Market sentiment skyrocketed last week. On Wall Street, futures following the Nasdaq 100 jumped 7.28%, their best five-day performance since March. This is because the S&P 500 futures and the Dow Jones are up 6.76% and 6.39% respectively, their highest since November 2020. Things are looking good in Europe too, with the DAX 40 up 3.44%. The Hang Seng Index is up 2.89. %
Almost all G10 currencies outperform the US dollar. This includes the New Zealand dollar. Australian Dollar Euro British Pound Canadian Dollar and the Japanese Yen. The DXY Dollar Index has dropped 1.32% over the past two weeks. The most since April 2021. What explains this dynamic? Look no further than the Federal Reserve.
in the past few weeks We have seen the market Raises expectations for the Fed to raise interest rates in 2023 concretely.The cautious comments from the central bank reduced the chances of a 50 basis point hike in September. It appears traders have shifted their focus from inflation concerns to recession. Data from the beginning of May indicates that The market is seeing the Fed. add more lagging behind in CPI management one year away
This has resulted in a broader decline in Treasury yields. The combination of this and the weakening US dollar also has a positive effect on gold prices. next week All eyes will be on non-farm payrolls on Friday. Can the market move forward? Job creation is expected to slow. But the unemployment rate and wages remain strong.
In addition to the largest economy in the world The Bank of Canada is expected to raise interest rates 50 basis points on Wednesday. Australia releases first-quarter GDP data; China will closely monitor May manufacturing PMI data. Weak data may amplify concerns regarding a slowing global economy. which may put pressure on the yuan What else is waiting for the market ahead?
US dollar performance vs. performance currency and gold
Basic forecast:
Weekly GBP/USD Forecast: GBP Jubilation, EUR/GBP Upside Risks Remain
Back to back weekly profit for GBP/USD EUR/GBP eyes EU inflation.
Australian Dollar Outlook: Volatility in Risk Sentiment, AUD Push and Pull
The Australian Dollar has a solid foundation right now. But external factors still put pressure on the currency. Will AUD/USD take its own path?
Bitcoin Weekly Forecast: Price Still Major Support – Is It A Breakout On The Cards?
Bitcoin continues to rally above main support as JP Morgan says there are huge advantages for the area. Is a breakout in the making?
Stock Market Outlook: S&P 500, DAX 40, FTSE 100, Nikkei 225
during the past week The world’s major stock indices need some recovery. But the relief will likely be a by-product of the liquidity drain before the weekend. With growth forecasts collapsing and the central bank striving to cut inflation A downtrend seems inevitable.
Gold Prices May Rise on US Recession Concerns Cools the Fed’s Interest Rate Outlook
Gold prices may continue to recover in the next few days. If the US economic data It worsens and cools the bet on a more aggressive Federal Reserve monetary policy outlook.
Euro next week: EUR/USD recovers in focus. But a total reversal seems unlikely.
The Euro has performed its best in two weeks since January. As markets spurred ECB rate hikes and softened expectations for a tight Fed, EUR/USD continues to face several hurdles.
Technical forecasts:
S&P 500, Nasdaq, Dow Technical Forecast: The level of the stock reversal
Stocks break off seven-week support, with the index reacting to key support. Key levels in the weekly technical charts of the SPX500, Nasdaq & Dow.
US Dollar Drops From 2 Decade Highs, Significant Levels Appear
The DXY Dollar Index has continued to climb throughout the year. But the currency seems to take your breath away. With a retracement from 105 – or a bounce from 1.0350 for EURUSD – we now find that Greenback has an immediate conflict with key support.
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