Risky assets higher, cryptos sideways, Chine rocking the market

Frank Walbaum FX Strategies.Asia

Important news for the week

Mon, 30th, 03:30 CN Manufacturing PMI.
Tue, 01st, 11:00 EU CPI flash pmi y/y.
Wed, 02nd, 14:15 US ADP Nonfarm employment change.
Thu, 03rd, 08:30 CH CPI m/m.
Fri, 04th, 14:30 US Nonfarm payrolls.

Important data looming

This week will offer important data for investors. The positive sentiment in the stock market might continue as the AUD confirmed. Yet on Friday the Nonfarm payroll data could also cause the Greenback to strengthen and hence cause equities to weaken again. The first trading days in October could offer this negative sentiment. Bitcoin and Ether are also correcting slightly and could be vulnerable for losses if they won’t break their respective highs from last week. The JPY seems back on track and might strengthen further. Stocks in Japan seem running lower for now.

Market talk

Markets might be poised for profit taking today due to the last trading day of the month. Stock markets have remained in a sideways pattern and might just remain in softer territory for now. Chinese stocks remain well- bid as investors prefer upside potential due to the support from the government. In general the positive sentiment in the equity sector might be also fueled by the AUD, which keeps breaking higher. Some headwinds might be seen from oil and the Silver market.

Tendencies in the markets

Equities sideways, USD weak, cryptos sideways, oil weak, Silver weaker, 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 remains bid, focus stays on 1.1900

EUR/USD has broken its two-day run of losses and is ticking modestly higher on Thursday, hovering around the 1.1880 area as the US Dollar struggles to find clear direction. Weekly Initial Jobless Claims rose more than expected, taking a bit of shine off the Greenback, but markets are largely in wait-and-see mode ahead of Friday’s US CPI release.

GBP/USD sticks to the bid bias, still below 1.3700

GBP/USD is trading with decent gains around 1.3650 on Thursday. Indeed, Cable is attempting to shake off the weakness seen earlier in the week amid another choppy session for the Greenback, while a run of disappointing UK data has so far failed to derail the pair’s tentative recovery.

Gold recedes slightly, trades below $5,100

Gold remains stuck in choppy trade on Thursday, deflating marginally just below the $5,100 mark per troy ounce as the US Dollar drifts without a clear trend. Softer US Treasury yields across the curve are offering some support, but with markets treading carefully ahead of Friday’s US CPI release, conviction remains limited and price action continues to look hesitant.