Weekly Trading Forecast: Is the "Trump Trade" Back in Play?
Financial markets spent most of last week unwinding "Trump trade" bets but December's US jobs data seemed to rekindle the late-2016 narrative. Will it continue in the week ahead?
The US Dollar found a lifeline in upbeat wage growth data having been battered by the unwinding of the “Trump trade”. Upcoming Fed-speak may put it back on the defensive.
An improvement in the Euro’s fundamental drivers in the short-term is helping pad the currency from longer-term political concerns, mainly about the upcoming slate of elections (Dutch, French, Italian, and German) in 2017.
This week, the Bank of England’s Chief Economist, Mr. Andy Haldane issued a mea culpa around the bank’s forecasts and expectations around Brexit, saying ‘it’s a fair cop to say the profession is to some degree in crisis.’
The nascent Australian Dollar uptrend should remain intact through a relatively light week for scheduled economic data on both sides of the Pacific.
The Chinese Yuan was on a roller-coaster ride this week: the offshore CNH gained over 1% against the U.S. Dollar on both Wednesday and Thursday, and then lost -0.6% as of 11:00am EST on Friday. The offshore Yuan also traded higher than the onshore Yuan, which was uncommon.
Gold prices continued to march higher for a second consecutive week with the precious metal rallying more than 3% to trade at 1176 ahead of the New York close on Friday. The advance comes amid weakness in the greenback and alongside continued gains in global equity markets.
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