Markets Week Ahead: US Dollar, Gold, Crude Oil, Nasdaq 100, RBNZ, FOMC Minutes, CPI
The US Dollar outperformed its major counterparts this past week, with the DXY Dollar Index gaining over 0.8 percent. In fact, the DXY just wrapped up its 4th consecutive weekly gain. The last time the same winning streak occurred was back in February. A 5th push higher would mean the most consecutive performance since May 2022.
Headline US inflation ticked slightly higher in July, although it was slightly lower than expected. Meanwhile, robust growth estimates from the Federal Reserve for the immediate quarter ahead coupled with commentary from policymakers pushed financial markets to continue raising long-term interest rate expectations. That helped the 10-year Treasury yield close at its highest since October.
Meanwhile, WTI crude oil prices just barely managed to pull off another gain, rising 0.5%. At 7 weeks, this is the longest consecutive winning streak for the commodity since January 2022. Meanwhile, rising Treasury yields and a stronger US Dollar dented gold prices. XAU/USD closed at its lowest since March.
As far as sentiment was concerned, the tech-heavy Nasdaq 100 fell 1.7% last week. In fact, the past 2 weeks have been the worst for the index since December. Losses occurred for 2 weeks in a row for the first time this year.
For the week ahead, the RBNZ will be setting monetary policy. A hold is expected. Meanwhile, FOMC meeting minutes are also due. This is as inflation data will cross the wires from Canada and the United Kingdom. What else is in store for markets in the week ahead?
How Markets Performed – Week of 8/7
The latest UK growth data showed the economy in slightly better health than previously thought. Next week, the latest inflation and jobs releases will be key for Sterling moving forward.
The WTI Market has climbed back to its highs for the year but doesn’t look comfortable there.
The Dollar Index (DXY) Is on a tear at the moment with its fourth successive week of gains. Will the rally continue given that the FOMC minutes and a barrage of resistance lie ahead?
Gold and silver are approaching a crucial juncture that could define the trend for subsequent weeks, perhaps months. What is the outlook and what are the key levels to watch in XAU/USD and XAG/USD?
--- Article Body Written by Daniel Dubrovsky, Senior Strategist for DailyFX.com
--- Individual Articles Composed by DailyFX Team Members
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