trading well below the USD 2.0000 level again. Also equities had lost some momentum as most indices opened trading lower this week. Furthermore also the Dollar had started to trade below important support levels, potentially indicating further negative momentum ahead. On the other hand currently a slight retracement in most markets can be seen. It might be too early to say whether the correction will be over now or another wave of selling pressure might be seen.

Tendencies in the markets

Equities weak, USD stronger, cryptos weak, oil positive, Silver positive, Gold positive, JPY sideways.

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.

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