Weekly Trading Forecast: Fed Decision, Brexit and Risk Trends Tempt Volatility
Systemic themes such as trade wars and slower economic expansion will take a backseat for this upcoming trading week. Monetary policy will return to the forefront with the Fed decision on tap with four other central bank meetings while Brexit faces yet another ‘crucial’ week.
The Australian Dollar may well face renewed pressure if the week’s central bank speeches again highlight the utility of a weaker currency. Stronger data may help the bulls’ cause though.
Brexit will continue to dominate the domestic scene, putting the latest Bank of England policy decisions in the shade. Meaningful Vote 3 is expected to be voted down again, leaving PM May increasingly isolated.
While the spot gold price chart shows consolidation at its current level, looming fundamental drivers could ignite the next move in XAUUSD.
With the major equity indices simultaneously testing technical resistance, catalysts will be found from fundamental developments in the week ahead.
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