Dollar strength causing markets to fluctuate

Important News for the day:

• Tue, 29th, 16:00 CET US JOLTS job openings.

Dollar building up strength

The Dollar starts a potential season with further gains in markets. Since no change in a rate cut is expected by the FED this week the move might be intensified towards the weekend. This, in turn, is also likely to cause stock markets to face some profit taking in the near future. Especially thin trading conditions in the quieter summer months might support such view. Also, the current implementation of new tariffs would harm the economy developments between the Eurozone and the US further. The DAX currently shows some signs of weakening and might start to break lower as well.

Market talk

The strength of the Dollar is showing impact in markets now. The EUR, GBP as well as the AUD are losing steam and currently building up a potential bearish turnaround pattern. The Pound indicates that based on the weekly as well as monthly charts more downside momentum might be seen. The AUD remains interesting. Usually, weakness in the AUDUSD currency pair also signals, that equities might correct as well. This is currently not the case but traders in the stock market should hence be cautious with their long positions. Profit taking might be on the cards at some point soon.  On the other hand BTC and ETH still remain positive showing signs of a break higher. 

Tendencies in the markets

• Equities sideways, USD stronger, Bitcoin positive, ETH positive, oil weaker, Silver lower, Gold weaker, JPY weak.