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.

EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

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.