Record high infrastructure spending and market volatility

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri, 21st. 13:30 CET CA Core retail sales

German debt

The new debt package, which has been agreed upon in the German Bundestag will be voted on today in the Higher House, the Bundesrat. The package in volume of 100 billion EUR is meant to support the army, infrastructure and help to protect the climate. Critics claim that the volume is too high and that especially army expenses will end up in extremely high procuring cost. German defense companies might hence crank up prices, seeing that services are needed. Since the war in the Ukraine is far from over spillover effects might hence be found. Gold prices continue to move higher.

Market talk

The volatility in markets this week has been very limited. Most assets have not move much, which especially after last week’s price action is just normal. While Silver prices are retracing, the price of Gold keeps trading steady. The slight negative change in risk sentiment might be of some reason as well. Equities seem to currently favor downside momentum again. While the S&P 500 is still trading close to the 50- moving average based on the weekly chart the Nasdaq has broken that support zone already. The changing risk sentiment can also be seen in the weakness of the AUDUSD currency pair, which is trading lower.

Tendencies in the markets

Equities weaker, USD mixed, cryptos weaker, oil higher, Silver weaker, 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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Gold climbs further, focus is back to 45,000

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