Weekly Trading Forecast: Markets Brace for US Inflation Data
Global financial markets were roiled by fears of an aggressive Fed rate hike cycle last week. Incoming US inflation data may bring relief or trigger still more blood-letting.
The US Dollar may continue to build higher against a backdrop of selling across global stock markets if US CPI statistics top expectations, stoking fears of aggressive Fed tightening.
The Euro has been trending-higher for over a year now, but EUR/USD has yet to eclipse the ECB-fueled high of two weeks ago. More pain may follow as risk aversion continues through global markets.
The Bank of England gave the market the heads up on the future path of UK interest rates on Thursday leaving the ongoing Brexit negotiations as the primary driver of GBP price action. And early signs are not positive for GBP bulls.
USD/JPY stands at risk for further losses as fresh data prints coming out of the U.S. economy are expected to instill a weakened outlook for growth and inflation.
The Australian Dollar headed lower as global risk appetite took a knock last week. Its home economy is doing quite well but that counts for relatively little at this point.
The New Zealand Dollar declined last week as the S&P 500 fell and the RBNZ cooled rate hike bets. It seems to be vulnerable to risk trends and external factors next.
Chinese Yuan Forecast: Yuan May Retrace around Lunar New Year; Stocks, Oil Futures, BTC are in Spotlight
Following a volatile week, the Yuan is likely to correct amid regulators’ concerns. At the same time, Chinese equites, commodities and cryptocurrencies will remain in focus.
Are the good times over? Crude Over has fallen the most since March and has taken a cue from other markets and turned negative on the year, but are fears here valid?
Gold prices are now down more than 5% off the January highs despite a massive equity washout. Here are the updated targets & invalidation levels that matter.
Equities Forecast: Global Stock Markets Poised to Bounce in Week Ahead
Last week global equity markets were extremely volatile, posting more losses; markets will look to rebound as the situation looks overdone.
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