Weekly Trading Forecast: Risk Appetite Returns on Central Bank Promises Rather Than Growth Prospects
Trade wars persist and the outlook for global growth is slowly eroding, yet that may inadvertently prove the charge that speculative investors have sought. With core and external risks rising, calls for the central banks to step into to provide relief have risen to a fever pitch. After the Fed Chair’s remarks last week, the market’s assumption of another infusion has clearly taken over.
These dubious days for the global economy are unsurprisingly pretty good ones for gold. However, the metal has risen sharply and bulls may not feel ready to push on higher yet
The cycle-sensitive Australian Dollar is at risk from employment data and trade war developments which are undermining global growth prospects.
Efforts by OPEC and its allies may curb the recent selloff in the price of oil as the group remains committed in stabilizing the energy market.
Sterling (GBP) is expected to remain around current levels over the week, with little Brexit news of late to spark volatility. The process of choosing the next Conservative leader, and Prime Minister, begins next Monday at the start of a week front-loaded full of heavyweight UK data releases.
See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.
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.