Weekly Fundamental Forecast: Trade War Fears Cool, Equities Rally, Brexit Talks Deteriorate for Next Week
The primary fundamental drivers of the past months have taken a notable change in course or have otherwise withdrawn their influence over the broader markets. Is this renewed risk appetite and discounted range of threats a dependable course for the financial system and speculators?
The remarkable recovery in New Zealand Dollar could be at risk if the RBNZ still leaves the door open to rate cuts as Fed raises them and prepares the markets for the last one this year.
The Japanese Yen had another soft week, while the fundamental theme alongside the technical set up suggest that the recent weakness is set to continue.
The world has changed since OPEC met last in June including an EM crisis, Trade war escalations, and further oil market tightening that could tilt the outcome of the plan to hike oil output.
Sterling came down to earth with a bang as EU leaders roundly rejected UK PM Theresa May’s Chequers proposal, leaving future Brexit negotiations looking precarious.
Gold is headed for a break in the next week as it trades narrowly between two trend lines. The precious metal faces bearish sentiment with US equities at all-time highs.
The Australian Dollar has had a rare run of gains,which have taken it up to three-week highs. However they may not continue in the coming week
China’s Central Banks launched a new measure to support the Yuan and the Hong Kong Dollar ahead of Fed’s meeting. At the same time, concerns on the US-China trade war continue to pile up.
Euro Forecast –
Global stock markets remain bid, especially the U.S., looking to close out month and quarter on a positive note; FOMC on tap for Wednesday.
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