US election shocker, indices, Gold and the Dollar

Frank Walbaum FX Strategies.Asia

Important news for the week::

Wed, 24th, 10:30 CET UK Flash manufacturing PMI.
Wed, 24th, 15:45 CET CA BOC rate statement.
Wed, 24th, 16:30 CET CA press conference.
Fri, 26th, 14:30 CET US PCE deflator.

US election

Finally US President Biden has given in to a potential re-election. In a statement shared on X on Sunday he decided to quit the race. Due to the growing scepticism that he would be fit enough for another term in office he stepped back. He then nominated vice President Kamala Harris to be the nominee. the Dollar resumed trading slightly weaker this week. The general trend in favour of a stronger Greenback is still present. Also the USD- index shows further potential here.

Market talk

After a weaker start this week the Dollar might resume strength later. Most currencies still point to further losses as long- term charts suggest. Stock markets have mostly printed bearish turnaround patterns. In particular the strong retracement of the Dow Jones shows index shows the further negative market sentiment. Also tech stocks might weaken further, in particular after last week’s global IT problem. Crowdstrike, the supplier of cybersecurity took a beating and might cause the current negative trend to continue.

AUDUSD: we sold at 0.6740 with SL NOW at 0.6740 and TP at 0.6595.
DJ30: we like to sell at 40070 (sell stop) with SL at 41325 and open TP.

Tendencies in the markets:

Equities weak, USD sideways, cryptos sideways, oil correcting, Gold bearish, Silver down, 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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