Walmart complaining and Dollar losing steam

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 21st, 08:00 CET UK Consumer prices index.

US recession

The US might be close to a recession. Trump’s tariffs might be a reason giving this thought more weight, whereas corporate information does not look good. CEOs have started to sell shares again, while consumer sentiment has been the lowest in a long period of time. Debt on credit cards has been rising and consumer spending has been weakening, which might further harm the economy in the long run. Walmart reports that they will have to raise prices as their importance of good have been negatively affected.

Market talk

Stock markets might be in for a push lower for now. After the recent push higher some downside might be seen, causing most markets to weaken. The weakness of the Dollar seems not to help much for now. The AUDUSD keeps rising but is lagging behind GBP and EUR as well, which could mean that the risk sentiment is fading. In the meantime Gold prices keep moving upwards with Silver following. This might be due to the support of the weakness in the Greenback. Based on the monthly chart the Dollar- index looks set to weaken even further.

Tendencies in the markets

Equities sideways, USD weak, Bitcoin positive, Altcoins sideways, oil sideways, Silver strong, Gold positive, 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.

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