Risk-on momentum builds as Dollar weakness supports markets

Important news this week

• Mon, 17th, 14:30 CET CA Consumer Price Index.
• Tue, 18th, 08:00 CET UK Claimant Count Change.
• Wed, 19th, 08:00 CET UK Consumer Price Index.
• Wed, 19th, 20:00 CEt US FOMC Meeting Minutes.

Risk-on momentum builds as Dollar weakness supports markets

The positive risk sentiment continues as the US Dollar remains under pressure. The S&P 500 is moving higher, while the Nasdaq continues to show strong momentum and the DAX is following the move. The Dow Jones is lagging, reinforcing the ongoing rotation toward growth and technology stocks rather than traditional blue chips.
The weaker Dollar is also supporting commodity currencies. The Australian Dollar remains strong, benefiting from the positive risk environment, while USDCAD continues lower on a combination of CAD strength and USD weakness. Gold and Silver remain stuck around their 50-day moving averages, which currently act as important resistance. A clean breakout above these levels could release another wave of upside momentum.

Market talk

Crypto remains the weak spot despite the constructive equity market. Bitcoin and most altcoins are holding around minor support levels, but overall sentiment remains fragile and buyers have yet to return convincingly. The divergence between strong equities and weak crypto is worth watching. If the Nasdaq and S&P continue higher while the Dollar remains weak, risk-on momentum could broaden further. A breakout in Gold and Silver above their 50-MA would provide another important signal that the current market strength is spreading across asset classes.

Tendencies in the markets

• Equities positive, USD weak, BTC weak, ETH weak, oil positive, metals at resistance, JPY weak.