Volatility has started to churn this past week and the course looks just as tumultuous ahead. From political headlines for US equities to Brexit negotiations for the Pound to rate decisions and data to spur monetary policy speculation; traders should be ready to dodge risk and pursue opportunities as they arise.
The US Dollar looks vulnerable despite progress toward tax cut legislation as Special Counsel Mueller brings down Michael Flynn, striking at the heart of “team Trump”.
The Euro fell back last week for no reason in particular, suggesting that the recent bull run may be exhausted. Looking ahead, strong economic data may not provide the upside fuel it once did as net-long Euro positioning is extremely stretched again.
The British Pound continues to push forward as commentary from Brexit negotiators points towards talks moving on to the second phase, including post-Brexit trade agreements.
The Australian Dollar market will face two ‘big-ticket’ domestic events this week, in the form of the Reserve Bank’s final 2017 policy call and official growth data
USD/CAD may exhibit a more bearish behavior over the remainder of the year should the Bank of Canada (BoC) show a greater willingness to further normalize policy in 2018.
Chinese Yuan Forecast: Yuan Looks to Foreign Reserves, US-China Trade
Yuan may benefit from eased capital outflows, while suffer from trade tensions between the U.S. and China.
Crude Oil is working to close above the 200-WMA for the second week for the first time since 2014 to help further convince the bulls they’re on the right side of the market.
Equities Forecast: Global Equity Markets on Edge as Uncertainty & Volatility Spike
Equity markets hit a stretch of volatility last week, events and technicals both favor more in the week ahead.
Gold prices are vulnerable to major headline risk heading into the December open. Here are the updated targets & invalidation levels that matter.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.