Weekly Trading Forecast: US Dollar, Gold Price Reversal at Hand?
US Dollar Forecast: US Dollar May Extend Rebound as CPI Boosts Rate Hike Chances
The US Dollar may find fuel for a sustained recovery if CPI data points to firming inflation, boosting the probability of another Fed rate hike before year-end.
Given that the upcoming Euro-Zone economic calendar is considerably lighter than in weeks past, and we are in the typically light volume month of August (truly the ‘dog days of summer’), a lack of data catalysts means sentiment and positioning will play a greater role in Euro price action in the coming days.
The doves remain active at the Bank of England, even with inflation expected to remain elevated well-beyond two percent as the squeeze on the British consumer continues.
The Australian Dollar has been climbing steadily against its US counterpart since early May and, despite some recent weakness, it is too early to say the move upwards is over.
NZD/USD may continue to pullback from the 2017-high (0.7558) should the Reserve Bank of New Zealand (RBNZ) toughen the verbal intervention on the local currency.
Equities Forecast: S&P 500 Holding Strong, DAX Finding Support on Euro Weakness
Gold snapped a three week winning streak with price reversing sharply on strong US NFPs on Friday. Here are the updated targets & invalidation levels that matter next week.
Crude Oil fell back to earth this week, but there remain positive developments such as record gasoline demand and falling supplies.
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