Frank Walbaum
FX Strategies.Asia
Important news for the day
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Tue, 12th, 08:00 CET UK Claimant count change.
BTC strength
The Chinese economy has printed a surplus of USD 1 trillion. The second biggest economy in the world continues to export their goods to 170 countries, whereas a strong reliance on export seems to continue. This might be interesting in particular when Trump will take over office soon. He might use extreme pressure on China to achieve economic deals for the US. whether tariffs will return in the end might be another question then. Falling export prices from China might also support the current situation. The Chinese A 50 index has printed a strong bearish pattern, after new public support for the economy has not been implemented.
Market talk
The strength of the Dollar looks set to continue. With this also precious metals continue with their downside momentum for now, after having traded at high levels. Overbought technical patterns suggest, that the retracement might continue. Furthermore also oil prices keep losing steam. The important support zone at USD 69.00 in WTI has now been broken. This might call for a further escalation of the current bearish trend. Also indices keep retracing mostly, since markets have not managed to climb higher yesterday. We might also see most markets heading to lower levels after hitting the upper band of the rising trend. Worth noting that the USDCAD currency pair might be ready for a breakout higher. Weekly- and monthly charts suggest that further upside momentum might be seen.
Tendencies in the markets
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Equities sideways, USD strong, cryptos strong, oil weak, metals weaker, JPY weak.
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