Important news for the week
-
Tue, 13th, 14:30 CET US Producer prices index.
-
Wed, 14th, 04:00 CET NZ Interest rate decision.
-
Wed, 14th, 14:30 CET US Consumer precise index.
Stock market correction
The recent correction in the equity sector did not come without reason from Japan. With the debt burden veins higher than 250% compared to the GDP Japan remains vulnerable. Investors favored liquidity and closed positions after the BoJ started to increase interest rates. Whether they will increase rates further to offset inflation might be debated. After a correction of more than 12% in the Nikkei markets were calm again, likely as well with the intervention of the Central Bank, which might have also acted as a buyer for equities. The potential further strength of the JPY might erode this system further over time as carry trades are being closed.
Market talk
After the strong correction last week market sentiment turned positive. Most indices look like they might rise again and the currency market also reflects this. The AUD as a risk- on currency is gearing up steam. From the demand side also oil prices show a positive impact and might test the USD 80.00 level again. The interest rate decision in New Zealand could also cause the Kiwi to rise further, should the RBNZ not reduce rates, which is currently expected this way. In the crypto sector most markets have geared up steam with Bitcoin resuming its upside. The proclaimed safe- haven status might be debated, though, since markets have corrected sharply alongside the equity sector.
Tendencies in the markets
-
Equities positive, USD weaker, cryptos positive, oil positive, metals positive, JPY weaker.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This Webinar is purely for information purposes. Transactions or orders are for illustrative purposes only and should not be copied by traders. The content has been carefully compiled. However, no liability can be accepted by FX Strategies. Asia and under no circumstances should this material replace a consultation with a certified financial, investment or investment advisor in terms of their accuracy. Further information on our risk warnings can be found on our website under fxstrategies.asia.
Recommended Content
Editors’ Picks
EUR/USD holds steady above 1.0900 amid cautious markets
![EUR/USD holds steady above 1.0900 amid cautious markets](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-for-the-table-with-figures-gm118451521-10951870_XtraSmall.jpg)
EUR/USD is trading sideways above 1.0900 in the European session on Monday. The pair treads water, as the US Dollar holds the upper hand amid escalating tensions between Israel and Iran. Looming geopolitical risks could limit any upside attempts in EUR/USD.
GBP/USD retreats to 1.2750 as US Dollar firms up
![GBP/USD retreats to 1.2750 as US Dollar firms up](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/strong-pound-weak-dollar-17536259_XtraSmall.jpg)
GBP/USD is erasing gains to test 1.2750 in European trading on Monday. The US Dollar is gaining ground amid a tepid risk tone, exerting downside pressure on the pair. Traders closely follow Mid-East geopolitical updates amid a data-light UK/ US data docket.
Gold rises on geopolitics and Fed rate cut expectations
![Gold rises on geopolitics and Fed rate cut expectations](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold trades in the $2,440s on Monday, clocking up a 0.45% gain from the previous day on a combination of safe-haven demand due to geopolitical risk and rising bets the Fed will move to cut interest rates at its next meeting.
Top 5 meme coins: Dogecoin, Shiba Inu, Pepe, Dogwifhat and Bonk extend losses
![Top 5 meme coins: Dogecoin, Shiba Inu, Pepe, Dogwifhat and Bonk extend losses](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Dogecoin/SHIB_DOGE_Coins_31_XtraSmall.jpg)
Meme coins erased 6% of their market capitalization in the last 24 hours, down to $40 billion per CoinGecko data. The shrinking market capitalization reflects the “fear” among crypto traders.
Calm before the inflation storm
![Calm before the inflation storm](https://editorial.fxstreet.com/images/TechnicalAnalysis/ChartPatterns/Candlesticks/close-up-of-candlestick-stock-chart-with-pen-40815814_XtraSmall.jpg)
The markets have seemingly caught their breath after the recent wild swings, with USD/JPY chilling around the 145.50-147.50 zone—a sweet spot we flagged last week that better mirrors the current rate differential landscape.