Weekly Trading Forecast: Fed Freshmen, Europe and Japan Data Eyed
Financial markets eye confirmation hearings for two new Fed officials as well as CPI and GDP data from Europe and Japan in the week ahead.
The US Dollar may return to the offensive as incoming Fed officials voice support for rate hikes and external news flow cools bets on hawkish policy outside the US.
The upcoming update to the April Eurozone CPI report could easily undermine EUR-crosses mid-week.
With little UK data of note next week, sterling traders may be wise to let the charts unfold as long and short GBP positions both hold potential risks.
Yen weakness becomes a theme of interest for FX traders again, as next week brings the release of April inflation numbers out of Japan. March saw inflation fall back after an earlier spike in January and February. Continued calm from inflation keeps the door open for Yen bears.
The Australian Dollar has benefitted from the US Dollar rethink which came with last week’s weaker inflation print. It may continue to do so, for a while at least.
New Zealand Forecast: NZD/USD Awaits Fed Speak, Positioning and Perhaps Profit Taking
The happy group of crude oil bulls got what they wanted on May 12 as the US formally withdrew from the Iran accord to likely tighten an already supportive market for higher prices.
Equities Forecast: S&P 500, DAX & FTSE - Rally More, or Due for a Test of Strength?
In the week ahead, global markets will look to try and tack on further gains, but may find some opposition in doing so.
Gold prices posted its first weekly rise in around a month having reversed off key support after the USD index pulled 2018 highs following a disappointing inflation report.
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