Positive risk sentiment continues, JPY weaker, economic data being ignored

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 09th, 14:30 CET CA Unemployment rate/employment change.

Fed rates

According to statements from Kansas Fed President Schmid the Central Bank might not be ready to reduce interest rates soon. Inflation remains still above target and should be eyed cautiously. Despite some cooling also the labor market won’t offer signs of tremendous weakness he pointed out. As the elections in the US are coming up soon also US Presidential nominee Trump stated that the President should have a say over interest rates. He made such remarks many times in the past, too. On another note also recession is now being expected for the US, potentially causing volatile times ahead.

Market talk

The Aussi has been gearing up steam all week after the initial losses on Monday. Also equity markets might run higher as the risk sentiment changed to being positive. Oil prices continue to rise as demand grows and negative economic sentiment continues to fade. Also crypto markets gear up steam again and another test of higher levels might follow. Precious metals continue their ways higher, too. Silver looks stable on top of the weekly 50- moving average trendline and Gold might break out from yesterday’s highs. Worth noting that most crosses like the EURAUD, EURCAD and EURNZD point to weaker price levels currently.

Tendencies in the markets

Equities positive, USD mixed, cryptos positive, oil positive, 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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