Weekly Forecast: FOMC Minutes, Powell Speech Keep Fed in Focus
Fed monetary policy remains in focus for financial markets as minutes from May’s FOMC meeting and a speech from Fed Chair Powell cross the wires.
The US Dollar may continue higher as minutes from May’s FOMC meeting and a speech from Chair Powell boost Fed rate hike expectations further.
The rise of a populist Italian government has started to stir concern among market participants. Meanwhile, the preliminary May Eurozone PMI readings aren’t set to improve, giving little reason for the Euro’s downtrend to end.
GBPUSD saw a somewhat calm week with the pair finding a base at 1.3450, while employment data remained robust. Key risk next week comes in the form of UK Inflation and GDP data.
The Australian Dollar is unlikely to perk up meaningfully this week, but there is reason to suggest that it may not fall much further either
Chinese Yuan Forecast: Yuan May Gain Ahead of MSCI Inclusion; Risk from Trade Disputes Remains
In less than two weeks, Chinese A-shares will be officially added to MSCI indices, which will likely boost the demand in the Yuan. At the same time, China may find more mutual interests with Germany than with US.
What a week for crude! Brent traded at its highest premium to WTI in three years by trading above $80/bbl as bullish forces continue.
Equities Forecast: S&P 500, DAX & FTSE - Maintaining a Bullish Stance
In the week ahead, we have a couple of key events which may test global stock markets, but overall the outlook remains relatively positive until bearish behavior shows itself.
Gold prices could be in for another week of loses as government bond yields continue rising around the world and non-interest bearing assets lose relative appeal and the US Dollar rises.
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