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
The US Dollar 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
USD/JPY 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
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
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
New Zealand Dollar seems vulnerable to US tariffs on China as trade war fears rise, sending the S&P 500 lower. Also, the BoC preparing markets for a hike bodes ill forNZD/USD prices.
Canadian Dollar Forecast – Short Term CAD Outlook Dependent on NAFTA Outcome
Key risk events keep implied volatility for the CAD at lofty levels with markets placing close attention to the outcome of NAFTA talks. Elsewhere, the BoC will likely emphasis gradual tightening at rate decision.
Oil Forecast – Crude Oil Market Focuses On Supply Risk, Not Trump Threats As Oil Sees Monthly Gain
