Weekly Trading Forecast: Risk Appetite Overcomes Growth Concerns
Speculative appetite – also called ‘animal spirits’ – is holding effective control over the capital markets. Despite regular warnings over the health of the global economy and infighting that suggests there is little capacity or will to fight future fires, the markets continue their advance in pursuit of capital gains. Is this a sustainable course?
Crude oil prices may trade higher over the coming days as the Relative Strength Index (RSI) sits in overbought territory for the first time in 2019.
A softer Brexit outcome is beginning to look more likely after the UK Parliament took a no deal Brexit off the table, while the potential for a year long Article 50. delay may usher in a second referendum.
Gold prices may fall if downbeat comments from the ECB and the Fed spur haven demand for US Dollar. Lower bond yields may help cap the downside.
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See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.