The general market sentiment became cautious last week – North American equities ( Dow Jones and S&P 500 indices) and European (FTSE 100 and DAX 30 indices), spending most of their time down. Those in Asia were confused. Japan’s Nikkei 225 and China Shanghai Composite achieved. Australia’s ASX 200 weakened.
The cautious deterioration in mood meant a recent weakness US dollar slowed down. Growth-related currencies, such as the Australian and New Zealand dollars, softened. Anti-risk Japanese yen saw strength. Anti-Fiat gold prices fell when Greenback won. Crude oil prices also turned slightly lower.
Following the interest rate decisions of the RBA, the BoC and the ECB’s central bank, traders are likely to monitor key inflation data. The United States, the United Kingdom and Canada publish their latest CPI data. They continue to shape how central banks can approach policy tightening. It could bring in a few US dollars, British pound and Canadian dollar volatility.
At the beginning of the week, OPEC will publish the latest monthly newsletter oil market report. WTI crude oil prices have weakened since July. This stems from concerns about the global growth outlook, as the Covid Delta option has reduced demand woes. US retail sales may also be volatile, especially as Covid shows increasing signs of recovery.
Tuesday’s election to recall California governors could be a source of market volatility. Democratic Governor Gavin Newsom could be ousted by a simple majority and replaced by leading Republican candidate Larry Elder. The latter could appoint a Republican senator if the current Democratic senator Dianne Feinstein resigns during his term. This would threaten a thin majority of Democrat cents as a consequence of fiscal policy.
US DOLLAR WEEK RESULT AGAINST VALUES AND GOLD
The update of the US consumer price index (CPI) is likely to affect the US dollar during the Federal Reserve power outage as the central bank prepares for a temporary rise in inflation.
Avoid taking back the S&P 500 in the middle of the month. The risks of the FTSE 100 are targeted at 7,000 breakthroughs
Does the GBP see a long-term effect when MEPs vote to raise taxes?
With this month’s ECB Policy Council meeting now off the road, there is nothing to stop Euro as monetary policy in the euro area converges.
Brent crude oil, which will not be disturbed by the Eastern effects, the increase in OPEC supply and the auctioning of Chinese oil reserves, as a good demand forecast for the second half of 2022 supports prices
Equities are pulling back a bit here, but so far the pricing is not overly pervasive or trend-damaging; support to watch in the coming days.
After falling below the 200-day SMA, the outlook for the price of gold has become slightly negative, but sellers have to withdraw Fibonacci’s key support to confirm the harsh bias
British pound technical pose against US dollar Australian dollarand Swiss franc highlights the potential for an applicable level of trade. Here are the GBPUSD charts, GBPAUDand GBPCHF for the coming week.
The Canadian dollar could still hold a counterattack USD/ CAD recovery is limited by annual opening. Loonie levels that are important in the weekly technical schedule.