Weaker Dollar, more tariffs

Frank Walbaum

Important News for the week

Wed, 12th, 14:30 CET US Consumer price index.
Thu, 13th, 08:00 CET UK Gross domestic product.
Fri, 14th, 14:30 CET US Core retail sales.

More tariffs

US President Trump stated that more tariffs will be implemented. 25% would be added to the import of steel and aluminium. More tariffs will also be added during the first days of this week. India and Japan brought potential concessions towards the US to the table. Furthermore the European Union would give in over tariffs being implemented over the import of vehicles into the United States.

Market talk

After a strengthening Dollar last week on Friday due to the weaker than expected NFP data, the Greenback started losing steam since the beginning of the week. The risk sentiment then resumed its upside momentum and also crypto markets went higher so far. The weakness of the Dollar might be of help as well for precious metals. Silver is inching higher, and also Gold prices created new record highs. Market participants seem to favour diversity in current markets. After gearing up some steam also the JPY had lost momentum today. All JPY pairs keep moving higher, which might just be a retracement.

Tendencies in the markets

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

Author

Frank Walbaum

AUD/USD turns lower toward 0.7000 after mixed Australian jobs data

AUD/USD is losing ground toward 0.7000 in the Asian session on Thursday, following the release of the Australian August jobs report, which showed that the Unemployment Rate rose to 4.6% versus 4.5% expected, while Employment Change beat estimates, arriving at 39.5K. Traders also remain unnerved ahead of the critical Trump-Xi meeting.

USD/JPY keeps the red near 158.00 as Japanese Yen firms up

USD/JPY retreats from three-week highs and holds losses near 158.00 in the Asian session on Thursday. Surging Japanese bond yields lift the Yen amid looming intervention risks, while the US Dollar preserves overnight gains to a two-month high amid hawkish Fed bets and elevated US bond yields.

Gold consolidates below $4,300, awaits Trump-Xi meeting

Gold struggles below $4,300 in the Asian session on Thursday and seems vulnerable amid a bearish fundamental backdrop. US bond yields rallied to fresh multi-year highs amid rising Fed rate-hike bets, helping the US Dollar preserve Wednesday’s strong gains to a nearly two-month high and undermining the non-yielding bullion. Bears, however, seem hesitant ahead of the Trump-Xi meeting.

Bitcoin rallies above major cost bases as bulls eye $96K resistance

Bitcoin (BTC) has moved above several cost bases, strengthening the structure of its recent recovery as selling pressure remains relatively subdued. In a report on Wednesday, Glassnode stated that Bitcoin’s latest move is notable because the top crypto has recovered above the True Market Mean at roughly $77,000 and the Short-Term Holder (STH) Cost Basis.

Oil price rise weighs on stocks

Rising oil prices and higher yields have thrown the equity rally off track. After the risk-on start to the week renewed gains for oil prices and yields have weighed on indices.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.