Weekly Fundamental Forecast: Markets Start a New Month with G20, Brexit, Euro-Area Stability and Fed Policy All Under Scrutiny
Though the capital and forex markets generally held back from systemic trends this past month, volatility was practically overflowing through the period. The typical ‘quiet December’ assumption will be put to the test against a laundry list of critical, unresolved fundamental threats. Traders should not be complacent.
USD/JPY may consolidate ahead of the last Federal Reserve meeting for 2018 as the exchange rate preserves the range-bound price action from November.
The Australian Dollar remains buoyed up against its US rival, and any signs of a trade thaw between Washington and Beijing could lift it further
Ouch. A massive reversal in the crude market has shifted the global outlook, and ripple effects are being felt the Vienna OPEC meeting seen as last hope to salvage 2018.
The Canadian Dollar is bracing for volatility as it has the BoC rate decision, November’s domestic jobs report and an OPEC meeting for near-term risks that carry long-term implications.
UK PM Theresa May continues to push her Brexit deal as the only viable option but the voting numbers don’t add up and that leaves Sterling increasingly vulnerable.
With only one ‘high’ rated event on the economic calendar this week, attention will be mainly centered around developments in the Italian debt crisis.
The US Dollar may rise as incoming economic data and clarifying remarks from Chair Powell revive bets on a robust interest rate hike cycle in 2019.
Another narrow trading range for the yellow metal ($1210-1228) with prices closing lower by 0.3%. Gold watchers will be placing a keen eye on the outcome of the G20 summit.
The ramifications from the G-20 Summit in Argentina will dominate headlines in the coming days as speculators digest the longer-lasting impacts of discussion
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