Nasdaq 100, Dow Jones, US Dollar, Gold, Bitcoin, FTX, G-20 Summit


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Market sentiment notably improved this previous week. On Wall Street, Nasdaq 100, S&P 500 and Dow Jones futures soared about 8.4%, 5.7% and 4.02%, respectively. This was a number of the greatest performances in months. Risk urge for food additionally improved all over the world. The Dax 40, Nikkei 225 and Hang Seng soared 5.68%, 3.91% and seven.21%, respectively.

The key driver of sentiment final week was October’s US inflation report, the place each the headline and core fee of CPI unexpectedly softened. Traders shortly pared again 2023 Fed fee hike bets as odds of a 75-basis level fee enhance in December just about disappeared in a single day. The US Dollar tumbled as gold costs soared.

From a monetary markets’ standpoint, this knowledge overshadowed US mid-term elections, the place expectations of a Republican ‘red wave’ faltered. Cryptocurrencies have been within the sizzling seat final week amid FTX submitting for chapter after Binance walked away from a attainable acquisition. Despite the surge in shares, Bitcoin was down about 20 p.c final week.

As far as financial occasion danger goes subsequent week, the US will see extra Fedspeak, PPI and retail gross sales knowledge. Unexpectedly sturdy showings right here might to a sure extent danger reversing a number of the market strikes to the CPI print final week. For the British Pound and Canadian Dollar, the UK and Canada will launch inflation knowledge.

Meanwhile, the group of G-20 nations will probably be assembly in Bali, Indonesia in the course of the center of the week. Tensions are excessive amid the battle in Ukraine and ongoing excessive ranges of inflation. Earnings season can be in play, with main retailers in focus equivalent to Walmart and Home Depot. What else is in retailer for monetary markets within the week forward?

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US Dollar Performance vs. Currencies and Gold

Fundamental Forecasts:

British Pound Weekly Forecast: Data Filled Week for GBP (

GBP/USD pushed greater final week however with a full UK financial calendar forward, cracks may begin to seem.

Australian Dollar Outlook: US Dollar Crunch Boosts Aussie

The Australian Dollar roared to life final week after smooth US CPI knowledge despatched Treasury yields and the US Dollar to the basement on hopes of a Fed pivot. Will AUD/USD hold rallying?

Cryptocurrency Meltdown Pauses After FTX and Alameda Implosion

Two of the largest names within the cryptocurrency market, FTX and Alameda, could also be nugatory now after revealing losses working into billions of US {dollars}.

US Dollar Outlook Turns Bearish as Slowing Inflation May Further Weigh on Yields

The U.S. greenback may prolong its near-term correction as slowing U.S. inflation may hold Treasury yields biased to the draw back as merchants reprice decrease the trail of financial coverage.

Gold Price Forecast: Soft US Inflation Data Has XAU/USD Eyeing Less Hawkish Fed

Gold costs rallied probably the most since March 2020 final week as a softer US inflation report noticed merchants worth in a much less hawkish Federal Reserve. Ahead, eyes are on Fedspeak, PPI and retail gross sales knowledge.

EUR/USD Rate Eyes August High Ahead of US Retail Sales Report

EUR/USD is on observe to check the August excessive (1.0369) forward of the US Retail Sales report amid rising hypothesis for a smaller Federal Reserve fee hike in December

Canadian Dollar Forecast: Outlook Remains Mixed Despite USDCAD Plunge

The outlook for the Canadian Dollar is blended because the Loonie struggles towards G10 counterparts.

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Technical Forecasts:

Gold Price Forecast: Gold Breakout Underway as Silver Eyes Resistance

A gold worth breakout is underway with a rally of practically 5% taking worth although yearly downtrend resistance. Levels that matter on the XAU/USD weekly technical chart.

S&P500, Nasdaq, Dow Jones, DAX Forecast for the Week Ahead

If shares do not sell-off on dangerous information, there’s most likely one thing else occurring. And for the Nasdaq and S&P 500, which may be a continued squeeze after bullish breaks of falling wedge formations.

WTI Crude Oil Technical Forecast: Morning Star Candlestick Pattern Hints at Higher Prices

WTI worth motion not offering the clearest image at current. Any additional features prone to be capped by double high formation.

GBP Technical Forecast: Sterling Drivers Remain Limited Despite USD Boost

The pound might seem to have turned a nook when considered towards the greenback however wider comparisons verify that GBP stays below strain

Japanese Yen Technical Outlook: Is the USD/JPY Rally Done?

A pointy slide final week has raised the chances of an interim high in USD/JPY. How may the pattern play out within the brief time period and what are the signposts to look at?

US Dollar Technical Forecast for the Week Ahead

The Dollar sell-off following Friday’s CPI quantity has the DXY working decrease in the direction of the 200-day MA.

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