Politics are back in focus for financial markets as protectionism threatens to derail global economic growth and Italy holds a worrying election.
The US Dollar wiped-out early week gains after talk of tariffs on Chinese steel and aluminum gripped markets’ attention. This obscured the earlier testimony from new Fed Chair Jerome Powell, when he talked down the ‘Fed Put’ while hinting towards the possibility of four hikes out of the US this year.
Sterling got an early uplift this week from hawkish central bank commentary but the ongoing stalemate in the Brexit negotiations continues to weigh on the British Pound.
The Japanese Yen seems like an attractive bid for next week given the upcoming Italian election and US jobs report. Don’t dismiss the possibility of more US tariff retaliation too.
The Australian Dollar market can look forward to two key local economic events this week. Neither may be very comforting for the bulls.
Equities Forecast: Global Indices Undergoing 'Stress Test'; More Losses Could Be in Store
Next week stock markets could be under further fire as risk aversion hits once again; several key events on the docket.
See how retail traders are positioning in the majors using the IG Client Sentiment readings on the sentiment page.
- ^ US Dollar (www.dailyfx.com)
- ^ Dollar Strength Tempered by Tariff Talk: Powell Hints of Four-Hike Potential (www.dailyfx.com)
- ^ British Pound (www.dailyfx.com)
- ^ The Song Remains The Same – Brexit (www.dailyfx.com)
- ^ Japanese Yen (www.dailyfx.com)
- ^ Yen Looks Attractive on Italian Election, US Jobs Data and More (www.dailyfx.com)
- ^ Australian Dollar (www.dailyfx.com)
- ^ Australian Dollar Could Struggle With RBA Rate Call, Lowe Speech (www.dailyfx.com)
- ^ Global Indices Undergoing 'Stress Test'; More Losses Could Be in Store (www.dailyfx.com)
- ^ Gold Prices Buoyed by Trump Tariff Talks- Is a Bottom In Place? (www.dailyfx.com)
- ^ Gold prices (www.dailyfx.com)
- ^ DailyFX Webinar Calendar (www.dailyfx.com)
- ^ IG Client Sentiment readings on the sentiment page (www.dailyfx.com)