Equities formed another all- time high but why is the Dollar gearing up steam?

Frank Walbaum FX Strategies.Asia

Important news for the day

Tue, 15th, 08:00 CET UK Claimant count change.
Tue, 15th, 14:30 CET CA Consumer prices index.

Shares at all-time high

While the mood in the German economy continues to deteriorate, the DAX was nevertheless able to generate a new all-time high. Whether the coalition can hold on may be an important question; there is a lack of positive impetus for the economy. Forecasts of falling interest rates by the ECB as early as Thursday could be a driver for the markets. Furthermore, the DAX is following the positive sentiment in the US, where the S&P 500 Index continued to rise.

Market talk

It seems that the strength of the Dollar might continue. A potential rush to the “safe haven” could be the answer. The EUR has lost further steam and last week’s support zone has been broken to the downside. Also the AUD is trading weaker and if the 0.6700 zone falls more downside momentum might occur. The next major support area comes with 0.6650 into play then. The recent positive trend in the equity market seems to favor higher prices still and the market might also continue to follow the sentiment now. Another breakout in Bitcoin might be be seen today.

Tendencies in the markets

Equities positive, USD strong, cryptos positive, oil weaker, metals positive, JPY weaker.

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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