Financial markets may be forced away from focusing on a slew of top-tier economic news as fiery rhetoric continues to flow from Washington DC in the week ahead.
The US Dollar is torn between the influence of Fed policy speculation and geopolitical risk as key economic news prints against a backdrop of fiery rhetoric from the US and North Korea.
After two weeks of few meaningful economic data releases, the Euro will see data releases each day this week. Market positioning remains stretched, however, which remains an impediment.
The performance of the British Pound over the past week suggests it is trading like a currency investors will shun if the US spat with North Korea continues to worsen.
Japanese Yen Forecast: Risk Aversion Envelopes the Yen as Geopolitical Risk Flares
The Japanese Yen put in a move of strength as tensions increased between the U.S. and North Korea. But there are setups on both sides to work with either a continuation or a reversal of risk aversion in JPY.
The Australian Dollar looks a little stuck between a central bank that doesn’t want to see more gains and an investment community that would probably like to buy.
The recent jawboning by RBNZ assistant governor John McDermott sent the Kiwi lower despite the central bank’s decision to keep interest rates unchanged.
USD/CAD may exhibit a more bearish behavior in the week ahead should key developments coming out of the U.S. economy dampen bets for higher interest rates.
Chinese Yuan Forecast: Yuan Eyes on PBOC's Guidance, Private Investment
The primary driver to the Yuan rate has been the PBOC’s guidance over the past week. With the recently added counter-cyclical factor, the reference rate seems to show greater influence to markets.
Equities Forecast: S&P 500, DAX, and FTSE 100 Skating on Thin Ice
Global equity markets are in a perilous position, how they respond after last will be important.
Prices surged this week as rising geo-political tensions and falling risk appetite fueled demand. 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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See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.