Trading Forecast: What Will a Return of Volatility Do to Trade Wars, Recession Fears?
We have closed out the month of August – historically one of the most reserved periods of trading for the risk-leaning assets of the calendar year. What we face in September is one of the most heavily traded, volatile and under-performing periods of the year. What will that seasonal shift lead to when we consider the relentless pressure from trade wars, recession fears and monetary policy speculation?
The US Dollar may rise if commentary from Fed officials throughout the week pour cold water over rising rate cut bets as financial markets grow more fragile.
The Australian Dollar has got two huge economic data points on the schedule this week, but they may have to stray far from expectations to loosen overall risk appetite’s grip.
Fresh developments coming out of the US are likely to influence the price of gold amid overwhelming expectations for a Federal Reserve rate cut in September.
Crude oil prices are likely to prolong a four-month downtrend as trade war and recession fears undermine demand prospects for the cycle-sensitive commodity.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.