Ready for some April news?

Frank Walbaum FX Strategies.Asia

Important News for this day

01st, 05:30 CET AU RBA interest rate decision.
01st, 16:00 CET US ISM manufacturing PMI/JOLTS job openings.

European economy

Germany, the previous powerhouse of the economy in Europe continues to be in bad shape. Industrial production is expected to shrink by 0.5% this year. The numbers have declined 11% since 2019 in particular in comparison to other European countries. The general production has increased by 1% during the same time period. Several companies have left Germany or pan to so so in part of high bureaucracy as well as rising energy prices. The German DAX might currently resume some upside but looks vulnerable for further losses in the coming weeks. In particular the technical pinbar candlestick pattern might cause further downside momentum.

Market talk

Last month ended with negative sentiment in the stock market. Despite the slight retracement of the negative move from Friday last week the S&P 500 was not able to move higher and instead closed near the lows. Based on the weekly chart the market hence broke the 50- moving average, potentially indicating further downside momentum. However, a fast retracement to the upside might indicate that fresh buyers would step in, helping a fresh run to higher levels. This might seem unlikely for now though, as recession worries and negative headlines continue to dominate markets.

Tendencies in the markets

Equities sideways, USD stronger, cryptos sideways, 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.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.