Liberation day? From what?

Frank Walbaum FX Strategies.Asia

Important News for this day

02nd, 14:15 CET US ADP employment change.

Liberation day

President Trump is expected to drastically increase tariffs today. Regardless of whether they are intended as a means of exerting pressure on other countries or are actually intended to support the US economy in the long term, they could initially be a burden for Americans. Prices are expected to continue to rise. The countries with the largest trade imbalances are expected to be hit first. It will be interesting to see how this could help boost productivity in the US rather than just raising prices.

Market talk

Markets continue to trade with slight positive risk momentum. Most US indices hold steady around the 50- moving average and might continue to rise for now. Oil prices remain above the 50- moving average based on the daily chart. Any retracement to the downside might be taken into fresh buy positions as the monthly candlestick pattern confirms. Upside might be limited based on the current economy development but fueled by geopolitical tensions. Worth noting that also crypto makes continue to trade slightly higher with the general lift in markes.

Tendencies in the markets

Equities sideways, USD mixed, cryptos positive, oil positive, Silver positive, Gold sideways, JPY stronger.

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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