Weaker Dollar and positive risk sentiment – What's next?

Important News for the day

• Tue, 18th, 13:30 CET CA Consumer prices index.

FT forecast

According to a forecast conducted by the Financial Times among a few dozen economists in regards to newly added tariffs and the downsizing of the government workforce the US economy will be affected further. Nearly all respondents stated that growth would be negatively impacted as consumer spending will be reduced. Furthermore the spending from companies will be scaled back and hence might cause a downturn. The expansion of the economy is hence expected to only reach 1.6% compared to the 2.3% previously. Currently equity markets are continuing their uptrend, which might continue, unless last week’s lows are broken.

Market talk

The weakness of the Dollar continues to support markets. Not only are precious metals rising further and with their breakout higher might remain positive for the week but also oil has been rising on top of the important support area. Today’s momentum might come during the American trading session. The consumer prices data from Canada might cause the Loonie to move and potentially rising prices could help supporting the CAD. The EURCAD might weaken and in particular the USDCAD, which had lost some steam, might move towards the 1.4160 zone.

Tendencies in the markets

• Equities recovering, USD weak, cryptos weak, oil positive, Silver positive, Gold positive, JPY weak.