Weekly Trading Forecast: Fed Testimony, China GDP and Earnings Compete with Trade Wars
The US dollar should be powering ahead based purely on economic fundamentals but the over-arching threat of global trade wars is reining in the greenback’s performance.
The overhang of Brexit continues to provide an uncertain outlook for the Pound. However, strong UK data could potentially see GBP post marginal gains.
The Canadian Dollar was unable to capitalize on a hawkish BoC amidst trade war concerns. Ahead, the US might impose auto import tariffs and local CPI could miss, undermining CAD.
The Humphrey-Hawkins testimony may influence the near-term outlook for USD/JPY as Fed Chairman Jerome Powell is scheduled to appear before Congress.
Crude oil has avoided the fate of other commodities that have been hit very hard by trade war fears. A massive drawdown in US crude stockpiles may help the argument of Bulls, but by how much remains unclear.
Gold is once again testing critical support ahead of next weeks Fed testimony- it’s make-or-break here. These are the updated targets & invalidation levels that matter.
The week ahead doesn’t hold much in the way of major market moving events on the calendar, but that doesn’t mean there aren’t risks out there; the general outlook is indecisive at the moment.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.
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