Weekly Fundamental Forecast: Dow Looks to Reconcile with Global Risk Trends, FX Markets Deal with Systemic Themes
The US equity indices have diverged widely from global peers and other risk trends through recent months. Will this incredible disparity balloon even further or perhaps start to converge in the week ahead as trade wars, monetary policy and political risk crowd the headlines?
New Zealand Dollar weakness could pick up pace as emerging markets and stocks still look vulnerable. It eyes Brazilian elections, IMF world economic outlook and perhaps trade wars.
Sterling continues to edge higher, against a range of currencies, as Brexit talk turn slightly more positive as both reiterate their intention to make a deal.
The US Dollar may continue higher as September’s CPI data endorses a hawkish shift in Fed policy bets while churning sentiment trends drive haven demand.
October has complicated the fundamental outlook for gold with diverging factors influencing the precious metal.
Euro Forecast –
Next week, stock markets could be in for more selling with leading U.S. stocks getting hit end of last week; calendar is light with risk trends being a big focus.
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See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.