Weekly Trading Forecast: Complacency Cracks, Is this the Long-Await Reversal?
Volatility and volume have been building for some time, but this past week's developments reflect the most troubling shift in sentiment the markets have experienced in a long time.
The Japanese Yen surged versus all major counterparts as the US S&P 500 saw its worst weekly decline in over two years. There’s little economic event risk out of Japan in the week ahead, but we think big things stand on the horizon for JPY pairs.
The GBP/USD may continue to carve lower-highs & lows in the week ahead should the fundamental developments coming out of the U.K. economy further dampen interest rate expectations.
The Australian Dollar faces another week of uninspiring economic data as heightened volatility expectations threaten to keep pressure on the high-yielding currency.
A quiet economic calendar on the domestic front is likely to see the New Zealand Dollar price action fall in with broad-based risk appetite trends in the week ahead.
Gold prices are markedly higher this week with the precious metal rallying more than 2.5% to trade at $1221 ahead of the New York close on Friday.
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