Global Market Wrap and Lookahead.
- The US dollar resumed its post-FOMC decline.
- US indices continue to climb.
- A constant stream of important economic data and upcoming events.
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This week’s economic calendar is packed with a wide range of market-moving economic releases that will help position the market ahead of the series of global monetary policy decisions in mid-December. Coming up, among other things, we have German inflation and jobs, Canadian and Swiss third quarter GDP figures, Eurozone inflation, speeches by Fed Chairman Jerome Powell and Bank Kuroda from Japan, Canadian Employment and the closely watched US Core PCE and the Non-Farm Payroll version.
For all economic data and event releases on market developments, see the DailyFX Calendar.
Last week’s shortened holiday market was dominated by further weakness in the US dollar after FOMC minutes revealed that a majority of members thought a slower pace of rate hikes might be appropriate. A mere nod from the Fed that it might take its foot off the accelerator sent the US dollar tumbling and pushing a series of risky markets higher. The market now expects a 50 basis point rate hike at the mid-December FOMC meeting.
Fundamental forecast for w/c November 28, 2022
Serious market events ahead for the S&P 500, FTSE 100, DAX and Nikkei
Liquidity will return next week in a market that has seen both seasonal and structural volatility suppression. As we head into the year-end holiday period which typically amplifies expectations of reduced activity and participation, there is no guarantee that calm will prevail.
British Pound Fundamental Forecast: Retailers Hop for Boost in Black Friday Sales
UK retailers are hoping Black Friday shopping will boost spending ahead of the festive season during one of the worst cost of living crises the UK has seen in years.
Australian Dollar Outlook: A Falling US Dollar Floats All Boats
The Australian dollar jumped to a 2-month high late last week as the US dollar tumbled on market perception of a change in Federal Reserve policy.
US Dollar Outlook: Will Heavy Data Stem Continued US Dollar Decline?
The US dollar continues to weaken in anticipation of a slightly less hawkish outlook from the Fed. The US dollar had been a one-way trade for most of 2022, before the recent reversal. The DXY has fallen 8% since late September.
Euro week ahead: EUR/USD heading for best month since 2010? Eyes on the Eurozone CPI
The euro is likely heading for its best month since September 2010 as markets focus on the relativity between the Fed and the ECB. EUR/USD then eyes Eurozone CPI and Nonfarm Payrolls data.
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Technical forecast for w/c November 28, 2022
Gold (XAU/USD) Solidifies Around Key Technical Support Area
Gold prices have moved back into a zone of technical support and resistance around the key psychological handle at $1,750. Can the bulls push XAU higher or will the bears step in?
US Dollar Technical Forecast: EUR/USD, GBP/USD, USD/CAD, USD/JPY
The US Dollar’s uptrend remains on hold after hitting a new 20-year high in September. October’s price action brought indecision into the mix, but so far November has been a quick reversal as prices pulled back.
Bitcoin (BTC), Ethereum (ETH) Weekly Forecast: Potential Short-Term Rebound
Both Bitcoin and Ethereum are creating notable technical formations that can lead to short-term breakouts.
S&P 500 and Nasdaq Composite Index Technical Outlook: Looking for a Break Up?
After a shortened holiday week, the S&P 500 is at a crucial crossroads, a break above that could increase the odds that medium-term weakness in US equities will begin to reverse.
Japanese Yen Weekly Forecast: 140 Keys For USD/JPY Ahead Of US Economic Data
Technical analysis considers the 140.00 inflection point to be important for the short-term directional bias for USD/JPY.
What is your opinion on market sentiment – bullish or bearish?? You can let us know via the form at the end of this article or you can contact the author via Twitter @nickcawley1.
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