Weekly Fundamental Forecast: Trade Wars, Government Shutdown and Brexit Threaten to Stir Volatility
While this past week saw markets settle further from the unusually volatile December, traders should not grow too comfortable. There are a host of themes – from the US government shutdown to impending Brexit vote – which could readily offer a fundamental charge in the week ahead.
The Australian Dollar has risen into the new year as hopes for détente between the US and China on trade have lifted risk appetite. This is likely to prove an unreliable source of support
The Euro has meandered around at the start of 2019, lacking any clear direction. Why might that be the case?
The rally in crude oil prices, the best winning streak since 2012, is undermined by economic weakness in China and slowing growth in the US. They are the largest consumers of oil.
Parliament will vote down PM May’s Brexit bill on Tuesday evening opening the door to further mayhem. When will Sterling throw in the towel?
The US Dollar may trade broadly higher as a barrage of economic data prompts a deep rethink of the recent dovish shift in Fed monetary policy expectations.
Theresa May’s government will likely be the headline event of the week as it looks to pressure the FTSE 100. Meanwhile, US indices will enjoy a firmly dovish Federal Reserve.
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