Weaker Dollar, higher crypto space, markets in retracement mode

Frank Walbaum FX Strategies.Asia

Important News for the Day

Friday, 15th, 14:30 CET US Retail Sales

Chinese economy

Recent Chinese economic data suggests that the economy is getting back on track. Retail sales grew at the fastest pace since February this year. According to a recent Bloomberg survey, the growth of 4.8% exceeded all previous estimates. The recent impact of Beijing's stimulus measures may be providing positive momentum. However, industrial output numbers remain disappointing. Figures rose by 5.3%, still below the forecast.

Market talk

Bitcoin seems to be fading near the USD 90,000 level after a tremendous run following the US election. Other tokens also experienced sharp rises after Donald Trump was elected as the new US President. Ripple may continue breaking to higher levels beyond the USD 0.9000 zone, as recent technical patterns have been broken to the upside. Additionally, some weakness in the Dollar could support further growth in the crypto markets.

Tendencies in the markets

Equities correcting, USD sideways, cryptos positive, oil weaker, metals weaker, JPY weak.

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.