Stronger Dollar, weak economic data, pressure mounts on the Fed

Frank Walbaum FX Strategies.Asia

Important news for the week

Tue, 10th, 08:00 CET UK Claimant count change.
Wed, 11th, 14:30 CET US Consumer price index.
Thu, 12th, 14:15 CET EU Interest rate decision.
Thu, 12th, 14:30 CET US Consumer prices index.

US economy

This week market data will follow from the US, which might also guide the Federal Reserve Bank. Since economic data last week had disappointed, the time for a bigger rate cut might be there. The NFP- employment data showed the additions of less jobs last week. Furthermore stock markets seem to price in growing worries of a recession for now. Depending on a potential rate cut market participants also weigh price for oil as they currently slide. The negative trend might indicate a growing demand situation.

Market talk

The strength of the Dollar can be seen in most currency pairs. The EUR and GBP keep sliding to lower levels and the AUD has been running lower, too. In particular the Aussi might indicate further weakness in the risk sentiment. The price has been sliding below the 50- moving average based on the daily chart. Further downside might equities to resume their downtrend this week.

Tendencies in the markets

Equities weak, USD stronger, cryptos weak, oil weak, metals 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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