More positive risk sentiment?

Frank Walbaum FX Strategies.Asia

Important News for this day

11th, 08:00 CET UK Gross domestic product.
11th, 14:30 CET US Producer prices index.
11th, 16:00 CET US prelim consumer sentiment.

EU trade policies

The President of the EU commission also stated that further tariffs on the import of US products will be delayed by 90 days. This will also give more time for further talks between the two trading parties. Despite the situation is adding tensions between the US and China, other countries might feel more relief for now. China is the biggest holder of US bonds, which might add anothe rangle to this situation. China itself has not increased more tariffs on the other hand.

Market talk

The Dollar continues to lose some momentum, which might make the US President happy. Stock markets have turned into a sideways pattern and the upside in US indices might be due to continue. Worth noting that also oil is running higher and the AUD is trading back above the crucial support zone at 0.6100. Both would act as positive signs for a further recovery in the equity sector. On the other hand also Gold prices continues to move higher. This might be seen as an indication of a further rise in negative market sentiment yet elevated by the weakness of the Dollar. Meanwhile the GBP seems limited to the upside as per the technical resistance based on the weekly chart but if the weakness of the Greenback continues might also break higher.

Tendencies in the markets

Equities positive, USD weak, cryptos positive, oil positive, Silver stronger, 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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