Further harm due the US budget issue?

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 14th, 08:00 CET UK Gross domestic product.
Fri, 14th, 15:00 CET US Prelim. consumer sentiment.

US shutdown

A potential shutdown in the US might still happen. Democrats stated that they would not agree to the US budget and hence the situation might remain tense. Yet, the leader of the Democrats, Chuck Schumer, pointed out that a shutdown would only help to support Donald Trump and furthermore harm American families. The new budget needs to be adopted by the Senate, where Republicans in general have a majority but still need some votes of the Democratic party. The Dollar might hence continue facing a volatile time for now.

Market talk

Yesterday ended with the continuation of bearish market sentiment. The S&P 500 index went lower and crossed the support zone based on the weekly chart, without a correction in the making for now. Yet, the German DAX seems trading strongly higher. All recent slight corrections have ended in a dip, where investors went back in causing the market to rise again. The current development on the monthly chart might suggest that caution should be applied. If the general trend in markets remains shaky, downside could be seen here as well. Similarly the crypto space shows a mixed picture. While BTC and XRP hold steady for the week, other tokens have continued their slide seemingly following the US tech market.

Tendencies in the markets

Equities sideways, USD weak, cryptos weak, oil positive, Silver positive, Gold strong, 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.

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