Weekly Trading Forecast: All Eyes Still on the Federal Reserve
Financial markets will remain preoccupied with Fed policy in the week ahead as Chair Yellen testifies in Congress and key US inflation data is released.
The US Dollar may shrug off soft wholesale and retail inflation figures as Fed Chair Janet Yellen uses Congressional testimony to make the case for rate hikes.
Next week brings a light economic docket for European data, and there are no Mario Draghi speeches on the calendar: Presenting an opportune time to substantiate recent themes of Euro strength.
With economic data starting to broadly underperform, the British Pound has begun to slip back. Recent talk of stimulus withdrawal by the Bank of England the resulting bump higher in UK Gilt yields has done little to keep the British Pound supported.
The Humphrey-Hawkins testimony may fuel the near-term advance in USD/JPY should Chair Janet Yellen endorse a more aggressive approach in normalizing monetary policy.
The Australian Dollar faces economic news from home, China and the US this week, a combination which may - perhaps counterintuitively - mean that it doesn’t get far either way.
There has been plenty of disagreement among analysts over whether the Bank of Canada will increase its overnight rate to 0.75% from 0.5% on July 12
Chinese Yuan Forecast: Yuan Eyes on New Yuan Loans, Trade Prints
Looking forward, a heavy economic calendar has the Yuan at risk from home.
Prices are testing near-term support ahead of the Fed’s monetary policy testimony next week. Here are the updated targets & invalidation levels that matter.
Global Equities Forecast: S&P 500, DAX, FTSE 100 Threatened by Risk Aversion
Threat of global ‘risk-off’ continues to rise as a new week arrives; on the fundamental front we have Yellen testimony as the big event of the week.
Despite a short-term rally on falling crude and gasoline inventories, oil continues to be controlled by the bears.
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