Weekly Trading Forecast: All Eyes Still on the Federal Reserve
Speculation on Fed monetary policy has driven volatility across the markets since the beginning of the month. Minutes from January's FOMC meeting promise more of the same ahead.
The US Dollar looks vulnerable to deeper losses as a cautious tone in minutes from January’s FOMC meeting fails to arrest capital outflows seeking rate hikes elsewhere.
Even in the face of a -14.4% drop in net-longs over the past two weeks, EUR/USD was still able to push to new highs going back to December 2014. Needless to say, it will take a great deal of negativity – a change in tone by the ECB, a substantial turn in economic data – for traders to give up on their Euro bullishness.
The recent insipid trade in Sterling against the EUR and, to a lesser extent, the USD leaves us neutral on the UK currency ahead of heavyweight domestic data and ongoing Brexit discussions.
The Japanese Yen surged through numerous levels of resistance this week, continuing a rally that’s shown since December inflation printed at 33-month highs. Will next week’s inflation continue the course?
The Australian Dollar appreciated this week as Wall Street recovered and volatility cooled. The currency seems vulnerable to risk trends and external factors going forward.
After a rough start to the beginning of February, Crude Oil remains bid and is bouncing off a handful of technical support points that could favor trend continuation.
Gold prices are snapping a two-week losing streak as price pressures in the US mount. Here are the updated targets & invalidation levels that matter.
Equities Forecast: Global Stock Market Rebound Could Be In For a Test This Week
In the week ahead, markets will look to try and follow-through from last week, but look for more two-way trade as the rally gets tested.
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