Dow Rises and Gold Falls on Trade War Enthusiasm, ECB Decision Top Event Ahead
Though tentative, market participants latched on to nascent signs that trade war conditions may improve and the threat of recession is not as imminent as many fear. This would be the perfect opportunity for monetary policy to further leverage the uneven swell in sentiment. The ECB will start a run of key policy meetings, but its decision in particular will echo through the markets.
British Pound traders will likely experience nauseating volatility next week as Brexit negotiations continue to wrap traders in a web of uncertainty as the October 31 deadline approaches.
Last week was a good one for Australian Dollar bulls but, as nothing fundamental has changed, gains must be regarded as fragile.
Developments coming out of the World Energy Council may influence crude prices as OPEC and its allies remain committed in balancing the energy market.
A volatile week for gold, hitting a fresh six year+ high before dropping over 3% in one day as risk sentiment swings sharply. And the drivers remain US and China.
The US Dollar may be back on offense after last week’s retreat, buoyed by haven demand as well as a dovish ECB and a fourth month of gains in core inflation.
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