Fundamental traders are finding it difficult to determine exactly what to keep tabs on for generating volatility in the markets. Is the escalation of the US-led trade war with another $267 billion tariff threat on China and not-so-subtle threat to pull Japan in more market-moving than scheduled events like the ECB and BoE rate decisions?
New Zealand Dollar Forecast – NZD/USD Prices May Fall on Swedish Election and as ECB Sinks Euro
The New Zealand Dollar could be vulnerable to political and trade wars next. A Swedish election could lessen the urgency for the ECB to raise rates in 2019, sending EUR/USD and NZD/USD lower.
Japanese Yen Forecast – The Japanese Yen Moves into the Tariff Conversation
The Japanese Yen caught a bid this week when indications began to show that we may soon see tariff discussions aimed at Japan. This could complicate the return of Yen-weakness, and given the backdrop of global risk aversion, may help to soon open the door to strategies of strength.
Crude Oil Forecast – Trade Wars and an Emerging Market Crisis Likely To Keep Oil Volatile
Crude oil fell 6% from Tuesday to Friday as the Emerging Market crisis escalated, but bulls have reason to remain hopeful as demand in China remains robust and supply may soon wane.
British Pound Forecast – Positive Momentum Will Continue to Drive Sterling Higher
Sterling continues to point higher across a range of currencies as negative Brexit sentiment continues to fade away as investors start to believe that a positive Brexit outcome is nearing.
US Dollar Forecast – US Dollar May Rise on CPI, Trade Wars and Emerging Markets Stress
The US Dollar may continue higher after last week’s spirited advance as CPI data boosts Fed rate hike bets while a plethora of risk-off catalysts stokes haven demand.
Gold Forecast – Gold Prices Vulnerable to Sticky U.S Core CPI, Retail Sales
Fresh developments coming out of the U.S. economy may keep gold prices under pressure should the data prints keep the Fed on track to implement higher interest rates.