Forex pairs & markets covered in this week’s Weekly Forex Forecast & Forex Analysis:
USD (DXY), EUR, GBP, CHF, JPY, CAD, AUD & NZD.
EurUsd, UsdJpy, NzdUsd, AudUsd, Crude Oil (WTI), EurCad, CadJpy, AudJpy, EurChf, GbpChf, EurAud, EurNzd, SPX (S&P 500), Russell 2000, Nasdaq, Dow Jones, Nifty, XauUsd (Gold Analysis), XagUsd (Silver Analysis), Btc/Usd ( Bitcoin Analysis) & more!
Weekly notes
All eyes are fixed on FOMC this Wednesday as markets look likely to settle into Wednesday's meeting.
The USD goes into this week completely neutral, reflecting the upcoming policy meeting this week. The DXY is unlikely to find any real direction until Wednesday's meeting and this could well be true for markets across the board given the USD status as the world reserve currency.
The JPY remains the weakest currency having corrected from an over-entended sell off recently with the safe aven asset of the CHF gaining last week and transitioning from Bearish to Bullish (albeit Bullish/Neutral currently).
Stocks look set for a near term top over the next few weeks with profit taking likely to come in from the previous rally higher. Whilst the broader outlook for Stocks remains Bullish, a 3-5% pullback looks highly probably in the immediate term outlook.
With Wednesday's meeting having the potential to dictate the direction of markets for the next few months, an approach of being "reactive" (to the outcome of Wednesday's meeting) as oppose to "predictive" makes the most sense this week.
Patience is a virtue, and never more so than in FOMC weeks.
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Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
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Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.