Weekly Trading Forecast: Trade War Threat in the Spotlight
The US Dollar uptrend looks likely to emerge intact whether the combative stance adopted by Donald Trump in trade negotiations succeeds or backfires.
The Japanese Yen came into this week with considerable strength as risk aversion ran rampant. But as the world stepped back from the ledge, so did the Yen.
While GBP may still see some downside, these moves should be limited and traders may find better risk-reward set-ups from long Sterling positions.
The negative pressure trade war fears place on the Canadian Dollar amidst the US metal tariffs could be offset next week by the hawkish BoC and a local jobs report beat.
Gold struggles to retain the rebound from the May-low, with bullion at risk for further losses as price & the RSI extend the bearish formations from earlier this year.
In the week ahead, there are risks to markets but they won’t be from a light economic calendar; stocks tested as risk wilts, pullbacks or beginning of declines is the question.
Crude oil is riding on the fence after positive US data showed that economic growth could keep demand high, but new supply is expected to limit gains.
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