Weekly Trading Forecast: Fed, Team Trump Battle for Influence
Financial markets cheered a confident Fed yet wilted on fears of status-quo-shattering maneuvers from "team Trump" last week. The tug of war is set to resume in the week ahead.
The US Dollar may find renewed support from a hawkish Federal Reserve in the week ahead but worrisome headlines from Washington, DC remain a potent threat.
Headlines coming out of the G20 meeting may yield a limited reaction in USD/JPY as the group of global finance ministers strive to avert a currency war.
The Australian Dollar dodged a couple of bullets as local sentiment indicators soared, stealing some of the limelight from the US Fed as they did so. That will not happen again.
Chinese Yuan Forecast: Offshore Yuan Exposed to Onshore Risks as Spread Narrows
The two Dollar/Yuan pairs have been driven by different themes of recent: The Dollar’s strength weighted more on the offshore pair, while the onshore Yuan eyed more on moves from China’s Central Bank.
Crude Oil looks poised to end the week lower for the first time in five weeks. However, there is a silver lining. As of Friday morning, the weekly price range in Crude Oil is the smallest in 13-years.
Global Equities Forecast: Global Equity Indices Buoyed, but Risk Quickly Rising for the S&P 500
Last week was a generally bullish one for equity indices outside of Japan, with U.S. and European markets showing modest to strong gains. Volatility was muted, something which traders are hoping will soon change.
Gold Forecast: Gold Prices Flirt with 1250 Hurdle Ahead of FOMC Minutes
Gold prices pressed higher for a third consecutive week with the precious metal up 0.39% to trade at 1238 ahead of the New York close on Friday.