The summer lull has come to a close, but no serious fundamental themes have been resolved during the volatility hiatus. Now, with an expected seasonal pick up in market participation; the markets will have to keep tabs on pressing themes like Trade wars while high profile event risk (such as NFPs) crosses the wires.
US Dollar Forecast – US Dollar Aims Higher on Haven Demand, Yield Appeal[1]
The US Dollar[2] is poised to continue higher, finding compelling narratives to drive demand in both risk on and off trading conditions.
Japanese Yen Forecast - USD/JPY Initiates Bearish Sequence Amid Failed Run at August-High[3]
USD/JPY[4] may exhibit a more bearish behavior ahead of the Non-Farm Payrolls (NFP) report as it initiates a bearish sequence after failing to test the August-high (112.15)
British Pound Forecast – Sterling Dips Look Attractive After Brexit Breakthrough[5]
The mid-week announcement that the EU is willing to offer the UK an unprecedented third-country deal sent Sterling racing higher as Brexit gloom began to clear.
Australian Dollar Forecast –Australian Dollar Unlikely To Get Much Lift From Crowded Data Week[6]
There is plenty of interesting Australian stuff going on this week, with an interest rate decision and official growth data crowning a full schedule.
New Zealand Dollar Forecast - NZD/USD Vulnerable to US Tariffs & Trade War Fears, BoC Hike Bets[7]
New Zealand Dollar[8] seems vulnerable to US tariffs on China as trade war fears rise, sending the S&P 500[9] lower. Also, the BoC preparing markets for a hike bodes ill for NZD/USD[10] prices.
