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 clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.