Weekly Trading Forecast: Can Key Events like China GDP Cut Through Political Risk Volatility?
Benchmarks indices and currencies from the Dow to the Dollar continue to burn through volatility, but meaningful trends remain elusive. Can key event risk like China GDP or the BoC rate decision offer clarity to counter the general uncertainty of political risk?
The US Dollar continued to hold the range that’s been present for the past two months, and another strong inflation report may keep bears at bay for a while longer.
Tumult across the news wire is seemingly having little significant impact on the Euro – or the US Dollar . Neither has been the steep decline in economic data momentum. For now, traders will have to be patient as EUR/USD remains in the middle of a tight range.
Sterling traders will be on their toes on Tuesday and Wednesday next week, waiting for the latest UK jobs, wages and inflation releases. Will they underpin the recent GBP rally?
The Australian Dollar has fought back a little against its big US cousin, and this week could well see that process continue, if not overwhelm the dominant downtrend.
Chinese Yuan Forecast: Yuan Risk Remains Elevated amid US, China Seeking Trade Allies, 1Q GDP
US-China tariffs attacks may be on hold, but each party has begun to bring in allies. Also, China will release the first quarter GDP, having the Yuan at risk from home.
Crude oil traded to the highest level since 2014 this week on escalating geopolitical tensions that could lead to supply shocks while IEA says demand remains robust.
Equities Forecast: S&P 500, DAX & FTSE - Can the Bounce Sustain?
Last week risk appetite continue to firm up, but sustainability remains questionable; economic calendar on the light side, but there are other headline risks to watch.
Gold prices face US retail sales, Fed commentary and the central bank’s beige book. The anti-fiat asset could be vulnerable to swings in sentiment on geopolitical and trade developments.
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See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.
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